Here are five ways you can make money and save tax, even after the tax rises and raids unveiled in the Budget:
1. Earn £2,000 in Extra Income
From April 2017 you can earn £1,000 tax free extra income from “occasional jobs” each tax year – for example, using your skills or time or selling your things to earn more cash. From car boot sales to Facebook and eBay, from baking to making things, from pet sitting to baby sitting – you can keep what you earn.
PLUS – you can earn an extra £1,000 tax free from property related income – such as renting storage space in your loft or your parking space (in addition to the rent a room tax free allowance outlined above).
2. Savers can save more tax and earn more interest
As previously announced, the amount of savings you can shield from tax each year in an Individual Savings Account is set to rise to £20,000 in the new tax year.
The Government is also launching an NS&I Savings Bond in April that will pay a rate of 2.2% for a maximum investment of £3,000.
A new Life Time ISA (LISA) will also be made available to under 40 year olds – with the Government offering to top it up by 25% on any savings up to a maximum of £1,000 a year.
3. Rent Out Your Room and Earn £7,500 Tax Free
You can earn £7,500 of tax-free rental income a year from a lodger under the Government’s Rent a Room Scheme.
4. Planning carefully can pay dividends
You can earn up to £5,000 in dividends tax free.
And for the next tax year at least you can earn £5,000 tax free from dividends – but plan carefully as this will be slashed to £2,000 from the April 2018 tax year.
5. Earn up to £11,500 income tax free
You can now earn another £500 tax free, and this tax free allowance is set to rise to £12,500 by 2020.