TOP SIDE HUSTLE TIPS AS SCOTS SET TO EARN AN EXTRA £440 EACH MONTH THIS YEAR

Side hustles are increasingly operating as small businesses rather than casual income streams, according to research from one of the UK’s leading banks. Monzo’s Side Hustle Forecast 2026 found that people in Scotland earning income alongside full-time work now generate an average of £5,283.12 per year from side ventures, with many reinvesting earnings and adopting AI tools to support growth.

Monzoa said that with the right tools, 2026 can be the year that Scots turn their side hustle into their main gig. However, the research also highlights a gap in financial infrastructure, with most side hustlers still managing growing income through personal bank accounts.

The study of 2,000 UK adults who earn income alongside their full-time job found that people are starting side hustles for a mix of financial and professional reasons.

• People in work face stealth tax under new salary sacrifice pension change

• People urged to prepare for HMRC income tax change due to start in April

Earning extra income is the primary motivator (39%), while others use side hustles to gain greater independence (24%) or turn a hobby or passion into an income stream (22%).

Notably, more than in any other UK region, people in Scotland are using side hustles to pay down debt or manage rising living costs (21%).

Younger workers are seeing the biggest returns. Those aged 25-34 earn the most from their side hustle, averaging £507.87 per month.

Monzo’s research also revealed:

• Scottish side hustlers earn an average of £440.26 per month
• Only 11% currently use a dedicated business bank account; 32% rely on their primary personal account, while 19% use a separate personal account exclusively for their side hustle to manage growing income and expenses
• 39% people began their start up to earn extra income and improve their finances

Most popular side hustles

Side hustles now span a wide range of industries, with people monetising both digital capabilities and practical skills.

Freelance professional services such as writing, design and consulting are the most popular side hustles in Scotland (28%), closely followed by online selling (27%) via platforms including eBay, Etsy, Vinted and Depop.

Others earn additional income through investing and financial activities (17%), while some generate revenue from digital products or subscriptions - such as online courses, stock photos or digital art - highlighting the broad range of secondary income streams.

Positively adopting the use of AI

AI is becoming an increasingly common tool among side hustlers. While 21 per cent said they have no intention of using it, the vast majority are either already using AI or plan to this year.

AI is most frequently used for creative inspiration (37%) and generating content (22%), as well as managing finances (22%) and automating admin tasks like invoicing (19%).

Some 43 per cent of side hustlers believe AI will have a positive impact on their business, showing that many see AI as a practical way to aid efficiency and growth.

Financial management challenges

Even with the boost of a second income, financial management remains a key challenge as side hustles scale.

When it came to money-related challenges in Scotland, the most common occurrence was irregular income or late payments (27%), difficulty tracking income and outgoings (25%), accidentally mixing personal and business finances (20%), and spending more than they earn (16%).

Others have found themselves dealing with high platform fees (17%), struggling to save or set money aside (15%) or and unexpected tax bills (10%).

Monzo’s top tips for managing a side hustle

Take advantage of business banking

• A Monzo Business account offers real-time balances, easy invoicing, digital receipts, and Tax Pots - helping people save time and stay in control as their business grows.

Monitor time commitment

• Keeping track of hours spent on the side hustle helps maintain work/life balance and ensures earnings reflect the effort involved.

Plan for irregular income

• Setting aside a portion of each payment helps cover bills, taxes and reinvestment, especially when earnings fluctuate month to month.

Enjoy the benefits

• Staying organised means side hustlers can enjoy the extra income, treat themselves, and watch the hard work pay off.

Jordan Shwide, General Manager at Monzo Business, said: “Our 2026 forecast shows that side hustles are giving Brits a real financial boost alongside their full-time jobs. But with four in five side hustlers admitting they’ve faced financial challenges, it’s clear that managing a second income isn’t always straightforward.

“Getting organised early and using the right business banking tools can make managing a second income easier, build confidence, and even help turn a side hustle into a main gig.”

2026-02-05T13:40:28Z