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New research into the side businesses that Britons are starting and running this year has brought up some perhaps surprising results, including in relation to the exact lines of work such ‘side hustlers’ are choosing.
The study found, for instance, that podcasting was the most profitable side business of 2021 – and that Brits are generating £411 a month, or nearly £5,000 extra a year, from side businesses.
Did the COVID-19 crisis inspire many to start their own side businesses?
In news that might surprise even some of those seeking out related services such as VAT planning in Plymouth or Wellington, the study revealed that nearly seven in 10 UK adults presently have an additional source of income alongside their main job.
This is an indicator that for the majority of adults in the UK, their working lives don’t come to a halt outside traditional ‘9 to 5’ hours. Furthermore, the new statistics signal that the coronavirus pandemic may have been a prompt for many people in the UK to look seriously into starting a side business.
Amid major changes in our lives over the past year and a half – including furlough and widespread homeworking, with the commuting time this is likely to have freed up for many people – almost a third (31%) of those polled began their side business activity in 2020. A further 18%, meanwhile, started ‘side hustling’ in the first half of this year.
The most popular side business for British adults was the selling of handmade items, which was cited by 59% of respondents as their favoured way of adding to their income. Other common ‘side hustle’ activities included investing (20%) and the sale of antiques or collectables (12%).
‘Side hustling’ can be a more lucrative activity than some may imagine
With regard to the most profitable side businesses, podcasting topped the list by some distance. The £954 a month that podcasters make a month on average – according to the research findings – would work out as £11,448 a year. This is more than double the average ‘side hustle’ income in the UK.
Podcasting was followed in the ranking by the selling of handmade candles, which brought in £670 a month on average, and renting out a flat or space, which earned £657 a month on average.
However, while these findings are impressive – and point to the considerable potential benefits of operating a side business – there are also important legal and tax factors to consider. ‘Side hustlers’ who regularly make a profit through their selling of goods and services, for example, may need to register as a Sole Trader with HM Revenue & Customs (HMRC).
Furthermore, making in excess of £85,000 a year from a secondary income source might necessitate you paying other taxes, such as VAT. That, in turn, could require VAT registration.
Enquire today to the experts in small business
Fortunately, with our own expertise and experience in VAT planning in Plymouth and Wellington – to say nothing of our other far-reaching small-business knowhow – we are well-placed to assist you with your own side business.
Contact us now at either of our offices, and we’ll discuss with you our solutions and assistance that could greatly make your life easier. In the process, our accountants and tax professionals will help ensure that ‘side hustling’ is a rewarding activity for you, instead of a source of stress and inconvenience.
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