Many Nigerians in the UK hustle hard, picking up extra shifts to boost their income. While the effort is commendable, the reality is that working more shifts doesn’t always mean more money in your pocket. In fact, you could end up paying more in taxes and exhausting yourself in the process. Instead of relying solely on extra shifts, have you considered turning your talents into a business?
The Tax Trap of Extra Shifts
The UK tax system is structured in a way that the more you earn, the higher your tax liability. Once your income crosses certain thresholds, you move into a higher tax bracket, meaning a significant portion of your extra earnings goes straight to HMRC. On top of that, National Insurance contributions also increase, reducing your take-home pay.
For example, if your main job pays you well and you take on additional shifts, those earnings could be taxed at 40% if they push you into the higher tax bracket. The exhaustion and time sacrificed may not be worth the small increase in net earnings.
A Smarter Way: Turn Your Skills into a Business
Instead of overworking yourself, why not invest your time and energy into something more sustainable? Many Nigerians in the UK have unique talents—be it cooking, hairdressing, fashion, tech skills, or tutoring. With Naija UK Connect, you have a community that can help you showcase and grow your business.
Why Start a Business?
- More Control Over Your Income – Unlike shifts where your earnings are capped, a business has unlimited earning potential.
- Tax Benefits – If you earn more than £1,000 from self-employment, you can register with HMRC and start filing your taxes. Business owners can also claim expenses such as equipment, marketing, and transportation, reducing taxable income.
- Long-Term Wealth – A business builds assets and financial stability over time, unlike temporary shifts that only provide short-term gains.
- Better Work-Life Balance – Running a business on your terms allows for more flexibility and less burnout compared to multiple shifts.
How to Get Started
- Identify Your Skills – What are you good at? Cooking, fashion, IT, logistics, tutoring? Find something you enjoy and are skilled in.
- Leverage the Naija UK Connect Community – Network with fellow Nigerians in the UK, promote your business, and get support.
- Register Your Business – If your earnings exceed £1,000 annually, you should register with HMRC as self-employed.
- Market Your Business – Use social media, word-of-mouth, and platforms like Naija UK Connect to attract customers.
- Manage Your Finances – Keep records of your income and expenses to ensure smooth tax filing.
Final Thoughts
While extra shifts may seem like the easiest way to make money, they come with diminishing returns due to taxes and exhaustion. Instead of working more for less, consider investing in yourself and starting a business. With the right mindset, skills, and community, you can achieve financial independence and create lasting wealth in the UK.
Join Naija UK Connect today and let’s build together! 💼🇳🇬🇬🇧
Join Our WhatsApp Channel
Stay updated on the latest UK news, including education, health, job openings, and more for those living in the UK!
Join here: Naija UK Channel
Also, follow us on our social media channels for the latest updates and discussions:
- Twitter: @NaijaUKConnect
- Facebook: Naija UK Connect
- Instagram: @naijaukconnect
