How to Start a Side Hustle UK: From Kitchen Table to Market Stall
Updated: Jun 25
Information accurate as of April 2026
Starting a side hustle is something a lot of people think of doing at some point and many don't because it can feel like such a massive leap, especially when you already have a full time job, a house to run and kids to look after.
I'm here to pass on the knowledge I've obtained throughout my own business journey, and hopefully my personal insights help to guide you along your own journey.
I'm hoping with this guide and with this website as a whole to try and strip away some of the business Jargon encountered on a daily basis, We’ll cover the business essentials you need to know: from mastering the £1,000 tax-free trading allowance to booking your first local market stall and protecting your hard work with the right insurance.
You won't find any get rich quick schemes on this website, just step-by-step guides, and resources to help you build a second income stream, or ditch the 9-5 to build something of your own. If you’ve got a product you believe in and a bit of confidence, then really all you need is to get started.
Essential Steps to Start a Side Hustle UK
Before you start worrying about spreadsheets, you need to know about the UK’s £1,000 Trading Allowance. Think of this as your "testing phase" pass from HMRC. It allows you to earn up to £1,000 in gross income (that’s your total sales before you take off the cost of wax, jars, or labels) within a single tax year without needing to pay a penny in tax or even tell the taxman you exist.
It means you can focus 100% of your energy on perfecting your product, gathering honest feedback, and finding your feet at your local market without the "laborious" paperwork hanging over your head.
When do you need to register? The moment your total sales (not your profit!) cross that £1,000 threshold, you’ll need to Register For Self Assessment as a Sole Trader. Until then, keep your receipts, track your sales, and enjoy the freedom of building your business hassle-free.
Check out Our Bookkeeping Guide so that you start your business in the right way.
Stop Planning, Start Pouring: Why Your Profit Margin is Your Freedom
We could spend all day talking about spreadsheets, tax codes, and accounting software, but there is no tax to pay if you haven't made a penny yet. It's easy to get stuck procrastinating about different ideas you have, thinking you can't possibly compete with others or not knowing how to even start your own business. You just need to get started. Stop thinking and start doing.
If you’re reading this, I’m assuming you’ve got that spark of an idea and you’re just looking for a bit of guidance to give you the confidence to take the first step. I will share my own story of how my third business, Shelley’s Wax melts actually began. Hopefully it inspires you a little and shows you that once you start doing, the path just creates itself and becomes clearer once you actually make a start.
Our journey started in the middle of a pandemic, right after I’d made the heartbreaking decision to close my workwear business. Sales had plummeted, supply chains were a mess, and the profitability had completely dried up. It was a tough pill to swallow, but I refused to dwell on it. I looked at that "failure" as a high-level education. I realized I still had the skills and experience, the engineering mindset, and the hunger to build something new, all acquired from my other ventures, I just needed a new idea.
But before we go any further, if you take nothing else away from my story, let it be this: Profit is the one element of your business that will determine how well you do, how fast you grow and how many options you have for your business as you grow.
The biggest lesson I brought from the ruins of my last company was this: your profit margins must be strong enough to protect your time and your family. When you start a side hustle, you aren't just "playing shop." You are sacrificing sleep, missing "fun times," and giving up precious hours with your loved ones to juggle a full-time job and a new venture.
You need to build a solid base from Day One to ensure you are being properly compensated for that sacrifice. The higher your profit margin, the more resilient your business becomes. It gives you the "oxygen" to withstand pressure, the power to scale, and eventually—if that's your goal—the freedom to take your business full-time. If the math doesn't reward your hard work, it’s just a hobby. If the margin is there, it’s a future.
Wax Melts - The Engineering of a Hobby: From Kitchen Experiments to 300% profit Margins
Shelley’s Wax melts was born in the kitchen in the middle of a pandemic. Like most people back then, we were just looking for a creative escape—something to take our minds off the chaos outside. We discovered that making wax melts was incredibly relaxing, but more importantly, we discovered a massive problem with the products already on the market.
We were tired of spending our hard-earned money on melts that smelled great for ten minutes and then vanished. We had a drawer full of half-used, disappointing wax that just didn't deliver. That’s when the question hit me: Could we do better?
We started small, buying some basic wax and fragrance oil from Amazon and making a few crude batches. But me being an engineer, I couldn’t just leave it at "good enough." I knew there had to be a science to getting a scent that actually lasted, a "knack" to the perfect pour. I put down the stirring spoon and started researching.
When I ran the numbers, the results were staggering. I compared the cost of buying premium melts versus the cost of manufacturing them ourselves with the right suppliers. I discovered that wax melts offered a 200–300% markup—a level of profitability that my old workwear business couldn't touch. That was the moment the cogs really started turning. I realized this wasn't just a relaxing craft; it was a high-margin vehicle for a brand new business.
The Deep Dive: Why Research is Your Best Investment
I tell everyone who comes to me with a new idea the same thing: Research is the difference between a flash in the pan and a business that lasts. You can avoid 90% of the mistakes that kill new start-ups just by committing the time to understand your market before you spend a single penny on stock.
I didn't want to just make "another wax melt." I wanted to create the best one on the market. To do that, I had to stop acting like a hobbyist and start thinking like a specialist. I’ll be providing a full, comprehensive guide to making and selling wax melts—my gift to you for visiting the site—which covers the exact methods we perfected. You won't find a guide this detailed anywhere else on the internet.
For now, I want to show you my thought process. To build a solid foundation, these are the categories of questions I forced myself to answer:
1. The Build & The Science
The Product: How do I actually make a professional-grade melt?
The "Scent Throw": What is the science behind getting a fragrance to fill a room when it’s sitting in a burner?
The Ingredients: Which wax and oil combinations actually work together, and which ones are a waste of money?
The Costing: How much does it really cost to make one unit when you include everything?
2. The Market Intelligence
The Competition: Who are the big players and the local makers? What are they charging?
The Presentation: What kind of packaging is everyone else using, and how can I make mine stand out?
The Legalities: What are the CLP (Classification, Labelling and Packaging) requirements? (You legally cannot sell without these safety labels).
The Suppliers: Who are the main suppliers for raw ingredients, and can I get better prices by buying in bulk?
3. The Customer Experience
The Trends: What are the most popular scents right now, and which ones are "evergreen" classics?
The "Pain Points": What are the biggest "bugbears" for people buying wax melts? (For us, it was weak scents that didn't last and poor value for money).
By dedicating time to finding these answers, we didn't just make a product; we engineered the perfect wax melt. Once we had the finished product and the premium packaging dialed in, we moved onto the most important step: seeing what the world actually thought.
The Brutal Truth: Why Your Friends are Your Best (and Worst) Asset
Before we spent a penny on bulk wax or custom jars, we had to know if the product actually worked. This is the stage where most people fail—they get a few "that’s nice, dear" comments from their mum and think they’re ready for the world. We took a different path
.
We gave out free melts to friends and family, but we were very specific about who we chose. We sought out the people we knew would be brutally honest. We didn’t want a pat on the back; we wanted to know if the scent vanished after an hour or if the wax was a nightmare to get out of the burner.
This wasn't a quick weekend project. It took several months of trial and error. We were constantly experimenting with different wax blends and scent oil combinations, tweaking the ratios like we were in a lab. At the same time, we were obsessively researching other sellers—buying their products just to see where they fell short and where we could beat them.
It took attempt after attempt to find that "perfect formula." There were days when we thought we had it, only for a friend to tell us it wasn't strong enough. But we didn't stop. We kept refining until we had created what we believed was the ultimate product.
I cannot stress this enough: without this step, we wouldn't have had a fraction of the success we’ve seen. It was those months of "invisible" work in the kitchen that built the foundation for everything else. You have to be willing to fail in private so that you can win in public. If you aren't prepared to listen to the brutal truth and go back to the drawing board, you aren't building a business—you’re just playing with a hobby.
The Red Tape: Why Legal Compliance is Your Shield
Before you sell a single melt to the general public, we need to talk about CLP (Classification, Labelling and Packaging). I cannot stress this enough: do not skip this step. I’ve seen people put months of sweat and tears into building a brand, designing beautiful logos, and making amazing products, only to have the whole thing ripped down in a matter of days because they ignored the regulations. Trading Standards don't mess about. If your labels aren't compliant, they can seize your stock and shut you down.
There is no point building a business on a foundation of sand. Why put in all that effort just to risk it being taken away months into your journey?
I didn't guess at the rules. I reached out and contacted my local Trading Standards office directly to get the most up-to-date, "straight from the horse's mouth" advice. I wanted to know exactly what had to be on that label—the allergens, the safety icons, the contact details—everything.
Once I knew the rules, I looked for a way to make compliance easy and affordable. I found a company that sold pre-made CLP labels for every scent we produced for just 3p per label. Think about that: for the price of a couple of pennies, you are protecting your business, your reputation, and your customers. It’s a tiny price to pay for the peace of mind that comes with knowing you are 100% legal.
Researching this thoroughly saved me a massive headache (and potentially thousands in fines) later. It’s further proof that taking the time to fully explore an idea saves you both time and money in the long run.
"Always request a Safety Data Sheet (SDS) from your oil supplier—your CLP labels must match the specific percentage of oil you use in your wax."
Finding Your Arena: The £20 Market Stall Test Drive
We started by creating a Facebook page, but we knew we needed to get our products under people's noses. I looked at several local markets and discovered that you could book a stall for a single day for just £20.00. That included a table and an electricity supply—a very low-cost way to test if your idea actually has "legs."
We put our heads down and got cracking. We spent a couple of hundred pounds on our first batch of products and packaging. It felt like a lot at the time, but in the world of business, it’s a tiny investment to test a new concept.
The £6.00 Reality Check
Our first day at the stall, we took exactly £6.00 all day.
For most people, that would be the end of the dream. But we didn't panic. Why? Because we had spent months testing the product with "brutally honest" friends. We knew the quality was there. We knew that first impressions matter, and we knew our "working-class town" brief inside out.
Winning on Every Metric: The £5 Strategy
We lived in a town where people value their hard-earned money. Our competitors were selling basic melts for £4.00. We decided to charge £5.00—but we offered True Value.
The Packaging: We used premium jars that no one else was using. It looked like a luxury experience.
The Quantity: Our jars contained almost double the wax of our competitors.
The Performance: Because of our "lab phase," our scent throw and longevity beat everything else on the market.
We charged £1.00 more, but the customer spent less per month because our melts lasted longer and performed better. Buying from us wasn't just a purchase; it was a "gem" they’d discovered. We beat the competition on every metric: scent, service, and presentation.
Within 6 months, that £6.00 day turned into £150–£300 turnover per stall. We became the preferred choice because we innovated while remaining profitable. We proved that if you offer real value, people don't just come back—they bring their friends.
Becoming a Sole Trader: The Simplest Way to Go Pro
Once you cross that £1,000 trading allowance, it’s time to move from "having a go" to being a business owner. In the UK, becoming a Sole Trader is the most popular way to get a business off the ground. Essentially, it means you are the business—there’s no legal gap between you and your brand.
For me, this was the perfect starting point for Shelley’s Waxmelts. It’s low-cost, low-admin, and lets you focus on the product rather than a mountain of corporate paperwork.
The Lowdown on Going Sole Trader:
You’re the Boss: You make every decision, you keep 100% of the profits after tax, and you have total control over how and when you work.
Simplicity is Key: Compared to setting up a Limited Company, the paperwork is a breeze. You just need to tell HMRC you’re self-employed and file a Self Assessment tax return once a year.
Total Flexibility: You can keep your day job and run your side hustle in the evenings or on weekends. There’s no pressure to go "all in" until the numbers say you’re ready.
Personal Responsibility: Keep in mind that because you and the business are one "entity," you are personally responsible for any debts or hitches. This is why we focus so hard on profitability and research—to make sure those hitches never happen.
The Gold Standard of Record Keeping
Legally, you must track every penny that comes in and every penny that goes out, and you need to keep those records for five years. Gone are the days of keeping a shoebox full of faded receipts. Under the UK’s Making Tax Digital (MTD) rules, the gold standard is now digital.
Whether you use professional software or a well-organized spreadsheet, you need to log every receipt and bank statement. My biggest tip? Keep your business finances completely separate from your personal spending. Opening a dedicated business account makes your yearly tax return ten times faster and ensures you’re always on the right side of HMRC’s evolving digital requirements.
How I Streamlined My Accounting
When I started, I quickly realized that the "old-fashioned" spreadsheet method was a massive time-sink. Here is how I simplified the process:
Software is Key: I use Xero, which automates the boring bits. It links directly to my business bank account, meaning every sale and expense is tracked in real-time without me typing a thing.
The Power of Separation: By using a dedicated bank account for the business, I don't have to sift through grocery receipts to find my wax supply invoices. Everything in that account is "business," making the record-keeping crystal clear.
One-Click Tax Returns: Because Xero is MTD-compliant (Making Tax Digital), I can submit my tax return electronically directly from the app. It turns a job that used to take hours into a few simple clicks.
While Xero is my personal favorite, there are plenty of other HMRC-recognized options like FreeAgent, QuickBooks, and Sage. Many digital banks, such as Starling and Monzo, also offer built-in accounting tools specifically designed for sole traders. Whichever you choose, the goal is to ensure the software is Making Tax Digital (MTD) compliant, which automates your record-keeping and allows you to submit tax returns directly to HMRC with minimal fuss.
How do register as a sole Trader
Registering as a sole trader is free and straightforward. In the UK, you don't register a "business entity" like a company; you simply register yourself for Self Assessment with HMRC.
Register Online
The easiest way is through the GOV.UK website.
Here is a link to the GOV UK site explaining it in more detail: https://www.gov.uk/become-sole-trader/register-sole-trader
Create a "Government Gateway" account: If you don't have one, you’ll set this up first using your email.
Apply for Self Assessment: Once logged in, select "Working for yourself" to register as a sole trader.
Details you’ll need: Your National Insurance number, full name, address, and the date you started your business.
3. Receive your UTR
After registering, HMRC will post your Unique Taxpayer Reference (UTR). This is a 10-digit number you will need every year to file your tax return. It usually arrives within 10–15 working days.
Contains public sector information licensed under the Open Government Licence v3.0.
The Engineer’s Secret: "Just-in-Time" Labelling
One of the biggest "money pits" for a new business is stock that just sits there. In my old workwear business, I saw how much capital gets tied up in things you haven't sold yet. When I started the wax business, I vowed to do it differently.
Labelling can be a massive headache and a huge expense, especially if you’re making small batches or trying out custom scents. If you order 500 professional labels for a "Spiced Apple" scent that doesn't sell, you’ve just thrown money in the bin. To solve this, I used a Cameo Cutter paired with CorelDRAW software to create a "Just-in-Time" labelling system.
Why This Setup Wins:
Zero Waste: You only print and cut exactly what you need for today’s batch. No more drawers full of unused stickers.
Professional Precision: A Cameo cutter isn't a toy; it cuts vinyl or paper labels with incredible accuracy, giving you a high-end finish that rivals any professional printing house.
Instant Innovation: If you want to tweak a logo, change an ingredient list, or launch a "Limited Edition" scent for a market this weekend, you can do it in minutes. You have total creative control.
Affordability: This setup is incredibly flexible and perfect for makers working from home. It turns a "kitchen hobby" look into a "luxury brand" look for a fraction of the cost.
The Pavement Test: Booking Your First Stall & Taking Payments
Finding your first market stall is where it all starts to feel "real." It’s exciting, it’s a little nerve-wracking, but it’s the most valuable data you will ever get. Forget Facebook likes—nothing beats seeing a customer pick up your product, smell it, and reach for their wallet.
Scouting the Location
Don't just book the first market you find. Put on your researcher hat and visit a few local markets on a Saturday morning.
The Foot Traffic Test: Is the market busy, or is it just a few people walking their dogs? You want eyes on your product.
The Vibe Check: Do the other makers look professional? Is there already a wax melt seller there? (If there is, don't worry—remember, you’ve engineered a product that beats them on every metric).
The Cost-to-Entry: Contact the market organiser and ask about stall availability, costs, and rules. Many local markets are surprisingly affordable, often around £20.00 to £30.00 for a pitch.
Your First Professional Setup
You don't need a thousand-pound display to start. A simple, clean table with clear signage and a display that lets people get close to the scents is all you need. Since you’re selling a premium £5.00 product, make sure your stall feels like a "luxury find" at an amazing price.
Don’t Lose the Sale: Accept Card Payments
We live in a world where nobody carries cash. If you only take "cash only," you are effectively cutting your potential sales in half before you’ve even started.
For payments, Zettle is the gold standard for small makers. It’s a compact card reader that connects to your phone or tablet via Bluetooth. It’s low-cost, incredibly reliable, and handles contactless, Apple Pay, and chip-and-pin effortlessly. It removes the stress of handling loads of change and gives your business an instant "professional" upgrade. When a customer sees a card reader, they trust you more as a legitimate business.
The Professional Shield: Why Public Liability Insurance is Non-Negotiable
When you’re trading at a market, you aren’t just a person with a hobby—you’re a business owner in a public space. That comes with responsibility. Whether it’s a customer tripping over your table leg or a freak accident involving your display, you need to be protected. This is where Public Liability Insurance (PLI) comes in.
Think of PLI as your "sleep-easy" policy. It covers the cost of claims made by the public for incidents that occur in connection with your business activities—specifically personal injury or property damage.
Why You Need It Before Your First Sale:
The Market Requirement: Most market organizers are professionals. They won't even let you unpack your van unless you can show them a valid insurance certificate. It’s often the "entry ticket" to any reputable trading space.
Protecting Your Personal Assets: As a sole trader, your personal and business finances are linked. Without insurance, a legal claim could put your personal savings—or even your home—at risk.
Product Liability: Many policies for market traders include "Product Liability" as standard. This is vital for us in the wax melt world. It protects you if a customer claims your product caused damage or an issue after they took it home.
How to Get It (Without Breaking the Bank)
You don't need a massive corporate policy. There are insurance providers that specialize specifically in small businesses and market traders.
For a very affordable annual fee (often less than the cost of a few jars of wax), you can get a policy that covers you for £1 million, £2 million, or even £5 million in liability. It’s a tiny investment for total peace of mind. When you’re looking for a quote, make sure the policy specifically covers "candle and wax melt manufacturing," as some general craft policies have exclusions for heat-based products.
Pro-Tip: Don't just look for the cheapest price. Look for a provider that understands the "Makers" market. Organizations like CMT (Combined Market Traders Insurance) or specialist small business brokers often offer tailored packages that grow as you do.
Your Journey Starts at the Kitchen Table
Starting a side hustle doesn’t have to be a gamble, and it certainly doesn't have to be overwhelming. By using the "Engineer’s Approach"—focusing on research, perfecting your formula, and maximizing your margins—you are building something that isn't just a hobby; it’s a future.
Remember the roadmap we’ve laid out:
The Safety Net: Use the £1,000 Trading Allowance to test your ideas without the weight of paperwork.
The R&D Phase: Get that brutally honest feedback from friends and family. It’s better to fail in your kitchen than at a market.
The Tech Edge: Keep your overheads low and your quality high with "Just-in-Time" labelling using a Cameo cutter and CorelDRAW.
The Professional Launch: Book that first £20.00 stall, take card payments with Zettle, and protect every bit of your hard work with Public Liability Insurance.
The transition from a kitchen-table experiment to a thriving business is paved with small, consistent actions. We started with a £6.00 day and grew it into a high-street success because we refused to settle for "good enough" and we focused on True Value.
You have the tools, you have the blueprint, and now you have the "gems of wisdom" that took us years to learn. The only thing left to do is take that first step. Whether you're pouring your first batch tonight or scouting your local market this weekend—get started. There’s no tax to pay on a dream you haven't launched yet, so go out there and build something your future self will thank you for.
The "Proper Hustle" Disclaimer: I’m an engineer and a business owner, not a tax advisor or a lawyer. This guide is based on my own experience building Shelley’s Waxmelts and is for general information only. While I’ve done my best to ensure everything is accurate at the time of writing, tax laws and safety regulations (like CLP) can change. Always check the latest guidance on GOV.UK or consult a professional before making big legal or financial decisions. Use this info at your own risk—I'm here to help you start, but you’re the boss of your own compliance!
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