Top ten ways people make money from home include: buying and selling items online, having a lodger and installing solar panels.
According to new research released today, a third of Brits have tried to make money from home, earning on average £85 per month. The study comes as Gocompare.com launches a new interactive guide illustrating ways to make extra cash from your home - without having to sell it.
Many of those with an 'earn from home' scheme (37%) see their money-making ventures as a hobby, with the added bonus of earning some extra cash. 43% of those making money from their home think that it only provides them with 'an extra bit of pocket money' so they don't 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 (32%) 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
Buying and selling items online (e.g. eBay, Gumtree, Etsy) as a business (not just selling unwanted personal property)
Renting out a spare room to a lodger
Installed solar panels to reduce energy bills/earn an income from feed in tariffs or, through a ‘rent a roof’ scheme
Making and selling craft items
Hosting a product party (e.g. Ann Summers, Pampered Chef)
Looking after other people’s pets while they are at work or on holiday
Renting out a spare room to a tourist/short term guest (e.g. Airbnb)
Offering beauty treatments (e.g. nails, hairdressing)
Renting out a driveway, parking space or garage for parking
Submitting photographs to stock photo websites (e.g. Shutterstock)
The survey of 2,000 UK adults, commissioned by Gocompare.com Home Insurance, 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 ten 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 (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. You should also find out what, if any, are the legal and insurance implications of your money making plans - in particular the requirement for a tenancy or other agreement if you are renting out a room or parking space."
For more information on Gocompare.com's 'how to make money from your home' interactive guide, click on the image below:
For further information on the insurance implications of working from home, read Gocompare.com's guide, here: http://www.gocompare.com/home-insurance/working-from-home/
Notes to editors:
On 21 July 2015, Bilendi conducted an online survey among 2,000 randomly selected British adults who are Maximiles UK panelists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.