According to data from Remitly Business, over half of side hustles are started with the goal to earn extra money, but most bring in less than you might think.
They spoke to over 1,000 side hustle owners to explore how side hustles are taking shape in 2025, from who’s doing them to how much people are really earning.
You can view the full research here: https://www.remitly.com/gb/en/landing/state-of-side-hustles-uk-statistics
Why start a side hustle?
| What is your main motivation for having (or wanting) a side hustle? | Percentage of respondents |
| To earn extra money | 56% |
| To turn a hobby into income | 23% |
| To gain new skills | 10% |
| To have more financial security | 9% |
| To eventually turn it into a full-time job | 2% |
Money is the main motivation, with over half (56%) of respondents saying their primary reason for having a side hustle is to earn extra income.
Making money on the side becomes more important as we get older as well, with 70% of 45-54-year-olds ssayingincome is the main reason, compared to 42% of those aged 25-34. This is likely due to increased financial obligations like mortgages, children, or retirement savings that older individuals face.
But how much can you earn?
| How much do you typically earn monthly from your side hustle? | Percentage of respondents |
| Nothing yet | 5% |
| Less than £100 | 36% |
| £100 – £499 | 32% |
| £500 – £999 | 11% |
| £1,000 – £1,999 | 6% |
| £2,000+ | 3% |
| Prefer not to say | 1% |
| It varies too much to be able to say | 6% |
Over one in three side hustles (36%) earn less than £100 each month, meaning they may have earned less than the £1,000 a year tax-free threshold and would not need to register with HRMC.
A further one in every twenty side hustles hasn’t earned any money yet.
The tax-free threshold for side hustles is expected to increase to £3,000 in 2029, roughly £250 a month.
Remitly Business’s experts give five tips to start and sustain your side hustle:
- Start small and test your idea:Â Avoid big financial commitments upfront. Test your concept with a low investment to see if there is genuine interest or demand.. If you are selling a product, try a limited batch first or implement a pre-order model to gauge interest.
- Track everything: Use budgeting tools or a basic spreadsheet to track income, expenses, and time spent. This will help you understand your side hustle’s actual profitability and clearly see whether your time investment is worth the return.
- Save for taxes: In the UK, self-employed or side hustle income over £1,000 per year needs to be declared. Set aside around 20-30% for taxes. Many new side hustlers underestimate tax calculations. You may also need to register for Self Assessment with HMRC.
- Diversify income sources: Don’t rely on one platform. Algorithms, platform policy changes, or market saturation can affect your income stream overnight. To stay resilient, explore complementary revenue streams (like coaching, subscriptions, or licensing your content/skills).
- Be smart about managing your side hustle income: Be intentional with your earnings, regardless of whether you’re saving, reinvesting, or sending money to loved ones. If possible, create a separate business account, pay yourself a regular ‘salary’ from side hustle profits, and consider your long-term goals.Â
You can view the full report here:
