Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. We offer information about investing and saving, but we do not offer any personal advice or recommendations. If you aren’t sure whether investing is right for you, or which investments are right for you, please consult an authorised financial adviser. Unsplash With the cost of living rising at an alarming pace, many households may be considering how to make some extra cash.
This doesn’t necessarily mean getting a second job. In fact – so long as you have a broadband connection – there are numerous ways to make money online without leaving the comfort of your home. We’ve rounded up some top examples. Do I need to pay tax on ‘side hustle’ income?
Since 2017 Brits have benefited from a £1,000 ‘trading allowance’ whereby it’s possible to each earn up to £1,000 a year tax-free from ‘side hustles’ such as flogging items on eBay or making money from online surveys.
If you earn more than this from online extras, you’ll need to register as self-employed with HMRC and pay tax on your profits.
Money you earn on investments such as dividends is taxed separately – this article explains how. 1. Have your say
There are websites that will pay you for your opinion on anything from the latest hit TV show to shampoo or dog food. To get started, sign up to survey sites such as i-Say (previously Ipsos), Swagbucks, YouGov and Opinion Outpost. Once you’re a member, they’ll send you details of surveys you’re eligible for and how much they pay.
Focus groups are more in depth and usually mean attending a session in person. They can pay well though – up to £100 for an hour or two. Takepartinresearch.co.uk or Paidfocusgroups.co.uk are good places to start. 2. Pocket some ‘passive’ income
Passive income refers to income that doesn’t need a significant commitment of time or money on an ongoing basis.
Investing in the stock market, for example, can generate passive income – but you’ll need a long-term investment strategy to see gains. And, of course, you may get out less than you put in.
There’s a lot of hype around cryptocurrencies such as Bitcoin and Ethereum but you should think twice before jumping onto the crypto bandwagon.
These virtual currencies are notoriously volatile as well as being the subject of various scams – check out Trust No one: The Hunt For The Crypto King on Netflix for a story about how it can all go horribly wrong.
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Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Tax on profits may apply. 3. Become a virtual tutor
This side hustle is best suited to brainy university students happy to tutor schoolchildren approaching the 11-plus, school entrance exams, GCSEs or A-levels.
The pandemic meant that pupils became accustomed to remote learning so there’s no longer an expectation that you will travel to tutor your pupils in person.
The better your GCSE and A-level grades in maths, English and science subjects the better – you can earn up to £20 an hour helping kids to improve their grades.
You can find clients using sites such as Superprof or MyTutor or by word of mouth recommendation. 4. Rent out your parking space
If you live near a train station, football stadium or city centre, it’s possible to generate a regular income stream from renting out your off-street parking space. You can rent out your space on an hourly, daily, weekly or even monthly basis.
You can list your parking space on sites such as JustPark, ParkLet, Your Parking Space and Park On My Drive. Fee structures vary but usually include commission on the booking, plus some sites may also charge a listing fee.You have to liaise with the driver making the booking, including providing directions where necessary and ensuring that access is kept clear. You may also need to check whether suitable liability cover is included in your home insurance . 5. Using cash-back websites Making purchases via cash-back websites can add up to several hundred pounds a year. You sign up to a cash-back site such as Topcashback or Quidco and search for the online retailer or company you’re looking to buy from. If the company is listed, you click on the link to take you to their website which tracks your visit. You then complete the purchase as normal.Many of the cash-back sites charge […]
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