• 2 in 5 Brits have said they make money from side hustles as of 2025, with an average income of £914 a month
• However, previous research found that more than half of Brits (53%) incorrectly guessed the amount you could earn from a side gig before reporting the income to HMRC
• Money expert warns people to check liability ahead of the 31 January Self Assessment tax return deadline

21, January, 2025, LONDON –

Experts at Finder are warning Brits to check their tax liability ahead of next week, as new research finds that 2 in 5 (39%) Brits make money from a side hustle.

Many are proving to be successful as well, with over a third (35%) earning more than £20 a week, which would work out at more than the £1,000 trading allowance over a year.

This comes as separate research by Finder last year found that more than half of Brits (53%) incorrectly guessed the amount you can earn from a side hustle before submitting a tex return.

The younger generations in particular are earning big from side hustles – defined as any casual job or business separate from your main job that aims to earn you extra income. More than half of generation Z (55%) and millennials (52%) reported earning £20 a week or more from side hustles on average.

Ironically, however, these were also the generations least likely to know how much you can earn from side hustles before reporting the income. Two-thirds of generation Z (67%) and 3 in 5 millennials (60%) did not correctly identify the trading allowance of £1,000 a year when surveyed.

Louise Bastock, money expert at finder.com, commented:

“The entrepreneurial spirit is well and truly alive in the UK – with 2 in 5 Brits boosting their income with a side hustle. However, the confusion around rules for side hustle income can lead to costly mistakes if people don’t realise they need to file a tax return before the end of January.

“Those earning more than £1,000 a year from their side hustle – including making money from online platforms such as Vinted or Etsy – need to submit a Self Assessment tax return. Last year, 1.1 million Brits were fined £100 for filing their tax return late and additional fines or interest payments may apply the later you file your return and pay your tax bill.

“If you have a side hustle, it’s best to fill in your tax return sooner rather than later to avoid a last-minute rush on deadline day. You can file a Self Assessment the day after a tax year ends – so 6 April – if you’re super organised. Remember to include any allowable expenses on which you can claim tax relief, such as travel costs and raw materials.

“If you’re yet to start earning money on the side, don’t let the tax rules put you off. There are loads of quick ways to make money online – from trading in old electronics to spending a few hours each week as a private tutor. Just make sure you’ve read up on the tax rules if you want to take the leap from topping up your income to a full-blown side hustle.”

Methodology:

To find out the number of Brits with a side hustle and average earnings, Finder commissioned Censuswide in January 2025 to carry out a nationally representative survey of adults aged 18+. A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.

To find out knowledge of side hustles and the trading allowance, Finder commissioned Censuswide in August 2024 to carry out a nationally representative survey of adults aged 18+. A total of 2,001 people were questioned throughout Great Britain, with representative quotas for gender, age and region.