Side Hustle Guide

How to Start a Successful Side Hustle in the UK: The Complete Guide

Published: 19 August 2025
12 min read

Earning extra income or testing a new business idea through a side hustle can be both rewarding and practical. With careful planning and the right knowledge, you can set up a compliant, profitable venture alongside your main job.

Smiling young businessman using mobile phone app while sitting on a comfortable sofa in his start up company office. Enjoying success. Reading good news. Chatting with friends or browsing social media

15 Essential Steps to Launch Your Side Hustle

1

Assess Profitability & Market

  • Define your idea and target customer
  • Calculate all costs vs potential income
  • Research growth niches and demand
2

Choose Legal Structure

Sole Trader

Easy setup, personally liable, keep profits

Limited Company

Limited liability, tax efficient, more admin

3

Register with HMRC

  • Income >£1,000? Register for Self Assessment
  • Turnover >£90k? Register for VAT
  • Limited company? Register Corporation Tax
4

Keep Accurate Records

  • Log every sale and expense with receipts
  • Use accounting software (FreeAgent, Xero)
  • Comply with Making Tax Digital rules
5

Get Suitable Insurance

  • Public liability if meeting clients
  • Professional indemnity for advice
  • Product liability if selling goods
6

Build Brand & Online Presence

  • Choose memorable name, check availability
  • Create simple logo with Canva
  • Set up website and social profiles
7

Marketing & Advertising Plan

  • Define ideal customer and where they search
  • Use SEO, social media, email newsletters
  • Test paid ads with small budget
8

Separate Business Bank Account

Simplifies bookkeeping, tracks cash flow, looks professional. Consider Starling Business or Tide.

9

Plan Time & Capacity

Block weekly hours, manage work-life balance, plan for scaling or outsourcing.

10

Estimate Costs & Funding

List startup/ongoing costs, choose funding method, build contingency fund.

11

Draft Simple Business Plan

2-4 pages covering: idea, market, pricing, marketing, financials, risks.

12

Check Employment Contract

Review non-compete clauses, get permission if needed, consult HR if unsure.

13

Skills & Outsourcing

Use Upwork, Fiverr, PeoplePerHour. Start with test projects, agree clear briefs.

14

Legal & IP Considerations

Check trade marks (UKIPO), patents, copyright, domain availability.

15

Maintain Compliance & Review

  • Monthly account reconciliation
  • Update Self Assessment regularly
  • Annual insurance renewal
  • Quarterly marketing reviews

Ready to Launch Your Side Hustle?

Starting a side hustle is a journey that combines passion with practical planning. If you need expert support on tax registration, bookkeeping or growth planning, Taxwise Accountancy is here to help.

Let us simplify the financial side of your new venture