How Much Should You REALLY Be Saving for Your OnlyFans Tax Bill?

If you're making money on OnlyFans in the UK, it’s exciting to see the cash rolling in—but what about the taxman? Many creators focus on growing their earnings, only to be hit with an unexpected (and sometimes hefty) tax bill at the end of the year. Unlike a traditional 9-to-5 job where tax is automatically deducted from your salary, as an OnlyFans creator, you’re responsible for setting money aside and paying HMRC yourself. If you don’t plan ahead, you could end up owing more than you expect—or worse, facing fines for underpayment.

So, how much should you actually be saving to avoid a nasty surprise? Let’s break it down.

Understanding Your Tax Responsibilities

As an OnlyFans creator in the UK, you are considered self-employed. This means you need to:

1. Register with HMRC for Self Assessment if you're earning over £1,000 per tax year.

2. Pay Income Tax, National Insurance (NI), and potentially VAT (if applicable).

How Much Tax Will You Pay?

Income Tax Rates (2024/25):

• £0 - £12,570: 0% (Personal Allowance)

• £12,571 - £50,270: 20% (Basic Rate)

• £50,271 - £125,140: 40% (Higher Rate)

• Over £125,140: 45% (Additional Rate)

Note: The Personal Allowance of £12,570 is the amount you can earn before paying income tax. Earnings above this threshold are taxed at the rates specified above.

National Insurance Contributions (NICs):

• Class 2 NICs: If your profits exceed £12,570, you'll pay Class 2 NICs at £3.45 per week.

• Class 4 NICs: If your profits exceed £12,570, you'll also pay Class 4 NICs:

• 9% on earnings between £12,570 and £50,270

• 2% on earnings above £50,270

Note: NICs are contributions to the UK's social security system, funding benefits like the state pension and unemployment benefits.

VAT (if applicable):

If you earn over £85,000 per year, you must register for VAT and charge an extra 20% on your services.

Note: VAT is a consumption tax added to the sale of goods and services.

How Much Should You be Saving?

A safe estimate is to put aside 20-35% of your earnings for taxes, depending on your income level.

Here's a rough guide based on annual earnings:

Earnings Tax (%) Amount to Save

£15,000 10-15% £1,500-£2,250

£30,000 20-25% £6,000-£7,500

£50,000 25-30% £12,500-£15,000

£80,000 30-35% £24,000-£28,000

£100,000+ 35%+ £35,000+

Note: These percentages are estimates and can vary based on individual circumstances and allowable expenses.

Reduce Your Tax Bill with Deductions

You don't have to pay tax on everything you earn. Claiming allowable expenses can reduce your taxable income, meaning you owe less to HMRC. Some common deductions include:

• Costumes, lingerie & props (used for content creation)

• Makeup & beauty treatments (if necessary for work)

• Phone, internet & software subscriptions (OnlyFans, editing apps, etc.)

• Camera & lighting equipment

• Advertising & promotion costs

• Travel expenses (if business-related)

Note: Keep detailed records and receipts for all business-related expenses to substantiate your claims.

How to Stay on Top of Your Taxes

1. Track your earnings & expenses: Use a spreadsheet or accounting software.

2. Save for taxes monthly: Set up a separate savings account and transfer 20-35% of your income into it.

3. File your tax return on time: The Self Assessment deadline is 31 January each year.

4. Consider hiring an accountant: They can help you maximise deductions and stay compliant.

Don't get caught out by a surprise tax bill! As an OnlyFans creator in the UK, saving at least 20-35% of your income for tax is a smart move. Planning ahead and claiming the right deductions will help keep more money in your pocket while staying on the right side of HMRC.