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I quit my 27k job to focus on my side hustle – now my business has made £110 million
Scroll down to find out how side hustles are taxed
A WOMAN who used to earn £27,000 from her 9-5, has revealed that her side hustle business has now made £110 million.
Tori Gerbig, 37, stepped down from her insurance role to focus full time on setting up a clothing brand.
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She knew that it was time to quit her job, when she was making more money in a day from her brand Pink Lily than from her day job.
Tori initially started out by selling things on eBay to make some extra cash when she and her husband Chris were struggling with crippling debt.
She said that the couple would buy things in bulk for a cheap price and then sell them on for profit.
When Tori was on maternity leave back in 2013, she set up a Facebook group to promote clothes she was selling, which she had bought on the cheap from wholesalers in China.
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Speaking to CNBC, she said: "I was posting items on the Facebook group daily and saw a huge increase in sales compared to eBay.
"The group really help to catapult sales and ignited the fire in this business".
After heading back to work, she continued to sell her clothes online, as well as working full time.
In 2014, she decided to launch Pink Lily online to reach a wider audience.
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Tori quit her insurance job after the company made £86,000 in one month.
Her husband also decided to quit his job, and by the end of the year, they had made over £3 million dollars in sales.
I earn £50k a year selling clothes on Depop - I'm addicted to making money, I flog charity shop buys at a profit
By 2021, the couple had made £110 million on sales.
Pink Lily now has it's own physical store, and Tori has 250 employees.
Tori said that leaving her job for Pink Lily is one of the best decisions of her life.
She said: "It has opened up so many opportunities, I get to travel and spend more time with my kids.
Do I need to pay tax on my side hustle income?
MANY people feeling strapped for cash are boosting their bank balance with a side hustle.
The good news is, there are plenty of simple ways to earn some additional income - but you need to know the rules.
When you're employed the company you work for takes the tax from your earnings and pays HMRC so you don't have to.
But anyone earning extra cash, for example from selling things online or dog walking, may have to do it themselves.
Stephen Moor, head of employment at law firm Ashfords, said: "Caution should be taken if you're earning an additional income, as this is likely to be taxable.
"The side hustle could be treated as taxable trading income, which can include providing services or selling products."
You can make a gross income of up to £1,000 a year tax-free via the trading allowance, but over this and you’ll usually need to pay tax.
Stephen added: "You need to register for a self-assessment at HMRC to ensure you are paying the correct amount of tax.
"The applicable tax bands and the amount of tax you need to pay will depend on your income."
If you fail to file a tax return you could end up with a surprise bill from HMRC later on asking you to pay the tax you owe - plus extra fees on top.
"We are debt free and have so much more financial freedom, and I'm honestly so much happier now that I work for myself".
She added that she hopes her success will inspire her daughters, and show them that anybody can be a CEO.
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