As a UK Twitch streamer, every pound you spend on your streaming business can potentially reduce your tax bill. But many streamers leave money on the table by not claiming all their allowable expenses.
At Simplr Accounting, we specialise in helping UK Twitch streamers claim every allowable expense and reduce their tax bills legally. In this guide, we’ll walk you through every expense category you can claim as a Twitch streamer in 2025.
How Do Tax Deductions Work for Twitch Streamers?
When you’re self-employed as a Twitch streamer, you pay tax on your profit, not your revenue.
Profit = Revenue – Allowable Expenses
Every legitimate business expense you claim reduces your taxable profit, which means you pay less Income Tax and National Insurance.
For example:
- You earn £30,000 from Twitch
- You have £8,000 in allowable expenses
- Your taxable profit is £22,000
- You only pay tax on the £22,000
The key is understanding what HMRC considers an “allowable expense” and keeping proper records.
What Makes an Expense “Allowable”?
HMRC allows you to deduct expenses that are:
Wholly and exclusively for your streaming business
Necessary for running your channel
Not capital expenditure (though capital allowances may apply)
If an expense has both business and personal use, you can only claim the business portion.
Gaming and Streaming Equipment
Gaming PC or Laptop – The cost of computers used for streaming and gaming
Gaming Console – PlayStation, Xbox, or Nintendo consoles used for streaming content
Graphics Card – GPU upgrades for better streaming performance
Monitors – Screens used for gaming and monitoring your stream
Keyboard and Mouse – Gaming peripherals for streaming
Controllers – Game controllers and accessories
Capture Cards – For console streaming and dual PC setups
Streaming Deck – Elgato Stream Deck or similar control panels
For equipment over £1,000, you claim capital allowances rather than expensing the full amount immediately. We can advise on the most tax-efficient approach.
Audio and Visual Equipment
Microphone – XLR microphones, USB mics, and audio interfaces
Webcam – Cameras for facecam streaming
Lighting Equipment – Ring lights, key lights, LED panels
Green Screen – Backgrounds for chroma keying
Boom Arms and Mounts – Microphone stands and camera mounts
Cables and Adapters – All necessary connectivity equipment
Software and Subscriptions
Streaming Software – OBS plugins, Streamlabs Pro, XSplit
Overlays and Alerts – StreamElements, Nerd or Die, OWN3D
Music Licensing – Epidemic Sound, Pretzel Rocks, Monstercat
Graphics Software – Adobe Creative Cloud, Canva Pro
Emote and Badge Design – Custom emotes for subscribers
VPN Services – For online security and accessing games
Cloud Storage – Google Drive, Dropbox for VOD backups
Discord Nitro – For community management
Bot Services – StreamElements, Nightbot premium features
Internet and Communications
Business Broadband – Internet costs for streaming (business portion)
Mobile Phone – Phone bills if used for streaming business
Upgraded Internet – Costs of faster speeds needed for streaming
Games and Content
Video Games – Games purchased specifically for streaming content
In-Game Purchases – Cosmetics, battle passes for stream content
Early Access Games – Pre-release games for exclusive content
Game Subscriptions – Xbox Game Pass, PlayStation Plus, EA Play
Platform Fees – Steam, Epic Games, console digital purchases
Note: Games must be for streaming purposes, not personal entertainment. Keep records of which games you’ve streamed.
Home Office and Workspace
Home Office Allowance – Simplified expenses: £6/week (£312/year) for 25-50 hours, or actual costs
Furniture – Gaming chair, desk for streaming setup
Lighting – Room lighting for streaming space
Decorations – Posters, LED strips, set dressing for background
Soundproofing – Acoustic panels, foam for better audio
Storage – Shelving for equipment and merchandise
For actual costs, you can claim a portion of rent, mortgage interest, utilities, council tax, and home insurance based on the space and time used for streaming.
Marketing and Promotion
Social Media Advertising – Facebook, Instagram, Twitter ads
YouTube Promotion – Ads for stream highlights
Graphic Design – Logos, banners, thumbnails
Website Costs – Domain, hosting for streaming brand
Email Marketing – Mailchimp, ConvertKit for newsletters
Promotional Giveaways – Prizes for stream contests
Professional Services
Accountancy Fees – Costs of tax returns and bookkeeping
Legal Advice – Contract reviews for sponsorships
Branding Services – Professional logo and identity design
Video Editing Services – Outsourced editing for highlights
Moderation Services – Paid moderators for chat
Travel and Events
Gaming Conventions – Travel, accommodation, tickets for TwitchCon, etc.
Meetups and Collaborations – Travel costs to stream with other creators
Business Mileage – 45p per mile for first 10,000 miles, 25p thereafter
Accommodation – Hotels for streaming events
Meals – Business meals during overnight trips
Banking and Finance
Bank Charges – Business account fees and transaction costs
PayPal Fees – Transaction fees on donations
Currency Conversion – Fees on international payments
Professional Indemnity Insurance – If required for brand deals
Clothing and Appearance
Branded Clothing – Merchandise or clothing with your branding worn on stream
Costumes – Specific outfits for themed streams
Hair and Makeup – If specifically for stream appearances
Note: Everyday clothing cannot be claimed, even if you wear it on stream.
Education and Training
Online Courses – Streaming tutorials, gaming coaching
Books and Guides – Strategy guides, business books
Industry Publications – Gaming news subscriptions
Coaching Services – Gaming coaches to improve content
Charity and Donations
Charity Stream Donations – Only if donated directly through Gift Aid
Fundraising Costs – Costs of organizing charity streams
What You CANNOT Claim
❌ Personal clothing and grooming
❌ Games bought purely for personal entertainment
❌ Gym memberships (even if you stream fitness content)
❌ Personal mobile phones (unless clearly for business)
❌ Entertaining yourself or friends
❌ Commuting to a regular job
❌ Personal subscriptions (Netflix, personal Spotify)
How to Keep Records
To claim expenses, you need:
Receipts and invoices for all purchases
Bank statements showing payments
Records of what was purchased and why
Mileage logs for business travel
Calculations for home office use
Keep records for at least 5 years after the 31 January tax deadline.
Capital Allowances for Expensive Equipment
For single items over £1,000 (like a gaming PC), you claim capital allowances:
Annual Investment Allowance (AIA) – 100% deduction up to £1 million per year
Writing Down Allowance – 18% per year if over AIA limit
This means you can usually claim the full cost of equipment in the year you buy it.
VAT Considerations
Once you’re VAT registered (turnover over £90,000), you can reclaim VAT on business purchases. This adds another 20% saving on eligible expenses.
How Simplr Accounting Can Help
We help Twitch streamers:
✅ Identify every allowable expense
✅ Calculate home office deductions
✅ Claim capital allowances correctly
✅ Keep proper records throughout the year
✅ Maximise tax relief legally
✅ Prepare bulletproof tax returns
Our fixed monthly fees include unlimited support, so you can ask us about any expense anytime via WhatsApp.
Final Thoughts
Claiming all your allowable expenses can save you thousands in tax each year. But you need to keep good records and understand what HMRC allows.
If you’re unsure about any expense, get in touch. We’ll help you claim everything you’re entitled to while staying fully compliant.