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April 5, 2022
April 5, 2022
Side hustle

What is a side hustle?

Earnr
Earnr
If you’re starting a side hustle, we explain everything you need to know building a side income and business.

What is a side hustle?

A side hustle is additional work outside of your 9-to-5 routine either to make extra money or to pursue a passion. Be it a freelance design project, selling things online, or dog walking, the jobs really vary, but the premise is always that you do it on the side of a regular full-time job. 

The reason people go into side hustles also varies. In some cases it might be to earn some straight up cash, maybe doing stints in the gig economy to save for a trip, or it could be to work on a project with a friend where your real passion lies. 

The benefit of a side hustle is that you can explore other options while keeping the safety net of a full-time job. For those who are unsure about what’s next, whether you’ve recently graduated from uni or you’re just looking for something new, a side hustle allows you to get a sense of what the work might be like, and in most cases you can be your own boss, managing your time to fit your routine. And if it’s not for you, you haven’t lost anything. 

How do I know which side hustle is right for me?

If you feel like you’re at a bit of a cross-roads or you need something new from your current work then a side hustle is a good starting point. But knowing what’s right for you can be hard. 

Some things to consider are:

How do I start a side hustle?

If you’ve answered all those questions and you’re still keen, then there’s a few things you need to set up before you start out in the side hustle game. 

Find your niche - not just what you do, but who you are. What’s your business called, what’s your landing page like?

Update your legal role - are you a sole trader, a partnership or a limited business? These each come with different taxation rules.

Understand your taxes - If you earn less than £1,000 you don’t need to do anything, go over that though and you’ll need to file a self-assessment tax return. Earnr can take you through the process in 17 minutes.

Set a rate - It’s important to know from the off how much you’ll charge for your goods and services, before you talk to clients.

Set up a business bank account - It’s good to separate your side hustle income from the rest, especially if you need to put 25-35% aside for your tax return. 

Start thinking about your previous experience and how you can build a portfolio - how can you sell this to future employers?

Do I need to pay tax on my side hustle?

Just like freelance work or self-employment you need to do your own self-assessment tax return for your side income. This is because those paying you for your second income won’t be paying you through PAYE like your main employer. 

Things to consider:

That said Earnr can automate your side income tax returns for you. You just need to set up an account with us and we’ll pass on the details that you put in to HMRC, which saves you the trouble of going through more admin. 

Earnr is here to remove the manual bookkeeping side so that you can focus on growing your business and doing the interesting work. Download Earnr here.

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