Side hustles have taken the world by storm. Those who want to monetise their personal interests, need a stepping stone towards being their own boss, or simply require an additional income are turning to side hustles and discovering their true potential. But what if you have a full-time job? Side hustles can be as flexible as you need to make them work for you.
In this article, company formation agent, 1st Formations, will dig into the notion of side hustles and guide aspiring entrepreneurs through their top tips for balancing them with a full-time job. They will also provide some side hustle ideas to help you get started and advise the key government rules that you need to know about having an additional income.
Contents
1. Check if you are able to start a side hustle
Our first tip is to check if you’re able to start a side hustle whilst having a full-time job. Does your employer have any rules around side hustles or additional sources of income that might restrict your options?
For example, many companies don’t allow second jobs in competing sectors. Consult your employment contract or ask a relevant colleague whether you are permitted to start your own business on the side.
Another factor to consider is whether you can afford to start a side hustle. Depending on the type of job you want to take up, there may be upfront costs to consider. For instance, if you want to be a freelance photographer, you may need to buy a camera, a ring light, and editing software – all of which are rather costly.
You may also want to think about how long it might take you to find customers and start generating an income – can you afford to be out of pocket for that long? These are all important questions you should answer to establish if you’re in a suitable position to start a side hustle.
2. Get organised
To successfully balance a side hustle with a full-time job, you’ll need to get organised. Remember that you will essentially be doing two jobs, so good organisation is key.
If you’re not sure where to start, we recommend creating a schedule for your current commitments. Note down the working hours of your full-time job and factor in your commute (if applicable) – these are the non-negotiables.
Next, add any regular personal commitments to your schedule. This can be childcare or fitness classes, for example. You now have a solid idea of how the bulk of your time is spent and you can identify suitable gaps to fill with your new side hustle.
A good way to keep track of your time and stay organised is to use a planner. Simple apps like Google Calendar and Evernote are excellent ways to help you map your to-do list and priorities. Don’t rely on your memory when trying to run a side hustle alongside a full-time job – something is bound to get missed and you may risk falling behind on your existing commitments.
So, first things first, get organised. Visualise how much time you dedicate to your full-time job, factor in any extra-curricular essentials, and identify suitable gaps to fill with your side hustle.
3. Create a balanced schedule
Now that you know how much time you have outside of your day job, the next step is to create a balanced schedule. Think about how much time you want to spend on your side hustle and how much you are realistically able to do without experiencing burnout. Avoiding burnout is vital as it could jeopardise your performance in your full-time job.
Let’s say you work from home and work from 9am to 5pm, Monday to Friday, with no other significant commitments. You could spend 3 hours every evening on your side hustle, or a bit longer over the weekends.
Whichever approach works best for you, create a schedule that suits your availability and working style. Ease into your side hustle and make sure you leave yourself enough time to decompress and for self-care.
Once you’ve found a healthy balance, try to stick to it as best you can. If you struggle with effective timekeeping, you could try simply setting an alarm on your phone. This will remind you when your full-time job is wrapped up for the day and it’s time to turn your attention to your side hustle, and vice versa. It’s equally important to leave enough time for rest and time with friends and family.
4. Keep your side hustle and full-time job separate
When running a side hustle alongside a full-time job, it’s easy for all your tasks to blend into one, making it feel like you’re constantly working. Therefore, try to keep things separate and let your mind register that you’re moving on from one thing to another.
Separating your side hustle from your full-time job could be as simple as changing your surroundings. For instance, if you work from home and have a study, you could move to another room or go to a local cafe when it’s time to focus on your side hustle. Another idea is to use different equipment. If you have a work phone or laptop, for example, use your personal one for your side hustle.
These simple changes can make a huge difference in your ability to juggle a side hustle with a full-time job, allowing you to enter the right mindset when it’s time to focus on each task.
5. Prioritise your full-time job
Our next tip is not to lose sight of your full-time job. Ultimately, this is your main source of income, so when taking up a side hustle, be sure to prioritise your day job.
The best way to stay on top of this is to stick to your schedule. Now that you have worked out how to balance your time appropriately between your side hustle and your full-time job, follow those guidelines to make sure that your day job continues to get the focus and dedication it requires so that you can continue to perform well.
Naturally, circumstances can change, so by all means, update your planner as you go along to make sure that your schedule works for you. But it’s essential to monitor how to split your time between the two, making sure that your full-time job remains the priority.
6. Choose your side hustle carefully
No matter your motivations, it’s essential to choose your side hustle carefully. Whether it’s to boost your monthly income, take up a new hobby, or eventually turn it into your own full-time business, you should take the time to find a suitable option that will help you achieve your goals without compromising your full-time job.
For example, if you simply need some extra cash, perhaps running food deliveries in the evenings or weekends will suffice. But if you want to generate an income from something you’re genuinely passionate about, then freelance design services or content creation might be more suitable.
Think about what matters to you and set yourself some objectives. Then, research the side hustles that could help you achieve those goals.
Side hustle ideas to run with a full-time job
There are plenty of options when looking for a suitable side hustle. If you’re not sure where to start, think about your personal interests, hobbies, and passions. You should also consider your motivations behind taking on a side job.
If you need some inspiration, here are a few side hustles to consider that are easy to work around your day job:
- Blog writer
- Delivery driver
- Selling used items
- Video content creator (e.g. running a YouTube channel)
- Online tutor
- Freelance taxi driver
- Pet/house/babysitter
- Part-time Airbnb host
- Affiliate marketer
- Proof-reader
- Podcaster
Tax regulations on side hustles
Whether you’re already running your side hustle or are thinking of taking one up, it’s important to be aware of the tax regulations on side hustles.
From 1st January 2024, freelance platforms like Airbnb, Uber, and Fiverr (including those operating from overseas) will be required to report all of their users’ earnings to HMRC. This new measure is designed to reduce tax evasion and make sure that everyone is paying the right amount of tax.
When you generate an income through these platforms, your financial information will be shared with the tax office. They will then cross-check that information with your tax account to make sure that you have declared the correct earnings and are paying the right tax bill.
Reporting additional income
Any money you make from your side hustle is considered self-employed income and must be reported to HMRC. There is an annual trading allowance of £1,000 for the 2023/24 tax year which means any earnings up to this amount received from your side hustle do not have to be declared. However, you must tell the tax office if you have:
- A gross trading income of over £1,000 (declare this via an annual Self Assessment tax return)
- Other gross income over £1,000 up to £2,500 (contact HMRC)
- Other income over £2,500 (declare this via an annual Self Assessment tax return)
If you’re unsure if you need to declare additional income, check the HMRC website.
Conclusion
Taking on a side hustle alongside a full-time job can be tricky but with careful planning and time management, they can be an excellent way to boost your income and make extra money from your hobbies and passions. To balance a side hustle with a day job, you should:
- Make sure you’re in a good position to take up a side hustle
- Get organised
- Create a balanced schedule
- Keep them separate
- Prioritise your full-time job
- Choose the right side hustle that’ll help you achieve your goals
1st Formations is a leading UK company formation agent. Their company formation packages guide business owners from the very first step of setting up their companies through to post-incorporation services. To find out more about their packages and offers, visit the 1st Formations website.
