How to start a side hustle

Key takeaways

• You don’t need a standout talent to start a side hustle – just a simple idea you can test in your spare time

• Once you earn £1,000 or more in a given tax year, you need to register for self-assessment with HMRC 

• A side hustle can stay small or grow into a full-time business – the key is to start with something manageable and build from there

What is a side hustle?

A side hustle is a way to earn extra money outside your main job. It’s usually something you run independently, perhaps by selling products, offering a service or using a skill you already have. Unlike a traditional second job, where you’re employed by someone else, a side hustle gives you more control over what you do and when you do it.

You can work on your side hustle in the evenings or at the weekend, and often from the comfort of your own home. And for many, it’s not just about the money – it’s also a way to explore a passion or test out a business idea without taking on too much risk.

How to come up with a side hustle idea

You don’t need to be a crochet expert or a part-time beautician to launch a side hustle. Yes, if you have a natural skill or interest, it might be easier to come up with an idea in the first place. But there are plenty of ways you can make money from a side hustle, even if you haven’t yet found your hidden talent. Here’s how:

1. Start with what you know

Consider your skills, hobbies, or past jobs. You might already have a natural flair for something that people are happy to pay for – such as writing, graphic design or DIY.

2. Look for everyday problems

Side hustles often come from fixing something small. Can you offer a helpful solution to a problem people around you are struggling with?

3. Check whether there’s a market for it

Before diving in, make sure there’s a demand for your offering. Search online, look around marketplaces or ask friends and family. If people already pay for it, that’s a good sign.

4. See what’s already working

Scroll through online platforms such as Etsy, Fiverr, TikTok or YouTube. Look for trends and ideas that match your skills – but don’t just copy them. Think about how to tweak existing ideas so you stand out from the crowd.

5. Keep it realistic

Pick something you can do with the time, money and energy you have. Remember, it’s a side hustle – you’re going to be doing this alongside other commitments. You don’t need a perfect plan, just an idea that’s doable and testable.

Popular side hustle ideas in 2025

Not sure where to begin? To give you inspiration, here are some of the most popular and practical side hustle ideas people are trying in 2025:

• Selling digital products such as ebooks, CV templates or helpful life planners

• Freelance copywriting, graphic design, editing or coding

• Online tutoring or coaching

• Reselling clothes or tech goods online

• Making and selling crafts on platforms such as Etsy

• Creating content for brands

• Renting out owned equipment or space 

• Offering virtual assistant or admin services to companies 

• Teaching skills on platforms such as Skillshare or Teachable

How to validate your idea before you start

Before you jump in with your side hustle idea, take a few small steps to check whether your idea works in practice. You don’t necessarily need a business plan – just a quick sense check to test the waters. 

Talk to your target customers

Skip vague feedback from friends. Instead, speak to people who might actually buy from you. Ask what they expect, what they’ve tried, and what’s missing from their current solution. 

Look at real-life searches and questions

Cast your eye over Google Trends or forums such as Reddit. If people ask the same questions or look for solutions to similar problems, you’ve probably spotted a real need.

Set up a simple test

Create a one-page website using a free tool, such as Carrd, or post about your side hustle on Instagram, TikTok, or a local Facebook group. You can also list a basic version of your product or service on platforms like Etsy or Fiverr. You can then track interest to see whether people click, comment or message – it’s a quick way to test demand before going further. 

Offer a trial 

Provide a free or low-cost version of your idea to a small group of friends, family or interested users. Their feedback helps you tweak things before you put in more time or money.

Do you need to register a side hustle?

If you’re running a side hustle, you most likely want to keep the admin to a minimum. So, how much do you need to earn from a side hustle before you have to pay tax and should you register with any other authority? 

If you earn £1,000 or more from your endeavour, you need to let HMRC know about it. You can register as self-employed online through the HMRC website. The process is straightforward. Once you register, HMRC gives you a Unique Taxpayer Reference (UTR), which you need when you file your self-assessment tax return.

You don’t need to set up a business or register a company with Companies House – just let HMRC know you’re earning as a sole trader.

If you’re both employed and self-employed, you’re probably paying most of your tax through your main job. You just need to report and pay tax on the extra income from your side hustle, so be sure to keep clear records of what you earn and spend to make it as simple as possible.

Do you need insurance?

Once you’re ready to go, consider the following insurance options to ensure you’re properly protected in the event something goes wrong:

• Public liability – If you expect to come into contact with the public – be it customers, clients or anyone else – you may need public liability cover

• Professional indemnity insurance – If you’re writing reviews, content or giving advice – perhaps as part of a blog – you should consider professional indemnity insurance. It covers you if you’re sued for plagiarism, factual inaccuracies or libel

• Employers’ liability insurance – If you employ anyone (other than a direct family member) you must get employers’ liability insurance. This covers you if an employee falls ill or is injured through their work

When does a side hustle become a full-time business?

A side hustle becomes a full-time business when it replaces your main income or takes up most of your working time. You might hit that point gradually as you build up your client base and reputation, or it could happen quickly if things really take off.

You don’t need to wait for a specific income level, but it definitely helps to know your numbers. If you find your side hustle can cover your bills, support your lifestyle, and it’s continuing to grow steadily, you might be ready to make the switch. Just make sure you plan for gaps in income, tax changes and any legal needs that may come with going full-time with your business.

Are you ready?

Run through this quick checklist before you start your new side hustle:

• I’ve found a side hustle idea that fits my skills and time

• I’ve checked there’s demand for what I’m offering

• I know how to find my first customer or sale

• I’ve worked out how much time I can realistically give it

• I’ve tracked what I might earn and spend

• I know if I need to register with HMRC

• I’m keeping simple records of income and costs

• I’m clear on why I’m doing this – extra cash, new skills or a career shift