As the cost of living continues to spiral, millions of households are looking for ways to cut back. But spending less isn’t the only way to boost your bank balance. With remote, or part remote, working becoming the norm for many, there are plenty of ways to earn a little extra cash from the comfort of your own home.
A quick word on tax…
Before you start earning some additional cash, it’s important to understand when you’ll need to pay tax.
Everyone has a tax-free personal allowance of £12,500 a year. But the introduction of the trading allowance in April 2017 means you can also earn up to £1,000 each tax year from a hobby or start-up business without paying income tax. Similarly, the property allowance lets you earn up to £1,000 tax-free each tax year on income from land or property.
Any earnings over this, however, and you’ll need to register for self-assessment, file a tax return and start paying income tax on those earnings. If you’re unsure whether you owe tax, get in touch with HMRC for advice.
Here are 10 ways to earn some extra money from home:
1. Rent out your driveway
If your driveway is empty for most of the day, renting it out through websites like JustPark and YourParkingSpace could be an easy way to boost your income. Your space doesn’t have to be available all the time, you can simply state which days or hours drivers can book to park there.
Recent figures from YourParkingSpace show that homeowners pocketed an average of £500 last year from renting out their driveway, with one driveway owner in Bristol earning an astounding £33,100.
Earnings are likely to be higher the closer you are to transport links or a stadium or concert venue, or if there is a lack of affordable parking in your area.
2. Hire out your storage space
If you don’t have a driveway to spare, renting out your home’s unused storage space could be another lucrative option. Use sites such as Stashbee and Storemates to rent out your spare garage, loft, basement or shed.
Stashbee charges a 5% host fee, while Storemates automatically deducts 16.5% plus 20p from each payment received from your storers.
Stashbee reckons you could earn around £1,488 per year for renting a garage out in Maidstone, Kent, while someone in Clapham, London could earn around £1,308 a year from renting out their loft.
Before renting out your storage space, contact your home insurance provider to check your existing cover will still be valid. You may have to extend your policy for a small fee.
3. Explore ‘passive income’ ideas