Britons earning extra £840 a month from side hustles BUT face ‘outdated’ HMRC tax

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According to research carried out by Credit Karma UK, around 24 percent of people in the UK now have a second or third job, or side hustle to supplement their income. The credit experts cite the lasting impact of the COVID-19 pandemic as being the catalyst which has pushed people to look for additional work outside of their regular salaries. A survey of British adults found that 61 percent of respondents admitted that their financial stability was dependent on the success of their side hustle.

On average, men earn an extra £840 a month from their second or third jobs which is significantly larger than their female counterparts. Women only make £670 a month on average, which results in a gender gap of more than £2,000 a year. One in five respondents to Credit Karma’s survey admitted to taking part in a side hustle to pay off debt, while 32 percent of those polled said they used it to build up their savings. Furthermore, the average side hustler was found to be working at least three jobs at once.


However, nearly half (49 percent) of side hustlers said the emergency tax imposed on entrepreneurs with multiple ventures affects their ability to supplement their income. Around 59 percent of workers surveyed said the emergency tax is unfair. Due to the volatile nature of employment through side hustles, this leads to many Britons failing to declare accurate earnings reports to HMRC. As a result of this, the tax body often charges well-meaning taxpayers a hefty levy known as an emergency tax.

Ziad El Baba, General Manager at Credit Karma UK, explained why side hustles have risen in prominence over the last couple of years. However, the credit expert warned that HMRC’s emergency tax does affect the ability of young entrepreneurs to thrive. Mr Baba said: “As a nation, we’ve shown extreme flexibility and ingenuity in the face of a crisis, and really demonstrated just how entrepreneurial we are. But with more and more people working additional jobs or finding new income streams, it feels like emergency tax is an outdated millstone around the neck of those simply seeking financial stability.” Anyone looking to explore taking on a side hustle is encouraged to weigh up the tax implications of doing so.

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