More than 65,000 homeowners across the UK took advantage of an easy side hustle last year which brought in up to £1,000 of much-needed tax-free income, with many earning significantly more. At a time when most people are feeling the impact of rising costs across all sectors, astute homeowners have increasingly searched for alternative ways to bring in extra cash, with renting out a spare car parking space proving a particularly popular hit.
The UK Government currently allows for individuals to earn up to £1,000 as a trading allowance, in addition to the personal tax allowance of £12,750. Due to the rising popularity of the hack, the online parking platform, YourParkingSpace, has already noticed a 10 per cent increase of homeowners registering their driveways on its site between January and May this year.
One NHS worker, who first registered his parking space on the platform in October 2022 last year, has made just over £900 of tax-free income to date and plans to make more this year.
Ali Nasir from Walthamstow said: “This past year has been tricky and I have been searching for some new ways to help me battle against rising costs. However, demand for my spare parking spot has increased, meaning the extra income it made was a big help at the right time.
“As well as bringing in a chunk of money which I get to keep, I believe I’m also helping others save some money too, as my rates are cheaper than more traditional options nearby. I didn’t need to do much, as once I registered my space and set my price, the site manages all the bookings. I just get a notification when it has been booked, letting me know the time and date.”
Brannan Coady, CEO of YourParkingSpace, highlighted the appeal of simple sites like YourParkingSpace’s offer: "The beauty of renting out parking spaces is not just the additional income it generates, but also the tax-free aspect.
“By taking advantage of the £1,000 tax-free allowance, space owners can maximise their earnings without the burden of additional tax liabilities. However, with the average annual earnings of our space owners just over £2,000 it is important to note any earnings over the tax-free allowance must be declared as additional income.”
To learn more about how you can register your parking space and start earning tax-free income, visit yourparkingspace.co.uk.
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