Quick Answer

If you’re starting a side hustle in the UK, you must register as self-employed with HMRC if you earn over £1,000 annually from your extra income. A second income stream can be combined with an LTD company, but different tax rules apply. The key: register on time, keep accurate records, and meet annual filing deadlines.

In this article:

• Self-employed side hustle registration and tax obligations in the UK
• Managing a second income stream alongside an LTD company
• Practical tips for time management and financial planning
• Most common mistakes and how to avoid them
• Real case studies from UK entrepreneurs
• Concrete steps to launch your side hustle
• Financial and legal background every entrepreneur needs to know

Why Start a Second Income Stream in the UK?

You know what I mean? The cost of living in the UK isn’t cheap. Recent research shows that nearly 40% of the UK population has some form of additional income source alongside their main job in 2025. This isn’t coincidental – with continuously rising living costs, housing expenses, and energy bills, more people are seeking a second income stream.

But let’s be honest – it’s not just about financial security. I’ve spoken with many UK entrepreneurs over the past few years, and everyone started their side hustle for different reasons. Some wanted to turn their hobby into profit, others wanted to develop new skills, and yet others simply built an extra safety net for their families.

The Reality of Second Income: What to Actually Expect?

Listen up: not every side hustle becomes profitable immediately. Based on experiences from UK entrepreneurs, most starters don’t achieve significant profit in the first 6-12 months. This is normal. The key is to dive in prepared.

I remember when a colleague, Tom, started his photography business alongside his full-time marketing job. In the first three months, he had total earnings of £280 whilst spending £450 on equipment. Today, two years later, he earns between £2,400-3,200 monthly on the side – but it wasn’t a quick journey.

Key Takeaways:

• Second income streams in the UK are legal and increasingly popular
• Beyond financial security, they offer personal development opportunities
• Realistic expectations needed: the first 6-12 months are typically an investment period

Self-Employed Side Hustle: What Is It and Who Should Consider It?

Self-employed status in the UK means you operate as your own business, whether full-time or part-time. This isn’t the same as forming an LTD company – it’s simpler, involves less administration, but has different tax rules.

Note on terminology: In the UK, “side hustle” refers to an extra income source. It’s essentially any activity alongside your main job that brings in additional money – whether it’s freelancing, selling products online, or offering services.

When Must You Register as Self-Employed?

The rule is simple: If you earn more than £1,000 annually outside your main job, you must register as self-employed with HMRC. This threshold applies to the 2024/25 and 2025/26 tax years.

Insider tip: Don’t wait until you hit £1,000. If you’re serious about your side hustle, register in advance. Why? This way you’re already in the HMRC system when invoices start coming in, and you can avoid potential late penalties.

Who’s the Typical Self-Employed Side Hustler in the UK?

In practice, these are the most common profiles:

• Creative freelancers: Graphic designers, photographers, videographers working elsewhere full-time
• Consultants and coaches: Those monetising their professional experience
• Online entrepreneurs: Dropshipping, affiliate marketing, content creation
• Service providers: Craftspeople, translators, programmers on a project basis
• Educators: Private tutors, online course creators

Self-Employed vs. LTD: Which Is Better for a Side Hustle?

In practice: If you’re earning under £15,000 annually from your side hustle, self-employed is generally simpler and more cost-effective. Above £20,000, it might be worth considering an LTD for tax optimisation – but this always depends on individual circumstances.

Key Takeaways:

• Self-employed registration mandatory above £1,000 annual income
• Self-employed status means simpler administration
• LTD company makes sense when planning a more serious, long-term venture

Step-by-Step: How to Register as Self-Employed in the UK?

Good news: the process is simpler than you’d think. Let’s see the exact steps!

1. Registration with HMRC

Timeframe: You must register by 5th October of your second tax year after starting. But don’t delay!

Online registration process:

1. Visit gov.uk/register-for-self-assessment
2. Log in to your Government Gateway account (or create one)
3. Complete the registration form – 10-15 minutes
4. Provide your business type and start date
5. Receive your Unique Taxpayer Reference (UTR) number within 10 working days

A real example: Sarah, a web designer, started her side hustle in June 2024. She registered immediately, although her first contract didn’t arrive until August. “This way I could sleep soundly knowing everything was proper,” she said later.

2. National Insurance Contributions

As self-employed, you pay National Insurance, but there was an important change from 2024!

Class 2 NI: Mandatory Class 2 payment ENDED on 6th April 2024! If your profit is above £12,570, you’ll automatically qualify for state pension and benefits without paying it. If your profit is under £6,725, you can voluntarily pay Class 2 (£3.50/week for 2025/26 tax year) to maintain your entitlement.

Class 4 NI: This is what you actually pay! For 2024/25 and 2025/26 tax years:

• 6% on profits between £12,570 and £50,270
• 2% on profits above £50,270

Important: These contributions DON’T duplicate if you have a main job! With PAYE employee status, the same thresholds apply, but the system automatically calculates how much total NI you need to pay.

3. Record Keeping – This Is Most Important!

You know what’s the number one reason people get caught out in an HMRC inspection? Their bookkeeping isn’t in order. You don’t need a professional accountant at the start, but you must maintain a minimum.

What you must document as mandatory:

• All income (invoices, PayPal/Stripe transactions, cash too!)
• All expenses (invoices, receipts, online purchases)
• Mileage records if you use a car
• Home office costs (proportionally)
• Equipment and tool purchases

Digital solutions for 2025: The Making Tax Digital (MTD) programme will become mandatory for self-employed individuals earning over £50,000 from 2026. But it’s worth using digital records now.

Recommended apps:

• QuickBooks Self-Employed: £6-12/month, automatic categorisation
• FreeAgent: £9.50-19/month, specifically for freelancers
• Xero: £12-32/month, more professional solution
• Free option: Google Sheets/Excel template + Receipt Scanner app

4. Self Assessment Tax Return

Deadline: Every year 31st January (online) or 31st October (paper-based – hardly anyone uses this anymore).

What to expect:

• Total income (turnover)
• Expense deductions (allowable expenses)
• Profit calculation
• Income Tax and NI calculation alongside your main job
• Possible Payment on Account for the next year

A typical mistake: Many forget that PAYE tax from their main job doesn’t cover side hustle tax. On 31st January, an unpleasant surprise can await if you haven’t planned ahead.

Key Takeaways:

• Register immediately, don’t wait for the mandatory deadline
• Digital records are already advantageous now
• Set aside 25-30% monthly for tax and NI

Second Income Stream Alongside an LTD Company – The Art of Combination

This is where things get really interesting. If you already have an LTD company and want to pursue self-employed activity as well, there are a few extra rules to follow.

Why Would Anyone Want to Be Self-Employed Alongside an LTD?

Let’s be honest, this isn’t everyday, but it makes sense in certain situations:

1. Completely different activities: Your LTD is IT consulting, but you photograph on weekends. The clients don’t overlap, you treat them as separate brands.

2. IR35 compliance: If you’re a contractor through your LTD with a fixed-term contract that needs careful IR35 handling, you don’t want to put every random project into it.

3. Risk management: The LTD provides limited liability, but for certain personal services, you don’t want to bring everything into a corporate structure.

How Does It Work in Practice?

Legal situation: There’s no obstacle to being both an LTD director and a self-employed sole trader simultaneously. From HMRC’s perspective, you’re two separate entities.

Tax implications:

1. LTD Company: 19-25% Corporation Tax on profit + personal tax on dividends or salary
2. Self-employed: Income Tax + Class 4 NI on profit
3. Combination: Both sources count towards your personal tax bands!

A real example: James is an IT contractor through an LTD, with £65,000 annual income. Alongside, he teaches English as self-employed for £8,500 yearly.

James’s taxation for 2024/25:

• Takes £12,570 salary from LTD (tax-free) + £40,000 dividend
• Self-employed profit: £8,500
• Combined personal income: £61,070
• This means part of the dividend falls into the higher rate band

Administrative Requirements

What you must keep separate:

Critical point: NEVER, truly NEVER mix LTD and self-employed finances! Separate bank accounts, separate invoicing, clear separation. This is the first thing they check in an HMRC inspection.

When Is This Combination Worth It?

Advantages:

• Flexibility for different types of work
• Tax optimisation possibilities (though complex)
• Risk diversification
• Since 2024, no mandatory Class 2 NI payment for self-employed

Disadvantages:

• Double administration
• Higher accounting costs
• Greater chance of mistakes

Expert advice: If your second income stream is under £5,000 annually, it might not be worth treating the side hustle separately as self-employed. Better to incorporate it into LTD activities if possible. Above £10,000, separation of the two might be worthwhile – but always consult an accountant!

Key Takeaways:

• LTD and self-employed can operate in parallel
• Strict financial separation required
• From a tax perspective, both sources count towards personal bands

Practical Tips: How to Manage Work, Family and Side Hustle?

What if I told you that most side hustles don’t fail because there was no demand? But because the founder burned out and gave up. You know what I mean?

Realistic Time Management

The 20% rule: Don’t try to dedicate more than 20% of your available time to your side hustle in the first 6 months. If you work 40 hours a week at your main job, that’s max 8 hours for the side hustle – and even that’s ambitious.

A day in practice – how Emma, a social media manager, does it:

Morning 6:00-7:30: Works 1-1.5 hours on her own clients before preparing for main job Afternoon 18:00-22:00:Family, dinner, time with children Evening 22:00-23:30: If she has energy, another 1-1.5 hours Weekends: Saturday afternoon 3-4 hours, Sunday OFF

“In the first months, I thought I had to work every evening. I nearly burned out. Now I work 12-15 hours weekly on the side hustle, and it’s sustainable,” says Emma.

Financial Planning – The 40-30-30 Formula

I developed this formula in consultation with several UK entrepreneurs:

40% – Taxes and contributions (Income Tax + NI) 30% – Reinvestment (equipment, marketing, development) 30% – Personal income

Why such a high tax portion? Because most beginners underestimate their tax obligations. If a higher amount remains at the end, that’s a pleasant surprise – not the other way around.

Technology Stack – Work Smart With These

Basics (don’t start without these):

1. Accounting software – QuickBooks, FreeAgent or Xero
2. Invoicing system – many accounting software include this
3. Cloud storage – Google Drive or Dropbox for all documents
4. Time tracking – Toggl or Clockify (so you see if it’s worth it)
5. Project management – Trello, Asana or Notion

Pro tips:

• Automate everything possible (Zapier/IFTTT)
• Weekly 1 hour admin at fixed time (e.g., Friday afternoon)
• Record all income and expenses immediately
• Monthly financial review (1 hour)

When to Seek Professional Help?

Listen up: you don’t have to do everything alone. In fact, you shouldn’t.

You need an accountant if:

• You have £20,000+ annual income
• You have an LTD company and are self-employed too
• You have VAT registration obligations (£90,000+ turnover)
• You don’t understand Self Assessment
• You have multiple income sources (rental income, dividends, salary, self-employed)

A good accountant’s cost:

• Self-employed Self Assessment: £150-400/year
• LTD + self-employed combination: £800-1,500/year
• Monthly bookkeeping: £80-250/month

But it pays off! Experienced accountants typically find more tax reliefs than they cost. Plus: you can sleep soundly knowing everything’s in order.

Confused about your tax obligations? AWOC Accountants specialises in helping side hustlers navigate UK tax rules. Book your free consultation today and get clarity on your tax position.

Key Takeaways:

• Plan realistic timeframes (max 20% for starters)
• Set aside 40% for taxes
• Use proper tools for administration
• Professional help practically mandatory above £20,000 income

Most Common Mistakes and How to Avoid Them

I don’t want to discourage you, but let’s see reality. These are the most common pitfalls I’ve seen with UK entrepreneurs.

1. Late HMRC Registration

The mistake: “I’ll wait until contracts really start coming in, then I’ll register.”

The consequence: £100 penalty immediately if you miss the deadline, then £10/day for further delay, max £900. Plus interest on unpaid taxes.

The solution: Register immediately when you’re serious about the side hustle. Completely free, 10 minutes online, and you can relax.

2. Poor Record-Keeping or None at All

The mistake: “I’ll throw it together in January, I’ll look back from bank statements.”

The reality: By January, you’ve forgotten whether that £47 Amazon purchase was work equipment or private. You can’t find small PayPal contracts. That cash client’s name? No idea.

The solution: Use Receipt Bank or Dext app – photograph every receipt and invoice immediately. Or at minimum, record all transactions weekly.

3. Personal and Business Finances Mixed

The mistake: Using your own account for everything and “I’ll sort it out later”.

Why it’s dangerous: During HMRC inspection, you can’t prove what was business and what was private. You could lose significant allowable expenses.

The solution: Separate bank account for the side hustle. Doesn’t need to be a business account (unless you have an LTD), a second personal current account is perfect.

4. Missing Out on Tax Savings – Allowable Expenses

You know how much money people leave on the table because they don’t know the expense rules?

Deductible expenses as self-employed:

• Home office: Simplified expenses: £10-26/month depending on usage (25-50 hours = £10/month, 51-100 hours = £18/month, 101+ hours = £26/month)
• Telecommunications: Phone, internet (proportionally)
• Travel: Business purposes only (£0.45 per mile first 10,000 miles, then £0.25)
• Equipment: Laptops, software, cameras etc.
• Professional development: Courses, books, conferences
• Marketing: Website, advertising, business cards
• Professional fees: Accountant, lawyer costs

NOT deductible:

• Commuting to your main job
• Private travel
• Entertainment, lunch (unless client meeting)
• Clothing (unless specific workwear, e.g., protective equipment)

A real example: Mark, a freelance programmer, claimed £4,200 in expenses the first year. The second year, with an accountant’s help, £7,800 – with the same actual costs. The difference? He knew what and how to claim. This meant approximately £720 saved tax.

5. Missing VAT Registration

The rule: If your 12-month turnover exceeds £90,000 (2024/25), you must register for VAT.

The mistake: Many realise too late they’ve crossed the threshold.

The consequence: You must pay back VAT on previous invoices, plus a penalty.

The solution: Start planning around £80,000. And if you provide B2B services, it’s often worth registering voluntarily (VAT reclaimable on your expenses).

6. Payment on Account Surprise

This is what always surprises people at the end of January.

What is this? If you paid over £1,000 tax the previous year, HMRC assumes you’ll pay similar this year and requests half in advance.

Example: You paid £3,000 Income Tax in 2024/25 tax year. On 31st January 2026, you must pay not only the 2024/25 remainder but also the first half of 2025/26, which is another £1,500.

How to prepare: If your income has decreased significantly, you can request Payment on Account reduction. But don’t leave it to the last minute!

Key Takeaways:

• Register on time, don’t wait for the deadline
• Keep accurate records, use digital tools
• Separate personal and business finances
• Know deductible expenses
• Watch for the VAT threshold
• Prepare for Payment on Account

Real Case Studies – UK Entrepreneurs’ Experiences

Case 1: Emily – Graphic Designer Self-Employed Alongside LTD

Starting situation (early 2023):

• Full-time LTD contractor, branding projects
• Weekend wedding photography hobby
• Yearly 5-8 weddings, £800-1,200/wedding

Decision: Self-employed status for photography because completely different field, different clients, didn’t want to mix with LTD.

After one year:

• LTD income: £58,000
• Self-employed income: £9,800
• Total admin: 2-3 hours monthly (with separate accountant’s help)
• Savings with self-employed allowable expenses: approx. £450 tax
• Extra savings since 2024: £179 (Class 2 NI abolition)

Emily’s lesson: “The first year I stressed a lot about double administration. But when I found a good accountant who handles both parts, it became much smoother. The key is to immediately photograph and upload every invoice and receipt. Weekly 30 minutes and done. Plus since 2024, I don’t have to pay Class 2 NI, which is £179 extra savings!”

Case 2: Jack – IT Contractor Self-Employed with Tutoring Alongside

Starting situation (autumn 2022):

• Self-employed IT contractor (not LTD, changed projects frequently)
• Started teaching programming online to UK students
• Monthly 20-25 hours tutoring, £40/hour

Challenge: How to handle two different self-employed activities?

Solution: Handled within the same self-employed registration but sorted income and expenses into separate categories.

Result by end of 2024:

• IT income: £52,000
• Tutoring income: £18,500
• Total profit: £54,800 (after expense deductions)
• In higher rate tax band but optimised with pension contributions

Jack’s advice: “Watch pension contributions! As self-employed, you decide how much to put in, and it reduces taxable income tax-free. I put in £10,000 yearly, which brings part of my income back to basic rate. That’s 20% immediate tax savings. Plus since 2024, I don’t have to pay separate Class 2 NI, which is extra £179 savings annually!”

Case 3: Lucy – Social Media Manager’s Failure and Lessons

Start (early 2023):

• Full-time marketing manager at a company
• Alongside social media management side hustle launch
• £600 initial investment (courses, tools)

What went wrong:

• Didn’t report to HMRC on time (£100 penalty)
• Mixed personal and business expenses
• Overcommitted – weekly 30+ hours work on side hustle
• Burnout after 8 months

Restart spring 2024:

• Registered on time
• Separate bank account
• Maximum 12 hours weekly on side job
• Only 3-4 clients but higher rates

Result: Much more sustainable, £1,200-1,800/month profit, and doesn’t hate the side hustle.

Lucy’s message: “The first attempt failed because I wanted to grow too fast. I thought if I work more, there’ll be more results. But I just burned out. Now I have fewer clients, work at higher rates, and am much happier. Oh, and register on time with HMRC – that £100 penalty hurt.”

Key Takeaways:

• LTD and self-employed combination works but needs a good accountant
• Pension contributions help with tax optimisation
• Class 2 NI abolition from 2024 is extra savings
• Sustainability is more important than quick growth
• Learn from others’ mistakes, don’t repeat them

When You Need Professional Help – The Accountant’s Role

You know one of the most common questions I hear? “When should I hire an accountant?” The answer is simple: when your time and stress are more valuable than the accountant’s fee.

What Makes a Good Accountant for UK Entrepreneurs?

Proactive advice: Doesn’t just prepare returns retrospectively but warns in advance if changes are needed.

What to Expect from a Good Accountant?

Basic services:

• Self Assessment return preparation
• Expense optimisation
• HMRC liaison
• Payment on Account calculation
• Deadline management

Extras to look for:

• Tax planning advice
• IR35 status determination assistance
• VAT registration support
• LTD vs. Self-employed decision guidance
• Growth opportunity identification

How Much Does It Cost and When Does It Pay Off?

Self-employed bookkeeping prices in UK:

• Self Assessment only: £150-400/year
• Self-employed + payroll: £400-800/year
• LTD + self-employed combination: £800-1,500/year
• Monthly bookkeeping: £80-250/month

Return on investment example: If your accountant finds £2,000 extra allowable expenses you wouldn’t have claimed, that’s approximately £400-600 tax savings. The accountant’s fee has already paid for itself.

When Can You Still Do It Yourself?

You can manage alone if:

• Annual income under £10,000
• Few invoices (max 20-30/year)
• No complex expense structure
• You have time and patience for it
• You understand the Self Assessment form

You need professional help if:

• Annual income above £20,000
• You have an LTD company alongside
• Many invoices, complex expenses
• You’re not confident in the rules
• HMRC sends a letter (already late, but then it’s a must)

Insider tip: Most accountants offer free consultations. Worth talking to 2-3 before choosing. Ask what similar clients they work with – if they’ve handled entrepreneurs with side hustles, it’ll be much smoother.

Need help choosing the right structure for your side hustle? Contact AWOC Accountants for a free 30-minute consultation. We’ll help you decide whether self-employed or LTD is best for your situation.

Key Takeaways:

• Good accountant pays for itself above £20,000 income
• Proactive advice worth more than just filing returns
• Always request free consultation before choosing

Summary – The Side Hustle Checklist for 2025

Let’s quickly see what you need for a successful second income stream in the UK!

Before Starting (Planning phase)

✅ Market validation: Is there demand for your service/product?

✅ Time management plan: Realistically 10-15 hours weekly available?

✅ Financial planning: What’s the start-up cost? When’s breakeven?

✅ Tax preparation:Self-employed or LTD to start?

✅ Support system: Do you have supportive family/partner?

First 30 Days

✅ HMRC registration: Self-employed status declaration (gov.uk)

✅ Bank account: Separate account for side hustle (personal is enough)

✅ Accounting software: QuickBooks/FreeAgent/Xero selection

✅ Invoicing: Template or software for invoice creation

✅ Record-keeping: System for storing receipts, invoices (Dext/Receipt Bank)

First 90 Days

✅ First clients: Complete 2-5 contracts

✅ Pricing refinement: Test and optimise prices

✅ Marketing basics:LinkedIn/Instagram/Facebook presence

✅ Financial review: Analyse first income vs. expenses

✅ Tax reserve: Set aside 40% of all income

First 6 Months

✅ Continuous client acquisition: Test marketing channels

✅ Service development: Refine based on feedback

✅ Scaling decision: Worth expanding or optimising?

✅ Accountant consultation: Professional opinion if £10,000+ income

✅ Self Assessment preparation: All documents in order?

End of First Year

✅ Self Assessment return: Submitted by 31st January

✅ Tax payment: Income Tax + NI paid

✅ Payment on Account: Next year’s advance payment

✅ Year-end review: What worked? What didn’t? What will you change?

✅ Strategic decision: Continue, expand or finish?

Frequently Asked Questions (FAQ)

Do I need permission to start a side hustle in the UK?

In most cases, no special permission needed. Self-employed registration is enough. Exceptions: if you work in regulated fields (e.g., finance, healthcare, law), or sell alcohol, tobacco. In these cases, a separate licence is required.

Should I tell my full-time employer about my side hustle?

Depends on what’s in your employment contract. Many UK employers apply a “conflict of interest” policy. If the side hustle isn’t competitive and doesn’t interfere with your main job performance, there’s usually no problem. But always check your contract!

How much can I earn before I need to pay tax?

The £1,000 trading allowance is tax-free in the UK. Above that, you must pay Income Tax and National Insurance on all income. But the personal allowance (£12,570) also counts – if you only earn from side hustle, you don’t pay tax below this.

Is there a VAT threshold for side hustles?

Yes, the same applies as for any business: mandatory VAT registration above £90,000 annual turnover (2024/25). This is revenue (turnover), not profit! If you’re close, start preparing around £80,000.

How do I claim home office expenses?

Two options:

1. Simplified expenses: £10-26/month depending on hours worked from home (25-100+ hours/month)
2. Actual costs: Proportional share of actual costs (e.g., 10% of utilities if you use 10% of home as office)

Simplified expenses are simpler and there’s no dispute with HMRC.

Can I combine employee and self-employed status?

Absolutely yes! In fact, it’s very common in the UK. Your main job is PAYE employee, alongside self-employed – no contradiction. Taxes and NI are totalled as one person.

What if my side hustle isn’t profitable?

If you’re loss-making, you must also declare this in Self Assessment. The loss can be deducted from your other income, reducing your overall tax liability. But be careful: if continuously loss-making, HMRC may ask if it’s a real business or just a hobby.

Next Steps – Take Action Today!

Alright, you’ve received lots of information. But what’s the next concrete step?

If you haven’t started your side hustle yet:

1. Today: Write down your idea and validate it (ask 5 people from target audience)
2. Tomorrow: Register as self-employed (10 minutes online)
3. Within 1 week: Open separate bank account and choose accounting software
4. Within 2 weeks: Create your first offer and send to 10 potential clients

If your side hustle is running but admin isn’t in order:

1. Today: Collect all invoices, receipts from past 6 months
2. Tomorrow: Start an Excel spreadsheet or software for records
3. Within 1 week: Register with HMRC if you haven’t (don’t wait!)
4. Within 2 weeks: Talk to an accountant about the situation so far

If you want to grow:

1. Today: Analyse the numbers – which service is most profitable?
2. Tomorrow: Increase your prices 10-20% (yes, seriously!)
3. Within 1 week: Automate 2-3 repetitive tasks
4. Within 2 weeks: Consult an accountant about LTD vs. self-employed question

Don’t Go It Alone – Get Professional Help!

AWOC Accountants has been helping UK entrepreneurs with their financial administration for over 10 years. If you’re starting a side hustle or already running one but aren’t sure everything’s in order, it’s time to seek professional support.

How we can help you:

• Self-employed registration and Self Assessment returns
• Managing second income streams alongside LTD companies
• Personalised tax optimisation strategies
• Ongoing bookkeeping and advice
• HMRC letter handling and inspection support

Don’t wait until there’s a problem! Most HMRC penalties and extra taxes could have been avoided with timely professional help.

Get in touch with us today!

A 30-minute free consultation will help us discuss your specific situation and advise on the steps you should take in the coming weeks.

Conclusion

Starting a second income stream in the UK isn’t rocket science. But it’s not as simple as you might think at first. The rules are clear, but there are many details to watch out for.

The key: don’t be afraid to dive in, but don’t rush headlong either. Register on time, keep accurate records, separate your finances, and when things get serious enough, seek professional help.

Many UK entrepreneurs successfully run their side hustle alongside their main job. You can do it too – just respect the rules and plan realistically.

Good luck launching your second income stream! And if you have questions, reach out to us with confidence.

Measurement – How to Track Your Side Hustle Success?

Engagement and User Experience Metrics

If you have a website or social media presence, monitor these:

• Time on site: How much time visitors spend on page (goal: 2+ minutes)
• Bounce rate: How many leave immediately (goal: under 40%)
• Scroll depth: Do they read content (goal: 70%+ reaches page end)
• Social engagement: Number of likes, shares, comments

Conversion Metrics

• CTA Click-through rate: How many click Call-to-Action button (goal: 2-5%)
• Contact form submission: How many enquiries you get monthly
• Consultation bookings: How many book free consultations
• Email sign-ups: Monthly subscriber numbers

SEO and Organic Performance

• Organic traffic: Monthly visitors from search engines (Google Analytics)
• Keyword ranking: Your position for main keywords
• Featured snippets: Getting into Google featured results
• Backlink profile: How many external sites link to yours

Financial KPIs

• Monthly Recurring Revenue (MRR): If you have subscription income
• Customer Acquisition Cost (CAC): Cost to acquire one new client
• Lifetime Value (LTV): Total revenue one client brings
• Profit margin: What percentage remains as profit

Tip: Spend one hour monthly on these metrics. Write them in an Excel spreadsheet and watch trends. Numbers don’t lie – they show what works and what doesn’t.

References and Sources (APA 7 Format)

HMRC. (2024). Self Assessment tax returns. GOV.UK. https://www.gov.uk/self-assessment-tax-returns

HMRC. (2024). Working for yourself. GOV.UK. https://www.gov.uk/working-for-yourself

Office for National Statistics. (2024). Labour market overview, UK: December 2024. ONS. https://www.ons.gov.uk/employmentandlabourmarket

HM Revenue & Customs. (2025). Rates and allowances for employers 2024 to 2025. GOV.UK. https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2024-to-2025

Federation of Small Businesses. (2024). Small business statistics 2024. FSB. https://www.fsb.org.uk/resources-page/small-business-statistics.html

Companies House. (2024). Guidance for limited companies. GOV.UK. https://www.gov.uk/government/organisations/companies-house

Association of Chartered Certified Accountants. (2024). Self-employment: A practical guide. ACCA Global. https://www.accaglobal.com

Institute of Chartered Accountants in England and Wales. (2024). Tax planning for small businesses. ICAEW. https://www.icaew.com