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I quit my 9-5 to focus on my side hustle and now my business makes £19k a month – here’s how I did it
Scroll down the see how side hustles are taxed
A WOMAN has revealed that she quit her 9-5 to focus on her side hustle, which now makes up to £19,000 a month.
Liz Chick, 27, grew very bored of her job working in a windowless office and started doing craft projects during her working day to curb her boredom.
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She began crafting more and more, and decided she needed to figure out a way of making money from it.
On the day that Liz resigned from her office job, she got a call saying that she had won £40,000 after accidentally entering a sweepstake.
This money allowed her to buy a studio space, which she used to create and sell art, alongside working a part-time job.
After a while, Liz began hosting classes, to teach others her artistic skills.
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In June 2023, she quit her part-time job to focus on her art classes full time.
Speaking to CNBC, she said: "It was scary, I didn't want to do it, it was my bosses that encouraged me", she said.
"They said maybe you just need to jump and do it".
She now runs an art studio in Brooklyn, New York, called RecCreate, where people can take classes in different art skills, such as knitting and drawing still lifes.
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"I help 20-somethings who are looking for creative outlets and community come together over all different kinds of art and craft-focused events", she said.
Tickets for ReCreate classes cost between £18 and £100.
I quit my 27k job to focus on my side hustle and now my business has made £110 million
Since Liz started her business last March, the company has made around £120,000 and in January 2024 it brought in £19,000.
Out of that money, she pays herself a wage of £4,000 a month, and the rest goes on rent and supplies.
"It feels amazing to be able to make a living from my dream job.
"I feel like there's not many people that can say that".
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.
Liz said that she hopes she never has to do an office job, and is so grateful to be able to do what she loves.
Her business is continuing to grow and in February 2024, she hired her first employee, to help out with the classes.
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