Three Things You Need To Do Before Setting Up A Side Hustle
It’s no secret that many businesses were first set up and found their feet as the result of a side hustle. And now that times are getting tough, the search is on for additional ways to make money, whether that’s through taking on additional employment, or starting a side hustle.
While side hustles can be a good way to make money, there is also an element of risk that comes with them, as well as some checks you need to do before you set up and start earning money.
But what are three things you need to do before setting up your side hustle?
1. If you’re employed, check your contract
Before jumping into a side hustle, you must ensure your contract allows it. There may be clauses stating you can’t have your own business while employed.
If you are allowed to have your own business, you need to ensure you’re not going to create a conflict of interest. For example, if you’re going to be working in the same industry, you may end up poaching clients from your employer, which could lead to termination.
If you read through your contract and need clarification on any of the points in it, talk to your HR department and see what they have to say about it.
2. Figure out what hours you’ll be working
If your side hustle is the only work you have going on, then you have all the time in the world to work on it. But if you’re working a regular 9-5 job as well, you’re going to find that you’re pressed for time.
You have a few different options when it comes to managing this balance, but you still need to be careful in deciding which one is right for you and your circumstances.
- Request flexible working from your employer; just remember, they have the right to say no to this.
- Propose a part-time working schedule or job-share arrangement.
- Don’t change anything about your job. If you’re choosing this option, you need to be careful with your free time, such as working in the evenings or on weekends.
3. Tell HMRC
This is sometimes overlooked by those setting out on a side hustle, but any extra earnings you make will have to be declared to HMRC.
If you’re earning more than £1,000 extra per year, it becomes a legal requirement to inform HMRC, file your Self Assessment, and pay tax.
If you’re unsure about letting HMRC know, you can find out more on the gov.uk website.
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