How to Start a Side Hustle in the UK: A Simple Step-by-Step Guide

A side hustle is a way to earn extra money alongside your main job. It could pay for a holiday, help clear a bill, or grow into a full-time business. Here's how to get started, step by step.

Step 1: Choose your idea

The best side hustles usually use something you already have: a skill, a hobby, some free time or a bit of space. Popular ideas include:

• Selling things, such as handmade crafts, prints or pre-loved clothes.
• Freelance services, such as writing, design, social media, bookkeeping or photography.
• Tutoring or teaching, online or in person.
• Local services, such as dog walking, cleaning, ironing or gardening.
• Content and affiliate websites, like blogs and YouTube channels, which take time to grow.

Step 2: Test it cheaply

Don't spend a lot before you know people will pay. Start small: offer your service to friends of friends, list a few items, or make a simple page on social media. See what sells before you invest.

Step 3: Set your prices

Look at what others charge, then work out your costs and the time each job takes. Don't undercharge. It's hard to raise your prices later.

Step 4: Get organised

• Check your employment contract to make sure you're allowed to work on the side.
• Open a separate bank account to keep your side income apart.
• Keep records of everything you earn and spend.
• Look into insurance, such as public liability insurance, if you work with customers or in their homes.
• Send proper invoices. See our guide on how to write an invoice.

Step 5: Understand the tax basics

You can earn up to £1,000 a year from self-employment tax-free, thanks to the trading allowance. If you earn more than that, you'll usually need to register with HMRC and file a Self Assessment tax return. Online selling platforms now share details of some sellers' income with HMRC, so it's important to get this right. Read our Self Assessment guide.

Step 6: Grow slowly

Ask happy customers for reviews and referrals, and focus on the work that pays best for the time it takes. Keep an eye on your energy, too. A side hustle should add to your life, not take it over.

Common questions

Do I have to tell HMRC about my side hustle?

If you earn more than £1,000 in a tax year from self-employment, you'll usually need to register for Self Assessment. Check GOV.UK for your situation.

Can I have a side hustle if I have a full-time job?

Usually yes, but check your employment contract for any rules about outside work or competing with your employer.

Do I need to set up a limited company?

Not usually at the start. Most side hustles begin as sole traders. A company can make sense later, as income grows. An accountant can advise.

What is the easiest side hustle to start?

Selling things you no longer need, or offering a skill you already have, are often the easiest and cheapest ways to start.

Related guides

• Self Assessment Tax Return Guide
• How to Write an Invoice
• What Is a Non-Disclosure Agreement?

This guide is for general information only and is not financial or tax advice. Always check GOV.UK or speak to a qualified adviser.