Why Getting Self Employment Right Matters More Than Ever

The UK is navigating a prolonged period of economic uncertainty. Vacancies have fallen to around 711,000, the lowest level since early 2021, while job competition continues to rise. For many people, traditional employment is not as secure as it once was. (ons.gov.uk)

At the same time, self‑employment and “side hustles” are no longer niche. Recent research shows that 46% of UK adults now earn income through a side venture, primarily to manage rising living costs. The Office for National Statistics also reports 1.32 million people holding a second job in 2025, reinforcing the shift toward diversified income.

This trend is not about lifestyle choice alone; it’s about risk mitigation.

Self‑Employment as a Safety Net, When Done Properly

Sole traders and micro‑businesses now make up 75% of all UK businesses, with over 3.2 million sole proprietorships operating nationally. However, many people enter self‑employment without fully understanding tax obligations, pricing, compliance, or sustainability, particularly those operating “on the side”. (fsb.org.uk)

Worryingly, studies show that almost two‑fifths of side‑hustlers earn enough to exceed the £1,000 trading allowance, yet many remain unaware of reporting requirements or how to protect themselves financially. In a challenging economy, informal or poorly structured self‑employment can create risk rather than resilience. (finder.com)

Now Is the Moment to Act

Self-employment can be a powerful route to stability for members of the Armed Forces community but only when people are supported to do it properly, confidently, and legally.

X-Forces Enterprise provides free-to-attend training, mentoring, and ongoing support tailored specifically for those who are:

• Considering self-employment
• Running a side business
• Already self-employed but unsure if they are “doing it right”

We encourage partners to signpost beneficiaries early, particularly those who may be exploring self-employment in response to economic pressure, changing circumstances, or transition from military service.

I would also encourage COBSEO members to meet with us, so that we can discuss this content in more detail and how we work together to protect your beneficiaries, while providing services that are genuinely beneficial to you and your members.

Find out more about X‑Forces Enterprise’s free training and support: https://www.x-forces.com