A Guide from an Influencer Accountant
If you’re a UK influencer, YouTuber, or OnlyFans creator, you might be wondering: Do I need to register for VAT?
With influencer earnings coming from brand deals, ad revenue, subscriptions, and digital products, VAT rules can be confusing. But failing to register on time could mean penalties from HMRC.
As a specialist influencer accountant, I’ll break down everything you need to know about VAT, including who needs to register, when to charge VAT, and how to avoid overpaying tax.
1. What is VAT and How Does It Work?
VAT (Value Added Tax) is a 20% tax added to most goods and services in the UK. If you’re VAT-registered, you must charge VAT on sales and submit quarterly VAT returns to HMRC.
However, influencers often have income from different sources, so VAT rules vary depending on how you earn money.
2. Do Influencers Need to Register for VAT?
You must register for VAT if:
✅ Your total earnings exceed £90,000 in a 12-month period (2024/25 VAT threshold).
✅ You expect to earn over £90,000 in the next 30 days (e.g., a big brand deal).
✅ You sell digital products to EU customers (this triggers VAT rules under OSS).
✅ You voluntarily register to reclaim VAT on business expenses.
💡 If your income is under £90,000, VAT registration is optional. But if you’re close to the threshold, it’s time to plan ahead!
3. What Influencer Income is VAT-Taxable?
💰 Income that may require VAT registration:
✔️ Brand deals & sponsorships (if invoiced to UK companies)
✔️ Selling digital products (courses, e-books, presets)
✔️ Coaching & consulting services
✔️ OnlyFans subscription fees (but OnlyFans will collect this VAT on your behal)
✔️ TikTok ad revenue (depends on platform rules)
🚫 Income that is usually VAT-exempt:
❌ Ad revenue from Google (YouTube AdSense is outside UK VAT)
❌ Payments from non-UK brands (VAT rules depend on location)
💡 Not sure if VAT applies to your income? Speak to an influencer accountant for clarity!
4. Should You Register for VAT Voluntarily?
Even if you’re under £90,000, some influencers choose to register for VAT voluntarily to:
✅ Reclaim VAT on expenses (cameras, software, travel, etc.)
✅ Look more professional to brands and agencies
✅ Avoid hitting the threshold unexpectedly
⚠️ Downside: You must charge VAT on services, making your rates 20% higher for UK clients. This could make you less competitive.
5. What Happens If You Ignore VAT Rules?
🚨 If you exceed £90,000 and don’t register, HMRC will:
- Backdate your VAT registration
- Charge penalties and interest on unpaid VAT
- Possibly investigate your accounts
💡 Best practice: Track your income monthly to avoid surprises.
6. The VAT Flat Rate Scheme – A Simplified Option for Influencers
If you register for VAT, you might benefit from the Flat Rate Scheme:
- You charge 20% VAT but only pay HMRC a lower fixed percentage (often 12% for influencers).
- No need to track VAT on every expense (simpler bookkeeping).
- Ideal for influencers with few VAT-deductible expenses.
💡 An influencer accountant can help you decide if this scheme saves you money!
7. Next Steps: Should You Register for VAT?
👉 Register for VAT if:
✅ You earn over £90,000 per year
✅ You work with mainly UK brands
✅ You want to reclaim VAT on expenses
Need Help with VAT? Work with an Influencer Accountant! 🚀
VAT can be complicated for influencers, but getting it right saves money and avoids HMRC fines.
📩 Need expert advice? Contact us today for a free VAT consultation!