Brits are currently making £5,000 extra a year from sideline businesses with podcasting being the best generator of extra cash.

Podcasting earns an average of £954 extra a month, new research by 118 118 Money has shown.

The data from the loans and credit cards company also found that almost 68 per cent of UK adults now have a secondary source of income in addition to their main job.

Selling handmade items is the most popular hobby business with almost two-thirds choosing this.

After podcasting, the second most profitable secondary business is selling handmade candles (£670) and renting out a flat or space (£657).

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Other popular activities, according to the data, are investing (20 per cent) and selling antiques or collectibles (12 per cent).

Among handmade items, soaps seem to be extremely popular online as well with Etsy data showing 3,122 listings for this category.

Almost one in five people started their sideline after the first Covid-19 lockdown. A further 18 per cent have started generating additional income from a side business in the first half of 2021.

When thinking about setting up a side business, potential business owners should always make sure they do their research to understand the legal and tax implications.