11 ways to make an extra £1,000 tax-free in 2023
Consumer champion Which? has pulled together 11 tips to help you make extra cash this year.
By combining them, you could reach £1,000, which is the maximum amount of tax-free income covered by the trading or property allowances.
1) Switch bank accounts
You could pocket £175 when switching your existing bank account to First Direct. This is currently the only switch bonus being offered by the big banks and you will need to meet certain eligibility criteria such as depositing £1,000 within three months of opening the account.
2) Boost your savings
Ditch zero and low rate accounts in offer of those paying decent savings interest.
While inflation is the only fly in the ointment, you can still get 7% AER on your cash, with another top offer from First Direct and its regular saver.
3) Share your skills
It is possible to be paid for skills, such as photography or doing DIY. For example, Taskrabbit connects people who need a hand with odd jobs, and people who have the time and know-how to do them. If you’re good at photography you might be able to earn money by selling images online. Shutterstock, Alamy and 123RF pay contributors when their members download their images.
4) Sell your old clothes
Whether you sell your old clothes at a car boot sale or via apps such as Vinted, Depop, or eBay, there’s money to be made from selling clobber you no longer wear.
Before making a listing, do some research to see which platform is best for your item, and how much people have sold the same or similar items for. Users should also factor in seller fees for using the platform. See the Which? shopping secondhand online for more information.
5) Make cash from your trash
Old or unwanted items such as toiletries, clothes and printer ink cartridges can often be recycled in exchange for money and vouchers.
Empty printer ink cartridges can fetch as much as £2.50 on some websites – and if you do this multiple times per year it soon adds up. For example, recycling two printer cartridges (colour and black ink) three times a year would add up to £15 – how much you can earn will depend on how much ink you use. Sites such as The Recycling Factory and Inkviro can give an estimate of how much empty cartridges can net you.
Alternatively, you may even get cash to return empty beauty products. For example, John Lewis, Boots and Lush have recycling schemes offering vouchers or loyalty points that can be used towards a future purchase.
6) Make money from your car or driveway
You can earn money from your driveway or garage by listing it on sites such as JustPark and YourParkingSpace, and renting it out to those looking for a cheaper or guaranteed parking spot. You can register your space free of charge, and earn anything from £50 to £800 a month.
7) Check for unclaimed benefits
More than seven million UK households could be missing out on help and benefits like council tax discounts, pension credit, and Universal Credit, according to entitledto.
What you can get depends on your circumstances. For instance, people who are out of work or on low incomes may be able to claim Universal Credit, where you’ll receive regular payments to top up your income.
It can be tricky to know which benefits you might be able to claim, and how much you’ll get. Which? suggests punching in your details on the entitledto calculator.
8) Try cashback sites
Shoppers can claim cashback on purchases via sites such as Quidco and TopCashback. Retailers may offer cashback as a fixed amount (up to £50 on fridges, for example) or a percentage of the purchase – anything from 0.5 to 20%.
However, be aware that you’ll need to use the cashback site’s link for your purchase to be counted and cashback is not guaranteed. It could also take months to reach your account. It’s still important to compare upfront costs first, as even the most generous cashback offers may not compensate for a high headline price. Cashback is an added bonus if you’re set on buying an item anyway, but not necessarily worth basing your purchase decision on.
9) Rent out your belongings
You can make money renting your clothes, as well as sports equipment and household items.
Clothes rental schemes have become more popular in recent years. Prices vary, but renting an outfit could be cheaper than buying a new one. For example, prices for renting a dress from By Rotation begin from £9. Other similar sites include My Wardrobe HQ, Hurr, and, for children’s clothes, Bundlee.
Most apps add a small usage fee, so be sure to check the terms and conditions. While renting can be a more environmentally-friendly alternative to purchasing something new you’ll only wear once or twice, dry cleaning and transportation have a big environmental impact, so check to see what rental platforms are doing to mitigate them.
If you don’t fancy renting your clothes, you could rent out household items on Fat Llama and Pa-rent. On Fat Llama, Which? found cameras listed for £35 to borrow for the day, while you can earn £30 for renting out a paddleboard.
10) Flog old books, CDs and even Lego
11) Complete surveys and tasks
Sites such as Swagbucks and Gift Hunter Club pay users to complete short tasks, such as playing games, answering polls and surveys, and watching videos. Be aware that it can take a while for the money to add up. You can get the money you earn as a gift card, or as cash paid into a Paypal account.
Apps such as Shepper and Field Agent pay users to complete mystery shopping tasks. Which? tried Field Agent from a south-west London address in December 2022 and around 10 nearby jobs came up for in-store shopping, offering £5 for photographs and a video of the task.
Reena Sewraz, Which? Money expert, said:“Many people are feeling financial pressure at the moment as high food, energy and fuel prices squeeze household budgets. However, there are steps you can take that could help you make some extra cash this year.”