3rd August 2015
A third of Britons have tried to make money from home, earning on average £85 per month claims new research.
The study from Gocompare.com which has launches a new interactive guide illustrating ways to make extra cash from your home – without having to sell it, found that many with an ‘earn from home’ scheme (37%) see their money-making ventures as a hobby, with the added bonus of earning some extra cash.
But 43% of those making money from their home think that it only provides them with ‘an extra bit of pocket money’ so they do not declare it to the tax man.
Only 26% of people making money from their home declare this income to the Inland Revenue, and just under a third said that ‘it would not be worth doing’ if they had to pay tax on their earnings.
Popular ways people make money from home include trading items through online sites including eBay, Gumtree and Etsy, renting out a spare room, and installing solar panels to reduce energy bills and earn an income.
|Top 10 ways people are making money at home||%|
|1||Buying and selling items online (e.g. eBay, Gumtree, Etsy) as a business (not just selling unwanted personal property)||17%|
|2||Renting out a spare room to a lodger||7%|
|3||Installed solar panels to reduce energy bills/earn an income from feed in tariffs or, through a ‘rent a roof’ scheme||6%|
|4||Making and selling craft items||5%|
|5||Hosting a product party (e.g. Ann Summers, Pampered Chef)||5%|
|6||Looking after other people’s pets while they are at work or on holiday||3%|
|7||Renting out a spare room to a tourist/short term guest (e.g. Airbnb)||2%|
|8||Offering beauty treatments (e.g. nails, hairdressing)||2%|
|9||Renting out a driveway, parking space or garage for parking||2%|
|10||Submitting photographs to stock photo websites (e.g. Shutterstock)||2%|
The survey of 2,000 UK adults, revealed that a third of Brits have tried to make money from home, earning on average £85 a month. 19% say they earn over £100 per month. However, one in 10 said that their ‘earn from home’ activities cost them more money than they made, and a fifth (22%) said that they had just broke even.
Over half, at 52%, of those who have tried to make money from home did so to occasionally earn a few extra pounds. 14% said they make money from home as a regular supplement to their normal income, 9% said that they really needed the extra income it provided, while for 5% it is their main source of income.
People are spending on average 4.6 hours a week on their home-based money-making activities.
Commenting on the research findings, Ben Wilson, spokesman for Gocomare.com Home Insurance said: “As our survey illustrates, there are many ways to generate an income from your home. However, with people spending on average 4.6 hours a week to earn £85 a month, some money making schemes are clearly easier and more rewarding than others. Indeed, 5% of people surveyed said that their money-making efforts had left them out of pocket, while 21% said it just wasn’t worth the time and hassle.
“Whether you decide to rent out a room or try your luck as an eBay seller, it’s important to take a bit of time to research the pros and cons of each scheme – looking at not only the potential returns, but the associated costs and other requirements. For example, if you run a business from home or make money from your land or property you’ll need to declare this income to the tax man.”