If you’re in permanent employment, you are automatically entitled to a salary or wage. You’ll usually be paid on a monthly basis, and that stream of income is pretty much guaranteed.
This isn’t something you can count on if you’re self-employed, as amongst other factors, your income is likely to fluctuate depending on your contract or day rate. You also need to pay yourself a salary. Many contractors use a blend of salary and dividends to form their monthly income, which tends to be the most tax efficient method of operating.
If you’re self-employed, having a source of additional income is always welcome. Here are our top three ideas of making sure you have additional income trickling in.
Sell your old things
Chances are, there’ll be items in your wardrobe that you never wear. It could be a t-shirt that you flick past, or a pair of jeans that don’t quite fit. If you don’t wear something, why not give it another home? Selling your unwanted items is one way of getting a few pounds in your pocket. More desirable items such as vintage or designer items could make you a small fortune. eBay, Depop, and Preloved are our platforms of choice, however there’s plenty of others to explore. This isn’t limited to clothing – you can sell anything you like, from a piece of jewellery to that unused vase in the lounge. It’s worth a look through the attic to see if you can find any hidden gems that could be worth a small fortune!
Extra space at home? Rent out a room!
Having a spare bedroom is handy if you’ve got regular visitors, or if you’ve converted this space to a home office. But if your spare room acts as storage space instead of a guest haven, why not consider using this room as a source of steady income?
Renting out your unused space makes you a resident landlord, and you can earn up to £7,500 per year tax-free under the Rent a Room scheme. If the room is in your home, you get to decide when it’s available to rent. Short-term or long-term, the choice is yours to make!
Write a blog or create a vlog
If you’re enjoying your contractor journey so far, why not share your experiences? Two ways of making your voice heard is to write a blog, or even film a vlog. The opportunities are endless and at the end of the day, it’s your choice what you decide to talk about. However, with the rise in self-employed individuals paired with your knowledge and experience, it could be worth grabbing the opportunity to document your personal journey. Monetising your blog (or vlog!) can be as simple as including ads or affiliate links, and if you build up a big enough following, eventually companies may want to pay you to chat about them.
Add personality to your posts. Make it yours. Whether you’re writing about your work, your hobbies, or about your latest holiday, remember that it’s you in the driving seat.
Taking care of your accounts
When you’ve gone to the effort of generating additional income, it’s important to make sure your accounts are looked after. Whilst our accountants can’t help you generate income, they can maximise your take-home pay whilst being fully compliant. For more information, visit our accountancy packages page or give our team a call on 01253 843182.