Ine in four adults have taken up a side hustle to keep afloat – but earn less than minimum wage on average, new research from savings app Spring reveals.
With sticky inflation at 3.6 per cent, families are increasingly turning to side hustles such as selling old clothes on reselling platforms or creating videos for social media platforms as a way to get by.
Two in three of those with a side hustle are motivated by extra income and one in three are driven by a desire for financial security.
However, for one in four people, money is not a deciding factor for their side hustle as they use it as a passion project to escape their day jobs.
Selling items on resale platforms such as Vinted and Depop is the most common pursuit – with on in three of those with a side job doing so.
After this, freelancing works such as copywriting and marketing is the most popular, followed by creating content for social media websites and selling handmade craft items.
But despite their growing popularity, side hustles pay very poorly – less than minimum wage, in fact.
Those with a side job work for more than 140 hours a year to earn just £933 – equivalent to £6.60 an hour, according to Spring.
That’s only slightly more than half of the minimum wage, which stands at £12.21 an hour for those aged 21 and over.
Derek Sprawling, head of money at Spring, says: ‘Side hustles are fast becoming a key part of how people take control of their finances.
‘Whether it’s selling online, freelancing or turning a hobby into income, it’s clear that people are finding smart ways to make their money go further, which is admirable.
‘But while side hustles offer flexibility and creativity, they’re not always the most efficient way to earn.’
It comes as the tax office has launched a crackdown on those with side hustles.
While there is no new tax for online selling – those with side hustles who earn a certain amount have always been liable to pay tax – digital platforms such as Vinted must now report sales data and personal information to HM Revenue and Customs.
If you sell at least 30 items or earn £1,700 through a resale website or a holiday rental website, the website reports this to the taxman.
You may need to pay tax on what you earn if you buy goods with the intention of reselling them for a profit or offer a service through a digital platform (such as letting out a holiday home) while also earning more than £1,000 before deducting expenses.
Some users have say they have now been asked to enter their National insurance number on the Vinted app.
Do you have a unique way of making money? Email: l.evans@dailymail.co.uk
