The UK Gig Economy Surge and Its Impact on Flexible Employment

Around 1.4% of the UK’s workforce operates within the gig economy. This is likely higher when considering those completing ad hoc side hustles from home. Hence, it’s more important than ever to ensure you’re in the best position possible to reap the benefits from a sector that prides itself on flexibility. We explore proactive steps you can take today.

What is the UK Gig Economy?

The UK gig economy is now an encompassing sector comprising anything from Deliveroo drivers to at-home side hustlers. The gig economy facilitates working arrangements centered around short-term contracts or freelance work. Its prominence has increased in recent years due to technological advancements, the worker’s desire for a more flexible lifestyle, and the economic downturn, leading to people trying to supplement their income. Whether the gig economy is morally correct or not is for another day. This article aims to show you how to position yourself effectively to reap the benefits while avoiding potential challenges.

Keys to success:

Time efficiency

Many gig opportunities are accessible in seconds – think free money sign-up bonuses. These are companies that will pay you to sign up to their website. The aim? Lure you in with an initial cash reward in the hope that you’ll remain an active customer. It can be done under the guise of paying you to switch your bank account, open a new savings account, or free shares for opening an investment account. These types of offers can be completed on your lunch break, at home, or even while commuting on public transport.

Your bargaining power

Many of the most successful gig workers have made upwards of £1 million on platforms like Upwork. They’ve developed a unique skill that companies are willing to pay a premium for. This in essence allows them to auction their skill to the highest bidder. Unfortunately, a Deliveroo/Uber Eats driver doesn’t have this trump card meaning they’re more disposable. We’d focus on developing a skill with a high market value that can be completed remotely and generates tangible results. This way, the social proof can help attract future clients!

Time management

While we’ve mentioned developing a unique skill as a great way to stand out, we understand this won’t appeal to everyone. Many gig apps, especially food delivery or taxi services, operate on demand-led pricing. While not so good for the consumer, it can lead to you being able to make some extra cash during peak periods. Many Deliveroo drivers/riders will pinpoint Friday evening as a peak time to earn additional income – with a conventional 9-5, you’ll tend to get paid the same rate regardless of the time of day. You could also be combining a more structured gig job, like Deliveroo, alongside some online surveys or user interviews!

Tax considerations

While filing for self-assessment is a surprisingly simple process, you should be aware of the filing deadlines. Luckily, in the UK, we have the ‘Side Hustle Allowance’. This means you can earn £1000 per tax year without needing to declare anything to HMRC (you won’t pay any tax). The thought of not paying the appropriate amount of tax can create anxiety for many, but most people (especially online side hustlers) likely won’t need to worry. If you reach that £1000 amount (or think you might), it’s worth tracking all your incomings and outgoings. It is worth noting that any expenses you have incurred generating this cash can be offset!

To conclude

If you’re shrewd, it’s possible to make the gig economy work for you. It is important to be flexible and understand opportunities can appear in my different guises. While it’s no secret that large corporations do employ gig workers in an attempt to cut their employment costs, they fundamentally need top-level skills to succeed. In a world centered around social proof/employee experience, a brand’s reputation can be tarnished if they don’t operate ethically.