LIKE TO EARN A BIT EXTRA?
Whether you’re selling space in your house, your skills or a product, it’s never been easier to run your own micro business. Niki Chesworth explains how to maximise earnings, minimise risks and stay on the right side of the taxman
HOW TO MAXIMISE EARNINGS, WHETHER YOU’RE SELLING SPACE IN YOUR HOUSE, YOUR SKILLS OR A PRODUCT
Is your home a money-spinner?
Airbnb homeowners can rent their entire property (for up to 90 days a year in greater london) or just a room. there is a lot of work involved in organising renters, cleaning and changing bed linen but the rates are good. if you only rent a room in your home, £7,500 a year is tax free, but if you rent out your whole home you are liable for tax on the rent. also, tell your insurer.
Take in a lodger this saves you having to continually find new people to rent your room. the best bit: £7,500 of rent a year is tax free. the downside: you have to share your home. options: try a weekday-only lodger at sites like mondaytofriday.com, spareroom.co.uk and fivenights.com
Rent workspace do you have a room to rent for meetings or office space? prices depend on location and what you can offer. see vrumi.com and also spacehop.com
Film location? if your home is desirable or quirky, you could let it out as a film location or for photo shoots. they usually need generous parking. visit jjmedia.com. once again, inform your insurer.
spare parking? if you don’t use your garage, have space near the train station for an extra car, or live near a big attraction such as a sporting venue, why not rent it out for parking? try a local ad, yourparkingspace.co.uk or justpark.com
If your home is desirable or quirky, you could let it out as a film location or for photo shoots
What are your skills worth?
again, online is the easiest way to get a good idea of the “going rate” for your particular skills and demand
for what you are offering.
could you tutor? this is not just
for teachers but also students (if you have offspring looking for extra cash while at uni, this is a good earner).
try sites like tutorfair.com. rates
can be £40+ per hour.
are you good at organising?
there’s high demand for virtual personal assistants (pas). try timeetc.co.uk and avirtual.co.uk.
rates start at £11.50 per hour.
Copywriting, website design, internet marketing, graphic design and other tech and marketing skills: all of these are in high demand. visit
peopleperhour.com to get an idea of rates. pay can be around £250 a day.
are you musical? from teaching to performing, there are plenty of opportunities to earn. try bidvine.com or musiciansforevents.com
Love to be an online retailer?
buying items, doing them up and selling them on – or creating your own products – is a great way to pursue a passion and make some extra cash.
creative? try etsy.com
this is the place for you to sell all
craft, from handmade jewellery to
wall art. you will pay a commission of 3.5% on everything you sell. take
this into account when working out pricing (and don’t forget to add postage and packaging).
anything else? ebay dominates check out your market. for example, if you scour charity shops and car boot sales for a particular range of goods – vintage toys, designer handbags – or want to sell your and your friends’ unwanted clothes and shoes, there will already be competition. try and find a niche or a way to stand out.
Test the water by selling a few items as an individual (before registering as an ebay business) to see how quickly items sell and to check you can make a profit. remember to allow around 10% for ebay and paypal fees – you can charge extra for postage and packaging. if your idea works, register as business (select sole proprietor). think carefully about your name – the right one can attract more customers. click on the link “how to choose a good business id” for tips. then register to receive payments – remember you only pay a fee once the item is sold. HOW MUCH TAX DO I HAVE TO PAY?
any profits over the personal tax free allowance (currently £11,500) are taxable (if you work you will have probably already used this up), but you can deduct the cost of buying or making what you sell, including costs incurred, up to six months before you started selling. also the cost of running your business, eg, stationery, phone, broadband, bank charges and website development. see gov.uk/expensesif-youre-self-employed/overview.
if you’re working from home you may be able to claim a proportion of heating, electricity, council tax, mortgage interest, internet and telephone use. alternatively, opt for simplified expenses: gov.uk/simplified-expenseschecker where there’s less paperwork involved. w&h
If you want to sell a range of goods on eBay, try and find a niche or a way to stand out