Need side hustle ideas (UK) to earn passive income for 2022?

One big lesson the pandemic has taught us is to diversify our income. With so many businesses going bust and job cuts, your family finance should not solely rely on your 9 to 5s.
According to a study from Fiverr, more than 50% of UK workers are open to taking a side hustle or freelance work post-pandemic on top of their day job.
It’s never too late to look for a profitable side hustle to diversify your sources of income. Multiple earnings streams can protect you should something happen to your primary job.
In particular, the type of income that is passive makes a perfect side hustle to aid your primary income.

This post may contain affiliate links, meaning I may earn a small commission at no cost to you if you make a purchase. Please read the disclosure for more information.

What is Passive Income? 

Passive income describes a type of income stream at the time of earning without being actively involved in the person.
The opposite of passive income is active income. Most of our 9 to 5 jobs are active income – you need to work more to get paid more.
While you can make extra money while asleep, it doesn’t mean no work requires any work, nor is it a way to “get rich quick.”
Creating a passive income stream ususally requires upfront work (investment in time and/or money) and some ongoing nurturing. But once it’s all set up, the return is much greater than the ongoing effort.

Traditional passive income stream examples are stock market investments, rental properties, etc.. With the explosion of the internet, people are finding more creative ways to generate passive income online.
You can too!

How can I generate passive income UK?

Here are 10 side hustle ideas UK to earn passive income this year:

1. Start a Niche Site

Starting a niche site and monetizing the traffic is one of the best passive income ideas without much upfront investment.
Make money blogging might not be new to you over recent years, but unlike traditional blogging, creating a niche site is when you reverse engineer what people are searching for online and create the content to meet that need.
The best thing about starting a niche site is that you don’t need any previous experience or degree to do it, and it doesn’t matter where you live – as long as you have a computer and a decent internet connection.
Take this FREE video bootcamp to learn how to reverse engineer online demand to create a high-traffic niche site for passive income.

2. Invest in Rental Property 

Although this is nothing new, investing in rental property is still a lucrative side hustle to create additional passive income streams. Many people list their rental properties on Airbnb to monetize their assets and earn extra cash.

The average UK house price increased by 8.5% in 2020, 9% in 2021. In 2022, it anticipates a further 3.5% rise in UK property prices. [Source] By 2025, it is forecasted to reach around 21.5%.
This data highlights the growing potential for rental income over the next three years.
Just be sure you know your neighborhood, consult a lawyer to determine a proper lease and conduct background checks on prospective tenants before renting your property.

One of the main watch out is that while investing in rental properties is a great way to earn passive income long-term, it does require a high initial investment. If you don’t have the financial means, you may want to consider some other passive income ideas (UK) that require a minimum amount of money investment.
… which brings me to my next idea?

3. Rent Out Your Car

I have recently discovered that renting out your car is an epic source of passive income. If you have a vehicle you don’t need to use daily, you can rent it out to earn some extra cash with Karshare.
The Karshare is a service for car owners and renters. One of the owners in London earns £1500 – £1700 a month from his Audi TT – which helped him get his house deposit much sooner than he would have been without Karshare. If you live in the following cities in the UK, you are in luck: London, Bristol, Birmingham, Coventry, and Manchester.
The Karshare app makes it easy to discover, book, and unlock affordable vehicles from owners in your area. Take your pick from dazzling electric city cars to family SUVs with plenty of storage.

Join the car sharing revolution and earn passive income today.

4. Website Flipping

Like house flipping, flipping websites is when you purchase a website, improve it, and sell it for more than what you paid.
You can blog flipping on any budget. You don’t need a mortgage or a team of contractors to succeed with this method.

You can earn a substantial passive income from website flipping. Check out my interview with Chelsea about how she earned 6 figures flipping websites.

5. Create and Sell a Digital Product

Another brilliant side hustle idea is to create and sell a digital product. For example, you can create an eBook that teaches others about your particular hobby, skill, or interest. Other digital products include recipe books, email courses, cheat sheets, templates, etc.
The great thing about these digital products is that the upfront investment cost is relatively low.
Yes, you will need to put in time and effort in creating them, plus some ongoing tweaking. But once you make a digital product, you can put it on autopilot.
… this is why creating and selling digital products makes an enticing way to earn passive income.
Amazon, Smashwords, and other venues make it easy to create and sell your publications online.
You can also create a website to sell your digital products. You can double up on earning passive income in combination with affiliate marketing (#10).

Take the FREE 7 Day Share Your Passive and Create Passive Income Course HERE. 

7. Rent Out Your Assets

If you have a spare room in your house, why not rent it out for passive income? Or, if you live near a conference center, consider renting the home during the event.
Other assets you can create passive income sources are parking space on your driveway and storage space in your garage.
You will be surprised by many house items you can start making money by renting out to people for occasional use, such as power tools, gardening equipment, camping gear, cooking equipment, etc. You can list your items from RentNotBuy.

Related Reads: 5 Steps to survive financial recession for your family

8. Take Advantage of Peer-to-Peer Investment

Interest rates from savings accounts have been less impressive in the UK. Can you make these savings work hard for you by taking advantage of Peer to Peer Investment?
Peer-to-peer (aka P2P) platforms provide opportunities for investment and lending. Here, we are focussing on the investment part, which makes another great opportunity for passive income side hustle UK.
Investors in the P2P platform benefit from higher interest rates than the banks or building societies offer, and the borrowers benefit from lower interest rates.
The investment side is often referred to as P2PI.
In the UK (2016), Innovative Finance ISA’s were introduced, this work is similar to the more common ISA’s work in that your earnings from your investment are tax-free, meaning you avoid being taxed on capital gains up to a limit of £20,000.
Any investment has risk, and so does P2P lending. You can reduce the risk by investing small amounts over multiple loans. Also, to avoid the P2P platforms that go bust themselves, do your research first. RateSetter, Zopa, and Funding Circle are the UK’s most reputable P2P lending platforms.

9. Offer Online Classes for a Fee

If you have a natural way of teaching, one of the most rewarding passive income ideas is to create an online course from your skill or hobby and offer it for a fee.

Offering online courses is another brilliant side hustle for passive income. You can create an online course once and then continue earning money from it month after month without additional work.
Several platforms make it easy to create and sell online courses. Udemy, Academy of Mine, Pathwright, and SkyPrep are some popular vendors.

Related Reads: How to make an extra £1000 a month UK?

10. Try Affiliate Marketing

The internet is a goldmine for anyone looking to earn passive income. One way to do this is through affiliate marketing, which entails creating an online website with links to third-party vendors and making a commission on any products that are sold through your site. In addition to online websites, affiliate marketing sales are one of the main income streams for influencers in their social media channels.

Affiliate marketing is one of my favorite passive income ideas in the UK (or anywhere in the world). Not only do I get to share my passion, but also I get to help other people while earning money.
You can start this side hustle idea at a minimal cost. You simply need access to the internet and create one or more websites with content about a specific niche. Once your site generates traffic, it will become increasingly easier to find products worth promoting as affiliates for higher commission rates.

If that’s something you are interested in, take this 7-day Affiliate Marketing for Passive Income for FREE.  

Do I have to Pay Tax on Passive Income in the UK?

Once your earnings are over £1000, you will need to pay tax. Read the guidance from the Gov.UK site regarding Income Tax and do your self-assessment.
It is always a good practice to keep track of your investment, spending, and earnings for your side hustle, even if you are just starting.

Other Side Hustle Ideas

There are many other profitable side hustle ideas. Here are 10 additional awesome side hustle ideas UK to help you make extra cash. Although they are not passive income per se, they are certainly legit ways to help to earn little extra spending money on the side.

1. Social media manager
2. Make extra cash with 30+ money-making apps UK
3. Become delivery driver
4. Get paid taking video survey
5. Pet sitting services
6. Become a freelance project manager
7. Start a dog walking business
8. Become virtual assistant
9. Car boot sales
10. Make money as a podcast producer

Also, check out 50 side hustle ideas to make money fast as a kid.

Final Thought on 10 Proven Side Hustle Ideas UK to Earn Passive Income [2022]

So here you have it, 10 proven passive side hustle ideas in the UK for this year. Whether you want to earn little extra money on the side, have flexible ways to make money online, or start your own business, there is something for everyone. You can start with one or combine multiple gigs.

When considering which idea(s) is the right side hustle for you, I recommend assessing which one aligns with your passion the most and how much time you can put into it.

Dip your toe in by taking available free courses and Free trials before you commit to one path.
A side hustle should be something you enjoy doing even when you are not making money. It will become even more rewarding when you start hearing “ka-ching” when you are not actively working.

9 Proven Side Hustle Ideas to Earn Passive Income UK [2022] … Pin it for later