Could you make a living from your side hustle?

More of us are turning to side hustles, such as selling items online, to top up our income.

But for some, it’s proving to be lucrative enough that people are thinking of scaling up into something more professional.

In fact, new figures from Royal Mail show that 58% want to develop their side hustle into their main source of income.

And 16% are already planning to do so.

What motivates side hustlers?

Unsurprisingly, most people with a side hustle (68%) are driven by the desire to earn extra money.

But that’s not the only motivation.

Nearly a third (30%) want to pursue a side hustle to fill spare time, and almost a quarter (23%) want to follow a passion.

And for more than half (51%), having an extra source of income helps give them a greater sense of purpose.

How much can you make from a side hustle?

According to Royal Mail figures, the average amount made by online side hustles is £5,420 a year.

That works out to £452 a month outside their main job.

And millennials are typically making even more from their side hustle, earning nearly £7,000 a year.

“There’s serious money to be made even if you only have a few hours a week,” said Saadi Al-Soudani, chief commercial officer at Royal Mail.

What are people selling?

Many people with a side hustle are making money selling items that lots of us will have at home, such as:

• old clothing - 44%
• books - 35%
• accessories - 31%
• tech - 26%
• hand-crafted items - 22%

Got a side hustle? Don’t forget to check if you need to pay tax

If you have a lucrative side hustle or plan to scale up, it’s worth remembering the tax implications.

That’s because if you’ve made more than £1,000 from your side hustle, you might need to register for self-assessment with HMRC.

Even if your side gig feels more like a fun hobby, it’s still worth checking, as the rules apply even if your extra income isn’t regular or full-time.

How do I check?

Use the checker tool on GOV.UK to find out if you might need to complete a tax return for the 2024-25 tax year.

If you’re new to self-assessment, you’ll have to register online to get your unique taxpayer reference (UTR).

More information for anyone with a side hustle can be found on GOV.UK.