The cost of living isn’t letting up. Energy bills, food costs, and frozen wages have pushed millions of people in the UK to look beyond their main salary. Side hustles UK workers rely on now range from selling on Vinted to weekend tutoring, and it’s easy to see why. Whether you want a few hundred quid a month or you’re building towards something bigger, there have never been more ways to earn outside your day job.
Want an easy way to keep records? Download our free side hustle income tracker to log your earnings and check the £1,000 allowance.
Best Side Hustles in the UK Right Now
Freelancing for Writers, Designers and Editors
If you have a marketable skill, freelancing is one of the fastest ways to start earning. Writing, design, video editing, web development, bookkeeping, social media management. All of these translate directly into paid work on platforms like Fiverr and Upwork. The barrier to entry is low. You set your own rates and work around your existing schedule. Experienced freelancers in the UK earn anywhere from £20 to £75 per hour depending on the niche.
Selling on eBay, Vinted or Etsy
Reselling is one of the most accessible side hustles going. Declutter your house, source items from charity shops or car boot sales, and flip them for profit. Vinted has exploded for second hand clothing, while Etsy suits anyone making handmade or personalised products. eBay remains the go to for electronics, collectables, and general goods. Start small, learn what sells, and scale from there.
Delivery and Driving Apps
If you have a car, bike, or even just a bicycle, delivery work offers flexible, on demand income. Uber Eats, Deliveroo, and Amazon Flex all let you pick your own hours. It is not going to make you rich, but it is consistent and requires no setup. Most drivers in the UK earn between £10 and £15 per hour after costs, depending on location and hours worked.
Online and In Person Tutoring
Online tutoring is one of the best paying side hustles available to people with subject knowledge or teaching experience. Platforms like Tutorful and MyTutor connect you with students across the UK. Maths, English, and science are always in demand. Rates typically range from £20 to £50 per hour, and sessions take place via video call so there is no commuting involved.
Renting Out Your Driveway, Room or Kit
You might already be sitting on a side hustle without knowing it. Spare parking spaces can earn £50 to £300 per month through JustPark. A spare room can generate up to £7,500 per year tax free under the government’s Rent a Room scheme. Even a storage space or driveway can be listed for passive income with minimal effort once it’s set up.
Content Creation on YouTube and TikTok
YouTube, TikTok, and newsletters have all produced serious income for people who started as hobbyists. It takes time to build an audience, so this is a slower burn than other options on this list. However, once you have traction, income through advertising, brand deals, and affiliate links can stack up quickly. If you are already interested in a topic, the cost to start is essentially zero.
Side Hustle Tax UK: What You Need to Know
This is the bit most people ignore until it becomes a problem. Here is how it works.
The £1,000 Trading Allowance
Every UK taxpayer gets a £1,000 trading allowance per tax year. If your total side hustle income stays below £1,000, you owe no tax and do not need to tell HMRC. Simple. The key word is total. If you earn £600 from tutoring and £500 from eBay, that is £1,100 combined. You are over the threshold.
What Happens When You Go Over £1,000
Once your gross side hustle income exceeds £1,000 in a tax year, you need to register for Self Assessment with HMRC by 5 October following the end of that tax year. For the 2026/27 tax year, that deadline is 5 October 2027. You will then file a tax return and pay income tax at your usual rate, either on your income minus the £1,000 allowance or on your income minus your actual expenses, whichever works out better.
As a result, keeping basic records from day one makes this process far less painful. Note your income and any legitimate business expenses as you go.
Making Tax Digital for Side Hustles in 2026
If your side hustle grows into a proper business, watch out for Making Tax Digital. From 6 April 2026, sole traders and landlords with qualifying income over £50,000 must keep digital records and send HMRC quarterly updates. That threshold drops to £30,000 in April 2027 and £20,000 in April 2028, according to GOV.UK. Most side hustlers are well below this, but it’s worth knowing before your income takes off.
Do eBay, Vinted and Etsy Report Your Sales to HMRC?
Yes. Since January 2024, online platforms must share seller details with HMRC once you make 30 or more sales, or earn roughly £1,700 or more, in a calendar year. This applies to eBay, Vinted, Etsy, Airbnb and similar sites.
However, being reported does not automatically mean you owe tax. Selling your own unwanted items is usually tax free. Tax only applies if you are trading, such as buying items to resell for profit, and your income from trading goes over £1,000.
A £3,000 Reporting Threshold Is Coming
The government has announced that the threshold for filing a full Self Assessment return on trading income will rise to £3,000 before the end of this parliament. Instead, people earning between £1,000 and £3,000 will report through a simpler HMRC online service. This means fewer side hustlers will need to file a full tax return. However, the trading allowance itself stays at £1,000, so the tax free amount is not changing. The new threshold is expected sometime before 2029.
Once your side hustle grows, you may start wondering about incorporating. Our guide on whether a limited company is worth setting up covers when it can save you money.
Side Hustles You Can Do From Home in the UK
Not every side hustle means leaving the house. If you have a laptop and a decent internet connection, these are some of the easiest to start from your sofa.
- Online tutoring: teach a school subject, a language or a skill over video calls.
- Virtual assistant work: manage emails, diaries and admin for busy business owners.
- Proofreading and editing: check documents, websites and CVs for small businesses and students.
- Bookkeeping: if you are good with numbers, small firms will pay for help keeping their books tidy.
- Website testing: get paid to try out websites and apps and give feedback.
Home based side hustles have very low start up costs. However, they still count towards your £1,000 trading allowance, so keep a simple record of what you earn.
Passive Side Hustles: Earn Without Trading Hours
Truly passive income is rare, but some side hustles need far less ongoing time than others once they are set up.
Rent Out Space You Already Have
A driveway near a station, a spare garage or loft storage can earn money with very little effort. Under the Rent a Room scheme, you can also earn up to £7,500 a year tax free by letting a furnished room in your own home.
Sell Digital Products
Templates, planners, guides and photos can be made once and sold many times. The work is all up front, which makes this one of the closest things to passive income online.
Invest Your Side Hustle Earnings
The most passive option of all is putting your side hustle money to work. Dividend shares and funds pay you an income without any extra hours. Our dividend income calculator shows how much you would need to invest to replace your side hustle income.
Best Side Hustles for Beginners in the UK
If you have never earned money outside your job, start with something low risk that uses what you already have. Selling unwanted items on Vinted or eBay is the classic first step, because there is no cost and you learn how to sell online.
After that, pick one skill you are already good at and offer it locally or online. One side hustle done well will usually earn more than three done badly. Once the money starts coming in, our free budget planner helps you decide where it should go.
How to Choose the Right Side Hustle
Not every side hustle suits every person. Before you commit, it helps to think through a few basics.
On top of that, consider your existing skills. The fastest way to start earning is by monetising something you already know how to do. A decent side hustle also needs to fit around your life without wrecking your evenings or weekends. And check your employment contract. Some employers limit what outside work you can take on.
For example, if you are time poor but have a car, delivery work is an obvious fit. If you have a specialist skill, freelancing will pay more per hour than almost anything else on this list. If you want genuinely passive income, renting out a parking space or spare room requires the least ongoing effort.
Side Hustles UK: Tax and Common Questions
If your side hustle brings in more than £1,000 a year, you usually need to tell HMRC and file a Self Assessment return. Below that, the trading allowance means you normally do not need to declare it.
Yes. Since 1 January 2024, digital platforms collect seller details and report them to HMRC, typically for sellers with 30 or more sales or earnings above about £1,700 a year. This is not a new tax, but it makes undeclared income easier to spot.
No. Selling your own personal possessions is not trading, so it is not normally taxed as income. Buying items to resell for profit is different.
In most cases, yes. However, check your employment contract first, as some employers restrict outside work or competing businesses.
If your side hustle starts to take off, it may be time to think bigger. My guide on whether owning a business is worth it covers the pros, cons and tax, while the traits of successful entrepreneurs shows the habits that help a small idea last.
If you are thinking about selling online, my comparison of dropshipping vs Amazon FBA looks at which suits UK sellers best.
Getting Started With Side Hustles in the UK
The biggest mistake people make is overthinking it. Pick one option, spend a weekend setting it up, and get your first client or sale. Most successful side hustles started with someone just giving it a go.
However, do not wait until you are earning well to get organised. Set up a separate bank account for your side income, keep a simple spreadsheet of what you earn, and register with HMRC before the deadline if you go over £1,000. Sorting this early saves a lot of stress later.
Side hustles UK opportunities are genuinely better than they have ever been. The platforms exist, the demand is there, and the barrier to starting is low. The only thing left is to actually start.
Content on IceburgWealth.com is for general information only and is not financial advice. I am not a regulated financial adviser, and tax rules and figures can change. Always do your own research and consider speaking to a qualified adviser before making any financial decision.
This article is part of our Small Business Guide, where you will find every related article in one place.