10 low-cost businesses you can start in the UK

It is possible to launch a viable side hustle business in the UK without investing a large amount of money, although there are several legal, tax, and accounting requirements that founders must fulfil. 

In this article, we outline 10 low-cost businesses you can start in the UK, plus advice on regulatory responsibilities. test

Low-cost business ideas in the UK 

1. Cleaning services  

Offering cleaning services can be a cheap way to launch a business startup.  

You need to decide whether to target domestic or commercial customers and the types of service to offer. Examples include regular house cleaning, window cleaning, office cleaning, deep cleans and factory cleaning. 

You need to buy equipment such as buckets, mops, brushes, cleaning chemicals, personal protective equipment (PPE) and vacuum cleaners. Public liability insurance is highly recommended.  

There are health and safety regulations you need to follow, including COSHH rules if handling hazardous substances.  

Decide on your pricing model. This could be hourly, at a flat rate or per square metre.  

As well as on social media, you can advertise your cleaning business on platforms like Checkatrade, MyBuilder and Rated People. 

2. Dog walking and pet sitting 

There is a big market for dog walking and pet sitting businesses in the UK. Figures show that the country is home to 13.5 million pet dogs and 12.5 million cats, with owners spending £8 billion each year on their animals. 

You generally don’t need specific qualifications to start a dog walking or pet sitting business, but relevant experience with animals is recommended. 

You can set up a business with your own website, or you can use platforms such as Walkies, Rover and Pawshake. These platforms typically charge a service fee. For example, Rover charges 15% of the booking and Pawshake charges 19%. 

You don’t need a licence to be a dog walker, but if you are providing pet boarding or day care in your own home you will need a licence from your local council. There may be restrictions on dog walking in certain areas and you need to be aware of various regulations such as cleaning up after dogs and controlling animals in public areas. 

3. Life coaching  

Life coaches provide support to people in various areas of their personal life, such as career progression, wellbeing, spirituality, mental health and personal development.  

Life coaches generally don’t require qualifications to run a business but you might want to get some training to build trust in your services and attract customers.  

Look for qualifications accredited by groups such as the Association for Coaching (AC), British Association for Counselling and Psychotherapy (BACP), European Mentoring and Coaching Council UK (EMCC UK) and International Coaching Federation (ICF). 

4. Social media management 

A social media management business looks after or supports the social media accounts of other businesses or individuals. Services include posting on social media, creating content, managing paid advertising and social media strategy planning.  

Before setting up your business, you should decide which social media platforms you will focus on. Make sure you understand exactly how they work and have experience of managing or creating successful content on them.  

There are various courses you can take to improve your social media skills, including those offered by the platforms themselves such as Meta Blueprint. 

5. Virtual assistant (VA) services 

A virtual assistant provides admin, technology or creative support to entrepreneurs or other people within businesses. Services include calendar management, data entry, invoicing, social media management, email marketing, customer service, research and transport booking. 

Pick services that match your skills and decide who your target customers are. You may want to specialise in working with specific industries such as coaches, therapists, accountants and lawyers.  

Work out your pricing model. Options include an hourly rate, a retainer or specific fees for specific projects.  

You can advertise your services on your own website and on platforms such as Time etc, LinkedIn, Upwork and Freelancer.  

6. Gardening or handyperson services 

Gardening and handyperson businesses provide services such as landscaping, garden clearance, hedge trimming, flat pack furniture assembly, painting and decorating, plumbing and electrical tasks.  

You will need to invest in tools, a vehicle and safety equipment. For some services, such as electrical tasks, you’ll need relevant training and qualifications. 

Platforms you can use to offer your services include Taskrabbit, MyBuilder and Checkatrade. 

7. Dropshipping or print-on-demand 

Dropshipping and print-on-demand (POD) are ecommerce business models which involve selling products without holding inventory.  

Through POD, you sell products that are printed once the customer places the order. They are often personalised or customised items such as t-shirts, mugs, posters and mobile phone cases.  

You can set up an online store on platforms such as Shopify, eBay and Etsy, and then use POD services like Printful and Printify. The key costs are set up and product listing fees from online stores, and charges for production, customisation, and shipping by POD websites. 

Dropshipping is similar to POD, but it usually involves selling ready-made products and a much wider range. Common products sold via dropshipping include electronics, toys and health and beauty products. Like POD, the inventory and shipping is handled by a third-party provider. 

8. Online marketplace reselling 

Reselling involves buying products and selling them on an online marketplace for a profit. The items might be new or second hand.  

There are various platforms you can use to sell your products: 

• eBay: Good for second-hand goods, refurbished items, collectibles, branded goods. 
• Etsy: Good for handmade items, vintage clothing, digital downloads, craft products. 
• TikTok Shop: Good for trending and viral products. 
• Vinted: Good for secondhand clothing. 

The platforms have various charges including listing fees, commission, and transaction fees. 

9. Tutoring 

If you have academic knowledge, you could set up a tutoring business to provide lessons to young people in subjects such as maths, science and art. 

Online tutoring is particularly useful for students or graduates who want to run a side hustle to top up their income. MyTutor.co.uk, one of the platforms you can use to be an online tutor, says participants can earn £13-£57 an hour. 

If you are skilled in foreign languages, you could become a language tutor, using platforms like Preply and iTalki.  

10. Freelance writing or editing 

You of course need to be good at writing to make money from it, but being a freelance writer or editor is a particularly low-cost business idea because it requires very limited start-up capital or equipment. 

Services you can provide include blog writing, copywriting, proofreading, search engine optimisation content, ghostwriting and academic editing. 

You need to work out to whom you are providing your services. Examples include small businesses, academics, authors and students. 

You can advertise your services on your own website and on platforms such as LinkedIn, Upwork and Freelancer. 

Basic requirements for setting up a low-cost business in the UK 

To start a business in the UK, there are various basic actions you need to take. They include: 

• Selecting a business structure, such as sole trader or limited company. There are several pros and cons to each option. A sole trader is the easiest structure to set up, but puts unlimited liability on the business owner and is less tax efficient. A limited company is more complex to set up, but is more tax efficient and provides more credibility.  
• Complying with tax obligations, such as filing annual self-assessment tax returns and paying Corporation Tax if you’re a limited company. From April 2026, sole traders and landlords with business or property income above £50,000 are required to comply with Making Tax Digital for Income Tax Self-Assessment. It applies to those with income above £30,000 from April 2027. 
• There might be insurance you need to take out such as employers' liability insurance if you have staff and public liability insurance to cover you for claims by members of the public. There are also insurance requirements for specific types of businesses, and various income protection solutions.  
• It is recommended that you write a business plan. When you start your business, the plan helps to clarify your targets and objectives from day one. As your business grows, you can use it to measure progress, spot potential problems and make necessary changes to ensure you stay on track.  
• Your business needs a digital presence for marketing and to communicate with customers. This includes creating a website (or using an online marketplace or another relevant platform) and having a presence on social media platforms relevant to your target audience.  

Get support with your low-cost business or side hustle  

If you’re launching a small business or side hustle in the UK, get the right advice from the start. Contact our team at TaxAssist Accountants today. 

Last updated 5 Sep 2025 | First published 5 Sep 2025

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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