Accountants for Onlyfans

Accountants for Onlyfans

If you earned less than £1,000 a year with OnlyFans you do not need to do anything. HMRC lets you earn £1,000 a year through platforms like OnlyFans without worrying about income tax.

If you earned more than £1,000 a year with OnlyFans, you need to submit a tax return. This doesn't necessarily mean you need to pay tax. It just means HMRC wants to know a little bit more about your situation in case you start earning more in the future.

As with any self-made income you’ll need to pay tax on your income if you make over £12,570 in the tax year.

If you’re doing OnlyFans on the side then you’ll need to understand paying tax as a side hustle. You can read more about side hustles in our blog post here.

If you’re going full-time creator mode then you’ll need to understand paying tax as self-employed. You can read more about going fully freelance in our blog post here.

As you start out you’re more likely to be a sole trader in which case the bands for tax are:

Tax allowance: 0% of earnings (You’ve earned between £0 and £12,570)

Basic rate: 20% of earnings (You’ve earned between £12,571 and £50,270)

Higher rate: 40% of earnings (You’ve earned between £50,271 and £150,000)

Additional rate: 45% of earnings over £150,000

Calculators and Tools

Don't forget that you'll also need to pay National Insurance on your income if you earn over £11,908 in a year.

If you start hitting that higher rate of tax then it’s worth setting up as a limited company. This means you’ll pay corporation tax on your earnings at 19% rather than 40%+ income tax. If you’re on the basic rate it’s worth remaining as a sole trader and avoiding the additional admin and costs of setting up a limited business.

Each year you need to fill out a self-assessment tax return. What you pay is your freelance tax bill minus the expenses of running your business. You can read more on Cangaf Self Assessment.

The usual cut off date to complete your self-assessment is the 31st of January if you’re doing it online, and 31st of October if you’re completing the form by post.

What allowable expenses can Onlyfans creators claim on their self assessment returns.

As an OnlyFans creator, there are several expenses you may be able to claim for tax purposes. Here are some common expenses that OnlyFans creators often claim:

1. Equipment: Cameras, lighting equipment, microphones, tripods, and other gear used for creating and producing content.

2. Props and costumes: Expenses related to purchasing or creating props, costumes, lingerie, or other items used in your content.

3. Subscription fees: If you pay for a subscription to third-party services that support your content creation, such as editing software, photo editing apps, or scheduling tools, those expenses can often be claimed.

4. Location expenses: If you rent or use specific locations for shooting content, such as studios or rental spaces, the associated costs can be claimed.

5. Internet and phone expenses: A portion of your internet and phone bills can be claimed if they are used for your OnlyFans business activities.

6. Marketing and promotion: Costs associated with advertising, website development, graphic design, social media ads, or other promotional activities to attract subscribers to your OnlyFans page.

7. Payment processing fees: Fees charged by payment processors or platforms used for receiving payments from subscribers.

8. Professional services: Fees paid to accountants, lawyers, or other professionals who assist you with your OnlyFans business, including tax preparation or legal advice.

9. Content creation tools and resources: Expenses for purchasing stock photos, graphic design services, content editing, or other services that help enhance the quality of your content.

10. Training and education: Costs related to courses, workshops, conferences, books, or online tutorials that improve your content creation skills or business knowledge.

Remember to keep thorough records and receipts for all your expenses. Stay informed about HMRC guidelines and consult with a tax professional to ensure you accurately claim deductible expenses based on your individual circumstances.

Tax returns accountants can assist you to register with HMRC if you have not done so already.

Get in touch with us

Tax Planning

Tax returns accountants assist tax planning services to OnlyFans creators who wish to plan their taxes out more effectively. Whether you’re self-employed, registered as a limited company or a sole trader, our accountants can explain the tax process to help you plan effectively.

Bookkeeping services

Tax returns accountants can assist you in your daily records keeping whilst you focus on your content creation. We provide free cloud bookkeeping software to enhance your record keeping.

Tax Return

Our accountants can help you with your tax return. You can allow us to process your return on your behalf, meaning you can focus on creating content. We can assist you in avoiding unnecessary penalties by ensuring your return is processed correctly and on time.

Company Registration

We can help you register your business with Companies House, look after your company accounts, and SA returns each tax year. Our accountants can explain any reasons why you should or should not register as a business and will always offer advice that is in our client’s best interest.

Most people will also need to register for VAT if they are a UK self-employed taxpayer or business owner earning a taxable income turnover of £85,000 and above. As the UK VAT system is complicated, our accountants can help you find out if you qualify for VAT, register for VAT on your behalf, and save as much profit as possible through VAT claims.

Once you’re VAT registered, informing OnlyFans is straightforward. They just require your VAT registration number for them to update your online account records and generate a VAT statement each month. You can find this on your account on the OnlyFans site, which you can send straight to our accountants.

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