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The side hustle and its continuing rise

These days, having multiple occupations is becoming increasingly commonplace, with a as may as one in five Brits thinking about having an extra job— millennials especially.

These supplemental jobs are known as ‘side hustles’, defined as ‘a way to make money from your passion, interest or hobby’. Despite the term ‘side hustle’ surfacing in the 1950s, it is believed that the concept of additional, non-compulsory work has existed for centuries, with freelancing going back to the 1700s when the word was used to describe a mercenary for hire. Nowadays, freelancers can crop up in almost any industry, with advances in technology partly to thank for this.

However, it isn’t quite as easy as simply choosing what you want to work as and being able to do it. Here, we explore side hustles and why they are so popular and what is required if you want to start your own side hustle.

What makes side hustling popular?

For some people, side hustles are not a choice, more a necessity. They can be a means of creating some much-needed extra cash and almost a quarter of the UK believe the average monthly wage is not enough. The cost of living has continued to rise in the UK, with inflation year on year rising by three percent in the last few years.  This has meant that many have looked for different avenues to top up their main wage in order to have a better quality of life.

Side hustles could also put you on the path towards your desired profession either by opening doors at a prestigious company or helping you on the road to becoming your own boss. Many secondary roles are used as a way into a creative or technical sector because you can showcase your skills to many companies at the same time while enhancing your CV, all from the comfort of your own home. Graphic designers and writers are prominent in the freelance world, with sites such as UpWork and Fiverr providing a great platform in which to gain work. This can help you get noticed in your sector as well as helping you build up the contacts required to eventually start your own full-time business.

Conversely, for others having a side hustle, it’s just a simple way of earning a little more extra income from something they enjoy or have a passion for. Again, this is where the aforementioned sites are great, as you can bid on jobs that are of interest to you and you aren’t committed to a certain style.

Setting up a side hustle

Sadly, starting a side hustle is not always as easy just doing little jobs here and there. For certain roles there are legalities you must follow if you intend to start a side hustle and make it a success and for any source of regular income you must pay that dreaded thing we call tax!

Although the trading allowance allows you to turnover up to £1,000 without having to pay any tax, anything amount above is subject to taxation. If you work as a freelancer, you are classed as self-employed and your extra funds that are earned will be taxable and it’s up to you to correctly pay these. According to a recent survey, 34% of those with a side hustle confessed to not declaring the earnings from their side projects.

Another important point to note is that insurance will be required for certain roles. For example, dog walkers, which is one of the most popular side hustles in the UK behind making crafts and selling goods, must take out a dog walking insurance policy. While you may not automatically think of such cover when it’s just a side hustle, it can be crucial in protecting you if the dog gets hurt on your watch —after all, accidents do happen and the whole idea of the side hustle is to make money not lose it! Child care is another example of where insurance is a necessity.

The future of side hustles

There are currently over 16 million Britons side hustling to cover living expenses and if wages cannot keep up with the ever-rising rates of inflation then this number is likely to grow. Also, the days of ‘job loyalty’ appear to be coming to an end as we all strive to find our dream role and enhance our job satisfaction. Because of this, more people appear to be willing to begin a side hustle and this is having a major impact on careers across the globe as members of the workforce see this as a great way to starting their own business.

For a whole host of reasons, the side hustle plays a major role in Britain’s working environment. It can be a great source of secondary income, while also helping small businesses complete tasks without the need of hiring a full-time member of staff. However, if you plan to set up a side hustle, it’s important to fully research what is legally required in your chosen sector.

Sources

https://news.sky.com/story/fifth-of-uk-workers-considering-a-side-hustle-to-earn-extra-cash-or-pursue-a-passion-11070316

https://www.forbes.com/sites/jacobmorgan/2015/09/03/the-evolution-of-freelance-work/#2497fd696862

https://www.theguardian.com/business/live/2018/feb/13/stock-markets-shares-ftse-uk-inflation-pound-business-live

https://www.cv-library.co.uk/career-advice/development/how-become-freelancer-improve-career-prospects/

https://www.moneyadviceservice.org.uk/blog/got-a-side-hustle-you-might-not-need-to-pay-tax

https://dogsmonthly.co.uk/2018/02/19/dog-walking-one-of-the-most-popular-side-hustles-in-britain/

https://www.oddsmonkey.com/sidehustle/case-studies/16-million-brits-side-hustle-help-cover-cost-living/

https://www.theguardian.com/business/2017/sep/11/uk-prices-rising-faster-than-wages-inflation-petrol

https://startupnation.com/start-your-business/side-hustle-impact-career/

 

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