The UK’s side hustle boom: How rising costs are changing the way you work

Chances are you’ve at least thought about starting a side hustle, or you’ve already got something small ticking along in the background. Maybe you’re selling a few things online, doing the odd dog walk, or picking up weekend work at a local market. It’s becoming a much more normal part of everyday life.

Nearly half of UK adults (around 46%) now have a side hustle, according to recent research. A big driver is the cost of living, when bills, food and housing all go up, earning a bit extra starts to feel less like a bonus and more like a practical step.

What people are actually doing

The most common side hustles tend to be the ones you can start quickly, using skills or interests you already have.

That includes:

• selling products online (Etsy, eBay, Vinted, Shopify)
• handmade goods and crafts 
• market stalls and pop-up selling
• food vans and mobile catering, which have become increasingly popular at markets and events
• dog walking and pet sitting
• cleaning and maintenance services
• freelance or digital work like design, writing or social media services

A lot of these start off casually at weekends, evenings, the odd order here and there. But, they don’t always stay that way. Growth tends to happen gradually, you get a few customers, they return, they recommend you to a friend, and before long, you’ve got regular work coming in.

At that point people expect consistency, you’re managing bookings or orders, you’re spending more time on it than you planned, even if you still think of it as “just a side thing”, it’s starting to behave like a business.

What’s worth thinking about early on

As your side hustle grows, a few practical things become more important.

Keeping on top of tax

If you earn more than £1,000 from your side hustle in a tax year, you’ll usually need to register for Self Assessment with HMRC. Keeping simple records early makes this much easier.

Being clear with customers

Even informal work benefits from clear expectations, such as what you’re offering, how much it costs, and when it’ll be done.

Considering a business bank account

When money starts coming in regularly, it’s worth separating your business and personal finances. A dedicated business bank account can help you:

• keep track of income and expenses more clearly
• make tax returns easier to manage
• look more professional when dealing with customers
• avoid confusion over what’s business income and what isn’t

You don’t always need one straight away, but once things become consistent, it can save a lot of time and hassle.

Pricing your time properly

It’s common to underprice at the start. As demand grows, it’s worth checking that your pricing reflects your time and costs and what your competition is charging.

Managing your time

Balancing extra work with everything else can get difficult. Growth can bring more pressure than expected.

Handling complaints

The more customers you have, the more likely it is that something won’t go exactly to plan. If that happens, knowing how to respond matters. Resolver can help you to manage and track any issues in one place, keeping a clear record of what’s happened and how it’s been handled.

Knowing your consumer rights, for you and your customers

As soon as you start selling products or services, consumer law applies, whether you think of your work as a “business” or not.

That means your customers have rights, including:

• goods that are as described, of satisfactory quality and fit for purpose
• services carried out with reasonable care and skill
• the right to refunds, repairs or replacements in certain situations

Understanding this early helps you avoid disputes and handle them more confidently if they come up.

It’s also worth remembering that you’re a consumer too. If you rely on suppliers, platforms or tools to run your side hustle, you have rights when things go wrong. If you’re not getting a fair response, Resolver can help you raise and track complaints with your suppliers without the back and forth.

Business Protection

Most side hustles generally involve dealing with people in some way, whether that’s customers, their homes, their pets or the general public. That might mean setting up at a market and interacting with lots of people, working in someone’s home, looking after animals or selling products people rely on. These are all everyday situations, but they also come with responsibility.

Someone could trip near your stall, a dog in your care could cause damage, you could accidentally break something while working in a client’s home. While it’s not about expecting things to go wrong, it’s recognising that they can and that’s usually the point where people start thinking about protection, like public liability insurance as a way to cover those kinds of situations if they do happen.

If you use a vehicle, check your policy

A lot of side hustles involve getting from A to B, whether that’s visiting clients, transporting equipment, collecting stock or delivering products.mIf you’re using your car or van for anything work-related, it’s worth checking your insurance carefully.

Standard personal car insurance often won’t cover business use like:

• making deliveries
• travelling between multiple clients
• carrying tools or stock for work

Depending on what you do, you may need business car insurance or specific van insurance to make sure you’re properly covered. It’s an easy detail to overlook, but one that can cause problems if something happens while you’re working.

For any hospitality work, there’s a little more to think about

Food based side hustles, like coffee vans, cakes & bakes, street food stalls or mobile catering are growing quickly, especially at local markets and events.

But they come with a few extra responsibilities. You’ll usually need to:

• register your food business with your local council at least 28 days before trading
• follow food hygiene regulations and keep your setup clean and safe
• have appropriate food hygiene training or certification (often a Level 2 Food Safety & Hygiene certificate as a minimum)

There are also practical considerations:

• safe food storage and temperature control
• allergen information for customers
• waste disposal and cleanliness on site

If you’re using a van, insurance becomes more specific too. Standard cover may not be enough, you may need:

• catering van insurance (covering the vehicle, equipment and business use)
• cover for any cooking equipment and stock
• public liability insurance, often required by event organisers

It’s one of the clearest examples of how a side hustle can quickly involve multiple layers of responsibility.

Building a solid foundation to grow

Side hustles are becoming a long-term part of how people earn and manage their finances. For some, it stays as a bit of extra income. For others, it turns into something much bigger. Either way, it tends to follow the same pattern, it starts small, grows gradually and brings a bit more responsibility with it along the way.

Getting the basics right early on, understanding your obligations, knowing your rights, dealing with issues quickly and putting the right protections in place builds a solid foundation, making everything easier as things expand. 

While starting a side hustle is relatively simple, building one that lasts means always thinking a step ahead.

If you have any thoughts on this topic, or any consumer issues you would like us to cover, feel free to get in touch at support@resolver.co.uk.

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