Side hustles aren’t new, they’ve been around for years, but recently, more people are pursuing their passions, exploring their purpose, and developing new skills. And people are doing this all while earning an extra income alongside their main job.
This second income stream has grown increasingly popular due to the cost of living, flexible working options, and the growth across digital platforms, making it much easier to make money without it impacting your day to day work.
But what exactly is a side hustle?
A side hustle is a flexible, independent way of earning extra income alongside a primary job. People start them for many different reasons: boosting income, exploring interests, developing new skills, or even testing business ideas.
This could be someone who is a passionate baker selling at local food markets, a practitioner offering aesthetics and beauty treatments, a counsellor helping others build confidence, or a maker crafting fused glass creations.
What do I need to know before I set up a side hustle?
When do you need to notify HMRC?
First, you need to understand whether your activity is a hobby or a hustle. A side hustle may start as a hobby, but as soon as your total earnings exceed £1,000, outside of your main job in a tax year (between April 6 2026 and April 5 2027), you’ll need to tell HMRC and register for self assessment.
This £1,000 threshold is the total income before deducting expenses. Whether it’s paid in cash or bank transfer, it’s important to follow the rules to avoid any unexpected tax bills and penalties.
If you have a main job and get paid through PAYE, you still need to tell HMRC
It’s your responsibility to tell HMRC about any money you make from a side hustle. Your earnings through PAYE is not included on your payslip and is a separate earning.
What should you do if you have multiple side hustles?
You can run multiple side hustles, but you only have one single £1,000 tax-free allowance per tax year, not £1,000 per business. For example, if you earn £600 selling cakes at a local market and £700 offering counselling support, it totals £1,300, which requires HMRC to be notified.
Keep a record of the money you make
It’s important to keep track of your sales, income and business expenses – you’ll need this to complete your tax return accurately. You can check if you need to tell HMRC about your additional income, here.
How can the North East BIC help you?
Taking your first steps as a side hustle doesn’t need to be overwhelming. At the North East BIC we offer free, 1:1 support and guidance tailored to fit around your existing job, including:
Expert Business Advice
You can work with a dedicated business adviser to refine your idea, calculate pricing, and build a business plan.
Tax & Registration Support
Through workshops and 1:1 sessions business advisers can guide you on registering with HMRC, help you to get to grips with self assessment and expenses, and how to keep accurate records.
Workshops & Networking
Access to free masterclasses and workshops help you to take the first steps in business with confidence with a range of Flying Start workshops available covering how to start your own business, how to manage your finances, how to secure your first customers and how to use social media for business.
Flexible Workspace
As you grow your side hustle, the BIC offers access to affordable coworking spaces, meeting rooms and studio spaces to help you grow your business.
What businesses started as a side hustle at the BIC?
In recent years we’ve had many people through the doors at the BIC looking for support to set up their side hustles while continuing with their main employment.
Harmonic Egg North East
Based at the BIC, Claire Grabham set up Harmonic Egg as a side hustle alongside her main job delivering confidence and empowerment sessions to a charity for young women. Harmonic Egg is an innovative sound and light therapy chamber that uses frequencies, colour and vibration to promote relaxation, stress relief, and holistic wellness.
LucGlass
Nadine Lucas set up LucGlass in 2025 creating and selling unique handmade fused glass products incorporating recycled bottle glass with support from Business Adviser Hina Joshi. Nadine gained the confidence to navigate business planning, manage start-up logistics, and expand her reach from home-based crafting to selling at local markets and online stores.
Sister Aesthetics
Sister Hayley and Joanne set up Sister Aesthetics at the beginning of 2026, alongside their main jobs working in the NHS. By combining their medical backgrounds with business advice from the BIC, they built a high-end aesthetics practice, successfully balancing shift work with a growing local client base. Read their story here.
Are you thinking of setting up a side hustle? Get in touch with the team at the North East BIC and take your first steps. You can contact the team on 0191 516 6111 or click here to request a call.
Enterprising Sunderland forms part of Sunderland’s Business Support Programme and is funded by the North East Mayoral Strategic Authority through its Integrated Settlement. The Enterprising Sunderland project is delivered by a unique consortium of partners working collaboratively across the city to stimulate entrepreneurial ambition.