Have you got a money, pensions and retirement question you’d like Jasmine to answer? Get in touch by emailing money@gbnews.uk.
If you’re worried about your pension income and how it will cope with the rising cost of living, try some of these easy ways to make some extra cash on the side.
Side Money Taxes
Before you look at earning a side income, it’s important to know how it might impact your tax position. You’re entitled to earn up to £1000 a year (gross) from casual services or income before you need to declare to HMRC.
This is known as the Trading Allowance. Casual services includes things like babysitting, while casual income might be from hiring your personal equipment out like power tools or, selling stuff through Amazon.
For those that plan to make more than £1,000 a year, they must register with HMRC as self-employed or set up a business such as a Limited, partnership, or a community interest company (CIC).
There are some exceptions to who can use the Trading Allowance, so make sure you check before you start earning extra cash. Let’s look at some ways you could start earning more money on the side in your 60s and beyond.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Jasmine Birtles answers questions from GB News members in the exclusive money, pensions and retirement Q&A
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Start a Consultancy
You’ve a lifetime of work experience behind you, so now is the perfect time to specialise in your expertise and offer consultancy to businesses that need your help.
Consultants can command hundreds of pounds per day of work, meaning you only need a day or two a month to see a significant increase in your income.
The startup costs are relatively low, too – especially if you already have an established network in your industry. Word of mouth recommendations are the strongest form of marketing, so make sure you spread news of your consulting services to your peers.
Attending local business breakfasts and events to meet like-minded business owners who could benefit from your services. Check out your local Chamber of Commerce to find local
Make Tax Free Cash Renting a Room
If you have a spare room in your home, you could earn up to £7,500 tax-free by taking in a lodger.
The Government’s ‘Rent a Room scheme’ gives a tax incentive to encourage homeowners to take in lodgers to reduce pressure on the rental housing crisis.
Lodgers have fewer rights than an assured tenant, such as requiring minimal notice to end their tenancy. You must have a suitable unit that is part of your existing home (such as a room with an en-suite bathroom, sharing the kitchen) and you need to live in the property too.
You can charge more than £7,500 a year, but it is only the first £7,500 that is tax-free. Anything above that needs to be declared as property income on a Self Assessment each tax year.
Market Research
Businesses are always looking for people to test new products on or get their opinions to shape their services. A focus group can earn you up to £100 for just a few hours’ work!
As well as in-person focus groups, you can take part in online research through websites like Toluna and Swagbucks. These earn much smaller amounts but the questionnaires take just a few minutes each time, so it’s easy to participate when you’re waiting for the kettle to boil.
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Over 60s are looking for the best ways to bolster their income
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Sell Crafts or Thrifted Items
Finally, reselling thrifted items from car boot sales or charity shops online with eBay is a great way to make an extra side income.
If you don’t want to spend time rummaging for second-hand items for resale, you could also sell handmade crafts – items like candles, bookmarks, and keyrings are small, easy to send, and cost little to make.
Jasmine Birtles is the founder of the self-help financial website MoneyMagpie.com. Find out more ways to make money on the side in their Make Money section.
