Ultimate UK Tax Guide for Content Creators & Influencers

When it comes to taxes as a content creator or influencer, it’s a little bit like the Wild West. Because the creator industry is so new compared to other more traditional jobs, the tax rules and regulations can often be confusing as HMRC tries to keep up with this incredibly fast-growing £19 BILLION industry. 

Navigating this unfamiliar territory as a content creator requires a solid understanding of what income you need to report, what expenses you can claim, and how you can easily manage your financial records to stay compliant with HMRC.

In this tax guide for content creators, I’ll break down everything you need to know to handle your taxes confidently and efficiently, ensuring you stay on the right side of the law while maximising your financial benefits. Whether you’re a blogger, YouTuber, TikToker or full-time Tweeter (now X-er?) and a UK tax resident, then this guide applies to you.

I’ve been working as a full-time content creator for over 7 years now at @kelseyinlondon and I desperately wish this guide was available when I first got started in this industry. This is why I’ve spent nearly a decade running a support group for UK content creators and providing free resources to help others succeed in their content creator journey. I hope this guide is helpful for your journey too!

When Do You Need to Register as a Self-Employed?

Income Threshold for Registration:

• If you earn more than £1,000 in a tax year (from 6 April to 5 April) from self-employment, you must register as self-employed with HMRC.
• The £1,000 is based on your total income (revenue), not your profit.

No Tax Below £1,000:

If your self-employed income is less than £1,000, you do not need to pay tax on these earnings nor report them to HMRC.

Threshold Includes Gifted/PR Products:

• Gifted products or PR items count towards the £1,000 threshold.
• For example, if you accept a £500 sofa in exchange for creating an Instagram Reel, it’s considered £500 of income.

Example Scenario:

If you receive £700 for a social media job and a product worth £400 for another job within the same tax year, your total income is £1,100. Therefore, you need to register as a self-employed.

PAYE/Full-Time Job Income:

• Income from a full-time/PAYE job does not count towards the £1,000 self-employment income threshold.
• For instance, if you have a full-time job with a salary of £25,000 and earn £900 from self-employment, you do not need to register as self-employed.

Registration Deadline:

• You must register by 5 October in the second tax year of your business.
• Example: If you start self-employment in March 2024, you need to register by 5 October 2025.
• Note: missing the registration deadline could result in a fine.

How Do You Register as Self-Employed?

You can register as self-employed online through the HMRC website by creating a Government Gateway account. You’ll need to provide your National Insurance Number, personal details, at least two forms of photo identity and proof of address.

Register here: www.gov.uk/register-for-self-assessment

If at any point you are confused during the registration process, the best thing you can do is call HMRC to help you at 0300 200 3310 (Monday to Friday: 8 am to 6 pm).

What Happens After You Register?

• Unique Taxpayer Reference (UTR): Once registered, you will receive a Unique Taxpayer Reference (UTR) number. This number is used for all correspondence with HMRC.
• Self Assessment Tax Returns: You will need to submit annual Self Assessment tax returns to report your earnings and expenses. The deadline for online submission is January 31 following the end of the tax year.
• Paying Tax and National Insurance: Based on your Self Assessment tax return, you will be required to pay Income Tax and National Insurance contributions.

When is your Self Assessment Tax Return Due?

• Your Self Assessment Tax Return needs to be submitted online by 31 January following the end of the tax year.
• The current tax year runs from 6 April 2023 to 5 April 2024, meaning the Self Assessment tax return for this period is due at midnight on 31 January 2025.
• Paper returns must be submitted earlier, by 31 October 2025.
• You will also need to pay your tax bill on 31 January 2025 and make an advance payment on 31 July 2025 for the following year’s tax bill.

That being said, you will save yourself a LOT of stress if you submit your Self Assessment tax return earlier than 31 January 2025. Trust me, you do not want to leave it to the last minute. You can submit your Self Assessment tax return as early as you want from 6 April (2024) onwards.

I recommend marking all these key dates in your calendar – and setting digital reminders on Google Calendar so you don’t miss payments.

How Do You Submit a Self Assessment Tax Return?

Before you submit your Self Assessment Tax Return, make sure you have the following information ready:

Personal Information:

• Unique Taxpayer Reference (UTR): Your 10-digit UTR issued by HMRC.
• National Insurance Number: Your National Insurance (NI) number.
• Personal Details: Name, address, date of birth, and contact information

Self-Employed Income & Expenses Information:

• Details of your business income 
• Details of your business expenses

Employment Income:

Note: only applicable if you have a full-time job in addition to your self-employed business.

• A P60 from your employer showing your income and the tax you have already paid
• A P9D or P11D showing any benefits or expenses you received
• A P45 if you have left a job during the tax year

To submit your Self Assessment tax return, log in to the HMRC website using your Government Gateway user ID and password.

Follow the on-screen instructions to enter your income, expenses, and other relevant information. It’s a fairly straightforward process, especially if you’ve used bookkeeping software to keep track of your business income and expenses.

What is a Business Expense?

A business expense is any purchase/cost that is necessary for you to run your business. 

When you claim something as a business expense, this does NOT mean you get the item for free.

A lot of people confuse the term “tax write off” as meaning you receive the full cost back, which isn’t the case. However, business expenses will reduce your taxable income, potentially lowering your overall tax liability and fees.

Remember: you only pay tax on your business profits. So if your business makes £30,000 in sales in a year, and your annual business expenses are £5,000, then you will only pay tax on your PROFIT, which would be £25,000.

What Can You Claim as a Business Expense as a Creator/Influencer?

When it comes to tax write offs for influencers and content creators, the best thing you can do is to check exactly what you can expense with an accountant. It’s also super important to keep detailed records of all expenses and ensure they are wholly and exclusively for business purposes.

What you can expense will really depend on your content creator niche & business type. For example, a food recipe blogger may be able to expense the cost of fresh flowers as a styling prop for their recipe posts, whereas a home/interior TikToker may expense the cost of painting materials when they create a DIY tutorial video.

The grey area for content creators is that a lot of our business purchases can also be considered personal purchases.

For example, if you’re a beauty influencer and you purchase a foundation with the business intent of creating a review video, but then you end up wearing that foundation daily – this then becomes a personal purchase and cannot be claimed as a business expense.

Examples of Expenses for Content Creators:

• Equipment (e.g. laptops, cameras, tripods, lighting)
• Software & Subscriptions (e.g. Adobe, Canva, Final Cut Pro, Epidemic Sound)
• Internet & Phone Bills (a portion of this can be expensed if used for business purposes)
• Website (domain registration, hosting fees, website design)
• Advertising (social media & print ads)
• Business Travel Expenses (flights, transport & accommodation)
• Office Supplies (printer, paper & ink)
• Props & items used in photoshoots (e.g. flowers, accessories, paper backdrops)
• Training (online courses & e-books/educational books)
• Legal & Accounting Fees (costs for hiring lawyers & accountants)
• Insurance (public liability, equipment insurance & professional indemnity insurance)
• Consulting & Outsourcing (any fees paid to consultants, freelancers, and other professionals for services like graphic design, photography, video editing, or social media management)
• Home Office Expenses (a portion of your home expenses if you work from home or create content in your home. This includes rent/mortgage interest, utilities, internet, and home office supplies)

Do Influencers Pay Tax on Gifts/PR Products?

Let’s finally put this to rest! Because “gifts” & PR products are classed as income, this does mean that yes, influencers have to pay tax on gifts.

For example, if you accept a dress worth £150 in exchange for a post on your Instagram page, you will need to record the £150 as income, meaning you will need to pay tax on the £150.

This is why it is so important to get paid as a content creator. The more content creators and influencers accept unpaid collaborations, the more we are devaluing our services. Imagine if accountants worked for free! Why would anyone want to pay an accountant if half of them worked for free? The same goes for lawyers, plumbers and hairdressers.

A lot of brands will only offer “gifting” to influencers or tell content creators there is “no budget”. But the truth is, there IS always a budget. It’s just that brands will always try their luck and see who is willing to work for free. Check out this guide on how to turn “gifted” collaborations into paid collaborations.

Please note: I often refer to “gifts” in quotation marks because I strongly believe that a gift is a present you receive with no expectation in return. Like you would on your birthday. Gifts are not payment for your time, all content creators and influencers deserve to be paid a fair wage.

Do You Have to Pay Tax on Products When You Are Also Being Paid for Your Content Creation Services?

Unfortunately yes. Even if a brand is paying you a fee for your services, if they are also providing you with a product which you then keep for personal use, that product is classed as income too.

For example, if you are being paid £1000 to create an Instagram Reel and a brand is also sending you a £500 sofa to film – you will need to record both the fee and value of the sofa (£1500 total) as income.

The only way to avoid paying tax on products is to either return the product to the brand after your campaign has ended or donate it to charity. If you want to keep the product for personal use then you have to decide whether it’s worth paying tax on that item.

Now, to be perfectly honest, this is a BIG grey area when it comes to taxes as a content creator or influencer. Especially on items that are perishable like food & drink, or any experiences or services that can’t be sold later for money – like massages or manicures. You can’t exactly regurgitate your steak dinner and sell it for cash like you could with a sofa or a handbag.

Because the influencer and content creation industry is so new, HMRC is still updating their guidelines on this. The best thing you can do is ask an accountant for advice on how to accurately record your income.

How Much Tax Do You Need to Pay?

As a sole trader, you need to pay both Income Tax and National Insurance Contributions. Below is a breakdown of the two:

Example Tax Calculation

Let’s assume your annual profit is £25,000:

1. Income Tax:
   • First £12,570: 0% (Personal Allowance)
   • Next £12,430 (£25,000 – £12,570): 20% = £2,486
2. Class 2 NICs:
   • £3.45 per week = £179.40 annually
3. Class 4 NICs:
   • First £12,570: 0%
   • Next £12,430: 9% = £1,118.70

Total Tax and NICs:

• Income Tax: £2,486
• Class 2 NICs: £179.40
• Class 4 NICs: £1,118.70

Total Due:

£2,486 + £179.40 + £1,118.70 = £3,784.10

So, on a profit of £25,000, a sole trader would pay £3,784.10 in tax and National Insurance contributions.

Do You Need to Have a Business Bank Account?

Sole Trader: No, it is not a legal requirement to have a business bank account as a sole trader.

However, keeping your business and personal banking separate will make things a whole lot easier. For example, you could have a Monzo bank account for your personal purchases and have a 2nd bank account with Revolut for your business purchases.

Get £5 when you sign up for a free personal account with Monzo with this link.

Limited Company: Yes, it is a legal requirement to have a business bank account.

One of the best business bank accounts you can get is with Tide. There are no account fees and they also offer an instant-access business savings account with 4.33% AER interest – this is one of (if not the best!) interest rates available right now.

Some bank accounts will let you set up automatic Tax Pots. For example, Monzo Business accounts will automatically set aside a percentage of your income for tax.

So when you receive a £1000 payment for an invoice, 20% (£200) will automatically be put aside in a Tax Pot. This means when you have to pay your tax bill, you will already have money saved and set aside for this in your pot.

I personally use both Monzo and Tide for my business bank and savings accounts. Both accounts are FSCS-protected and have zero monthly account fees.

Best Practices for Bookkeeping?

One of the best ways to record all your business expenses and income is by using online bookkeeping software. The best bookkeeping software tools are Quickbooks, Xero and FreeAgent.

You can also use these tools to send invoices to brands you work with, as well as recording and categorising all your business expenses. Most of these tools will sync to your bank accounts/credit cards and pull all your transactions through, which you can then easily categorise.

I personally like to use Quickbooks and have done so for the past 5 years working as a full time content creator. I love that Quickbooks easily syncs all my bank accounts, credit cards & PayPal transactions (great if you sell digital products online).

I also use Quickbooks to send invoices and run profit & loss reports easily within seconds so I can track my business growth.

You can get a £100 Amazon Voucher when you sign up to Quickbooks (which is currently 90% off fort the first 6 months), using my referral link.

Xero also have a great offer at the moment, with 50% off your first three months with this link.

Make sure to keep physical receipts – or make a habit of uploading a photo of any receipt to the mobile apps for Quickbooks and Xero. 

Try to form a routine of keeping up to date with your bookkeeping weekly, fortnightly or even monthly. The more up-to-date you are, the more you’ll be able to easily track your business profits – which is super useful for creating a strategy for business growth.

Sole Trader versus Limited Company?

Most influencers and content creators will operate their business as a sole trader. However, when your profits start to increase (usually when your profits reach £30,000 to £50,000 annually), you will usually find there are more tax benefits when you register and run your business as a Limited Company. Here is a breakdown of the two:

Note: you do not need to have employees to operate as a Limited Company. If you are thinking of registering as a Limited Company, then I highly recommend having a chat with an accountant before you do this.

When Do You Need to Register for VAT?

You need to register for VAT (Value Added Tax) when your business turnover is going to hit £90,000 in any 12-month period or if your business turnover is expected to hit £90,000 in the next 30-day period. Remember, turnover = total revenue, not profit.

How Do You Register for VAT?

You can do this online on HMRC’s website. Once registered, you’ll receive a VAT registration certificate, which confirms your VAT number, the date of registration, and when you need to submit your first VAT Return and payment.

Being VAT registered involves additional admin responsibilities, but it can also provide benefits such as reclaiming VAT on purchases and enhancing business credibility. For example, if you purchase a £1000 camera for your business, you will get paid back £200 VAT (20%) of that purchase.

Obligations After Registering for VAT:

1. Charge VAT:
   • You must charge VAT on all taxable goods (digital or physical products) and services (social posts/content creation) you sell.
2. VAT Returns:
   • You will need to submit quarterly VAT Returns to HMRC. The VAT Return summarizes the VAT you’ve charged (output tax) and the VAT you’ve paid on purchases (input tax).
3. Keep Records:
   • Maintain accurate records of all sales, purchases, VAT invoices, and receipts.
4. Pay VAT:
   • Pay any VAT due to HMRC by the deadline, which is usually one month and seven days after the end of your VAT accounting period.
5. Display VAT Number:
   • Include your VAT number on invoices and your website if you have one.

Do You Need to Get an Accountant?

Yes and no. If you are operating as a Sole Trader, then you’re most likely able to manage your taxes by yourself using bookkeeping software and with support from HMRC directly. However, since taxes for content creators and influencers can be confusing, you will absolutely benefit from having a chat with an accountant who specialises in working with creators.

If you are operating as a Limited Company then an accountant can help elevate a lot of the boring admin side to bookkeeping and taxes, freeing up more of your time to focus on what you’re best at, creating content!

Below is my personal recommendation for an awesome accountant who specialises in working with content creators: