‘I expect to earn £4,000 this year’ Britain sees number of side-hustles double during COVI | Personal Finance | Finance

0
19


Credit Karma’s survey of 2,001 adults across the UK found that around 25 percent of people now have more than one job, including four in ten millennials. Some 61 percent of “side-hustlers” said their financial stability is dependent upon this additional income and with 42 percent taking on extra work due to the COVID pandemic. One of the many young people venturing into this new field of work is Alexander Moore, 25, from South London.

Mr Moore started a business selling Limoncello which he manages on the side of his full-time job as a Commodity Broker

While Mr Moore’s day job makes up the majority of his income, his new business is both a passion project as well as a money-making exercise.

Mr Moore explained: “After getting a taste for limoncello from holidays in Italy, I attempted to make small batches for friends and family.

“It took over a year of toying with the recipe in my kitchen to perfect it, but after a lot of trial and error, The Limoncello Spritzer Club was born!

“A year down the line and a few tweaks later, the Limoncello Spritzer Club has been taking up every spare minute I have, with lockdown giving me the perfect opportunity to grow the brand.

“I travel around to different farmers markets on the weekends, and so far it’s been really successful.

“Although it’s early days, over the next few months I expect to be earning between £3,000 and £4,000 from the business – it’s really fulfilling to be able to earn money from something I’m passionate about and enjoy so much.

“The small amount of money I don’t redirect back into the business is helping me to save up for my next trip back to Italy, who knows, I might even be able to take some limoncello with me this time.”

DON’T MISS

The research from Credit Karma also found that men are more likely to take on a side hustle, taking home nearly £840 a month.

In comparison, women in the UK with side-hustles earn just £670 on average, which is a staggering difference of more than £2,000 a year.

Around one in five UK adults admitted to using the income to pay down debt, while 32 percent said they wanted to gain an extra cash boost.

However, many of the people polled criticised the tax penalties associated with additional jobs, notably having to pay emergency tax.

This tax code is issued when HM Revenue and Customs (HMRC) does not have enough information about an employee’s income and tax details for a tax year.

As most side-hustles are new and fledgling businesses, HMRC often pushes young entrepreneurs to pay emergency tax on their new business ventures.

Some 59 percent of side-hustlers believe emergency tax is unfair, with 40 percent of current workers believing it will eventually stifle their second job.

Ziad El Baba, General Manager at Credit Karma UK, outlined how the COVID pandemic has exacerbated changes to the way people work.

He said: “As a nation, we’ve shown extreme flexibility and ingenuity in the face of a crisis, and really demonstrated just how entrepreneurial we are.

“But with more and more people working additional jobs or finding new income streams, it feels like emergency tax is an outdated millstone around the neck of those simply seeking financial stability.”

Britons thinking of taking on an extra side-hustle or any additional work is encouraged to weigh up the personal and tax commitments that go alongside such an endeavour.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here