## Changing Budget Rules and Side Hustles
People earning extra income through side gigs such as Deliveroo, Etsy, or Vinted could face new financial pressures as the government freezes key tax thresholds. These freezes may reduce the amount of profit freelancers and self-employed workers can keep, affecting the growing group who depend on such side hustles to offset rising living costs.
### Impact on Small Earners
The decision to hold personal allowances and National Insurance thresholds at current levels means that, while income may rise modestly, more of it will fall into taxable brackets. This effectively increases the tax burden on part-time and freelance earners. According to analysts, someone who earns additional income from food deliveries or online sales could lose part of their profits to higher effective taxation.
### Platform Economy Under Strain
Gig economy platforms such as Deliveroo, Uber Eats, eBay, and Vinted have seen rapid growth as people look for flexible income sources. However, the freeze in thresholds discourages smaller traders, forcing some to reconsider whether their side work remains financially worthwhile. Tax experts warn that those earning just above the allowance may face complex self-assessment obligations.
### Expert Opinions
Financial specialists note that what was once seen as a “harmless top-up” to wages might soon require more careful tax planning. Many recommend setting aside a larger portion of side income for upcoming tax payments and tracking all expenses closely to avoid unexpected bills. The changes may also lead to a reduction in micro-business activity, especially among younger entrepreneurs.
### Overall Outlook
While the government argues that the policy supports fiscal stability, side hustlers feel the pressure of shrinking take-home earnings. This situation highlights a growing tension between formal taxation rules and the informal, flexible nature of modern gig work.
> "What used to be a few extra hours delivering food or selling used clothes now requires the same level of financial awareness as a small business," said one independent advisor.
### Summary
Budget threshold freezes may unintentionally discourage small-scale earners, who increasingly rely on gig platforms for supplemental income.
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*Author’s summary: Threshold freezes may increase the tax burden on gig workers and small traders, reducing the benefits of flexible side income in a slow economy.*
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Yahoo News UK on MSN — 2025-11-28