Why so many people in the UK now have a side hustle in 2025

Side hustles have shifted from being a nice extra to a financial necessity for many people in the UK. In 2025, more workers and students are taking on second jobs, freelancing or starting small online businesses alongside their main income.

How many people in the UK have a side hustle now?

Recent research suggests side hustles are no longer niche.

• A 2025 statistics review found that 30% of British full time workers have a side hustle, earning on average £780 per month from their extra work. It also estimates that side hustles contribute around £70 billion a year to the UK economy.

  Source: StandOut CV – Side hustle statistics UK 2025

• Employment Hero’s 2025 Annual Jobs Report shows that 21% of UK employees now hold more than one job, with 42% of Gen Z workers juggling multiple roles.

  Sources:

  • Intelligent SME – Side hustles become survival strategy for UK workers
  • The Global Recruiter – Side hustles become survival strategy for UK workers

• Among students, an Aviva survey in October 2025 reported that 65% of students have a side hustle, compared with 38% in the 1980s.

  Source: Aviva – Student side hustle research 2025

How much money do side hustles really bring in?

Despite social media stories about people earning thousands of pounds a month, most side hustles bring in modest amounts:

• A November 2025 survey found that 36% of side hustlers earn less than £100 a month, and a further 32% earn between £100 and £499. Only 3% reported earning more than £2,000 a month.

  Source: IFA Magazine – Majority of UK side hustles are earning up to £500 a month

• StandOut CV’s side hustle statistics indicate an average income of £780 per month, but this includes a small minority of high earners – the top 5% make over £100,000 a year from their side work.

  Source: StandOut CV – Side hustle statistics UK 2025

In other words, for most people a side hustle is a useful top up rather than a full replacement for their main job.

Why side hustles have become so common

Several factors are driving the surge:

1. Cost of living pressures – After several years of high inflation, many workers use side income to cover rent, bills and food rather than discretionary spending.
2. Flexible digital platforms – Online marketplaces, freelancing sites and social media make it easier to sell products or services from home.
3. Career experimentation – Some people use side hustles to test business ideas or build portfolios before leaving their main job.
4. Generational attitudes – Surveys show younger workers are more open to multiple income streams and less attached to a single long term employer.

A 2025 study by Robert Walters found that 30% of UK professionals are considering starting a side hustle, with 19% already running one. The most common reason was needing extra income.

Source: Robert Walters – UK professionals and side hustles 2025

What about tax on side hustles?

The rise of side income has also caught the attention of HMRC. Under current rules, there is a £1,000 trading allowance – people can earn up to £1,000 a year from casual trading or side gigs before they have to file a self assessment tax return.

In 2025 the government announced plans to raise the threshold for having to complete a tax return on side hustle income from £1,000 to £3,000, potentially removing around 300,000 people from self assessment in future.

Sources:

• Financial Times – Threshold for filing side hustle tax return to rise to £3,000
• The Guardian – Side hustles tax return threshold to triple

However, tax free allowances and reporting rules are not the same thing. MoneyWeek notes that people still owe tax on income above £1,000, even if simplified digital reporting is introduced later in the decade. For now, anyone making more than £1,000 a year from a side hustle must register with HMRC and complete a tax return.

Source: MoneyWeek – Side hustle tax changes

The risks behind the trend

While side hustles can be positive, there are trade offs:

• Burnout and long hours – Extra work on evenings and weekends can erode rest and family time.
• Job performance risk – Employers may worry that second jobs affect performance or create conflicts of interest.
• Lack of benefits – Side hustles rarely come with sick pay, pensions or other protections.
• Legal and tax compliance – Poor record keeping or misunderstanding rules can lead to unexpected tax bills or penalties.

Research from the University of Cambridge on gig workers in the UK highlights anxiety over income volatility and the pressure created by rating systems and algorithm driven platforms.

Source: University of Cambridge – Gig economy and anxiety 2025

The bottom line

Side hustles are now a core feature of the UK income landscape rather than a fringe activity. Around a third of full time workers and a majority of students hold some form of second job or small business on the side.

For some, this brings opportunity and flexibility. For others, it is simply a way to stay afloat. As the trend continues, clear information on tax, employment rights and financial planning will be essential so that extra income supports long term security rather than adding new risks.

References:

• StandOut CV – Side hustle statistics UK 2025
• Intelligent SME – Side hustles become survival strategy for UK workers
• Aviva – Student side hustle research 2025
• IFA Magazine – Majority of UK side hustles are earning up to £500 a month
• Financial Times – Threshold for filing side hustle tax return to rise to £3,000
• The Guardian – Side hustles tax return threshold to triple
• MoneyWeek – Side hustle tax changes
• University of Cambridge – Gig economy and anxiety research