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“Do YouTubers pay tax?” and other weird questions

October 22, 2025

“Do YouTubers pay tax?” and other weird questions

By Yisroel Sulzbacher ACCA, Accounts Senior

Spoiler: yes, YouTubers pay tax.

You’d be surprised how often I get asked questions like this, usually from people in industries that don’t fit the traditional idea of “running a business.”

If you own a café or a barbershop, the answer is straightforward: “Yes, you pay tax.”

But what about when your entire business exists online or in an app?

Think about YouTubers, podcasters, Twitch streamers, or TikTok and Instagram influencers making money through ads, sponsorships or brand deals.

Or gig economy workers like Uber drivers, Deliveroo riders and JustEat couriers.

What about opera singers, performers, comedians (*cough cough* Jimmy Carr) and artists?

All are technically self-employed, all earning an income, and all needing to deal with the same tax responsibilities as everyone else.

The rules don’t change just because your business model does and that’s where a good accountant comes in.

When do you need an accountant?

Once you’ve made over £1,000 in a tax year (your trading allowance), HM Revenue & Customs (HMRC) expects you to declare it.

At that point, you need to register as self-employed and file a Self-Assessment tax return each year.

Whether you’re getting ad revenue from YouTube, tips on Twitch, sponsorship deals on Instagram, or delivery fees through Uber, that’s taxable income.

That’s usually when people start looking for an accountant to fill in forms and help make sense of the numbers, expenses and rules.

However, if you give your accountant plenty of notice (i.e. engage them before you hit the trading allowance) they could help you claim legitimate business costs (like equipment, travel, and software) and guide you on the right business structure to use.

Will HMRC know you make money on YouTube, Instagram or TikTok?

Short answer: yes.

HMRC has become much more sophisticated at tracking digital income.

Platforms share data, banks flag unusual deposits, and HMRC runs algorithms designed to spot undeclared earnings.

If you’ve received payments through Google AdSense, PayPal, Patreon, or any other monetisation platform, there’s a record somewhere and HMRC can access it.

So, if you’ve been quietly earning online and hoping it would go unnoticed… it’s probably time for a chat with an accountant before HMRC comes knocking.

Why accounting is different for online personalities

For online creators, no two days (or income sources) look the same.

One week, you’re doing a paid brand collaboration, the next, you’re earning royalties or affiliate commissions.

It’s messy and that’s before you add tax deadlines into the mix.

Your accountant’s job is to bring clarity to that chaos. They should help you:

  • Track income from multiple platforms
  • Manage international payments and currency conversion
  • Understand VAT rules if you’re earning over the threshold
  • Plan for Corporation Tax or Income Tax depending on your structure
  • Keep proper records for your expenses (no, your new gaming chair isn’t always 100 per cent deductible)

The digital economy moves fast, but tax law hasn’t caught up yet, which is why working with someone who understands both worlds can make life much easier.

Which accountant should a YouTuber or influencer use?

You need someone who gets your world.

Traditional accountants are brilliant with bricks-and-mortar businesses, but the digital economy comes with quirks like multiple income streams, international payments, brand partnerships, and sometimes even cryptocurrency.

Look for an accountant who has experience with creatives, influencers or freelancers.

They’ll understand the jargon, know how your income flows, and be able to structure things efficiently from setting up as a sole trader or limited company to managing your tax-deductible expenses.

An accountant who knows your industry will also spot opportunities you might miss, like claiming for home office costs, editing software, or travel to events.

You can read some of our testimonials from clients like you, here, including from BAFTA award winners.

Alternatively, if you’re working in an industry where you think you might need an accountant that knows your business, get in touch!

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