How to make money online in the UK: legit ways and the tax rules to know

The UK is one of the best places in the world to make money online. There's a huge resale culture, some of the biggest cashback sites anywhere, research platforms that started here, and a tax system that lets most people earn a bit on the side without any paperwork at all.

This guide covers the legit ways to make money online in the UK, what each one realistically pays, and the rules HMRC actually cares about, so there are no surprises in January.

Ways to make money online in the UK

Method	Realistic earnings	Best for
Selling on Vinted, eBay and similar	Whatever your stuff is worth	Everyone, especially declutterers
Cashback sites	Tens to hundreds of pounds a year	People who shop online anyway
Research studies	Minimum hourly rates on some platforms	Spare 10 to 30 minute gaps
Surveys and offers	A few pounds an hour	Commutes and ad breaks
User testing	About £5 to £15 per short test	Clear talkers
Online tutoring	Well paid per hour	Strong GCSE or A-level subjects
Freelancing	You set your rates	Anyone with a sellable skill
Renting out space	Varies by area	Homeowners and renters with permission

1. Sell what you don't use

Vinted has made selling clothes almost effortless, and eBay and local marketplace apps cover everything else. For most people this is the fastest money online in the UK. Good photos in daylight and honest descriptions sell faster than low prices.

2. Cashback sites

The UK has some of the biggest cashback sites in the world. You click through them before shopping online, and retailers pay them a commission that's shared with you. Insurance, broadband and energy switches pay the most. Always compare the actual deal first, not just the cashback.

3. Research studies

Prolific, which started in Oxford, runs academic and AI research studies and requires researchers to pay at least £6 an hour, as its participant help center explains. It's one of the best-paid sources of short online tasks in the UK.

4. Surveys, games and offers

UK members see some of the better-paid surveys and offers outside the US. Game offers pay the most per task, as we explain in how to make money playing games on your phone. Surveys pay less but fit into any gap.

5. User testing

Using websites and apps while saying what you think out loud pays well per minute. Our guide to testing apps and websites shows how to get picked for more tests.

Resale, cashback and research studies are three areas where the UK is unusually strong. Photo by Jac Alexandru on Unsplash.

6. Online tutoring

GCSE and A-level maths, sciences and English are in steady demand, and exam season brings a rush. Parents often find tutors through word of mouth and local groups as well as tutoring platforms.

7. Freelancing

Writing, design, bookkeeping, social media and admin support all sell online. Being in a UK time zone is useful for UK and European clients.

8. Renting out space

A spare room, a driveway or storage space can earn steady money. Renting a furnished room in your own home is especially tax-friendly thanks to Rent a Room relief (more on that below).

The UK tax rules, in plain English

The £1,000 trading allowance

The first £1,000 of side income from trading each tax year (6 April to 5 April) is tax free, and you don't need to tell HMRC about it. That's one allowance across all your side hustles combined. Go over it and you'll usually need to register for Self Assessment. HMRC's guide to income from online platforms has a simple checker. The government has also announced that the Self Assessment reporting threshold for trading income will rise to £3,000 during this parliament, though no date is set yet.

Selling your own things

Selling your own used belongings occasionally usually isn't trading, so it isn't taxable. Buying things to resell for profit is trading.

Platforms now report to HMRC

Since January 2024, online marketplaces share seller information with HMRC once you make 30 or more sales, or earn around £1,700 or more, in a calendar year. Being reported doesn't mean you owe anything. It just means HMRC can see the activity, so keep a note of what was personal clearing out and what was trading.

Rent a Room relief

You can earn up to £7,500 a year tax free from letting furnished accommodation in your own home, as GOV.UK explains. That's separate from the trading allowance.

Getting paid in the UK

Most UK platforms pay by PayPal or straight to your bank. Many rewards and survey sites also offer gift cards for UK shops, sometimes with a small bonus on top of the cash value. If you earn from overseas clients, compare the exchange rate you get when converting to pounds, because it can differ more than the visible fee. Whatever you use, keep a simple note of what you earn each tax year so you know where you stand against the £1,000 allowance.

What to avoid

• Anything that asks for money upfront to "unlock" earnings.
• "Investment" schemes on social media promising fixed returns.
• Job offers by WhatsApp or text for liking videos or rating products.
• VPNs on survey and offer sites. They're banned and get accounts closed.

Where to start

This week, list a bag of clothes on a resale app and sign up to a cashback site and a research platform. That's three sources of money for an hour of setup. If you want surveys and offers in the same place, you can join Vazpop free and see what's available in the UK.