“Should I pay tax on my OnlyFans earnings?” is a question that we were asked a LOT in our Facebook community (before Facebook deleted it!), and therefore it’s a topic that we understand many creators are unsure about. Whether you’re selling content on OnlyFans, AdmireMe, Snapchat, or any other platform, you really need to understand your tax obligations from the moment you start your account. So is there any easy answer?
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Unfortunately, when it comes to paying tax on your OnlyFans earnings, there really is no easy answer! This is because tax is by nature, unique to the jurisdiction in which you live in – however, one thing that we can say, is that you almost certainly WILL be expected to pay some. How much, however, can really vary.
We will discuss America further down the article, but firstly let’s look at the UK, where a lot of creators are based, since it’s a little more simple to sum up the UK as a whole. When you are selling something (anything) in the UK, to form part of your income, then you will pay income tax on it. As a creator on OnlyFans, AdmireMe, etc, you will be considered to be ‘self employed’, and therefore you will be expected to pay tax just as if you were selling another service e.g. as if you were a plumber!
As of April 2021, earnings in the UK are untaxed up to £12,570, which means that you will pay no income tax on all earnings up to that number. Your ‘income’ comprises of all forms of income that you have, not just your OnlyFans earnings. So, if you have a job that pays say £20,000, and then you earn an extra £10,000 from OnlyFans, your total income would be £30,000, and you will therefore be expected to pay tax on the amount above £12,570 (therefore you’ll pay tax on the additional £17,430).
How much would you have to pay? Any earnings after your first £12,570 and up to £37,700, will be taxed at 20%, and this is the most common bracket for OnlyFans creators. Anything you earn that takes you over £37,700 in total income, will then be taxed at 40%.
To simplify this, if you have a job that pays you £12,570 or more per year, then you will probably owe 20% in tax on your OnlyFans earnings. If you’re doing very well and earning more than £37,700, you’ll owe 20% on your earnings between £12,570 and £37,700… then 40% on any extra income you make on top of that.
So what about AMERICAN creators?
If you live in America and are wondering how much tax you need to pay on your OnlyFans earnings (or earnings from selling premium content anywhere else), then it is somewhat more complicated since different states can set different tax laws, and so there could be up to 50 different answers to this question!
The best advice for any American content creators, would be to contact a local accountant in your area, who will be able to inform you of your tax requirements based on your local tax legislation. One thing is for sure though:
AMERICAN CONTENT CREATORS ARE EXPECTED TO PAY TAX, NO MATTER WHERE THEY LIVE, SO DON’T ASSUME YOU ARE UNAFFECTED BY TAX!
As a content creator in America, you are considered to be self-employed, selling a product or service much in the same way as any other freelancer etc. One of the biggest mistakes content creators make (or self-employed people of all kinds), is to forget about tax, spend all of their earnings, and then get slapped with a bill for $xxxx at the end of the tax year! If you’ve spent all of your money, how would you pay your tax bill when it arrives?
That is why we strongly encourage all creators to find out their tax obligations at the start of their journey (OR NOW IF YOU HAVEN’T ALREADY), so that you will be constantly aware how much of your earnings you need to set aside for tax, as the money comes in.
DISCLAIMER – Any figures mentioned in this article shouldn’t be used as the sole basis on which you plan your tax obligations. This is not so much tax advice for OnlyFans creators, but more so a reminder to creators that OnlyFans earnings ARE taxed. Regardless of where you of from, it is important that you check with your LOCAL tax authority – remember it is your responsibility to know how much tax you will owe, and naivety to local legislation is not an excuse that the tax man will care about!
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