Side businesses providing huge benefits to UK economy

19th December 2016 | News

More than a quarter (27%) of British people in full-time employment now run a business alongside their day job, according to new research from O2 Business.

Side business owners are said to earn an average of 23% on top of their full-time annual salary, equating to £6,446 a year and a collective £40bn a year to the national economy.

A further 23% of survey respondents stated they are considering setting up their own side business in the future to underpin their 9-to-5 roles.

The core motivations for setting up a side business were additional funds (58%), while more than a quarter (27%) sought to follow their passion.

The accessibility of the internet appears to have made it considerably easier for budding entrepreneurs to road test potential new careers. The most popular side business sectors from the research were found to be tech/IT, blogging and vlogging, arts and crafts and fitness.

In addition, when side business owners were asked to list the most important tools used to help establish their side business, digital tools such as broadband (46%), laptops (35%), social media (27%) and the cloud (14%) featured heavily.

Yet the survey also found that running a side business is by no means an easy commitment, with side business owners spending nine hours a week on their extracurricular activities on top of their full-time job.

Ben Dowd, sales director, O2, said: “Mobile devices are now more than ever the remote control of our personal lives, but as our research reveals they are increasingly becoming a remote office for our side business passions [too]."

If you are running your own side business, it is important to remember that you may need to complete a tax return and the onus is on you to identify your responsibilities to HM Revenue & Customs - they won’t notify you. In addition, there may be income tax and National Insurance to pay on top of the deductions taken from your main job.

If you need further advice about income from an additional job or other source of income, do not hesitate to contact TaxAssist Accountants on 0800 0523 555.