How HMRC treats OnlyFans income
To HMRC, earning money on OnlyFans, Fansly or any similar subscription platform is running a business. The platform is not your employer, so you are self-employed and responsible for declaring what you earn. HMRC's guidance on online income lists creating online content as trading income, and it counts money, gifts and services you receive.
In practice your business income includes subscriptions, tips, pay-per-view messages, custom content, referral payments, brand deals and the value of gifts sent through wishlists. Income from every platform you use is added together, along with any other self-employed work.
If that total, before expenses, is £1,000 or less in a tax year, the trading allowance usually means you do not need to tell HMRC. Above £1,000, you register for Self Assessment as a sole trader by 5 October after the end of the tax year and file a return. You can start creating straight away; registration comes afterwards.
Digital platforms may also have to collect details about the people earning on them and report income to HMRC under rules that started on 1 January 2024. Whether or not a platform reports you, the duty to declare is yours, and it is far easier to get the records right from the start.
Privacy and discretion
Many creators keep their work separate from family, friends or a day job, so it is worth knowing exactly what becomes public.
As a sole trader
Registering for Self Assessment is between you and HMRC. Sole traders do not appear on the Companies House register, and you can trade under your own name or a separate trading name. A dedicated business bank account keeps platform payouts and expenses out of your personal account and makes your records much simpler.
As a limited company director
A company buys you limited liability but gives up some privacy. Companies House publishes, free and searchable worldwide:
- the company name, registered office address and annual accounts
- each director's name, nationality, month and year of birth and service address
- people with significant control, with the same personal details
Your home address and full date of birth go on a private register if you use a different service address and registered office. Officer details stay public for the life of the company and, at present, for 20 years after it is dissolved. Directors and people with significant control must also verify their identity with Companies House. GoForma's Operate Bundle includes a London business address you can use.
Working with an accountant
Confidentiality is one of the fundamental principles in the Code of Ethics that ACCA members follow. You should be able to talk about your income and expenses plainly, and expect them to be treated like any other client's.
Sole trader or limited company
Most creators are sole traders, and for many that stays the right answer. A company pays Corporation Tax at 19% to 25% on its profit, and you then pay yourself through salary and dividends, which are taxed at 10.75% and 35.75% above the £500 allowance for most people in 2026/27. At moderate profits the saving is often small, and it comes with public filings and payroll. Our sole trader vs limited company calculator gives a first comparison.
Worked example: a sole trader creator in 2026/27
Jordan lives in England, started creating in 2026/27 and has no other income. Jordan's platform earnings paid out after the platform's commission are £45,000.
| Step | Working | Amount |
|---|---|---|
| Platform earnings received | £45,000.00 | |
| Camera, lighting and microphone | Deducted in full under the cash basis | £1,800.00 |
| Editing and scheduling software | £600.00 | |
| Business share of phone and broadband | £540.00 | |
| Working from home flat rate | 12 months x £18 (51 to 100 hours a month) | £216.00 |
| Props and costumes used only in content | £844.00 | |
| Taxable profit | £45,000 minus £4,000 of expenses | £41,000.00 |
| Income Tax | (£41,000 minus £12,570) x 20% = £28,430 x 20% | £5,686.00 |
| Class 4 National Insurance | £28,430 x 6% | £1,705.80 |
| Total for 2026/27 | £5,686.00 plus £1,705.80 | £7,391.80 |
The first January is the one that surprises people. Jordan's bill is over £1,000 and none of it was collected at source, so HMRC also asks for a first payment on account towards 2027/28: half of £7,391.80, which is £3,695.90. By 31 January 2028 Jordan pays £7,391.80 + £3,695.90 = £11,087.70, then another £3,695.90 by 31 July 2028. Setting money aside from every payout avoids a shortfall. Class 2 National Insurance is treated as paid because the profit is above £7,105.
Allowable expenses for content creators
| Cost | Allowable? | Notes |
|---|---|---|
| Cameras, lighting, tripods, microphones, laptop | Yes | Expense under the cash basis. Reduce for personal use. |
| Editing, scheduling and other software | Yes | Where used for the business. |
| Props and costumes used only for content | Usually | Items that are not part of an everyday wardrobe. |
| Everyday clothing and lingerie you could wear normally | Generally no | HMRC disallows ordinary clothing even if it is only worn for work. |
| Hair, nails, make-up, cosmetic treatment, gym | Generally no | Treated as having a private purpose except in rare cases. |
| Collaborators, editors, chat assistants, management agencies | Yes | Payments to subcontractors and agency fees. |
| Phone and broadband | Business share | Work out a reasonable business proportion. |
| Home used for filming | Business share | A flat rate of £10, £18 or £26 a month, or a share of rent and bills based, for example, on rooms used only for work. |
| Travel to shoots | Yes | Mileage at 55p a mile for the first 10,000 business miles in 2026/27. |
| Paid promotion and website | Yes | Advertising and website costs are allowable. |
Our guide to self-employed expenses covers the general rules in more detail.
VAT for OnlyFans creators
You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12 months, or if you expect it to in the next 30 days alone. Add together every platform and every other business income stream when you check. How VAT applies to subscription platform income depends on the platform's terms and how payouts are described on your statements, so ask your accountant to review them before you reach the threshold. The Flat Rate Scheme is often not a saving for creators, because businesses that spend very little on goods pay the 16.5% limited cost rate.
If you have not declared past income
Plenty of creators start earning before they realise tax applies. HMRC says to tell it as soon as possible, and that if you contact it first it may consider your case more favourably. An accountant can work out the income and expenses for each year from your platform statements and bank records, calculate what is owed and make the disclosure for you. If you cannot pay in one go, HMRC can agree a Time to Pay arrangement to pay in instalments.
Key deadlines for 2026/27
- 5 October 2026: register for Self Assessment if you started earning in 2025/26.
- 31 January 2027: file your 2025/26 return online and pay what you owe.
- 6 April 2027: Making Tax Digital for Income Tax starts for sole traders whose self-employment and property income before expenses was over £30,000 in 2025/26 (it already applies above £50,000 from 2024/25). Quarterly updates are then due by 7 August, 7 November, 7 February and 7 May.
- 5 October 2027: register if you started in 2026/27.
- 31 January 2028: file and pay for 2026/27.
More on the new rules in our guide to MTD for Income Tax.
How GoForma helps
GoForma is an online accountancy practice working with clients across the UK by phone, video, email and WhatsApp, with no local offices. Our accountants are ACCA and AAT qualified, and FreeAgent accounting software is included in every package so platform payouts and receipts are recorded in one place.
- Start Sole Trader, £44 a month plus VAT with 50% off for the first 3 months: your Self Assessment return, a dedicated accountant and WhatsApp support.
- Start Sole Trader + MTD, £68 a month plus VAT, when quarterly updates apply.
- Operate Bundle, £128 a month plus VAT, for a limited company, including VAT returns, your director Self Assessment and a London business address.
Compare packages, see our work with other creatives, or book a free, confidential consultation.