When exploring various side hustles and ways to make extra money it can be easy to forget that a lot of ways of earning money on the side are sadly not exempt from taxes. Having to shell out some of your hard earned money for tax is really painful. Luckily, I have some fantastic, profitable ways to earn a tax free income.
Make a tax free income with Matched Betting
Matched betting will always be one of my top favourite side hustles and the best thing about it is that it is tax-free!
Matched betting is a way to utilise bookmakers' offers to turn a profit, and because gambling winnings aren't taxed in the UK, everything you make is tax free.
It can be really lucrative too – I made over £12,000 in my first 12 months.
You can see all my previous matched betting income below. Please note that from January 2017 I have been focusing on growing my business with a provable income, with a lot less time to dedicate to matched betting:
- Month 1 earnings – £1,430
- Month 2 earnings – £1,619
- Month 3 earnings (including a Q&A) – £849
- October 2015 earnings – £1,105 (Remember that month 3 also overlaps into October 2015 as I switched to reporting it per calendar month.)
- November 2015 earnings– £915
- December 2015 earnings – £1,347
- January 2016 earnings – £777
- February 2016 earnings – £393 (on holiday for 2 weeks)
- March 2016 earnings - £701.64
- April 2016 earnings - £622.36
- May 2016 earnings - £1,019.16
- June 2016 earnings - £447.18 (away for a week)
- July 2016 earnings - £689.52
- August 2016 earnings - £491.86
- September 2016 earnings - £279.29
- October 2016 earnings - £691.85
- November 2016 earnings - £773.74
- December 2016 - £0.00 (took a break)
- January 2017 - £473.43
- February 2017 - £514.97
- March 2017 - £214.12
- April 2017 - £394.76
- May 2017 - £481.25
- June 2017 - £249.68
- July 2017 - £158.73
- August 2017 - £301.58
- September 2017 - £427.61
- October 2017 - £203.83 (away for 2 weeks)
- November 2017 - £45.84 (away for most of the month)
- December 2017 - £187.24
- January 2018 - £349.54
- February 2018 - £223.39
- March 2018 - £493.01
- April 2018 - £189.31
- May 2018 - took a break
- June 2018 - took a break
- July 2018 - £139.32
- August 2018 - £301.65
- September 2018 - £121.94 (on holiday)
- October 2018 - £328.51
- November 2018 - £459.31
- December 2018 - £258.45
- January 2019 - £148.37
- February 2019 - £199.84
- March 2019 - £579.54
- April onwards - paused for a mortgage application
- How to kickstart your matched betting income right now
- How to make £1,000 or more a month with matched betting
- A year of matched betting
Selling unwanted clothes/products on eBay
I'm willing to bet you have more clothes than you think that are just not going to be worn again that are in great condition. Rather than letting them collect dust and take up valuable wardrobe space, just sell them on eBay.
Decluttering and selling on eBay extends to all of your house too.
Did you know that old VHS players regularly fetch £20-£40 on eBay?
As long as you are selling your old unwanted items and not items you have purchased to resell, you don't pay tax on the money you earn from sales.
- Easy things you can sell around your home to make money
- Where to get eBay packaging from
- 17 tried and tested eBay tips
Rent out a spare room for tax free income
If you have a spare room in your house, you can sign up to Rent-a-Room and earn up to £7,500 per year tax-free.
You don’t even have to be a homeowner either to take advantage of this. If you’re renting you can also lease out a room to a lodger, as long as your own lease allows you to do so.
You will need to prepare the room for taking in a lodger so that you can attract the right lodger at a fair price.
For more info on the Rent-A-Room scheme click here.
Get cashback as tax free money
Cashback is free cash, so who would say no to that?
I've earned over £2,500 from Quidco alone!
Cashback websites are paid a commission from retailers for sending customers to them, and in order to entice you to click through their affiliate links they offer you a percentage of that commission.
Earn £1,000 tax free
If other side hustles entice you, like anything from my 100 legitimate ways to make money post, then you will be pleased to know that you are allowed to earn £1,000 per tax year without paying any tax on it.
Here is what you need to do when you need to declare extra income to HMRC.