A survey by 118 118 Money found that smart workers in the UK make almost £11,000.50 a year running a podcasting “side business”.
Their research revealed that nearly 68% of UK adults have a second source of income. This averages out to almost £5,000 per year. A third (31/3) of the people who started a side hustle after the coronavirus pandemic in 2020 saw their income increase. 17% took up a hobby’ business between July 2020 to December 2020.
Another 18% have used the first six months of the year to start their own extra source of income.
According to data, podcasting is the most lucrative secondary income source, earning people an average of £954 per month (£11 448 a year). The next two income streams are £670 per month for handmade candles (£8,040/year) and £657 for renting out a space or flat (£7,884/year).
The most popular ‘hobby’ business among British workers is selling handmade products. Six in ten (59%) choose this option as their preferred method of earning extra money. According to data, investing (20%) is another popular activity, as well as selling antiques and collectibles (12%)
Online, homemade soaps and candles are becoming more popular. Etsy data shows 6,226 listings and 3,122 listings respectively for these categories.
These are the 10 most lucrative secondary sources of income
Podcasting – £954 per month / £114,448 per year
Handmade candles for sale – £670 per month / £8,040 per year
Renting a flat/space: £657 per month/£7,884 per year
Blogging – £646 per month / £7.752 per year
Soft furnishings for sale – £616 per month / £7.392 per year
Handmade clothing/accessories for sale – £528 per month / £6,336 per year
Handmade soaps for sale – £525 per month / £6,300
Writing e-books: £517 per month / 6,204 per year
Handmade food/drink products for sale – £485 per month / PlayStation5,820 per year
Investing – £451 per month / £5,412 per year
Other interesting ideas include sell foot pics online.
Women are more likely to start a hobby business, while men make more money.
56% of women started a “side business” in the last few years, compared with 42% for men.
The data show that men typically earn more from secondary income than women. Men make on average £427 per month while women earn around £392, which is equivalent to £35 per month and £420 more per year.
Pay attention to rules and regulations
Potential business owners need to do their research in order to fully understand the tax and legal implications of starting a side-business.
These are some rules and regulations that you should be aware of:
You may need permission from your landlord, your mortgage provider, your local planning officer, or your local council if you are operating a home-based business.
You may be required to register with HM Revenue and Customs as a sole trader if you are selling goods or services regularly to make a profit, even handmade items.
HMRC may not require you to declare your annual trading income if it is less than £1,000 from one or more trades. However, there are situations when you will need to register for Self Assessment and report your income on your tax return.
If your annual income is more than £85,000 from a secondary source, you might need to register for VAT.
You should conduct a risk assessment following HACCP procedures if your activity involves handling food.
If you’re unsure of what to do, you should contact HMRC immediately.