Tax-free moneymaking always sounds suspicious, it’s the sort of phrase used by those clickbait sites with all the weird ads, but don’t let that put you off! I want to talk to you about the completely legal (and probably far less sexy than you’re imagining) ways of earning tax-free money.
The Obvious Way
The truth is, we can all earn some money before the taxman starts taking his cut. Most people in the UK have a tax allowance of £11,000, so if you’re like me (a stay-at-home mum) who is trying to earn money here and there, you may not hit that threshold, so no tax is payable.
The important thing to remember is, even if you’re not earning enough money to pay tax, you still need to register as ‘self-employed’.
This means if you are doing anything with the purpose of making a profit, you need to tell HMRC, especially if you’re on any kind of benefits. You still won’t have to pay any tax if you earn below the threshold, but you also won’t get hit with a fine.
I supplement my income by running a small handmade craft business and another parenting/lifestyle blog.
Matched betting is something I am quite new to, so I’m still getting my head around it a little bit. What I do know though, is that it almost seems silly not to do it.
The way it works is based on you betting on an event as well as against. I’ll give you an example so you can see what I mean: If you were doing a matched bet, you would place a bet on (the imaginatively named) Team A to win an event. You would then place another bet (called a lay) on an ‘exchange’ website (which allows you to bet against an outcome) for Team A to not win.
Not winning is different to losing. It may sound pretty loserish, but this option covers a draw too.
The idea is that your bets balance out to ensure that you not only guarantee yourself to not be out of pocket, you will also take away a profit too. Matched betting works on cashing in on the free bets from bookies’ sign-up offers in order to maximise your profit.
I’ll come back to this in the coming weeks as well a offering a more thorough explanation of how to do it and what I’ve been doing.
The best bit is, winnings aren’t classed as earnings, so they are completely tax free!
Which leads me onto my next point…
This is a less certain way of making money, but it definitely can earn you a few quid if you’re willing to put the time in.
I would go for the ‘free to enter’ online comps so that you don’t end up out of pocket (you’re leaving your profit down to chance after all!).
When entering competitions, please beware, there are sites out there who are just after your details, don’t get tricked. Your best bet is to enter competitions on the websites of magazines you read, search trusted forum boards and enter competitions you spot on social media and blogs.
If you enter lots of competitions, you stand a better chance of winning (which I’m sure you already know) so if you have the time to put in, enter as many as you can. It’s also a good idea to open a separate email account so your personal account isn’t bombarded with offers.
This concludes my brief rundown of how to legally earn tax-free money (and my first post). I’d love to hear your experiences with matched betting and comping, or if you work from home, tell me what you do!