Taxes & OnlyFans Models

More and more joining OnlyFans

With more and more people in the UK starting up OnlyFans Accounts, some may not realise that the income is taxable and that it could cost them a big amount. OnlyFans, just like YouTube, Twitch, content creators, public figures, and influencers get their content out to a wider audience and make money from it. However, just like any other form of income, it is subject to tax and VAT.

So if you’re just starting out on OnlyFans and don’t understand how to go about taxes, here are some of the most important things to understand:

  • You will have to pay taxes as an OnlyFans model.
  • You will have to do the taxes by yourself or contact an accounting company.
  • Save all your receipts, both offline and online.
  • Make sure you keep your accounts up to date and safe for a minimum of 5 years.

OnlyFans counts as self-employment from a taxation standpoint, so it is best that you save at least 30% of your earnings to start with because you will have to pay taxes on this form of income. If you can, create a separate bank account for your earnings to go into and a savings pot to keep your anticipated tax separate until you are required to pay it.

HMRC has stated recently that they will be targeting OnlyFans and other websites from 2021 onwards. You will need to contact HMRC and let them know that you are earning through OnlyFans. They will be far more lenient on you if you inform them of the situation rather than them catching you out later on. It will be easy for them to see when you opened your OnlyFans account.

You may also be able to claim back tax on some of the cost of items. Depending on the specifics of your local laws, a whole bunch of things can be written off as a tax expense. So keep all of your receipts.

Below are some of the items that you may be able to write off as a tax expense:

  • Props
  • Lighting accessories
  • Sex toys
  • Gym fee
  • Beauty treatments
  • Lingerie
  • Rent if you are filming where you rent
  • Internet bill
  • And more

“What do I need to file and by when?”

The personal tax year runs from the 6th April one year and ends the 5th April the following year, with the deadline for filing and payment of tax being 31st January the year after. So for example:

  • 2021/22: 6th April 2021 to 5th April 2022, due for filing and payment by 31st January 2023
  • 2022/23: 6th April 2022 to 5th April 2023, due for filing and payment by 31st January 2024

You will need to file a Self-Assessment tax return for each and every year that you made income from a content site.  You can deduct any allowable expenses from your content income to come up with a content profit and you will be subject to tax on that figure.

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