Three million Britons (six per cent) have taken on a second job to boost their primary monthly income, with one in three (36 per cent) supplementing their income in some way with an additional £2,536 a year, research from Direct Line has found.
A further 1.5 million launched their own business over the past six months to supplement the income from their primary job.
Over half of these have taken on additional work in the evenings, with Direct Line labelling the group the ‘five to niners.’ More than two million people are working an additional 18 hours per week through second jobs or extra work.
The research found:
11.5 million (24 per cent) people make extra money online, either by selling merchandise through online auction sites or selling freelance design services
Around 800,000 have launched their own local business
Small catering businesses for weddings and parties, or small manufacturing businesses are other popular second incomes
Individuals in the South East of England are the most likely to have supplemented their income, with 40 per cent looking to do so.
Jazz Gakhal, Head of Direct Line Home Business Insurance commented: “Some will be building up their own companies at home while maintaining the security of a regular income before making the switch to being a full time business owner and manager.”
As well as considering home business insurance to cover stock, protection from claims and income protection if trading is disrupted, those working a second job are reminded of their tax responsibilities.
Those with two jobs will need to inform HMRC and should check whether they are paying too much or too little tax. Depending on the level of income, it may be possible to split your personal allowance between jobs to minimise your tax liability.