How to Maximise Your Income

Taking in a lodger can help to offset the burden of a mortgage and can provide some welcome extra cash.

The real benefit of taking in a lodger is that the first £4,250 that you make each year is tax free. £4,250 a year is equivalent to £81 a week. Furthermore, if the rental income you receive from your lodger is below this amount, then you do not have to declare it on your tax self assessment form.

If you take in a lodger you can charge for other services (such as laundry and cleaning) on top of the rent that you ask for.

Do bear in mind though that the tax free threshold is based on one person taking one room. This means that if you take in more than one person and rent out more than one room you will receive the same amount of tax relief as if you were renting out just one room to one person.

Job Seekers Allowance

You may be entitled to various government benefits and tax credits that you are not currently receiving and which could save you money. Read on to discover what you could be missing out on.

If you are not working or are working less than 16 hours a week then you may be entitled to claim a Job Seeker's Allowance

Job Seeker's Allowance is a type of unemployment benefit that the government pays to people who are unemployed and looking for work. It is designed to cover living expenses during periods when the claimant is out of work.

Click here for more information about Job Seeker's Allowance

Child Benefit

Child Benefit is a tax free payment made by the government to anyone bringing up children. It is paid for each child that qualifies and is not affected by your income, National Insurance contributions or savings.

Child Benefit is designed to help parents and guardians with the cost of caring for their children.

Click here for more information about Child Benefit

Child Tax Credit

Child Tax Credit is a means-tested allowance for parents and guardians.

The majority of families (9 in 10 families) with children are entitled to receive Child Tax Credit. You are allowed to claim Child Tax Credit if you have children and an annual income of less than £58,000 (but up to £66,000 if you have a child under one year old).

Click here for more information about Child Tax Credit

Working Tax Credit

If either you or your partner is working and bringing up children then you may be entitled to a tax credit called the, Working Tax Credit. Working Tax Credit is designed to help people on low incomes with the cost of caring for their children.

Click here for more information about Working Tax Credit

Disability Living Allowance

If you are under 65 years old and have long term health problems that affect your everyday activities, you may be able to claim a Disability Living Allowance.

Disability Living Allowance is a tax free social security benefit. You are usually entitled to it regardless of your finances, savings, or any other income or benefits that you may be getting.

Click here for more information about Disability Living Allowance

If you have grown up children living at home with you and working, you may want to ask them to make a financial contribution towards household running costs.