Having a side hustle isn’t just a fulfilling way to make use of your talent and skills, it’s also a fantastic way to earn some extra money on the side of your traditional job! Whether you’re saving for something big, have a lot of upcoming expenses to cover, or you just want to turn passion into profit, monetising your side hustle hobby can be the perfect mix of fulfilling and financially rewarding. But how to go from casual interest to income stream? Let’s break it down.
Why monetise my hobby into a side hustle?
Flexible income – a side hustle is your own business which means you can set your own rules. That includes when you work, how you work, and what you do! Being your own boss can be incredibly rewarding and means you can be in charge of your own schedule so your business can be scaled up or down accordingly to match the income level you want.
Built-in passion – most people choose to turn an existing hobby or passion into a side hustle because, unlike a job you might just tolerate, a passion means you’re truly passionate about something and making it work. Running a side hustle can be hard work, so if you love what you do then you’re off to a great start already!
Low start-up cost – If you’re already doing it, half the battle is won! It’s just a case of working out how to do it on a larger/profitable scale.
Side hustle ideas
1. Online Store
Online stores such as eBay, Vinted and Etsy to name just a few have really taken off in recent years. It’s become easier than ever to market your products – be that jewellery, candles, knitwear, crockery, the list goes on – and sell across the globe. If you’re a crafty person who’s good with their hands, has artistic flair, and enjoys spending time being creative, this could be the perfect fit! You could:
- Sell on Etsy, Shopify, or at local markets
- Host DIY workshops (in-person or online)
- Create and sell digital patterns or tutorials
2. Photography
Do you have a camera and an eye for detail? Aside from being a fun vocation, photography is a highly marketable skill and one that is in high demand when it comes to weddings, birthdays, nature, and other landmark events.
If you have a knack for taking photos, you could look into making it a side hustle in the following ways:
- Selling your photos and images on platforms such as Shutterstock or Adobe Stock or even in physical stores
- Being a photographer for events
- Create a social media platform to share images – it could be monetised through brand deals
- Offer photography classes or workshops
3. Writing
This is often a skill that’s overlooked because writing is so commonplace and a skill that everyone learns. If you have a particular knack for journalling, storytelling, blogging, or anything else, you could lean into this talent and earn a little cash on the side. This is especially good if you have a particular topic or area you’re knowledgeable on or passionate about (e.g. food or fitness). Being a freelancer copywriter or blogger can actually be very lucrative, and if you’re someone who enjoys writing anyways then you may as well start getting paid for your words!
Monetisation ideas:
- Freelance writing for blogs, magazines, or businesses
- Self-publish eBooks or guides
- Start a newsletter and grow a paid subscriber base via platforms like Substack
4. Fitness & Wellness
If you’re someone who likes being active, out and about, and is into their fitness, you could turn your passion for fitness and wellness into a side hustle. It’s a great way to combine staying fit and healthy with earning money.
You could:
- Become a certified fitness trainer or yoga instructor
- Host online sessions or group classes
- Start a fitness blog or YouTube channel
5. Tutoring
Tutoring is fast becoming a popular side hustle idea and it’s not necessarily surprising given that you can use your passion and talent for a particular subject area and make money by teaching it to others! Whether you opt for in-person or online sessions, tutoring could make for a great side hustle business.
6. Music & Audio
Another creative vocation! Do you sing, play an instrument, or produce music? There’s potential for making money in the following ways:
- Selling beats or stock music
- Teaching lessons (in-person or online)
- Performing at events or parties
7. Cooking & Baking
Is your kitchen your happy place? If the answer is yes then why not consider capitalising off that happiness and making a few pennies in the process? You could:
- Sell homemade good at a market or via an online shop
- Start a food blog and/or YouTube channel with your own recipes
- Teach cooking classes
8. Gardening & Plant Care
Being green-fingered isn’t something that everybody is gifted with but for those who are, there’s a whole host of ways you could turn your talent into a side hustle:
- Selling your plants
- Offering garden design or consultation services
- Online content creation about plant care
9. Driving & Delivery Services
Whether it’s as a taxi driver or a delivery driver, owning a vehicle and having a penchant for spending time on the road opens up the door for a lot of different side hustles!
10. Looking After Pets
People who look after animals are always in high demand. Why not consider running a dog walking or pet sitting business? Aside from getting to hang out with cute fury friends, you’d be earning some money too!
Tax responsibilities alongside side hustle ideas
Turning your hobby into a business is exciting, but let’s not forget it also comes with legal responsibilities. In the UK, once you start earning money from a side hustle, you may need to pay tax on that income.
Key points to understand:
1. The Trading Allowance
You can earn up to £1,000 per year tax-free from self-employment or casual income like a side hustle. If your income stays under this allowance, you don’t need to register as self-employed. If it exceeds this allowance, you’ll be required to fill out a self-assessment tax return.
2. Registering as Self-Employed
If your side hustle earns more than £1,000 annually, you must register with HMRC as self-employed by 5th October following the end of the tax year in which you started.
3. Self-Assessment Tax Return
Once registered, you’ll need to complete a self-assessment tax return each year to report your earnings and expenses. The deadline for filing online is 31 January following the end of the tax year (which runs 6th April – 5th April each year).
5. Keep Good Records
Track all your income and allowable expenses (e.g. materials, website costs, marketing). This not only helps with tax efficiency but protects you in case HMRC enquire into your finances or request further evidence alongside your SATR.
6. Use Accounting Software
If your side hustle grows, using software like QuickBooks, FreeAgent, or Xero can make your life much easier when it comes to bookkeeping.
Want to know more about everything involved in side hustle tax? Read a more detailed breakdown here.
Side Hustle Ideas: tips for monetising your hobby
- Start small: Test the waters before diving in full-time.
- Know your market: Who needs what you do? Focus on them.
- Stay consistent: Side hustles grow with regular attention.
- Don’t lose the joy: Keep your passion alive – even as it becomes a business.
- Understand your tax obligations: Stay compliant with tax rules to avoid penalties.
Let us help with your side hustle ideas
Side hustle tax is relatively straightforward, however, it’s important to understand the full scope of your responsibilities. Seeking out the help of a tax professional could be the way to go to protect yourself from unwanted fines and penalties. They’ll be able to help you with your tax return, remind you of upcoming and important deadlines, and, perhaps most importantly, stay up to date with changing legislation so that you’re safe in the knowledge you’re always operating your side hustle compliantly.
For most people, turning a hobby into a side hustle isn’t about making millions overnight. It’s about doing what you love, adding value to others, and creating a new stream of income that could eventually become something bigger. Whether it’s a few extra pounds a month or the beginning of a brand-new career path, it all starts with taking that first exciting step.
Unsure where to start or having worries about staying compliant with side hustle tax?
Get in touch with us today and we’ll help!
