Turning a hobby into a side business – how some entrepreneurs are making £546 each month

Celebrities With Successful Side Businesses

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It was far easier to maintain a side hustle during lockdown as free-time was aplenty, and there was no shortage of customers shopping online in an effort to keep busy. Loan and finance company 118 118 Money has commented on the best ways to help turn a momentary side hustle into a sustainable side business.

118 118 Money has delved deep in researching this ‘side business boom’ that has occupied many Britons over the last 18 months, and it seems that female Gen Z’s are getting the most out of these opportunities.

“It appears more women have started a ‘side business’ recently, with 56 percent taking one on between 2020 and 2021, compared to 42 percent of men.

“Millennials are the most invested generation when it comes to figuring out ways to make extra cash: over three quarters (78 percent) of those aged 25-34 said they have a secondary source of income in addition to their main job.

“However, those aged 18-24 seem to be earning the most, with their extra income standing at £546 a month on average.

“That’s over £100 more a month than the UK average, which stands at £411, and almost £2,000 extra than the UK annual total a year.”

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To-do list saying 'make more money'

On average, Briton’s make £411 monthly through side businesses and secondary income (Image: GETTY)

With a fair bit of pocket change coming in from these side businesses, how can one ensure success and avoid getting caught out by the fine print?

Rules and regulations

Before starting your side business, it’s worthwhile to do some research.

Not only are there tax and legal implications in certain business types but also industry rules and regulations to abide by as 118 118 Money explained:

“If you’re running a business from home, you may require permission from your landlord, mortgage provider, local planning officer or your local Council.

“If you sell goods or services to make a profit regularly, including handmade items, you may need to register as a Sole Trader with HMRC.

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“If your annual trading income is £1,000 or less, from one or more trades, you may not have to tell HMRC, however there are circumstances when you must register for Self Assessment and declare your income on a tax return.

“If you are making over £85,000 per year from a secondary source of income, then you may need to pay other taxes such as VAT too, which could require VAT registration.

“You should always contact HMRC for advice if you aren’t sure what you need to do.

“If your activity includes handling food, you should carry out a risk-assessment following HACCP procedures and acquire food hygiene training.”

woman sitting at desk with headphones typing on laptop

Selling handmade items is the most popular side business in the UK (Image: GETTY)

Assessing wants and needs

As lockdown eases, people are far more conscious of their budgets and monetary constraints than ever before, and it’s suggested budding entrepreneurs keep this in mind when looking for what to sell/make.

While selling handmade items is the most popular side business in Britain, renting out an empty parking space or offering to cater for a car boot sale can be just as profitable.

Going part-time

These types of side business won’t require any entrepreneurial skills or ambition, simply the ability to work outside of normal hours.

Call centres, web chats, or any other online 24 hour service is powered by individuals willing to work the strange hours necessary to keep that ’24 hour’ label.

Advantages of this type of work include hourly pay rates and some commission-based incentives.

What else?

There is a plethora of side hustles and business ideas that one can operate right from their couch and even more websites available to do them through.

Websites such as rev.com, peopleperhour or taskrabbit are just a few places where one can profit off their extra time, as well as advertise for assistance needed in running a side hustle that won’t be too costly.

Harry Byrne

Harry Byrne

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