In this day and age, everyone is looking to make money from the comfort of their own home.
What would you do with a bit of spare cash if you had it?
Would you use it to pay off debt, save it or would you treat yourself?
Rules came into force in 2017 that allow casual sellers to earn £1,000 a year from a hobby or start-up business before they must declare the income to the taxman.
This means that people with a side hustle can do so without the fear of being taxed, and if you expect your gross income to be no more than £1,000 you don’t have to register for self-assessment.
Today I have come up with just a few ideas on different ways to make tax free money.
Surveys are a great way to generate some extra cash when you are just starting out on your money-making journey. Some survey sites can work better than others, and most have a pay-out threshold.
With online surveys, all you need to do is sign up and wait for the available survey alerts to be delivered into your inbox. Once you have completed the questions, the survey site will then add the cash or reward into your account. Prolific, for example, is a great money earner.
Here are some examples of just a few online survey sites:
- Panelbase – This is a very popular survey site, and some people claim to have made £100+ in just a couple of months.
- Onepoll – Onepoll usually pays between 10p and £1. They are best known for their short and quick surveys, and their pay out threshold is £30.
- Opinion Outpost – Opinion Outpost is popular for its low pay out threshold of £2.50. You typically receive around 50p per survey you complete, and each survey takes around 15 minutes to fill out.
You can claim your hard-earned dosh in the form of e-vouchers for high street shops and Amazon or cash via PayPal on most survey sites.
If you have some spare time on your hands, this is definitely a method that you could try.
Matched betting is a great tax-free and risk-free way to make a profit from the free bets that are offered by bookmakers.
It is completely legal, and contrary to popular belief it is not gambling!
Sell your old Junk on Ebay
If you’re looking for an excuse to have a major sort out, selling your unwanted items can be a great way to make some extra cash.
Once you have gathered up some items that you would like to sell, it’s time to think about how you are going to portray them in the best light to make sure that they sell.
The first way of doing this is to grab your potential customer’s attention with the listings heading. Think about the key words that people might type into the search bar for your items. It’s important to make sure you spell everything correctly too!
You should also write a detailed description of the item you are selling. If there is a small stain or mark on the item note it down in the description and provide photos of it. Make sure you take some decent photos from different angles to attach on your listing.
However, it is important to note that eBay take a final cut of 10% of what you sell, and PayPal take a fee of 3.4%. If this puts you off selling on eBay, there are plenty of other ways to flog your unwanted items, such as Gumtree or even at a car boot sale.
Rent out your spare room
Rent out Your Driveway
There is also another £1,000 tax free allowance that relates to property, for example if you rent out your driveway. This is a great way to put some extra pounds in your piggy-bank if you don’t own a car or you live near train station, that is difficult to park close to.
HMRC has confirmed that you can use both allowances in the same tax year, but only for different money-making ventures.
Advertise on your car
If you’re looking to make some passive income, this money-making method could be for you. Companies like Car Quids are now offering motorists up to £1,000 a year to have their cars covered in advertisements known as car wraps. In the US, you can get paid by Carvertise and Wrapify.
Some companies insist you drive a minimum of 500 miles a month, whereas others get paid for parking.
You can make money without even thinking about it by using this method, although if you are someone who is very particular about the car they drive, this may not be for you!
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Mystery shopping is a great way to make some serious money, and it also means you can pocket free stuff at the same time! This one is pretty self-explanatory, you receive a payment for evaluating companies’ products and services and completing a report.
Some examples of mystery shopping companies include:
These are just a few ways you can make tax-free money in your spare time, however there are so many more ways! Let me know in the comments which of these is your favourite method!