Study finds more than a third of UK side hustles produce under £100 a month

More than a third of side hustles in the UK generate less than £100 a month, according to research from money transfer service Remitly Business, underscoring the gap between social media portrayals and typical financial outcomes for part-time ventures.

Remitly’s survey found 36% of people with a side business reported earnings below £100 a month, while a further 32% said they make between £100 and £499. The average monthly income from a side hustle in the research was £367.88. Just 3% of respondents reported earning more than £2,000 per month, and 5% said they had so far earned nothing despite investing time in their projects.

The data reflect a wide distribution of outcomes. Remitly Business also found that men were more likely to report higher earnings: 17% of male respondents said they earn more than £500 a month from their side activities. Nearly half of those surveyed (49%) said they paid nothing to start their side hustle, indicating low or no upfront financial barriers for many ventures.

Tax rules create a further threshold for some side hustlers. Under current HM Revenue & Customs guidance, people must declare income from a side business if it exceeds £1,000 a year, although declaring income does not necessarily mean tax is due unless trading profits surpass available allowances. The government has said the threshold will rise to £3,000 by the end of 2029.

Ryan Riley of Remitly told This is Money that public perceptions of side-hustle success are often skewed by social media, where high-earning anecdotes can create unrealistic expectations. "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," he said. Riley added that increased competition and inexperience can make it harder for newcomers to stand out than in prior years.

Riley and Remitly Business recommended practical steps for those launching or expanding a side business, including testing concepts with small investments, researching market demand and competition, and tracking spending, earnings and time commitments. Separating business finances from personal accounts — for example by using a business account and paying oneself a regular salary — can help with budgeting and tax compliance.

Even modest, consistent earnings can provide financial buffer, Riley said, noting that many smaller ventures still make a meaningful difference by helping cover unexpected expenses or adding "a bit of financial breathing room." However, he warned that the time and emotional commitment required by side hustles can strain work-life balance and lead to stress if expectations are not managed.

The trend toward side hustles grew during the COVID-19 pandemic, when people had extra time and many sought new income streams or ways to monetise hobbies. While success stories have been widely shared online, the Remitly data suggest most side ventures remain supplementary rather than transformative for household finances.

For prospective side hustlers, the research highlights trade-offs: low upfront costs often make experimentation easy, but turning a part-time project into a reliable income stream typically requires planning, market understanding and ongoing time investment. Tracking returns relative to time and expense can help determine whether a side activity is worth scaling or should be wound down.

Remitly’s findings add to a growing body of research that shows varied outcomes for the gig economy and part-time entrepreneurship. As regulatory and tax thresholds evolve, experts say clear record-keeping and realistic expectations are central to avoiding surprises and to assessing whether a side hustle delivers the intended financial benefits.