To keep your earnings in sync with increases in prices is becoming progressively difficult. Most individuals – whether employed or self-employed – would find it unrealistic to secure pay rises (if employed) or price increases (if in business) unless the demand for their goods or services was high.
If most taxpayers cannot match price increases by keep earnings in sync with these increases, then their purchasing power will gradually reduce.
This autumn, cost pressures are likely to continue, particularly utility costs. And will force many of us re-examine our budgets and try to figure out how to balance our books without meeting excess expenditure by maxing-out credit cards or entering into expensive loans.
One solution may be to investigate creating additional income streams. For example:
- Turn a hobby into a part-time business.
- Rent out your driveway as a day-time parking area.
- Rent a spare room in your house.
There are tax concessions that may make these activities tax-free. See the “£2,000 tax-free income” and “Rent-a-room” articles in this newsletter.
You could also search for ideas and assistance online. HM Government Money and Pensions Service has launched a Money Helper website at https://moneyhelper.org.uk.
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- Tax Diary February/March 2023 - January 31, 2023
- PAYE and overseas employees 24773 - January 31, 2023
- When you must register for VAT - January 31, 2023
- Limits to tax relief for pension contributions - January 31, 2023
- Corporation tax changes April 2023 - January 31, 2023
- Do not get caught out by dodgy job ads - January 31, 2023
- Electric car owners to save money under landmark initiative - January 26, 2023