Side hustles for retirees UK: earn in retirement (and the tax rules)

Plenty of people want some income, routine or purpose in retirement without going back to a full-time job. These side hustles fit around that.

Use your experience

1. Consulting or freelancing in the field you worked in. Former clients and colleagues are often the easiest first customers.
2. Tutoring. Retired teachers, engineers and accountants are in demand. See how to become a tutor.
3. Mentoring and training, for example running workshops at a local college or for small businesses.
4. Proofreading and editing. See proofreading from home.

Flexible local work

5. Exam invigilation. Schools and colleges hire invigilators for exam seasons, usually paid by the hour.
6. Pet sitting and dog walking. See dog walking and pet sitting.
7. Mystery shopping. See mystery shopping.
8. Seasonal work, such as Christmas retail or garden centres in spring. See Christmas temp jobs.

Use what you own

9. Letting a room to a lodger. Up to £7,500 a year is tax free under the Rent a Room scheme.
10. Hosting on Airbnb. See making money on Airbnb.
11. Renting out a driveway or garage. See renting out your driveway.
12. Decluttering. Selling things you no longer need on eBay or at a car boot sale is not taxable. See selling on eBay and car boot sale tips.

Hobbies that pay

13. Crafts, woodwork or baking sold on Etsy or at local markets.
14. Gardening for neighbours.
15. Writing or photography, for local publications or stock photo sites.

Tax and National Insurance after State Pension age

• No National Insurance on earnings. Employees stop paying it once they reach State Pension age. Self-employed people stop paying Class 4 from the start of the tax year after they reach it.
• Income tax still applies. Your State Pension is taxable income and uses up most of your £12,570 Personal Allowance. Add a private or workplace pension and any side income is often taxed at 20% from the first pound.
• The trading allowance still helps. The first £1,000 of trading income a year is tax free, rising to £3,000 from April 2027.
• Pension Credit and other benefits can be reduced by earnings. Check before you start if you receive them.

Work out what you would keep:

Free toolSide hustle tax calculatorSee how much tax and National Insurance you owe on side income, and what to set aside each month.→

Common questions

Can I work after I start taking my State Pension?

Yes. There is no earnings limit on the State Pension, and you can work as much as you like. You can also defer your State Pension to get a higher amount later.

Do pensioners pay tax on side income?

Yes, if your total income is over your Personal Allowance. Because the State Pension uses up most of it, side income above the trading allowance is often taxed at 20%. You do not pay National Insurance on it once you are over State Pension age.

What is the easiest side hustle for a retiree?

Letting a spare room is one of the easiest, because it is tax free up to £7,500 a year. Decluttering and selling things you no longer need is easy too, and not taxable.