A third of UK side hustles earn less than £100 a month, Remitly Business finds

A third of people running side hustles in the United Kingdom earn less than £100 a month from those activities, according to research published by money-transfer firm Remitly Business.

Remitly's survey found 36% of side-hustlers report monthly earnings below £100, while a further 32% said they make between £100 and £499. The average side-hustle income in the research was £367.88 per month. At the other end of the scale, around 3% said they earn more than £2,000 monthly, and 5% reported having earned nothing yet despite investing time in their projects.

The survey also highlighted a gender gap in returns: men were more likely to report higher earnings, with 17% saying they make more than £500 a month from their side business. Nearly half of respondents — 49% — said they paid nothing to start their side venture, limiting upfront financial barriers to entry.

Remitly Business executive Ryan Riley, speaking to This is Money, said social media can give a distorted picture of what success looks like for side hustles, with high-earning anecdotes widely visible but not representative of most experiences. "People can, unfortunately, get a skewed idea of what success looks like when it comes to side hustles because of what is shown on social media," he said. "Within seconds, you can find videos of people claiming to earn hundreds of thousands from many different jobs. As our data shows, the reality can be quite different."

Riley cautioned that increased competition has made it harder for newcomers to stand out than in earlier years and urged would-be entrepreneurs to test ideas before committing significant time or money. He advised careful research into market conditions and competition and recommended tracking hours, earnings and expenses to evaluate whether a venture is delivering a reasonable return on effort.

Tax rules add another practical consideration for those earning on the side. Under current HM Revenue & Customs guidelines, individuals must declare self-employment income if it exceeds £1,000 in a tax year; however, the threshold is scheduled to rise to £3,000 by the end of 2029. Filing a tax return does not necessarily mean tax is owed — liabilities depend on whether side activity constitutes trading and whether profits exceed personal tax allowances — but reporting obligations remain for many who earn supplementary income.

Time commitment and the potential for stress also featured in Remitly's findings and commentary. Some respondents told researchers their side activity had affected their work-life balance. Riley said that while many side hustles will not become primary income sources, modest and consistent earnings can still provide a useful buffer for unexpected expenses or extra financial breathing room.

Practical steps for managing a side business include testing concepts with limited investment, keeping detailed records of income and expenses, and separating personal and business finances where possible. Setting up a dedicated business account or paying oneself a regular salary from side-hustle receipts can simplify bookkeeping and make tax compliance easier.

Small, regular proceeds from a side venture can be channelled into savings or investments. Investors with modest sums have a range of retail platforms available, including AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine and Trading 212, among others.

Remitly's analysis suggests that many people approach side hustles with hopes shaped by high-profile success stories but encounter more modest returns in practice. For those considering or already running a side business, realistic expectations, disciplined tracking and an awareness of tax and time costs are likely to be as important as the skills or product being sold.