Most people at one time or another have thought "I wish I had some more money", and this is particularly likely at the moment, with the rapid increase in the cost of living. Whether it's for everyday essentials, a well-earned treat, or to add to your savings, I thought I would share some ideas that I have used in the past to earn a bit of extra cash:
Sell your stuff
It may be time to have a bit of a wardrobe clear out: you may be holding onto items that you think you will use in the future or clothes that may fit you one day (I know I have those!), but you could make some money out of them instead.
There are lots of online places where you can sell your second-hand items, including eBay, Vinted, Depop, Ziffit, Facebook Marketplace, and Gumtree, to name just a few.
Don't forget to check out the different charges these companies apply when listing and selling an item. Shop around for the best one for your product.
It can be fun, and you will be surprised at how much you can make.
Sell your own creations
If you don't already, consider taking up a hobby or craft that involves making something, and then selling that. It could be anything, from crocheted keyrings or personalised bookmarks to home-made greeting cards! A site like Etsy is a good way for crafty people to sell what they've made.
If you are a keen photographer, there are also lots of sites where you could sell your photos online.
Rent your spare room
If you have a spare room and want to rent it out to a lodger, you are allowed to earn up to £7,500 per year tax-free.
You may want to consider doing this with foreign exchange students over the summer holidays.
There are various conditions to comply with, but it can be done for just a few months.
Give your opinion
There are plenty of companies and public organisations that pay you for taking surveys, testing out products, or participating in focus groups.
You can also get paid to be a mystery shopper, through companies such as Grass Roots.
A reminder about tax
Naturally, as an accountant, I need to give you a reminder about the tax consequences of all of these options.
Generally, you are allowed to earn up to £1,000 without having to pay any tax (and this increases to £7,500, as I have already mentioned, if you choose to rent out a room).
If you sell your second-hand items, there is no need to include this in your £1,000 limit.
Grow your business
If you are in business, or wanting to start up your business, please join my Facebook Group, Growing Businesses – Tips, Help & Advice.
It is there to help you grow your business and provide you with tips and advice.
I look forward to you being a member and hope we can grow your business together.
Please always seek professional advice before taking any action. We are happy to answer questions in future issues. Please send your questions through the contact us page on our website.
Chantal Baker, is the director and founder of Champ Consultants Ltd, an accountancy and tax consultancy practice in Caterham. Please follow us on the various social media channels.
