Posted 27th May 2022 by ctatax-admin
Times are hard and the cost of living is at a record high. We’ve created a short list on how you can earn passive income from your property in 2022. Not only that, we’ve included a few points on how to reduce costs + gain a Stamp Duty Refund from HMRC.
If you’re lucky enough to own a larger property, or perhaps you have adult children who have flown the nest, then this is one of the more straightforward ways in which your home can generate a bit of extra income for you, provided you don’t mind having strangers in your home!
Of course, this will be easier if your home is in or near an area of touristic interest – after all, demand will be naturally higher for a place to stay where there are things to see! Nevertheless, most properties will have some sort of feature nearby that can appeal. Research the local area for anything which may be of interest to someone – a particular museum for example.
Check out what local special interest groups exist. Just because you don’t live near a stately home or historical monument doesn’t mean there isn’t something nearby that might draw in visitors!
Getting a lodger might feel a little bit seventies, but in actual fact given the struggles facing young professionals these days, this sort of arrangement is more popular than ever.
The advantages of course are that unlike AirBnB you’re looking at a more fixed arrangement, you’re able to interview potential candidates and make sure you’re happy with whoever is going to be sharing your home, and best of all – you can earn up to £7,000 a year in this way tax-free!
If you happen to live on the outskirts of a major town or city, with decent transport links close by, this is of course ideal but again, a bit of research can help you target adverts and find the kind of person you’re looking for quickly and easily.
Of course, it isn’t just accommodation you may be able to provide. If you live in a city, perhaps you have access to a parking space/driveway but no car yourself.
Hiring out parking spaces in urban areas is quite a common practice these days, and many websites exist to help you find candidates who need a place to park during the working week.
If you’re lucky enough to own a larger property with a garage or other outbuildings which are not in use, you could maybe hire these out, either to a business or simply to private individuals for storage space. There are endless possibilities once you start looking creatively at the property you own.
Again, self-sufficiency might feel a little bit seventies – Richard Briers and Felicity Kendall Good Life-ing it up – but taking the opportunity to use any land on your property to grow food is an ideal way to save money on bills.
Fruit and Veg are the obvious start – a small patch in the garden can quickly yield potatoes, tomatoes, and the like. If you have a little more space, maybe even a handful of chickens, which can provide both eggs and possibly the occasional Sunday Roast, depending on how ruthless you feel!
Perhaps the most critical part of all – check that the Stamp Duty paid on any recent property purchases was correct!
Whether you’re an investor who has a portfolio of BTL property, or simply a standard homeowner, our experience suggests that at least one in five purchases result in overpayment of Stamp Duty. Over the last 18 months, we have been able to reclaim over £15million in refunds on behalf of our clients from HMRC in overpaid SDLT charges.
Imagine what you could do with a sudden injection of several thousand pounds into your savings as a result of a successful claim?
Ultimately, as costs rise and things get a bit harder, we are all going to have to be a bit smarter about how we make ends meet. Hopefully, this article will have given you a few ideas of how to start.
We are the UK’s leading tax advisers – Specialising in Stamp Duty Land Tax. Contact us to see if you are eligible for a Stamp Duty Refund.