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Side Hustles Pay Less Than Minimum Wage
22 Nov, 2025
Summary
- One in four adults now have a side hustle to supplement income.
- Side hustles earn an average of £6.60 per hour, below minimum wage.
- Tax authorities are increasing scrutiny on income from side hustles.
New research indicates that approximately one in four adults have adopted side hustles to manage their finances, particularly in the face of persistent inflation. These additional income streams are often pursued for extra money or greater financial security, though a portion of individuals engage in them as a creative outlet away from their primary employment.
Despite their growing prevalence, side hustles are proving to be a poor source of income, with average hourly earnings falling below the national minimum wage. Individuals dedicating over 140 hours annually to these ventures are reportedly earning around £933, equating to approximately £6.60 per hour, significantly less than the £12.21 minimum wage for those aged 21 and above.
This trend emerges as HM Revenue and Customs tightens its oversight of side hustle earnings. Digital platforms are now mandated to report sales data and user information for individuals exceeding certain thresholds, potentially leading to tax obligations for those profiting from reselling or services like holiday rentals.
