OnlyFans Tax Advice
If you’re just starting out as an online content creator and you don’t know the first thing about taxes…
The most important things to understand:
- Your income will be subject to taxes and you must submit a personal tax return.
- You will have to enrol yourself with HMRC for personal tax and/or a Limited Company. (at My Accountant Friend we can easily do this for you.)
- Its important to note OnlyFans does NOT withdraw taxes from your pay, this needs to be accounted for by yourself.
- On average, please save around 20-30% of your earnings to cover your tax bill if you trade as a sole trader.
- Save ALL business receipts, both offline and online. Please see the list of expenses you can normally claim.
- If you are earning substantial amounts per month you may want to become a Limited Company for more info check here
At My Accountant Friend we charge £125+VAT for a self assessment tax return, where you have summarised your income and expenditure. If you also need our help preparing your books, then we can provide a quote based on the necessary work. And we will guide you through the entire process. Like your online content, our tax planning is an art and cannot be rushed.
In order to reduce your tax bill, you can claim for all business related expenses, but you must keep receipts;
What kind of stuff can you (potentially & partially) write off as a tax expense?
- Lighting accessories
- Toys (not Thomas the Tank engine type toys!)
- Gym fee
- Beauty treatments
- Airbnb used for filming
- Use of home
- Office supplies
- Phone/internet costs
- Accountancy fees
- Computer costs
- And much more…..
We will provide a full list once you engage our services.
Here’s how it works
If 25% of the time you use the internet is for OnlyFans, then you can write off 25% of your internet bill as a business expense.
It’s business vs. personal use.
You can do the same thing for a phone bill and so on.
Again, any equipment you purchase for OnlyFans… the same principle applies with business vs. personal portion for things like cameras, props, and so on.
The main “guideline” is that the expense has to be “ordinary and necessary” for your business.
But “ordinary and necessary” can mean a lot of things to a good accountant, which is where My Accountant Friend can help you.
Keep track of all your potential expenses in a Google Sheet and find the best accountant to help you out from there.
At My Accountant Friend we have an amazing reputation within the online content creator sector and we are here to help you fulfil your filing obligations and make sure you stay compliant – paying what you owe, being tax efficient, and avoiding unnecessary penalties and interest. So if any of the above applies to you then drop us a message at [email protected] and we can discuss how we can help you.
We have offices through out the UK and we will be happy to have meetings where ever possible.