🔸 Quick Summary: When to Go Full-On with Your Side Hustle
Disclaimer: This article offers general guidance for UK small businesses and is not financial or legal advice. Always consult a qualified professional for advice tailored to your situation.
More people than ever in the UK are turning to side hustles — small businesses or freelance gigs they run alongside their main jobs. Whether it’s selling handmade crafts on Etsy, offering social media management to local businesses, dog walking, or tutoring, these side ventures can offer both extra income and a creative outlet.
In fact, according to a 2022 survey by Aviva, around 16% of UK adults were running a side hustle, with many starting due to rising living costs.
🔹 For some, a side hustle is simply a way to cover the monthly bills. For others, it’s a passion project with the potential to grow into something bigger. But at what point do you stop calling it a side hustle and start thinking of it as your main income?
Making the decision to leave behind the security of a regular paycheque is daunting. There’s the predictability of your current salary, workplace benefits, and even things like employer pension contributions to consider. On the flip side, your side hustle may be bringing in more money than you expected, and you might feel limited by the few hours you can dedicate to it each week.
If you’re wondering whether now is the right time to ditch the 9-to-5 and fully back yourself and your business, this guide will help you weigh the pros and cons — financially, practically, and emotionally.
What this article covers:
🔸 Key signs your side hustle could support you full-time 🔸 How to test the waters before fully committing 🔸 Practical steps to assess finances and risks 🔸 Realistic look at the challenges (and rewards) of self-employment
🔷 The cost of living crisis has made additional income streams essential for many families. 🔷 The UK’s growing freelance economy means more tools and support are available for new self-employed people. 🔷 Remote work and digital platforms have made starting and scaling a side hustle more achievable.
But with more opportunities comes more competition, and the jump from side hustle to full-time income isn’t just about passion — it’s about timing, preparation, and a healthy dose of realism.
In the sections that follow, we’ll walk through the financial, practical and mindset shifts you’ll want to evaluate before handing in your notice. Whether you’re selling products, offering services, or building a personal brand, you’ll find clear, practical advice tailored for the UK’s self-employment landscape.
Making the transition from a steady job with a regular paycheque to full-time self-employment can feel like stepping off a cliff — even if your side hustle is doing well.
🔶 It’s not just about income; it’s about the uncertainty.
🔹 Financial insecurity: Will your side hustle consistently cover rent, bills and living expenses? 🔹 Lack of confidence: Is your success so far just luck — or is there real demand for what you do? 🔹 Business know-how: Many people worry they don’t know enough about taxes, marketing or even basic bookkeeping to run a business. 🔹 Fear of failure: Quitting your job feels like burning a bridge — what if the hustle doesn’t work out? 🔹 Isolation: The reality of working alone (especially from home) can be daunting for those used to the buzz of a workplace.
The UK’s self-employment landscape has changed dramatically in the past decade. According to the Office for National Statistics (ONS), the number of self-employed people peaked at around 5 million in 2019, before falling during the pandemic. While numbers are gradually recovering, economic uncertainty and rising living costs make the decision to go fully self-employed feel even riskier than it might have a few years ago.
However, self-employment remains a crucial part of the UK economy, particularly in industries like:
🔸 Key Insight
The risks are real — but so are the opportunities. The key is knowing whether you and your side hustle are ready to take the leap.
There’s no single ‘right’ moment to switch from employee to entrepreneur, but there are definite signs that your side hustle is maturing into a viable full-time business.
Here’s a practical checklist to help assess whether the timing could be right.
🔹 Is it time to go full-time?
✅ Consistent income over several months ✅ Increasing customer demand ✅ A strong pipeline of future work ✅ Emergency fund to cover 3-6 months’ expenses ✅ Clear evidence of market demand
One-off good months don’t mean your side hustle can sustain you. Look for patterns of steady income growth over 6-12 months. Ideally, your side hustle should already be contributing at least 50-75% of your target income — that’s enough to see potential, even if you’re still holding back on marketing or expanding due to time constraints.
How to assess financial viability:
🔷 If you’re turning away work or missing opportunities because of your day job, that’s a red flag that your side hustle is ready to expand.
This can show up as:
A healthy business relies not just on one-off sales but repeat customers, referrals and word-of-mouth. If you’ve got a loyal base of repeat customers or a growing social media following that consistently drives new leads, your side hustle may be reaching the point where it can scale sustainably.
No matter how successful your side hustle seems, there will be quiet months. A good rule of thumb is to have an emergency fund – at least 3-6 months’ worth of living expenses saved before you consider quitting your job.
🔹 Tip
Keep your emergency fund separate from your business account to avoid dipping into savings for everyday expenses.
🔶 Before you take the plunge, it’s smart to trial working on your side hustle at a larger scale. Options could include:
Financial and practical signs matter, but your mindset plays a huge role. Are you ready to:
Even if your side hustle looks financially promising, there’s more to self-employment than replacing your salary.
Before handing in your notice, it’s essential to understand the practical steps and risks involved in transitioning from employee to full-time business owner.
Before quitting your job, you’ll need a clear view of your side hustle’s true profitability. This means:
🔸 Useful Tool
Use HMRC’s Self Assessment tax calculator to estimate your future tax bill.
Quitting your job isn’t just about the money you earn — it’s also about the benefits you lose, such as:
🔷 Consider whether your side hustle’s potential upside — higher income, greater flexibility, personal satisfaction — outweighs these losses.
🔶 Your side hustle might be thriving now — but can it grow?
Ask yourself:
🔹 Tools like Google Trends and social media analytics can help spot market shifts. You can also look at your competitors — are they expanding, struggling, or evolving their offerings?
Many side hustlers test the waters before going all in. Some reduce their working hours to part-time, while others take a sabbatical to see if the hustle can support them without the safety net of a salary.
🔷 Benefits of a pilot phase:
Going full-time means formalising your business structure. In the UK, your options include:
🔹 You’ll also need to:
When you move from PAYE to self-employment, your tax responsibilities change. You’ll need to:
🔷 Self-employed people pay tax twice a year (January and July) — it’s crucial to budget for this, so you don’t end up scrambling when the payment deadlines arrive.
If you need capital to scale your side hustle, consider:
🔷 Even if you don’t need funding, a business plan can help clarify your goals and strategy.
Running a side hustle alongside a day job offers a safety net — regular wages cover your essentials, so your hustle income can be reinvested or treated as a bonus. But once you rely solely on your business, your mindset has to shift from side-earner to business owner.
🔷 Your success depends entirely on you. There’s no manager to hand you work, no set hours, and no guaranteed paycheque at the end of the month. For some, this is liberating — for others, it’s terrifying.
As an employee, you’re used to:
As a business owner, you need to:
Even thriving businesses have quiet months. Some side hustlers assume that if they’re making £2,000 a month alongside their job, they’ll easily make £4,000 once they go full-time. In reality, there are:
🔷 Financial planning and mindset resilience are key.
🔸 Quick Tip
Set up a separate business savings account to build a ‘quiet months’ buffer — ideally enough to cover at least 2-3 months’ essential expenses.
Without a boss setting deadlines, it’s all on you to stay productive. This is especially challenging in the early days, when:
🔷 Many self-employed people use:
The freedom of self-employment is often a key motivator — but it can backfire if you’re not careful.
Common pitfalls include:
🔷 A good rule of thumb is to set working hours and protect personal time, even if your schedule varies week to week.
Unlike employees, self-employed people need to proactively upskill. Whether it’s learning digital marketing, improving financial literacy, or staying on top of legal changes, keeping your business competitive depends on personal growth.
🔷 Some recommended UK-based training resources:
Going full-time with your side hustle doesn’t mean going it alone. While self-employment offers freedom and flexibility, it can also be isolating — especially if you’re used to the social side of office life. Building a strong support network can make a huge difference, both for emotional wellbeing and practical advice.
🔷 Your personal support circle matters more than you might think.
Friends and family may not always understand your business, but they can:
That said, it’s helpful to have mentors or peers who’ve been through it themselves — people who understand the unique challenges of self-employment in the UK.
🔷 Where to find mentors:
There’s strength in numbers, and connecting with other small business owners can open doors to:
🔷 Recommended UK networks:
Sometimes, online communities provide faster answers than formal business groups — especially for day-to-day questions. Popular UK-based options include:
🔶 One increasingly popular way to stay motivated is finding an accountability partner — someone (ideally also self-employed) who:
Many UK networking groups and freelancer forums offer accountability buddy matching schemes, or you can pair up with a fellow side hustler you already know.
Transitioning from a side hustle to full-time self-employment is exciting, but it’s easy to trip up — especially if you rush into it without proper planning. These are some of the most common pitfalls new business owners face, along with practical ways to sidestep them.
It’s tempting to walk out the door the moment your side hustle starts earning decent money. But a few good months aren’t the same as sustainable income.
How to avoid it:
Many new business owners mix personal and business money, making it harder to track profits and tax liabilities.
🔸 Did You Know?
If you register as a sole trader, you don’t legally need a separate business account — but it’s highly recommended for clarity.
When you’re fresh out of employment, it’s easy to undervalue your time — especially if you’ve only ever viewed your side hustle as ‘extra money’. Low prices might attract customers, but they can also undermine your profitability and make scaling difficult.
Going full-time often leads to the temptation to say yes to every client or order, especially when cash flow feels tight. This can quickly lead to burnout.
In the UK, failing to register with HMRC or keep proper records can lead to fines, backdated tax bills, and unnecessary stress.
🔷 Useful link: Self-Assessment for the Self-Employed – GOV.UK
Some side hustlers leap into full-time self-employment without ever writing down a clear plan — relying instead on instinct and hope. This makes it harder to spot risks, plan for growth, or secure funding if needed.
🔷 Templates are available from Enterprise Nation and The British Business Bank.
Some side hustlers rely purely on word of mouth or existing platforms (like Etsy or Fiverr). But to scale successfully, you need proactive marketing.
Being your own boss can be lonely and emotionally draining, especially when income fluctuates or you hit a rough patch.
Stepping away from a steady job into the uncertain world of full-time self-employment can feel overwhelming — but countless side hustlers across the UK have made that transition successfully. Here are inpirational examples of how others have navigated the challenges, along with key takeaways you can apply to your own journey.
Background: Rachel, based in Manchester, started making personalised jewellery during lockdown, selling through Etsy and Instagram. At first, it was a creative outlet and a bit of extra money. Within 18 months, she was earning more from her jewellery than her admin job — but was nervous about losing her regular income.
How She Made the Leap:
Key Takeaway: Rachel didn’t rush. She used a phased approach, tested her pricing and demand, and ensured she had financial and emotional buffers in place before going full-time.
Background: Adeel, from Birmingham, had always freelanced on the side, building websites for local businesses. As word spread, his evenings and weekends became fully booked, but leaving his salaried IT job felt risky.
How He Made the Leap:
Key Takeaway: Adeel’s smart move was negotiating a soft landing, securing his first regular contract before handing in his notice. This gave him a safety net while building new client relationships.
Background: Sophie from Bristol started a health and fitness blog while working in retail. Initially, her blog earned small affiliate commissions, but over time she built a following and demand for personalised coaching.
Key Takeaway: Sophie didn’t just rely on her existing audience — she diversified her income streams and invested in processes and support, making the business more resilient.
Making the leap from side hustle to full-time business is one of the biggest career decisions you’ll ever make, especially if you’ve relied on a steady salary for most of your working life. But with careful planning, financial preparation, and a clear-eyed view of the challenges ahead, you can make the transition confidently — and successfully.
This isn’t about following a one-size-fits-all plan. Every side hustle and personal situation is unique, but the key themes remain the same:
🔸 Before You Quit Your Job, Ask Yourself:
✅ Can my side hustle cover at least 70% of my living expenses? ✅ Do I have at least 3-6 months of savings? ✅ Is customer demand strong and growing? ✅ Have I tested working on my hustle full-time? ✅ Do I understand self-employment taxes and legal obligations? ✅ Do I have a support network in place?
🔷 Whether you’re still weighing up your options or ready to go all-in, these UK-based resources can help:
The leap into self-employment is never entirely risk-free — but with the right preparation, you can significantly improve your chances of success. Many successful business owners started where you are now — juggling work, life, and a passion project on the side.
With clear financial targets, a realistic mindset, and a willingness to learn, your side hustle could become not just your main income, but the foundation for a business you’re proud to own.
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