Other ways to increase your income

Other ways to increase your income

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Boosting your income

Always get a full benefit check to determine which benefits you are entitled to and the amounts you should receive. Then use the checklist below for ideas of other ways you may be able to increase your available income.

This checklist is not intended to be a comprehensive list of the benefits or help for which you might qualify and is not a full statement of the law. Get specialist advice where appropriate.

If you have a spare room in your home

If you have a spare room in your home consider whether you could increase your income by renting it out and making use of the government’s ‘Rent a Room Scheme’. If you are considering renting a room in your home, check carefully that your tenancy agreement or mortgage provider allows this.

Your circumstances	What to check	More information
If you rent out a room in your home	Check if you qualify for the government’s Rent a Room Scheme which normally allows up to £7,500 of rental income to be disregarded for income tax purposes.	GOV.UK: •Rent a room in your home: The Rent a Room Scheme •Rent a Room Scheme (Self Assessment helpsheet HS223)
	If you get universal credit (UC), income from a room you rent out in your home is ignored when calculating your entitlement.	Welfare Benefits and Tax Credits Handbook (for subscribers): Other income GOV.UK: Advice for Decision Making: staff guide H5112
	If you or your partner get income support, income-related employment and support allowance or income-based jobseeker's allowance, check how the rental income affects your entitlement. The rules are different depending on whether you provide board as well as lodging. Also check whether a non-dependant deduction may be applied to the calculation of your benefit.	Welfare Benefits and Tax Credits Handbook (for subscribers): •Income from tenants and lodgers •Deductions for non-dependants
	If you get working-age housing benefit (HB), check how the rental income affects your entitlement. The rules on how income is treated are different depending on whether or not you provide board. Check also whether a non-dependant deduction may be applied to the calculation of your benefit.	Welfare Benefits and Tax Credits Handbook (for subscribers): •Income from tenants and lodgers •Deductions for non-dependants
	If you or your partner receive pension credit or pension-age housing benefit (HB) check how the rental income affects your entitlement. Some income you receive from renting out a room in your home can be ignored when calculating your entitlement to these benefits. The amount that can be ignored depends on whether you provide board. Check also whether a non-dependant deduction may be applied to the calculation of your benefit.	Welfare Benefits and Tax Credits Handbook (for subscribers): •Income from tenants and lodgers Housing benefit: •Deductions for non-dependants Pension credit: •Deductions for non-dependants
	If you get tax credits, check how rental income affects your entitlement. Any rental income that is ignored for tax purposes under the ‘Rent a Room Scheme’ is also ignored when calculating your entitlement to tax credits.	Welfare Benefits and Tax Credits Handbook (for subscribers): Property income GOV.UK: How to claim tax credits: what counts as income
If you live in rented property and are affected by the bedroom tax	If you are on HB and you rent out a room, the room is no longer deemed a 'spare' room when working out whether the 'bedroom tax' applies to you (or the amount of any bedroom tax). If you're on UC, unless the person you are renting a room to counts as your 'non-dependant', any bedroom tax you pay as a result of the 'spare' room they use would still apply. However, the extra income you get from renting out the room could go towards meeting the shortfall in your housing costs.	Citizens Advice: Taking in a lodger - what you need to think about first Universal credit: Welfare Benefits and Tax Credits Handbook (for subscribers): The ‘bedroom tax’ Extended benefit unit

If you pay tax

Your circumstances	What to check	More information
If you pay income tax	Check that your tax code is correct.	GOV.UK: Tax codes
	If you think that you have paid too much tax, check whether you qualify for a tax rebate.	GOV.UK: How to claim a tax refund
	If your spouse or civil partner has a low income or does not pay tax, check if you could claim the marriage allowance.	GOV.UK: Marriage allowance
	Check if you qualify for any other tax allowances.	GOV.UK: Income Tax rates and Personal Allowances: Current rates and allowances
	If you need further help with your income tax.	GOV.UK: Get help with tax Other useful websites: •Tax Help for Older People •Tax Aid •Low Incomes Tax Reform Group

If you are employed

Your circumstances	What to check	More information
If you are employed	Check that you are being paid at least the national minimum wage/national living wage at the correct rate for your age.	GOV.UK: National Minimum Wage and Living Wage calculator for workers Advisory, Conciliation and Arbitration Service (ACAS): National Minimum Wage Entitlement

Help if you are saving

Your circumstances	What to check	More information
If you want to boost your savings	If you are on universal credit or working tax credit (WTC), or child tax credit if you are eligible for WTC, check whether you qualify for Help to Save.	Welfare Benefits and Tax Credits Handbook (for subscribers): Other financial help: Help to Save GOV.UK: Get help with savings if you’re on a low income (Help to Save)

Other information on ways to increase your available income

Your circumstances	What to check	More information
If you want to find other ways to save money	MoneySavingExpert has many suggestions which may be worth checking.	MoneySavingExpert: Boost your income: 60+ ways to earn extra money GOV.UK: Help for Households

Last updated on 12 April 2024