The Salary Calculator

A Blooming Business: Seetal Jutla’s Side Hustle Success

by Madaline Dunn

For Seetal Jutla, a wedding and floral preservation artist, lockdown signified a new beginning — and it all started with a flower delivery.

In the UK, the side hustle scene is hotting up. Between 2023 and 2024, the number of side hustles increased by 20 per cent, with entrepreneurs now earning an average of £5,420 per year. This week, The Salary Calculator speaks to Seetal Jutla, the owner of Playing with Flowers, a wedding and floral preservation business, about her side hustle success and the joys of flower pressing.

When a colleague’s thank-you bouquet arrived at Seetal’s doorstep nearly five years ago, against the backdrop of Covid-quarantines and stay-at-home orders, it was a gift that let the light in. 

“[The flowers] were so lovely and I really appreciated the sentiment behind them,” said Seetal. “My manager suggested I press them.” 

Feeling inspired, Seetal placed the flowers in a book, and it wasn’t until five months later that she came across them again while tidying up.

“I decided to make something for a friend of mine — just a little keepsake in a frame — and that sparked the whole journey,” Seetal explained. 

From there, through trial and error, she began to experiment with different flowers (courtesy of her neighbour’s garden) and pressing techniques, making gifts for friends and family. 

“At the time, I wasn’t thinking I could make this into a business,” said Seetal, noting that the idea to press wedding flowers came from a friend. 

So, when a colleague announced that they were tying the knot, it seemed like a natural next step. “It grew organically from there.”

For Seetal, who had never felt artistic before, flower pressing became a process that brought her both a great sense of fulfilment and a method through which to practice mindfulness — especially when her mother passed away. 

“It was a kind of coping mechanism,” said Seetal, who added that flower pressing has continued to help her through her healing journey. “I think having something outside of my day job really helped as a distraction, but also as a creative outlet,” she said.

Establishing the building blocks

Seetal explained that along the way, she’s learned new ways to structure her work, expanded her skill set, and discovered tools that have helped her shape and streamline her business.

Having started from scratch, every day is a learning experience, she said, whether she’s using spreadsheets to track enquiries, frames and orders or building out her branding, social media and customer communications. 

Working out a pricing strategy in particular has been challenging, Seetal explained: “I think it’s really difficult when you’re doing something creative because people say, ‘How can you put a value on art?’” For Seetal, this means balancing affordability with valuing her time and skill.

According to Seetal, the wider flower pressing community has been a vital source of support, too, whether that’s helping to draft terms of service or connecting with local framers and florists.

“AI has also been an absolute godsend for streamlining and helping with the strategy side of things,” said Seetal, who juggles her side hustle alongside a full-time job. 

A business balancing act

Seetal is not alone here. Research from Sage shows that almost half of Brits now manage a side hustle alongside their job. 

“It’s challenging balancing a full-time job and the side hustle, especially because [the business] has grown quite significantly.”

Beyond flower pressing, which Seetal said requires both time and patience, a lot of work goes on behind the scenes, from business management to packaging and deliveries.

“Every challenge has made me more confident”

While compressing her full-time hours has freed up one day a fortnight to focus on order admin, Seetal noted that time scarcity is not the only challenge that comes with running a business. 

“It’s easy to compare yourself to others online — I fell into that early on, and it can be damaging,” she explained. 

Seetal noted that as someone who has often struggled with self-doubt, she finds it important to remember that everyone’s journey is unique, adding that social media “shows the highlight reel, not the process.”

“Every challenge has made me more confident,” said Seetal. “Now I feel ready to take on opportunities like wedding fayres and put myself out there more.”

Start small, be authentic

Indeed, for those thinking of launching their own side hustle, Seetal advised to start small, learn as you go and be authentic. 

“You don’t need a grand plan, just curiosity,” she shared, encouraging budding entrepreneurs to take mistakes as lessons, rather than failures.

“Keep the joy alive — it should bring you peace and fulfilment”

When building out your business, Seetal said that it’s also important to set boundaries to ensure your side hustle remains enjoyable: “Keep the joy alive — it should bring you peace and fulfilment, not pressure.”

One such boundary Seetal has put in place is containing the business to social media platforms like Instagram and Facebook, rather than launching a website.

“It helps me to manage not just my time, but also my commitment in terms of how much of myself I’m willing to put into the side hustle,” explained Seetal, adding that this decision also minimises business costs.

Likewise, the flower preservation artist said that it’s essential to keep both feet on the ground when making business decisions. 

“People ask me all the time, ‘Are you going to go full-time?’ ‘Are you going to leave work?’ It would be amazing if I did, but it’s just not realistic,” she said, adding that her side hustle is largely seasonal.

“Growth takes time, and stability matters,” said Seetal, noting that while one day she’d love to expand the business into full-time, for now, alongside providing an avenue for creativity, the business contributes an extra source of income each month.

Indeed, supplementing full-time income is one of the key drivers behind the rise in side hustles, recent Royal Mail research shows.

But, while side hustles may initially start as a means to boost monthly income, that doesn’t stop them from flourishing into more. According to a Small Business Britain and eBay survey, 39% of small businesses began as side hustles, with 46% growing into full-time businesses. 

And this year, Seetal’s business has continued to grow, with order intake doubling, something which she attributes to word of mouth.

“I love that what I do now brings happiness to couples, preserving something deeply emotional from their day,” Seetal said. 

 

Tags: Jobs, side hustle, two jobs

Redundancy: Rights, Pay and Financial Preparation

by Madaline Dunn

Back in February, redundancy intentions rose to their “highest levels” in the last ten years, outside of the pandemic. By May, one in four employers shared their expectations to make redundancies in the next three months. Fast forward to August, and Bank of England data showed that this summer, British businesses cut employment at the fastest pace in four years.

September continued this trend, with reports that business confidence had dropped to record low levels.

Against the backdrop of a challenging economic landscape, it’s important to be aware of your rights and prepare for potential job loss. This week at The Salary Calculator, we’ll help you do just that, exploring:

• The rise in redundancies 
• What legal protections are in place?
• How to best navigate redundancy

The Rise in Redundancies 

Last month, the Bank of England’s Decision Maker Panel survey of 2,126 companies revealed that from May to August, companies reduced their headcount by 0.5% — the fastest rate since 2021.

Of those surveyed, just under half (46%) said they had cut jobs due to increases in national insurance (NI) contributions, which rose to 15% in April.

A recent report from KPMG and REC echoed similar findings, reporting the “steepest upturn in candidate availability since November 2020” in the shadow of falling vacancies and redundancies. 

Alongside tax-driven redundancy decisions, Acas research shows that this year, workers have also been worried about the impact of AI on jobs. Back in April, more than a quarter (26%) shared concern that AI will lead to job losses.

So how do these fears match up with the figures? It’s complicated.

While at the beginning of the year, a World Economic Forum paper reported that 40% of employers anticipated reducing their workforce where “AI can automate tasks,” an Orgvue report in April found that 55% of UK businesses actually regret AI-driven redundancy decisions.

But whether tax or tech-related, from hospitality and construction to journalism and healthcare, few sectors have been untouched by job cuts this year.

What legal protections are in place?

As the job market cools and with an uncertain outlook ahead, it’s important to understand what legal protections are in place if you’re faced with redundancy.

“Understanding what you’re entitled to, like redundancy pay or notice periods, can help you plan your next steps with confidence,” said Thomas Gibbons, an adviser at Money Wellness, an organisation commissioned by the government’s Money and Pensions Service to provide free money, debt and income maximisation advice.

And these entitlements will vary depending on how long you’ve been working with your employer.

At the very least, you’re entitled to one week’s notice if you’ve been employed for between one month and two years. However, this can go up to 12 weeks’ notice for 12 years or more, with one week’s notice for each year employed between two and 12. 

Likewise, your redundancy pay will be calculated based on your age, weekly pay and how long you’ve been working with your employer. 

If you’re an employee and have been working with your employer for at least two years, you’ll be entitled to some form of statutory redundancy pay, with the maximum statutory pay being £21,570 — up to £30,000 of total redundancy pay is tax-free. 

You can calculate your entitlement here.

It’s also important to ensure that your employer pays you for any unused holiday, overtime, bonuses and commission. 

Looking ahead, legislation is in the works to bolster these legal protections. Within the next two years, employers will face changes to the consultation thresholds for collective redundancy and increases in the penalty for failure to consult in collective redundancy, set to double from 90 days’ pay to 180 days’ pay. However, no changes to redundancy pay or notice periods are expected.

How to best navigate redundancy

In addition to equipping yourself with this knowledge, planning ahead will put you in good standing. 

“Facing redundancy can be daunting, but preparation is key to navigating it with resilience,” said Níamh Kelly, director of The HR Dept Shropshire, Wrexham & Chester and Mid Wales. “As a HR professional, I’d advise starting by reviewing your financial situation.”

Simon Trevethick, head of communications at StepChange Debt Charity, shared a similar sentiment: “If you find yourself in this situation the first thing to do is make a detailed budget to take stock of your future monthly income and outgoings. If you already have one, it will likely need revising.” 

StepChange has some useful budget templates to help you do this.

Trevethick noted that, on the income side, it’s important to work out how much money you have coming in from your old employer, how much you have available in savings, and if you are entitled to any benefits whilst out of work. 

“Once you have a clear budget, you’ll be able to reduce any unnecessary expenditure – this may seem drastic but could make the difference, and it won’t be forever. From here, set a strict budget over the coming 3-6 months so that you can cover essential costs,” he added.

“It’s important to contact your creditors as early as possible to let them know you’re facing redundancy”

“Even small actions, like safeguarding a bit of savings or considering short-term work, can make a big difference. Reaching out early is a positive step and can make the transition a little easier,” said Gibbons, adding that, if you need extra support, reach out to creditors early.

“Most are happy to discuss flexible options,” he advised.

Trevethick echoed this: “Too often, we see people wait until the point of crisis to reach out for help. It may seem daunting, but it’s important to contact your creditors as early as possible to let them know you’re facing redundancy. Whether it’s your mortgage provider, energy supplier, or bank – they deal with these kinds of issues every day, and can offer tailored support and options to get back on track.”

And for those struggling with debt, StepChange offers free, impartial, and independent debt advice. “Our online, expert backed service is on hand 24 hours a day 7 days a week to support you on your journey from financial difficulty back to financial health,” said Trevethick.

Alongside these financial measures, Kelly advised that upskilling or reskilling can also open doors to new opportunities, noting that investing in professional development is wise. 

“Redundancy isn’t just an end—it can be the start of a whole new career!”

Kelly explained that staying proactive by updating CVs, LinkedIn profiles, and reaching out to recruiters can help “maintain momentum.” But it’s also important to seek support, whether through networks, mentors, or career coaches, she said.

“As someone who was made redundant and then started their own business – I can honestly say redundancy isn’t just an end—it can be the start of a whole new career!” said Kelly. 

Your Guide to Keeping Your Side Hustle HMRC Compliant 

by Madaline Dunn

Whether it’s selling vintage shoes or taking on tutoring clients, so-called side hustles have exploded in recent years. In fact, last year, Sage research found that almost half of Brits now have a second income stream.

But, as more people enter the online entrepreneurial pipeline, it’s important to have a clear picture of compliance to keep the taxman from knocking. This week at The Salary Calculator, we’ll explain:

• What’s driving the rise in people selling goods & services online?
• What’s the difference between a side hustle and reselling?
• What are HMRC’s new digital platform reporting requirements?
• What’s happening to the Income Tax Self Assessment (ITSA) reporting threshold?
• Will the allowance threshold increase?
• How will Making Tax Digital affect side hustles?
• Tips and tools to help you stay compliant

What’s driving the rise in side hustles?

Side hustles bounced into the spotlight during the COVID-19 pandemic as the world shifted online and companies cut back on jobs and furloughed staff. And amidst an ongoing cost of living crisis, employment insecurity and a looming recession, the side hustle trend has continued as workers eye new avenues to supplement their income — with varying degrees of success.

According to a 2024 Adobe Express poll of 1,500 Brits, 73% make up to £500 each month from their side hustle, while 20% make over £1,000.

But money isn’t the only driving force behind this rising trend. The research found that 22% of those seeking side hustles are doing so in pursuit of greater flexibility in their work schedule.

The growth of the second-hand market has buoyed growth, too. Nearly 30 million UK adults shopped online for pre-loved items in 2024. Accommodating this demand, 23.8 million Brits turned to online second-hand selling platforms last year, earning an average of £146 a month.

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“There’s been a big increase in the secondary selling of technology”

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The second-hand tech market, in particular, is booming.

“What we’ve seen is that — certainly around smart tech — there’s been a big increase in the secondary selling of technology,” said Scott Butler, executive director of the non-profit group Material Focus. Butler explained that consumer attitudes are changing, with more emphasis placed on affordability over upgrades.

Indeed, in 2023, technology retailer Currys found that one in three Brits were likely to buy second-hand tech, with pre-used electronics exceeding pre-loved clothes in popularity.

But alongside a growing appetite for affordable goods, environmental concerns are also a key driver of this trend. Currys’ research found that 75% of those polled were worried about e-waste — one of the fastest-growing waste streams in the world.

And with the average household hiding around 30 unused electrical items in so-called “drawers of doom,” there’s plenty of money to be made. In fact, Material Focus found that households could cash in between £1,304 and £6,331 by selling unwanted items through reselling platforms.

What’s the difference between a side hustle and reselling?

But with more Brits looking to make a little cash on the side and pursue their passions, it’s important to understand how this work is categorised in the eyes of HMRC — because there are potential tax implications.

And with misleading “side hustle tax” headlines floating around, there’s been a fair amount of confusion.

Luckily, HMRC has released guidance to clarify who needs to pay what and how.

It all boils down to whether or not you’re trading. If you’ve got an old pair of shoes that never quite fit kicking about in the back of your wardrobe and you’re looking to shift them, this isn’t trading. So, you don’t need to register for self-assessment or pay tax (unless an item exceeds £6,000, in which case you’ll need to pay capital gains tax).

However, regularly making necklaces to sell online, buying vintage items to resell for a higher price, or upcycling items for resale would be considered trading. This also applies to dog-walking, content creation, gardening and similar activities.

If you earn £1,000 or less from these activities, you won’t need to declare or pay tax, but if you exceed this amount, you’ll have to set up as a sole trader and pay tax via Self-Assessment. 

What are HMRC’s new digital platform reporting requirements?

So, what was all the “side hustle tax” hullabaloo, I hear you ask? Well, the confusion came from HMRC’s announcement that from January 2025, online platforms like eBay, Vinted, and Airbnb would have to share data on platform sellers, including income data.

As the Low Incomes Tax Reform Group outlined, this means that if online sellers have failed to pay what they owe, HMRC is “more likely to find out about it,” and platforms may ask more questions when users sign up to ensure that they’re HMRC-aligned.

However, it’s worth noting that if you make fewer than 30 sales of goods in a year and receive less than 2,000 euros (roughly £1,700), a platform won’t report your details.

If a platform fails to follow the new rules, however, there are various financial penalties.

What’s happening to the Income Tax Self Assessment (ITSA) reporting threshold?

One change that will eventually affect sellers more directly is the recently announced plan to increase the Income Tax Self Assessment (ITSA) reporting threshold.

Under the new plans — set to come into effect within this parliament — the Income Tax Self Assessment (ITSA) reporting threshold for trading income will increase from £1,000 to £3,000.

According to HMRC, this will benefit “around 300,000 taxpayers,” with an estimated 90,000 no longer needing to pay tax, with no reason to report their trading income to HMRC. Those who do will pay their tax through a new online service — although further details about this service are yet to be announced.

Helen Christopher, chartered accountant and founder of Beansprout, said for many, this is good news, reducing the compliance burden and saving both time and money for those running very small businesses or hobbyist activities.

“From an HMRC perspective, this change frees up resources to focus on larger or higher-risk cases and aligns with their longer-term ambition to simplify tax reporting and roll out more digital services under Making Tax Digital,” added Christopher.

Will the allowance threshold change? 

Although there have been some reports that the allowance threshold is increasing to £3,000, this isn’t the case. However, some argue that it should be.

One joint study from Simply Business and The Federation of Small Businesses recommended that the tax-free trading allowance be doubled to £2,000 and rebranded as the “Side Hustle Allowance” to encourage entrepreneurship in the UK.

More broadly, with the government’s renewed focus on the circular economy, some wonder whether tax policy could be used to encourage progress in this area.

Indeed, Butler highlighted the school of thought that questions whether second-hand goods should be taxed again after a series of taxes have already been paid by producers, retailers and consumers the first time around.

“If you look at it from an environmental perspective and a resource use perspective, that is a potential lever that you could use to promote a more circular economy through making it less burdensome,” commented Butler.

He added that there are also those who advocate for VAT exemptions for repair services to make them more affordable and encourage uptake. This kind of reduced taxation has already been implemented for repairs for different products across Sweden, Austria, and the Netherlands.

How will Making Tax Digital affect online sellers? 

Another incoming tax administration strategy set to affect online sellers and side hustlers is Making Tax Digital.

From April 2026, sole traders and landlords earning £50,000 will be required to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC.

By April 2027, this will apply to those with qualifying income above £30,000, and from April 2028, those with £20,000 in qualifying income will enter the compliance bracket.

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“The changes will inevitably feel daunting, overwhelming, and costly for many online sellers and small business owners”

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Christopher described the Making Tax Digital strategy as a “fundamental shift towards a real-time, digital-first tax system, designed to modernise the UK’s tax processes and increase transparency.”

The impact that these changes will have remains to be seen, but some have doubts about their effectiveness.

“Until MTD ITSA fully hits in 2026, I don’t think we can completely foresee how it’s going to go, but I struggle to see how forcing people onto software that struggle with technology makes anything simpler,” commented Beth Jackson, Owner of 2 Sisters Accounting, adding: “I do hope much like when RTI was initially introduced, any penalty schemes will be incredibly lenient while people get to grips with the system.”

Christopher shared a similar sentiment. “While the intention is to streamline processes and improve tax compliance, the changes will inevitably feel daunting, overwhelming, and costly for many online sellers and small business owners — especially those who manage their finances informally or who have only recently started side businesses.”

That said, Christopher added that it also serves as an opportunity to “take greater control of your business finances,” creating more clarity around income and expenses, better forecasting of tax bills throughout the year and fewer year-end surprises.

Tips and tools for keeping compliant 

As with any business, big, small, or just starting out, there are always moving parts, so it’s key to keep on top of things and establish good habits.

“Building strong financial habits now can make the difference between a hobby and a thriving, scalable business in the future,” Christopher explained.

This includes careful record-keeping of income and expenses, whether through accounting apps or spreadsheets.

“The key thing for all businesses is to make sure you are saving your tax as you earn the money to avoid spending HMRC’s money, especially if you’re VAT registered,” added Jackson. “As an online seller, using tools like Linkmybooks to connect with Xero or Freeagent to track your profit levels and make sure you have the appropriate tax saved can make the world of difference in remaining profitable!”

It’s also important to understand different tax terms, for example, gross income vs net profit, as well as HMRC’s other rules and regulations.

“Always check your total financial position,” Christopher noted, adding that if you have employment income, pensions, rental income, dividends, or other sources, you may still need to complete a tax return, even if your side business earns under the reporting threshold.

And, when things feel confusing, professional advice can help clear things up.

“Tax rules can be complex, and everyone’s situation is different. Speaking to an accountant or adviser early can save money, reduce stress, and help you get it right from the start,” said Christopher.

Tags: income tax, Jobs, Self Assessment, side hustle

​​Assessing the impact of AI on the job landscape 

by Madaline Dunn

For many, it feels like ChatGPT came out of nowhere, only to completely shift day-to-day living. OpenAI launched its language model-based chatbot back on November 30, 2022, and in the short amount of time it’s been out, it’s had a BIG impact, and competitors have since come onto the scene with their respective offerings.

But, what does it all mean? AI experts are warning of danger ahead, and already, companies like IBM and BT have signalled that they will be making AI-related job cuts.

In all the hubbub, it can be difficult to know where you stand, so in this week’s article, we’ll explore the following:

• The potential scale of impact on jobs
• How people from the world of work are reacting
• How is the government dealing with the potential threat

The scale of the issue and impact

When listening to the experts, it seems as though the advancement of AI is unavoidable and inescapable, and it will undoubtedly have a presence in our lives. But how will it impact the world of work?

According to a report by investment bank Goldman Sachs early this year, AI could potentially replace a quarter of work tasks in the US and Europe – however, it will impact sectors differently.

While 46% of tasks in administration and 44% in legal professions could be replaced by automation, for construction, the figure stands at 6%.

It’s also worth noting that this displacement will also likely be experienced differently for men and women, with women dominating in clerical work. Indeed, research shows that more than twice the share of female employment could be affected.

High-income economies are also more likely to be affected, at a rate of 5.5 per cent, versus 0.4 per cent in low-income economies. That said, experts say that many places aren’t yet prepared for the disruption ahead. Some figures show that over 50 million Chinese workers will require retraining, while in the US, this figure stands at 11.5 million.

It’s also important to note that forecasts vary widely, too, and while there have been a number of potentially catastrophic forecasts, including from Cred CEO Kunal Shah, who recently warned that 90% of people could lose their jobs in the next ten years, the likes of Forrester predict that generative AI will “influence 4.5 times more jobs than it replaces.”

Responses from the world of work

But how do those in the workforce feel about AI? It’s really quite mixed.

According to some research, 36% feel that AI will make them feel more stressed, while 37% are concerned it will mean their work is less accurate. Meanwhile, 38% shared data privacy concerns.

Elsewhere, Censuswide, on behalf of Visier, found that those already using AI in the workplace saved around 1.55 hours a day – or 390 hours a year and 40 per cent think it will enhance their work-life balance.

Further to this, around 31 per cent believe it can help close the skills gap in the UK. This is huge, considering that 73% continue to report skills gaps, only 11% of UK workers have digital skills and 54% of organisations don’t have specific skills initiatives in place for specific talent pools. 67%, meanwhile, believe that developing AI skills will be important for their future career growth.

Speaking about this, Ben Harris, Director UK MD at Visier, said: “The workplace has been disrupted by rapid innovation and everyone has a role to play in its smooth adoption. With skills gaps widening across the UK, AI can alleviate a wide range of pain points. But, with opportunity comes responsibility.”

In order to survive and thrive in the new world of AI, some have suggested that workers learn how to code, become more data literate, and hone in skills that are AI-proof, such as communication, collaboration and adaptability skills. A central focus for people in this new world of work will also be becoming lifelong learners.

How is the government dealing with the potential threat?

Considering opinions are so divided, and the technology will reshape the world we live in so dramatically, you might be wondering what the government plans- on doing to regulate it and keep things in check. There’s also a lot of support for regulation, with almost 60% of British people wanting regulation to be introduced for AI in the workplace, according to Prospect Trade Union.

The government set out the need to legislate in an AI white paper earlier this year, but has been urged to speed things up due to how quickly AI is evolving.

Recently, the Science, Innovation and Technology Committee chair and Conservative MP Greg Clark said: “If there isn’t legislation passed in this session, then assuming the election is in late 2024, the earliest that new legislation can reach the statute book is mid to late 2025.”

Clark pointed out that, by then, two years will have passed, by which time, AI will have continued to be deployed and developed without the “statutory means to govern it.”

“And other jurisdictions such as the EU or the US will be proceeding themselves, and there is a danger that what has become embedded in Europe and in the US could become the default means of regulation, even if we had a better model in mind. That’s another reason for getting on with it.”

Elsewhere, the TUC recently launched an AI taskforce, bringing together leading specialists in law, technology, politics, HR and the voluntary sector for legal protections for both employers and workers. It reportedly aims to publish an expert-drafted AI and Employment Bill early in 2024 and will also lobby to have it incorporated into UK law.

The taskforce says that the UK is “way behind the curve” on the regulation of AI, and outlines that AI capabilities, left unchecked, could result in “greater discrimination, unfairness and exploitation at work across the economy.”

It appears there’s still a long way to go when it comes to implementing regulation around AI and while the UK plans to hold an AI Safety Summit in November, that’s still quite some way off.

Tags: AI, Economy, employment, Jobs, work

The rise of the side hustle 

by Madaline Dunn

There has been an exponential increase in the number of people pursuing a side hustle in the UK in recent years. Freelancing sites like PeoplePerHour, for example, have seen astronomical growth in the number of people signing up. Similarly, the number of people using Vinted and other selling platforms has also skyrocketed. Whether it’s to earn a bit of extra cash when money is tight or to pursue passion projects on the side, there are so many reasons why people are getting into the entrepreneurial spirit.

Interestingly, while you might think that working an extra job on the side of your main gig might make you feel worn out, studies have shown that having something on the side can actually lead to employees feeling more fulfiled.

That said, it’s important to note that while a side hustle can help top up your monthly wages and build your business, there are some important details to bear in mind. At The Salary Calculator, we’ll walk you through the following:

• Why more and more people are pursuing a side hustle
• The tax implications of adopting a side hustle
• How to protect yourself, business and employment when side hustling

More people join the side hustle revolution

Some call it the ‘Golden Age of Entrepreneurialism”; others the “Rise of the Side Hustle,” but one thing is for sure, more and more people are taking on extra work alongside their primary job. Whether a second job or a side project, a recent Barclaycard survey, found one in 12 people in the U.K. now has a side hustle, the equivalent of 6.49 million people.

A number of factors are fueling the surge, including the development of various technological tools and platforms, increased flexible working arrangements, and the rising cost of living. According to Aviva, some of the most popular forms of side hustling include selling handmade products, art and photography, and freelancing. Many are also increasingly using social media as a platform through which they can earn money.

The tax implications

If you’re taking on work alongside your main employment, you will need to declare your earnings with HMRC, and you’re also responsible for paying tax on any earnings you make. The only exception to this is if you earn less than £1,000, which is the threshold allowance of additional income outside of regular employment.

So, how do you go about this? Well, first, you’ll need to register your side hustle with HMRC and file a Self Assessment tax return. This needs to be done every year by 31st January, which is also the deadline for paying anything you owe. To make sure you have everything in order to report your earnings, be sure to keep copies of your invoices, bank statements and receipts.

While for the time being, those working a side hustle only have to submit an annual Self Assessment tax return, and payment on account on July 31st, HMRC is introducing Making Tax Digital for Income Tax. Through this new initiative, those earning money through a side hustle will have to submit quarterly returns, and a single final declaration for all income on January 31st. While this was due to be introduced in April 2024, this is now being pushed back and is launching in two phases:

• April 2026 for those earning over £50,000, and
• April 2027 for those earning over £30,000.

It’s always good to make sure you’re keeping track of your finances and putting money aside each month to pay your tax bill, so you’re not left with a big bill at the end of the year and unsure of how to tackle it. To figure out the exact tax implications of your side hustle alongside your full-time employment, head over here.

When you register with HMRC, you’ll also have to decide how you’re registering, whether that’s as:

• A sole trader
• A partnership, or
• As a limited company

If this all sounds like a headache, it could be work speaking to a tax advisor to get expert insights on the tax implications. Likewise, there are accounting platforms that can help make dealing with taxes a bit easier. Xero, Sage and QuickBooks are some of the most popular.

Safeguard your side hustle

When it comes to earning extra income on the side of your main job, often safeguarding your business can be a bit of a second thought. However, it’s key to make sure that you’re protected and doing everything above board, because side hustling can be potentially risky without taking the above into consideration.

First of all, check your employment contract, as some companies require you to disclose business activity outside of your day job. More often than not, if your business operates outside of your working hours, is not distracting you from your full-time job and you’re not operating in competition with your employer’s business, your employer will give your side hustle the green light.

In addition to this, it’s essential you find out the obligations for your industry, as you might require a licence and it’s also worth looking into whether your business could benefit from insurance. Some options include:

• Public liability insurance, which applies when someone gets injured or incurs a financial loss, and holds your business responsible,
• Professional indemnity insurance, which protects you if a client loses money as a result of bad advice, services, or designs,
• Employers’ liability insurance, which only really applies if you choose to develop your business and take on staff to assist you with your work and is a legal requirement.

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