But here’s the good news: you could save over £1,000 a year with a few smart tricks.

This complete guide is packed with money-saving tips for travelling around London, from TfL hacks and railcard discounts to free days out and hidden concessions. Whether you’re commuting, sightseeing, or planning cheap family adventures, this is your ultimate travel cheat sheet for 2025.

1. Use Contactless or Oyster to Maximise Daily and Weekly Fare Caps

Never buy paper tickets in London—they’re often the most expensive option. Instead, use Oyster or contactless cards, which automatically cap your fares:

• Daily cap (Zones 1–2): £8.50
• Weekly cap (Zones 1–2): £42.70

Savings tip: Switching to contactless/Oyster could save you £300+ per year if you’re still using Travelcards or paper tickets.

2. Save 33% on Rail with a Railcard (Yes, Even in London)

Railcards aren’t just for long-distance travel. Many work on off-peak TfL and National Rail services within London, giving you serious savings.

Popular 2025 railcards:

• 16–25 Railcard – £35/year
• 26–30 Railcard – £30/year
• Disabled Persons Railcard – £20/year
• Two Together Railcard – £30/year
• Family & Friends Railcard – £35/year

Savings tip: Using a Railcard for just 2–3 off-peak journeys a week could save you £200–£300 per year.

3. Concessions & Free Travel Schemes for Londoners

If you meet the criteria, free or discounted travel is up for grabs:

• Freedom Pass – Free off-peak travel for older or disabled Londoners
• 60+ Oyster Card – Free travel after 9am for London residents aged 60+
• Jobcentre Plus Travel Discount Card – Up to 50% off for those on Universal Credit
• Veterans Oyster Card – Free travel for eligible ex-forces personnel

Savings tip: Eligible users could save £800–£1,200 a year through these schemes.

4. Cycle with Santander Bikes from Just £1.65

Santander Cycles (aka Boris Bikes) are one of the cheapest ways to get around London:

• £1.65 for a 30-minute ride
• £3/day for unlimited 30-minute journeys

Savings tip: Switching from Tube or bus to Santander Bikes just a few times a week can save £300–£500 a year.

5. Walk or Split Your Journey to Cut Travel Costs

Sometimes, walking a few extra minutes between stations can help you avoid crossing zone boundaries or unnecessary changes.

Examples:

• Walk from Elephant & Castle to Borough to avoid Zone 1 fares
• Walk instead of switching Tube lines during peak times

Savings tip: Smart walking and journey splitting can save £100–£200 a year.

SEO keywords: how to avoid Zone 1 fares, cheapest ways to commute in London, walking vs Tube savings

6. Cheap Days Out: Free Attractions & 2-for-1 Deals

Make the most of what London has to offer without breaking the bank:

• Check Bablands for free family events, play spaces, and holiday activities
• Use National Rail 2-for-1 deals for big attractions
• Get a London Pass or Go City Card for bundled entry savings

Savings tip: Families using these offers could save £400+ a year.

7. Advance Tickets, Cashback & Discount Sites

Booking early and shopping smart can boost your savings even further:

• Book train tickets in advance for up to 60% off
• Use TopCashback or Quidco for cashback
• Browse Wowcher and Travelzoo for travel and show deals

Savings tip: You could save £100–£200 annually with cashback and deal sites alone.

Summary: Estimated Annual Savings

Total possible saving: £1,200–£2,000+ per year

Conclusion: Travel London for Less in 2025

With fares rising and household budgets stretched, this is the year to get smart about how you travel. Whether you’re commuting, parenting, or planning a staycation, these tips can help you save over £1,000 a year.

Get started today: switch to contactless, apply for a railcard, check out Bablands, and start stacking those savings. London is yours to explore—without overspending.

The post How to Save Over £1,000 a Year on London Travel in 2025: Tips, Discounts & Hacks appeared first on MoneyMagpie.

Lots of businesses are feeling the pinch at the moment. Unfortunately, this can have a knock-on effect on the freelancers that work for them too. Freelancers might have projects cancelled or postponed, or might find that they’re being asked to accept lower rates than usual. Finding freelance clients in this kind of market might seem daunting, but it doesn’t need to be this way. 

Below we’ve set out a few things that you should think about to ensure you don’t need to compromise your own worth (and the amount you’re being paid) in these potentially tough times. 

• Make sure your digital channels are up to scratch 
• Finding freelance clients via online networking  
• Set your terms early on 
• Finding freelance clients via recruiters 
• Working for free 

Make sure your digital channels are up to scratch 

You probably don’t need us to tell you this, but it’s vital that your website, online portfolios and social media channels are up-to-date and include all your recent work if you’re going to attract the kind of clients that you want. Here are some questions that you might want to ask yourself: 

• Have I included my most recent projects on my LinkedIn profile, on my website, and in my online portfolios? 
• Could I ask for more recommendations or testimonials from colleagues or friends? 
• Do my social channels still display the message that I want to portray? 
• If I have a business or a limited company, is everything up to date with my current branding?

If you’ve got some down time between jobs and whilst you’re waiting for work to come in or for people to get back to you, this can be a perfect time to get these essential aspects of your marketing up-to-date. 

Finding freelance clients via online networking  

Even though networking takes time (and sometimes money), it’s the most valuable marketing you can do. Here are a few ways that you can keep your foot in the door and make sure your name and services stay in people’s minds:

• Be part of the conversation online: make sure you have an opinion on current debates within your industry, and that you’re available to offer interesting points of view on trending topics. A viral retweet is worth a lot in our incredibly social economy!
• Join virtual networking events: these might be for freelancers in your local area, or within your specific industry. Search online, and make sure you contribute to the discussion in a meaningful way once you’re there. You’ll find that there are more virtual industry events than you’d expect!
• Reach out to old clients: this might be as simple as a quick email to see what they’re working on, how their business is going, and whether they need any extra help. If they haven’t got business for you, they’ll appreciate your efforts to stay in touch. They might, though – and if they do you’ve just scored yourself some extra work!

If you’ve got a decent audience, why not host your own virtual networking event? Set a theme and a date, and invite those that you know within your industry to get involved. This can be a great way to get to know new people and potential clients, and position yourself as a leader in your field at the same time. 

Set your terms early on

You need confidence in yourself and your offering if you’re going to pull in clients that pay you the right amount of money even when the economy improves. One way to do this (a very important way) is to be clear on your prices. 

To do this, you should set a day rate based on what you would be earning if you were employed by a company. From this, you can work out your hourly rate. You can then weigh up whether the work that comes your way will be worth your time. 

For example, if your hourly rate is £20 per hour, your day rate (based on a standard eight-hour day) should be £160. If you know a project will take you two full working days, you should charge £320. 

If the client believes that this is too much for their budget, you’re very much within your rights to stand firm. Use the following to politely remind them of your fees: 

“Thank you for coming back to me on this. As a freelancer my day rate is set at £160 per day, hence the pricing I’ve set on this project. Do you have any flexibility within your budget? I’d be very happy to discuss this further.” 

If they come back with a compromise or with a price that’s close to your day rate, it’s up to you to decide whether these terms are going to work for you. If they aren’t, you should walk away (and never accept a job that’s far below your day rate – it won’t be worth your time). 

Consider asking for other benefits

Sometimes, you’ll find a client you really want to work with who just doesn’t have the right budget. This happens a lot with charities and startups in particular. Here, it’s a good idea to consider asking for other ways to receive benefit in return for a reduced fee. For example, if it’s a charity, ask if you can have an article about your work for them put on their website. Or, if it’s a startup offering software, request free access to it. Perhaps there is a direct skill-swap possibility too. If you’re a graphic designer, for example, perhaps you could work with an accountancy firm for a reduced fee in return for your tax return being completed pro bono!

Finding freelance clients via recruiters 

It’s always a good idea to have someone else on your side, especially if you’re looking to find new freelance clients in budget-conscious times. Contacting recruiters and getting on their books can provide you with long-term project and contract work, which you can work on at the same time as any other freelance projects that you have on the go. 

There are lots of benefits to finding work through recruiters, including that potential clients are very unlikely to try and underpay you when they have to go through someone whose job it is to ensure that that doesn’t happen. Once you’ve found work through a recruiter they are more likely to put you forward for other projects in the future, too. 

The main downside of working via an agency is that, typically, they set your rates. You may have to accept a lower daily rate in return for guaranteed regular work. Alternatively, some agencies take a percentage from your fee when they place you – if this is the case, raise your rate! Agencies are, however, most often paid by the client – so they’ll be charging the client more than your day rate to make a profit themselves.

Working for free 

Working for free is something that many people will tell you never to do. It’s something that we wouldn’t encourage in general, either. However, there can be some occasions where it might be helpful to you. These are very specific though, so don’t let anyone take you for a ride! 

You might consider working for free if: 

• You’ve never worked in the industry before and need to build a portfolio to prove yourself 
• You need to make edits or changes to work that you previously completed, as per the terms of your freelance contract (although always try to negotiate an edit fee in this case – it can’t hurt to ask!) 
• You’re in a secure financial position, and you have the time and resources to offer your services either pro bono or to charities for a specific purpose 

Do not work for free if: 

• The client has promised you paid work “later” (this is unlikely to ever materialise)
• You have a lot of experience and proven work in the area in question, unless you’ve made a conscious choice to give your time to a charity or non-profit (as mentioned above) 
• You are promised “exposure” or “contacts”, or told that this would be a “great opportunity” for you. This might be the case, but it’ll still be true if they pay you (and exposure, of course, doesn’t pay the rent) 
• You’re working for a corporate company that makes a profit, e.g. a bank  

Chat to other freelancers for more ideas!

One of the common misconceptions about freelancing is that everyone is super-competitive with each other. You may be surprised to learn there are lots of supportive online communities for freelancers! Many will share referrals from clients, or share larger projects with the freelancers they know.

The post Finding freelance clients in a budget-conscious market appeared first on MoneyMagpie.

1. Exercise While Working From Home
2. Eat Healthily When Working From Home
3. Money and Health Tips
4. Stay Mentally Healthy While Working From Home
5. Working From Home Routine

Exercise while working from home

Something as simple as getting out for a walk or run everyday will improve your mood and keep you healthy. The best thing about this is it’s outside, so you can get some fresh air and maybe even some sunshine at the same time. Cycling is also a good option if you prefer it.

There’s also no shortage of online workouts you can do from home. YouTube has a wide range of workout videos for free that will suit all abilities. Whether a 20 minute lunchtime HIIT session is your thing or a pre-bed yoga routine is more your style, you’ll have plenty of options to choose from.

Eat healthily when working from home

Endless takeaways seem like the easy option and the temptation to regularly order in is strong, especially as you aren’t walking past any shops on your way home from the office to pick up fresh groceries after work!

If you can, keep takeaways to the minimum or cook your own healthy alternatives to your favourite classics.

Keeping to regular meals can also help. It’s very easy to mindlessly snack while working from home – hands up if you’ve polished off a whole packet of biscuits in a day before!

Sticking to regular, nutritious meals will help prevent this as you should feel full and satisfied for longer after eating.

Don’t forget to drink water too. It’s very easy to find yourself on your fourth of fifth coffee without realising it, but don’t forget coffee is actually dehydrating. Make sure to balance it out with regular glasses of water. This is also a good way to keep you moving as you have to get up every hour or so to fill up your glass.

Money and health tips

Working from home can help you save money and improve your financial health. For starters, you don’t have the cost of the commute or the allure of after work drinks!

But, there are expenses to working from home and the costs could rack up quickly if you don’t watch out.

Electricity will be a big cost when you’re at home all the time. To keep your electricity costs down, turn your power switches off at the wall when you’re not using them. You could also consider switching providers. Many offer a referral bonus if you can convince a friend to switch, too.

Heating is another big expense, especially in the colder months. Try and wear extra socks and jumpers rather than heading to the thermostat as soon as you get a bit chilly.

Where possible try and avoid ordering lunch each day, however tempting it might be. Although cooking endless meals can get tiring, it will help you save a lot of money, so your bank balance will thank you in the long run.

If you’re finding you’re not spending as much money – whether it’s from not commuting or buying lunch each day – try and avoid leaving it sitting in your current account. This will just increase the temptation to spend it when the opportunity presents itself again.

Instead, consider opening a savings account. Out of site, out of mind really does work. Your money will be protected and ready for you to spend when you really need it.

Stay mentally healthy while working from home

Being isolated working from home alone (or just with your partner and family around) can take its toll on your mental health.

A good starting point is to stay connected with your friends. Arrange catch ups over coffee or even call your bestie on your lunch break. If you’re both freelancers, consider setting a regular ‘work date’ where you spend time together while working.

Take some time each day to relax and switch off. A lot of people find mindfulness helpful for this. You can find out more about mindfulness here.

If you find yourself struggling more than usual, it could be worth seeking individual therapy. Talking through your problems and getting specific help and guidance can be very helpful.

Of course, if your feelings are seriously worrying you do speak to your GP or a medical professional.

Set a routine

A routine is crucial to staying healthy while working from home.

It may seem tempting – particularly without the commute hanging over you – to keep snoozing your alarm, but try and avoid this.

Instead, get up each morning and follow the same pattern. Whether it’s having a coffee, a shower, or cooking yourself a nice breakfast, the important thing is to stick to a routine and avoid lying in bed with your laptop all morning.

It’s also really important to take breaks and get away from endless screens regularly. A quick stand up and stretch every hour, will help avoid aches and pains while giving your mind a much-needed break.

Where you can, take a proper break in the day and get some fresh air. Getting out in daylight will make a big difference if your working hours allow it. Schedule this into your day to stop yourself from putting it off because it’s a bit too cold or raining.

If you’re struggling with productivity, or social media scrolling is distracting you too much, try scheduling in fun activities as rewards. This could be anything from a break to watch an episode of your favourite TV show after you’ve met a deadline or even a bubble bath.

It’s a good idea to mark the end of the working day too. Try to avoid checking your emails well into the evening and working anti-social hours. Instead, shut your laptop down and put it away until the morning once you’ve finished for the day.

The post Working from Home – Tips for a Healthy Lifestyle appeared first on MoneyMagpie.

Loyalty schemes allow key workers to access discounts only available to them. From car insurance to holidays, clothes shops to cinema tickets, groceries to broadband, there are a huge range of discounts and offers available if you know where to look.

Some loyalty schemes are better than others. Network is the biggest free keyworker discount provider in the UK, and it stands out to MoneyMagpie because discounts can stack with existing sales and retailer promotions — and there’s no cost to join. An independent study of Network users that members save an average of up to £2,262 per year.

“Most people have heard of NHS discounts,” says Luke Ince, Partnership Director at Network. “But many don’t realise there are similar schemes for all education staff, charity workers and carers too — with real, everyday savings to be had.”

Some of the biggest available offers include:

• 5–3% cashback at ASDA (recently removed from Blue Light Card), Sainsbury’s & Waitrose
• Up to 50% off AA breakdown cover
• 10% off JD Sports and Pandora
• Extra 10% off sale items at Debenhams
• 20% off Seasalt Cornwall
• Up to 40% off cinema tickets
• Up to 50% off European holidays

“This is about helping the people who keep the country going save money on everyday essentials,” said Ince. “It’s free, it’s instant, and it can make a real difference.”

Who’s eligible?

Anyone who works in or supports:

• Education – including teachers (all education levels), nursery staff, TAs, school admin, and teaching students
• Healthcare – NHS staff, students, and private sector workers
• Care – paid carers, care workers, and unpaid carers
• Charity – both employees and volunteers

Eligible key workers can join for free at:

• Discounts for Teachers
• Health Service Discounts
• Discounts for Carers
• Charity Worker Discounts

These schemes are designed to give something back to the people who give the most. “It’s about helping community heroes make their money go further — without changing how they shop,” said Ince.

The post Thousands of Key Workers Missing Out on £2,262 in Free Discounts Each Year appeared first on MoneyMagpie.

If you’re the sort of person who likes to take some reading material into the bathroom with you, then why not try to make money on the toilet instead?

Here are 10 things you can try:

1. Do an online survey – or three
2. Check Free Postcode Lottery for a chance to win money every day
3. Slogan competitions
4. Save money by switching your gas and electricity
5. Earn while you surf
6. Save money by switching your car insurance
7. Save money by your home insurance
8. Come up with a killer business idea
9. Come up with a new TV game show format
10. Sell your toilet roll tubes
11. Play Games

Do an online survey – or three

Online surveys are a quick and easy way to make money on the toilet. They can be quick or long, depending on which one you do.

We like Inbox Pounds. It’s easy to sign up simple to use wherever you are. Including the bathroom.

In fact they give you £1 just for signing up, so you’ll be making money even If it’s a very quick visit.

Take a look at our article on how to make money with online surveys to see even more survey sites that will can be used to make money on the toilet!

Check the Postcode Lottery for a chance to win money every day

Now this really is a quick and easy one.

Check the Free Postcode Lottery for an opportunity to win money every day. On some days they have over two thousand pounds to give away if it’s been a roll-over.

All you need to do is sign up with your email address and postcode. Then you check the site each day to see if your postcode is the winning one. It’s that easy. Read our article about it here.

They also have other ways to win such as an Emoji Lottery and a Video Lottery. So if you happen to be someone who takes a little while on the toilet, then this may be worth a try.

Check it out and sign up for free here.

Come up with slogans for competitions

We love competitions at MoneyMagpie. In fact, we often tell you about upcoming contests in our newsletter (sign up here to get them sent to your inbox).

As you can see in our article on how to get money and freebies through competitions, some companies run slogan competitions, here you have to come up with a clever little phrase about their product to win the prize.

Save money switching gas and electricity

If you’re reading this on your smartphone right now, you could be saving yourself a tidy sum just by switching your gas and electricity provider. You don’t even need your bills to see how much you could save. Just put your postcode into the box here and see which companies are offering you a cheaper deal.

It’s likely that it will be one of the smaller suppliers. They are doing their best to get into the market and compete with the larger providers who dominating it.

Check it out now and make some money!

Earn while you surf

You could win up to £250 a month just for surfing the net with this competition site called Neilsen.

They have been known to give up to £30,000 away every year.

 Save money switching your car insurance

Again, while you have your mobile phone on you consider switching your car insurance. Your car insurance premium may have gone up since you last checked, but you can save yourself money by switching to a cheaper deal than you have now.

Take this time do explore the different options that are available.

Switch to a better car insurance deal here.

 Save Money switching your home insurance

According to Which? Magazine you should be able to save money by switching your home insurance. While sitting on the throne you may have some time to kill. Why not try this?

Do it here. Switch to a better home insurance deal.

Come up with a killer business idea

Is visiting the loo the only time you get some peace and quiet and time to think? It is for some people, if so then spend a bit of extra time to ponder a killer business idea.

You probably already have one rattling around your mind. Use this time to work out how to do it, what you will need to start and how to make a profit.

We have plenty of ideas for you, as well as lots of help and advice to hey you started here on our small business section. For example, take a look at this article with twenty tips for setting up your own business.

Come up with a new TV game show format

Feeling creative? Being on the toilet can be a good time to come up with story ideas for a novel or other creative pursuit.

But have you ever considered creating a TV game show idea?

Game shows can be hugely lucrative if you can come up with an original concept it right. People make hundreds of thousands from a successful idea they came up with which was then sold to production companies all over the world.

See our article here on how to come up with a winning TV game show format.

Sell your toilet roll tubes

It’s possible to sell the cardboard insides of your toilet rolls on eBay. There really are people who need them for craft projects and will buy them off you. Sell them for about £7 per 50. If you have a family you will probably get through a lot and will be able to gather 50 rather quickly.

It’s not a major income by any means, but it’s simple enough to do.

Play Games

For all the gamers, help to improve game development by getting paid for testing games. Find out how here.

Sign Up – Newsletter

The post Ten ways to make money, while on the toilet! appeared first on MoneyMagpie.

• Start small and keep overheads low
• Cashflow
• Make a plan
• Network
• Sales, sales, sales
• Avoid borrowing if possible
• Set up passive income streams, where possible
• Get online
• Don’t buy advertising because you’re offered a deal
• Have an exit strategy
• Give people what they want
• Keep your finances in order
• Outsource, where possible
• Use targeted marketing
• Get into a niche
• Get mentors
• Take time off
• Be Selective about who you spend your time with
• Get what you can for free
• Have fun!

1. Running your own business – Start small and keep overheads low

Don’t spend any more than you have to on your start-up. Loads of big businesses start small: Laura Ashley began on her kitchen table, M&S started out as a market stall and Tesco was just a couple of local grocer’s shops in the beginning.

So, before you fork out, unnecessarily, consider:

• Your office can be a laptop computer at your kitchen table
• Don’t forget insurance, as your household insurance may no longer be valid if you’re working from home. This is something you’ll need to check with your current broker, as you may need to upgrade your insurance. Take a look at our comparison tool to find the right home insurance for you
• Set up a separate bank account for your business. (If you mix up your personal account with your business account you’re asking for trouble – it’s confusing, extra hassle and no benefit to you at all when it comes to planning your business and life in general.) It doesn’t need to be an expensive ‘business’ account, it can be an ordinary current account – either with your current bank or with a different provider. Look for one with integrated finance software like FreeAgent or Xero, to prepare your business for the changeover to Making Tax Digital soon
• If you need to send any parcels, you could try Parcel Compare – a fab website that could save you a fortune on package delivery. Its special comparison tool means you can find the cheapest shipping company for your needs.
• Consider other costs such as electric and gas. If you do decide to rent or buy an office, take the time to do an energy comparison to make sure you’re not overpaying for your energy consumption.
• Packaging and labels are essential for shipping products. Make sure to invest in quality packaging to protect your items and professional labels to maintain a good brand image. You can find cost-effective options by comparing different suppliers.

2.Cashflow

Don’t assume that people will pay on time as they normally don’t. Instead:

• Cut down your waiting time by getting them to agree payment terms at the start
• Be clear in your invoices that you will charge 8% over base rate for any invoices that aren’t paid within 30 days
• Get in the habit of invoicing in milestones – a deposit, commencement, and delivery fee
• Don’t spend money now on an assumption that you’ll receive payment from your clients straight away. Plan your business expenditure so that you are not creating debt and are not dependent on anyone paying on time
• Have more than one income stream – even if that means doing a part-time job or taking in ironing
• If you’re having consistent problems with unpaid bills, then consider joining the Federation of Small Businesses (£195 for the first year), so  you can use their legal assistance to chase your debtors.
• Forecast your revenues and calculate your run rate to understand your business health and future earnings

3. Make a plan

As the saying goes: ‘If you fail to plan, you plan to fail’.

Therefore, even if you’re just setting up as a freelancer for a side hustle, you need to give yourself a clear idea of your monthly costs and how much profit (or other income) you must generate to keep yourself afloat.

Work out what your monthly income needs to be. Make yourself a chart for the next 12 months showing the growth in revenue that you can realistically generate and be clear on how you’ll generate those new clients.

It’s a tough thing to guess, but just the action of thinking it through will provide you with earnings goals and points to consider as you run your business. The Prince’s Trust and the Start Up Loans websites both host business plan templates that can be downloaded for free at the touch of a button.

4. Network

A business without a strong online presence is missing a great opportunity. Set a strong online presence from the start, since everything is going digital and people are always on the internet searching for goods and services they need.

Consider creating a professional website with a catchy name. And make sure to use the popular .com extension so it’s easy to remember.

The more you’re ‘out there’ touting for work the more likely you are to get the work. With the internet it’s possible to meet people without leaving your desk.

Join online networking groups and forums and start giving useful advice on areas directly relevant to your business. This raises your profile in a positive way. But don’t spend too much time on it – allocate a certain amount of time each week and stick to that.

Get business cards printed, get out to networking events in your area and make sure you take your business cards wherever you go – you can meet interesting and potentially useful people anywhere.

Have something beneficial that you can offer people when you meet them – make reference to it on your business card or on the website that your business card should refer new contacts to. This is called a lead magnet: something that makes someone get in touch with you after you’ve met. It could be downloading a free guide, booking a free consultation call with you, or something else that is easy for you to do at little cost, but builds trust and starts the client relationship.

Don’t go out and try to ‘sell’ your business or your service. Networking is usually a two-way street, where you create support by being useful to people who then go elsewhere and talk about you in a positive light. Don’t thrust your business card at other people – ask them for theirs and don’t give them yours until it’s asked for. Once you’ve met someone send them an email within 48 hours providing something useful, or the place where they can find that useful thing (e.g. on your website). They now have your contact details and a positive association with you.

5. Sales, sales, sales

Don’t shy away from the sales and marketing aspect of the business. Learn how to do it. Study it and practice it. You will probably find it nerve wracking at first but get through it! Question everything you do in the business, asking ‘how is this going to make money?’ If it won’t lead to a profit, then don’t waste your time doing it.

YouTube is a fantastic resource for all things startup, whether that’s Canva tutorials to make your marketing materials or how-to guides on creating sales funnels or best marketing strategies for your industry and business type.

6. Avoid borrowing if possible

While it’s tempting to borrow money to get started, try to avoid it as you could end up in a debt you can’t afford to repay. Instead:

• Try to grow your business organically. Use your own savings, or earnings from another business or income stream to fund it
• Barter services rather than paying for them – offer up your skills in one area in exchange for someone else’s in another
• If you want to go big time straight away and feel you need external funding to do it then put together a professional business plan and discuss it with your suppliers, customers, prospective customers and other ‘known’ potential investors before stepping into the shark-infested waters where venture capitalists and ‘angel’ investors roam.

7. Set up passive income streams, where possible

This is money that comes in when you’re not working.

• Consider incorporating Google Adsense on your website (these are adverts generated by Google that are relevant to the content on your website)
• Think about writing an eBook on different elements of your business subject and selling it on your website, eBay, and elsewhere on the net.
• Automate as much of the selling process as possible by installing PayPal payment on your site and having non-physical products that don’t require any human fulfilment such as delivery or packaging etc – PDF zines, comics and documents for sale are ideal for this
• Affiliate marketing with Amazon Associates is ideal if you discuss products on your website. If readers choose to buy a product that you’ve mentioned through a link on your site, then you get a small percentage from that purchase

8. Get online

If you haven’t already, get online. Use online services such as WordPress and Wix to build a website that is totally free.

You should always shop around to find the best possible deal for your web host.

Once your website’s up and running, here’s how you can keep visitors returning to your site:

• Create a community of people by providing a genuinely useful, free, newsletter that’s sent out regularly
• Provide useful content on your site that gives your potential clients the first couple of steps in addressing a problem that they might have
• Include audio and video on your site and use that content on YouTube and similar sites to promote your site
• Provide an easy response mechanism (e.g. blog comments or an email address) so you can find out what your community thinks and wants
• Ensure your business is secure to prevent unforeseen losses with software such as antivirus or VPN.
• Optimize your website for search engines (aka SEO). This is especially important for small local businesses.

9. Don’t buy advertising just because you’re offered a deal

If you need to advertise (and it’s better to promote yourself for free to start with) make sure your advertising is targeted, specific and within an advertising budget. Before exploring online marketing packages, think about the following:

• Work out who your customers are, where they are, where they live, what they read, what worries them and what excites them.
• Work out what the message is that you want to communicate so the right people will take action right away.
• Decide what is the best medium to use to communicate this message to your market.
• Take no notice of calls from advertising salespeople from publications you don’t know, even if they’re offering serious discounts and start telling you about all your competitors who are advertising with them.

10. Have an exit strategy

Serious business owners set up with an exit strategy in mind from the start as this allows them to plan the business and know why they’re doing it – only then can they effectively plan how they’re going to achieve what they want.

Acknowledge why you’re in business – what’s the lifestyle that you want to achieve? Is this business going to help you achieve this? And at what point will you know that this has been achieved?

What kind of profit level do you need to reach to command a decent fee, and what will you have to do to create that profit? At what point will you want to sell the business or hand it over to your kids to run?

11. Give people what they want

Don’t make the mistake of being blinkered about what you want to produce/sell. You have to be very aware of what your potential and existing customers want – not just what you think they want.

Do speak to potential customers – before you start up your business and as an ongoing habit. Take them to lunch, pick their brains, ask them what they want and need, what they hate and what they’d pay extra for. Keep a realistic perspective of what’s selling as your business develops. Is there a sideline product or service that’s very popular and takes less effort than the main offering? If so, focus more effort on it. Do be honest with yourself about what works, what doesn’t and why you’re in business. If you have to make enough to pay the rent, you need to be brutally honest about the success or failure of products pretty quickly.

12. Keep your finances in order

Admin is a drag, everyone hates it – but it must be done.

Make sure you:

• Put money aside for your forthcoming tax bill (at least 30% of every invoice)
• If you can, speak up front to an accountant (recommended to you by someone you know) about how much you should put aside for tax and other similar issues
• However if you’re just starting up, you probably won’t have to pay VAT as you’re allowed a £85,000 turnover before you have to pay it. If you’re planning on going over that then you’ll have to contact HMRC to register for VAT. You can use VAT software to help you.
• Keep good records of your incoming and outgoing revenues, your receipts and other related information. Again if you speak to an accountant they will give you guidance on what files to keep, how to organise them and what to do to keep your accountancy bills down
• Accountants too expensive? Though a good accountant is invaluable, you don’t necessarily need one when you’re first starting out. Plenty of people do their own accounts on paper or using an Excel spreadsheet. However, it is smart to hire an accountant for an expanding business or if you can’t handle your accounts on paper. A great accountant can provide audit and assurance services to ensure your company’s compliance, detect and prevent fraud, increase your chances of accessing credit, and ensure better resource utilisation.
• Furthermore, taxes are a nightmare for many business owners due to their complex forms and hefty late fines. This is going to be even more important as Making Tax Digital is rolled out to all businesses earning over £20,000 by 2027 – HMRC will be looking for people making mistakes in the new system, so going via an accountant can be beneficial to prevent costly errors.
• Remember that accountants and bookkeeper fees can be written off as an expense on your tax return as it is a legitimate business cost.

13. Outsource, where possible

Now that we have entered the virtual world, it’s getting cheaper and more efficient to outsource large chunks of a business to UK and Asian-based  services.

A Virtual Assistant can do everything from responding to calls and emails through to bookkeeping, serious business research, and web development for around £12 an hour. Search the internet for Virtual Assistants  and test three at the same time with small, but very similar tasks. Rate them in terms of value for money, accuracy, responsiveness and common sense (this is very important).

14. Use targeted marketing

This is an extension of tip number nine (don’t buy advertising).

Work out a detailed profile of your target market: where they live, what they read/watch/listen to, if they have children, if they drive a car or own a home, whether they’re professionals, in a particular business sector or part of the country. Work out an interesting and relevant letter or email blast to send to these people offering them something genuinely useful up front. Put a time limit on the special offer so that they have to take action.

15. Get into a niche

As the American industrialist Andrew Carnegie said: “The men who have succeeded are the men who have chosen one line and stuck to it.”

Don’t try to enter a competitive market that requires a great deal of capital and experience. If you’re reading this then you probably don’t have the capital and experience combination that’ll be required! Stick to something that you either know a lot about already or something that really interests you so that you’ll want to find out a great deal about it. If you carve out a niche and personalise it (e.g. be friendly and talkative on your website or in your correspondence), this will differentiate you from everyone else in your market. Combine this ‘difference’ with your market knowledge and the fact that you’re in a relatively small market and your chances of success will be increased.

16. Get mentors

You become like the people you associate with so associate with people who are like minded. Join appropriate industry associations – these will also give you the lowdown on relevant industry threats, opportunities legislation and the like. Meet or converse with other entrepreneurs who have nothing to do with your market sector. They’ll be happy to share solutions and encouragement with you in a way that your current friends cannot because they don’t really understand what you are going through or why.

17. Take time off

Setting up a new business can be a 24/7 activity and it’s very tempting to spend all your waking hours in the office. But to make sure you’re not overstretching yourself, re-charge your batteries every so often.

Book time off for yourself in your diary (including evenings off to do a sport or socialise). Set hours that match with your most productive times and allow yourself to spend time with your loved ones – they’ll need to know when you’re not going to be working! Revisit your tasks and see what you can outsource cheaply (see tip eleven). Prioritise tasks and see what you could ditch – temporarily or permanently. Be brutal and honest about this – don’t do certain tasks because you enjoy them, do what brings in a profit.

18. Be selective about who you spend your time with

Don’t undo your good work by spending time with people who are dismissive of what you’re trying to achieve. Don’t spend too much time with people who make you question your goals and ambitions. People will always criticise what they don’t understand; find someone who you can teach and help. That’s when you really learn AND it’s one of the most rewarding elements of being in business.

19. Get what you can for free

Make a habit of looking for a free (or at least cheaper) way of doing what you need to do. Contact colleges and universities to find people who want to build their CV or portfolio and will do free or cheap work on websites, photo shoots, design etc. Put an advert out to schools and colleges, as well as social media networks, for work placements and internships if you feel there are jobs that can be learnt fairly quickly and that will benefit the person doing them even if only through the experience of the real world.

Keep talking to other entrepreneurs, government agencies and business organisations to find out about free things you could get your hands on. See if you can get hold of office equipment through community pages like Freecycle.

20. Have fun!

Running a business should be creative, satisfying and enjoyable. It’s a chance to express yourself, meet interesting and creative people, potentially make a lot of money and create a whole new life for yourself.

So do everything you can to enjoy the process of being in business. And make the most of the good times – when you get a big contract or when you complete a difficult task – because the challenging times will come around soon enough.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

The post Top 20 tips for running your own business appeared first on MoneyMagpie.

Want to make quick cash right now? Check out our ten top ways to make money fast, with the least amount of effort possible.

Perhaps you’re looking for easy ways to make money online from the comfort of your sofa, or perhaps you want to make sure your credit report is accurate and up to date so you can get the best deals.

Here are our 10 easy ways to make quick cash, and don’t forget to sign up to our newsletter for weekly quick-cash-making and money-saving ideas.

• Earn with Pawns.app
• Join inCompass
• Make Money with Toluna
• Claim Your Free Money-Making eBook
• Save on Your Energy Bills
• Get Paid for Your Opinion
• Get Paid to Use the Internet
• Have a Free Financial MOT
• Make £400 a Month Mystery Shopping

Earn an average $12 a day with Pawns.app

You might have heard of apps like Swagbucks and Toluna, well, Pawns.app is in the same vein of money making apps. However, it adds an extra competitive advantage: there’s a leaderboard where, each week, top users could win an extra $300, as well as other unique earning opportunities.

Pawns.app is available in 190 countries, including (of course) the UK, and in 2023, it paid out $3.8million to users with an average daily earning for each user of $12. You can pay out as soon as you’ve earned $5.

Pawns.app works on desktop for Windows and MacOS, as well as Android and iPhones. You can claim an additional $3 dollar bonus just for signing up via this page! 

Join inCompass and earn £20 for your first month

Make Money with Toluna

Toluna is a great site to join. You not only earn points which you can later redeem for fantastic prizes, but you also have the opportunity to get free goodies.

Click the appropriate device to complete the survey! iPhone, Android, Desktop

Claim Your FREE Money-Making Email & eBook

Sign up for FREE to our Make Money Newsletter and every Tuesday we’ll send you the inside tips YOU need to succeed.

Grab hold of our expert cash advice and run with it – it’s been created with the sole purpose of making you quick cash. What’s more, each issue also contains a lot of special bargains designed to save you cash.

You could also hop over to our eBooks section and grab a FREE copy of our ‘Make £1000 Before Christmas’ eBook.

Win £850!

Want to win a nice wad of cash?

If you’re still not sure what it’s all about, you can read our article all about it here, which tells you everything you need to know so you can start winning.

Save Money on Your Energy Bills

Now is a perfect time to fix your deal as energy prices continue to rise or fluctuate dramatically. And check out lots more ways to save on your energy bill.

If you want to find the very best deal before you fix, shop around!

Click here to use our comparison tool and find a better deal for you.

Be Paid for Your Opinion

This is a sporadic way to make quick cash and it brings in a relatively small income, but it’s low effort and you’ve nothing to lose. It’s a great way to make quick cash from the comfort of your computer but make sure you NEVER pay to join an online survey site or reveal your credit card details.

Earn money for testing apps, games and surveys – find out how here

Inside tip! Here are our favourite online survey sites. They’re completely free and have received a big thumbs-up from many of you. For maximum earnings set up a separate email account (so your personal one doesn’t get flooded with survey-related emails) and then register for free with all of them:

• Branded Surveys
• Swagbucks
• InboxPounds
• Toluna
• LifePoints

If you like the sound of making quick cash through filling out online surveys make sure you check out our full article right here on the safe way to earn money by taking paid surveys.

Earn for Using the Internet

Get a Free Financial Health Check

Sense check your finances with a free financial health check – a 30-60 minute call or meeting with a local, well-rated IFA.With more than 4,500 independent financial advisers and over 60,000 reviews, VouchedFor is home to the UK’s top advisers.Simply leave your details and VouchedFor will find the best adviser to conduct your free financial health check.Get your free financial health check here.

Make Up to £400 a Month Mystery Shopping

Fancy getting paid to eat out, shop and even go on holiday? Try mystery shopping!

Our editor Jasmine has been a mystery shopper for over five years now, earning decent money on the side while bagging brilliant freebies left, right and centre.

Now you can too! Read all about it here.

The post Easy ways to make quick cash appeared first on MoneyMagpie.

• Claim for office equipment
• Request a home working allowance
• Check what you can expense
• Save on bills
• Batch cook
• Try free exercise videos
• Save your fuel costs

Claim for Office Equipment

Your employer might not pay for you to buy a new desk, chair, or lamp – but you can claim tax relief on ones you buy yourself. You can also claim relief on expenses used solely for business purposes, such as business phone calls, and business portions of gas and electricity. You can either work out the exact cost, or claim a flat £6 a week (which results in £1.20 a week relief for basic rate tax payers).

The P87 form allows PAYE workers who work remotely to claim tax relief at their rate on home office essentials, up to the total of £2,500 a year. So, if you pay 20% tax, you’ll get that much relief – while higher-rate payers will receive 40% relief.

If you use your own vehicle for work, and your employer doesn’t pay expenses, you can claim for that, too. This doesn’t include commuting to and from your regular place of work (i.e., the office), but if you have to travel for work that is included.

Find out how to claim on the Gov.uk website here.

Request a Home Working Allowance

Employees who are working from home can request an extra weekly allowance from their employer. This is to cover the rise in utilities bills, as working remotely means you’re using more electricity, gas, and water.

The allowance for 2025/26 is £6 per week and is paid tax-free. If you’re claiming for these expenses via a P87 form, you can’t also request this home working allowance.

You’ll need to ask your employer to arrange this allowance for you. They can refuse, but it is unlikely (and if they do, you can use the P87 form to claim tax relief for yourself).

Note that the gross figure on your payslip won’t change. Instead, you’ll pay £6 a week less tax.

Check what you can expense

Do you need to print things out? Post things? Any costs involved in normal office activities should be covered by your employer.

Speak to your boss to find out what you can expense each month. Whatever you buy must be exclusively for business use, but if you’re using materials or – for example – a work mobile phone, this should be paid by the company.

Keep all your receipts – and if you’re paid hourly, remember to include the time spent shopping for supplies and posting items.

If you regularly need to order and use items for business purposes, such as stationery, it could be worth asking for access to a business account to purchase directly from and have sent to your home, rather than buying yourself and waiting to reclaim expenses.

Save on bills

As well as claiming working from home allowances and expenses, you can always do more to save money while remote working.

Switching energy suppliers, for example, could save you hundreds of pounds each year. Remember to also consider switching other suppliers, such as broadband and home insurance, to keep premiums down and long-term savings up!

You could also:

Put on extra layers

A jumper could be all you need – instead of turning the thermostat up! Before you turn your heating up, take a look at what you’re wearing. If you could add socks, a jumper, or an extra layer, this could save you a lot over the course of a month or year.

Consider a heated blanket

In colder months, if you’re the only person working from home during the day, consider getting a heated throw or heated hoodie. These will keep you toasty warm without the running costs of central heating all day.

Only boil what you need

Working from home means the kettle becomes a welcome distraction. Tea breaks can shake up the monotony of Zoom calls and spreadsheets! Instead of boiling a full kettle each time, only boil the water you need. It saves significant energy over time.

Switch off at the wall

When you’re done for the working day, shut your computer down – and then switch it off at the wall. The same goes for any appliances you’re not using – it saves a lot of energy over a short space of time!

Consider a water meter

If you live alone or with a partner, you could also consider requesting a water meter. These aren’t suitable for larger properties or families, as it works out expensive – but for couples and single people, it saves hundreds of pounds per year. (A real-life example: this writer paid £42 a month for a non-metered supply – and now pays £38 a quarter, saving £352 a year!).

Buy wholesale and batch cook

Pasta, potatoes, even flour – it’s much cheaper to buy these in bulk where you can.

If you don’t have the space for sacks of potatoes, don’t fret. Work out what you use the most in your cooking and find the largest packets or buy-one-get-one-free deals. It could also be worth getting a wholesaler or trade membership to a shop like Costco – even better if you can share with a friend or family member to make the most of bulk buy discounts together.

Once you’ve done your weekly shop, make the most of these bulk ingredients – and batch cook. Even if you’ve got a tiny (or no) freezer, batch cooking means you can prepare 4 or 5 portions at the same time and pop them in your fridge for the next few days.

Batch cooking saves a lot of time – and a LOT of money. Every time you’re tempted to call for a takeaway dinner because you’re tired, stop! Think of the frozen healthy dinners you’ve already got at home. In the time it takes to defrost and cook one, your takeaway meal would be getting cold on its way to you.

Try free exercise videos

Many of us with gym memberships choose one near work, so we can go before or after the working day, or even in our lunch break. When you work from home, you might not have one in walking distance – and getting in the car or the bus to go the gym is one more obstacle (and cost) to overcome to persuade yourself to exercise.

You don’t have to stump up extra costs to get fit at home, though! There are tons of free exercise videos online that you can follow without the need for lots of equipment, either.

You’ll get fit together, expend excess stressful energy, and not spend any extra cash either!

Save your fuel costs

What else are you saving on while you’re working from home? If you commute by car, your fuel expenses will drop. Train commuters won’t have to pay for their fare, either.

You might also save on things like clothes, if your office has a strict dress code. You’re not wearing suits and shirts at home – we all know you’re in your favourite three sets of joggers and sweatshirts (because we do that, too!).

You’re also not buying a coffee on your way to work each morning, or paying for a Meal Deal every day at lunch.

Consider how much you’re saving each week by not going to work. Tuck the equivalent away in a savings account, instead. This’ll quickly build an emergency savings buffer without you feeling the pinch!

The post Easy Money-Saving Hacks for Working From Home appeared first on MoneyMagpie.

Loans are hard to get if your credit score isn’t perfect. Many of the best credit card deals that we mention are also not available to you if you don’t have the best credit record. But fear not! Even if you have a credit record that makes you want to weep, there are ways of cleaning it up over time.

• What affects your credit file?
• 10 easy ways to improve your credit record
• Should you pay to access your credit file?

What Affects Your Credit File?

• If you have been rejected for a credit application in recent weeks.
• Several applications for credit and loans at the same time make you look like you’re in a desperate financial situation.
• County Court Judgments (CCJs) against you.
• You’ve regularly been delayed with mortgage or loan payments.
• If you miss a payment on your phone or broadband bill, this is considered a big black mark.
• Your age affects your points score. Too young can be as bad as being too old.
• If you’re single it can be a problem – being married gives the impression that you’re stable and have a potential second income to rely on.
• Moving address every year or two. Financial companies like at least three years at the same address.
• If you are not on the electoral roll you can be rejected.

15 easy ways to improve your credit record

1. Make sure you are on the electoral roll

There are two electoral registers: public and private. You can opt out of the public register (and we usually suggest you do to avoid spam). You cannot opt out of the private register – this is what local councils use for elections etc. You can only be contacted from the private register for things of public interest, like a General Election.

Contact your local authority to request to be put on the electoral roll. If you’re already registered, it won’t hurt to have your information updated anyway! If you’ve recently moved house, make it a priority on your To Do list to update your details with your local council ASAP.

2. Pay bills on time

Every missed payment knocks off points on your credit file.

If you cannot pay on time, contact the supplier, credit card provider, or bank as soon as possible to discuss what options are available to you. You may be able to change your repayment schedule, or make a minimum repayment instead.

3. Check your credit record for CCJs

Check your credit record through the credit reference agencies like Experian. Make a note of any unusual activity that you don’t recognise and contact the credit agencies to investigate.

Most importantly, check for County Court Judgements (CCJs). These can be issued and missed if you’ve recently moved house, for example, and didn’t receive the summons. It’s really detrimental to your score, so resolve this as soon as you can.

4. Check any resolved bankruptcies

If you’ve paid off your debts or have been discharged from your bankruptcy, check your record with Experian, TransUnion (formerly Call Credit), and Equifax. Settled or discharged debts can take up to four months to show on your record – if they aren’t listed after that time, contact the credit agencies and the lender.

5. Look at closed accounts as well as open ones

Any line of credit – even a mobile phone bill – that you’ve paid off should show as closed and settled on your credit record. If it’s not showing as settled – or worse, as a default – contact the lender or organisation immediately to sort it.

6. Work on building your credit history

Companies such as Creditspring offer affordable ways to borrow and increase your credit score. Whilst rebuilding your credit score can seem complicated, Creditspring offer a set repayment plan (much like a subscription), with each repayment made on time increasing your score.

Other examples include companies like Loqbox, which give you a ‘loan’ that you can’t actually touch. You make monthly repayments towards this ‘loan’, and when you’re done you can access the money. Think about it like enforced saving – you get the money you put away each month at the end, but have the benefit of an improved score, too.

7. Let your rent improve your credit

Tenants can use Credit Ladder to prove they’re responsible to lenders. It’s a free service for tenants to use, too. You pay your monthly rent via Credit Ladder. They report each month to credit reference agencies that your rent – a large sum – has been repaid in full, on time. Over time, this rebuilds your score as a responsible borrower.

8. Use a credit improver

Similar to using your rent – an everyday expense – to rebuild your credit, you can use small savings to help, too. A credit improver service like Loqbox gives you a small loan.

You don’t get the cash, though! It’s locked into an account for you. Every month, you make agreed ‘repayments’ to this loan which are then reported as reliable repayments to the credit agencies. At the end of it, the money you paid is released into a new bank account for you. It’s a great two-fer: you get to rebuild your credit score AND finish up with savings! This digital savings voucher system has an interest-free ‘loan’, but you’ll need to pay fees of either £2.99 a month or £30 a year (which can be paid through the ‘loan’) instead of paying interest.

9. Stop at the first rejection

If you’re rejected for any type of credit or bank account, STOP! Research your credit record with each of the three credit reference agencies. Don’t just keep applying, assuming you made a mistake on the form. Multiple rejections in a short space of time can take YEARS to knock off your credit record – so avoid it at all costs!

10. Seek help for debt ASAP

If you’re already spiralling into debt, don’t apply for credit. Especially avoid things like payday loans – they’re expensive and look really bad to lenders looking at your credit record. Instead, take a deep breath and seek help.

Contact the National Debtline or Stepchange to talk through your finances and set up a repayment plan. You can also look up your local Community Money Advice centre for help, too. Jasmine is a patron of this financial education charity: they’ll help you manage your debts and finances and help you get back on track.

Should you pay to access your credit report?

 

 

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The post 15 Easy Ways to Improve Your Credit Score appeared first on MoneyMagpie.

There’s no doubt that one of the greatest sources of financial distress for the newly self-employed is the sudden realisation that their first tax bill is much larger than expected. Payments on Account (POA) was devised to allow self-employed people to spread out their tax bill over a year. However, POA is also one of the most commonly misunderstood elements of the Self Assessment process, and many newly self-employed are unaware that it exists altogether.

As we enter a new financial tax year, perhaps now is the best time to get a headstart and really keep on top of your finances. So here’s everything you need to know about Payments on Account, and how you can ensure you are best prepared for your next tax return.

• What are Payments on Account?
• How does it work?
• Tips to keep on top of tax payments
• Keep digital reminders
• Set up direct debits
• Remember to save money for Payments on Account
• Got questions about freelancing?

What are Payments on Account?

Simply, they are a way of paying off some of your tax bill in advance. You’ll pay two separate installments throughout the year, calculated based on your previous year’s tax bill. The first installment is due on 31st January, and the second is due on 31st July, with each of these two payments worth 50% of your previous tax bill.

There are some circumstances in which a POA will not be due. If your last tax bill was less than £1,000, or if more than 80% of your earnings are subject to PAYE, then you will be exempt from the POA system entirely.

It’s likely that payments on account will apply to the majority of self-employed people. Failure to pay the full amount may result in penalty fines and interest, so it’s certainly worth getting your head around the ins and outs of the POA system and how it works.

How does it work and how do I calculate my POA?

The reason it causes so much confusion among newly self-employed is because the first instalment on 31 January is due on the same day as your ‘balancing payment’ (which clears your tax bill from the previous year). If it’s your first time making a POA, you’ll essentially need to pay 150% of your tax bill in one go.

For example, if your tax bill for 2018/19 was £3,000. Your total tax bill on 31st January 2020 would have been £4,500, including the balancing payment of £3,000 and an additional advance payment of £1,500 (50% of £3,000) at the same time. Then, on 31st July 2020, you would have to pay another £1,500.

However, this means that when you file your return for the following financial year, you’ll already have paid £3,000 towards it. If your bill for the 2019/20 tax year is more than £3,000, you will simply need to make a balancing payment on 31st January 2021 and your POA will increase accordingly.

For example, if your tax bill for 2019/20 is £5,000, on 31st January 2021 you will need to pay the balancing payment of £2,000, and the first installment of your Payment on Account, worth £2,500 (50% of £5,000). The total amount due on the 31st January would be £4,500, and an additional £2,500 due on 31st July 2021.

It’s worth noting that if you think that your income for the next tax year will be lower than in the previous tax year, you can apply to have your POA reduced. However, if it transpires that you have underpaid your POA, you will have to pay interest on the outstanding amount, which could turn out into a hefty tax bill.

4 tips to help you keep on top of your tax payments

Keep ahead of your payments on account with these top tips.

1. Use a digital platform

Technology has been simplifying processes for decades, and when it comes to staying on top of your finances, it can be the ultimate assistant. For small businesses, invoicing software streamlines financial operations and ensures timely and accurate billing.

Downloading a free bookkeeping app is one way of ensuring that you regularly update your accounts. It also helps you to prepare for the two payments on account you are need to make to HMRC each year. In fact, HMRC is seeking to digitise most of the taxpaying process, so it is encouraging taxpayers to file and make payments online via software.

2. Jog your memory with calendar reminders

With the financial calendar starting and ending on April 6th, remembering all the financial dates and deadlines can be difficult. Fortunately, when it comes to ensuring payments are punctual, calendar reminders can be a real asset. Here are a few ways to ensure that you fully utilise them:

• Make sure to set repeat annual reminders well in advance of both POA deadlines. This’ll reduce panic near the deadline!
• Add in additional notes alongside reminders. This can be anything you like, but it is worth routinely reviewing your finances to check if you are earning more or less than the previous year, as this will impact your POA.

3. Set up direct debits

Setting up a direct debit specifically for your tax payments is a useful way to ensure that you don’t miss the POA deadlines, and therefore avoid paying a £100 late payment fine. Once set up, be sure to check that the direct debit account contains enough capital to cover the bi-annual payments.

If for any reason your POA is increased, or you have to reduce it, then be sure to update the value of your direct debit payment accordingly.

4. Put aside money for POA

If you are newly self-employed, the costs of running and managing your own activities can be a surprisingly time-consuming and costly practice, so making sure that you are budgeting effectively for your POA expenditure is important.

Putting money aside is something most of us are familiar with. So, whether you’re saving for a car, house or pension, applying the same philosophy to POA is a good way to ensure that money is left available when the time comes. Save a portion of earnings per week or month specifically for your tax payments, and you’ll be surprised how quickly funds build up.

Dan Stopp is the UK Accounting Manager at Bokio, an AI-based accounting tool helping freelancers, sole traders and small businesses save time and money.

Got Questions About Freelancing?

If you’re new to freelancing, considering going freelance, or have questions about your established business, hop on over to our forum! There’s a special board just for self-employed people and small business owners. Get stuck in!

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

The post Payments on Account: A freelancer’s guide to keeping on top of your finances appeared first on MoneyMagpie.