Many OnlyFans creators go into panic mode when it comes to taxes, finances and general numbers. So here are a few tips to ease your mind.
Getting started with OnlyFans is all spelt out superbly here
Once you have started, the majority of online content creators start as a sole trader, being paid into their own personal bank accounts. The income and expenses then get mixed in with your grocery shopping, nights out and other personal expenses. One great tip is to set up a separate bank account that records all OnlyFans income and expenses. This will ensure no transaction is missed and cut out a huge amount of work for your accountant.
When you start receiving money from OnlyFans you should register with HMRC to start paying taxes. At My Accountant Friend we will do this for you, however you should be registered before October of any tax year so do not leave this too late.
Now that you are receiving a nice amount each month, you may want to consider trading as a Limited Company. Generally speaking once you hit the £4,000 per month mark you may want to chat to us regarding the transition. MAF offers a discreet service to protect you and your identity so your details are not known to the public.
When you reach £7,000 turnover per month you should be looking at becoming VAT registered and you will need to provide your VAT number to OnlyFans in order for you to deal with VAT yourself. MAF is here to remove the hassle and payments of these liabilities and it’s an easy transition.
Regardless of where you are in your OnlyFans journey, never spend all the money you earn as you will inevitably have some sort of tax to pay, as a general rule of thumb, keep at least 15% of your income for tax liabilities.
Never panic about finances and never shy away from the duties of trading on your own. We are always here to help and just a phone call away. Feel free to call us today to discuss your situation.