The hidden price of going viral – the tax implications for content creators

Content creators can very quickly see their content and earnings soar, and with it, interest from the tax authorities. It pays to have an experienced tax adviser by your side.

Not all social media content creators realise that as soon as earnings hit £1,000 a year, HMRC will want its slice. And as earnings increase, so does the tax exposure. In fact, in January 2023, HMRC ran a campaign specifically for content creators to nudge them to declare their income.

For those starting their content creation careers, when income hits £1,000 or more, they must register and file a self-assessment tax return. Tax returns are usually due on 31 January every year, along with any tax due. From 6 April 2026, they will have to comply with Making Tax Digital (often referred to as MTD) including quarterly reporting (though there are exemptions). HMRC charge penalties for not reporting.

This means, if your content is generating income in 2024 and 2025, you will need to start thinking about your tax return in the next few weeks.

But what is taxable income? It’s not always straightforward.

If content creators are paid to post on any social media platform, have entered into brand deals, or their posts generate ad revenue, then HMRC will consider that taxable income. This bit is straightforward but other areas of earnings are more difficult to work out the tax treatment on.

Misunderstood areas of tax

Brand or product deals that do not involve cash may also be considered taxable income, but it is more complex. HMRC will want to know if you are trading or non-trading, and any agreement that accompanies that deal. Bluntly, a gift is not, in the eyes of the taxman, necessarily a gift.

Gifting may, in some cases, be considered a payment valued at the money’s worth —particularly where a service, such as posting content in return, is implied or expected. This expectation can arise through formal agreements or informal understandings. However, this is a thorny area and expert advice is essential to ensure compliance with tax regulations.

As your business grows, content creators may need to decide how that business is structured. There are advantages and disadvantages to remaining a sole trader or becoming a limited company. And if income approaches £90,000 in any one year, VAT is likely to become an issue.

Business expenses

There is, however, some encouraging news. HMRC will allow you to offset some of the expenses of creating content against that income, reducing the tax that might be due.

Typically, the cost of a camera, lighting and audio, editing software and apps, business travel and even personal marketing costs – together with your accountant’s fees – will reduce tax liabilities. But it is complicated, and HMRC will need to see clear evidence of record-keeping.

Growing pains

As a content creation business grows, perhaps with income being generated from sources around the world, so too does the tax landscape. Income generated from customers outside the UK may trigger VAT or income tax liabilities outside of the UK as well as in the UK.

And just as content creators are quick to adopt new technology, especially AI, to help better support them, so too are the tax authorities. HMRC uses clever AI-powered technology to search multiple sources, with content platforms required to share revenue generation data. It has content creators in its sights.

When income is not always predictable or straightforward, it pays to have experienced and specialist tax advisers to hand. With us at your side, content creators are left to do what they do best – create compelling content.   

Get in touch with one of our expert team today if you are a content creator and need help with your finances.