Tax Debt Help for online content creators and OnlyFans models

Debt Advice for social media influencers and OnlyFans creators

Social media has opened up a whole new way of earning money, with more people than ever now turning to platforms such as TikTok, Instagram, YouTube, and OnlyFans to generate extra income.

While online content creation represents a great opportunity, creators do need to be aware of their HMRC tax obligations and how to deal with any debt which they may become liable for if they fail to pay HMRC the money they owe.

Understanding HMRC tax for online content creators and OnlyFans models

For tax purposes, earning money through social media influencing or OnlyFans modelling, works the same as any other form of self-employment.

Any income you make via online platforms such as OnlyFans and YouTube will be taxable at your usual rate and you will need to submit a tax return to HMRC each year to declare these earnings. Earning for tax purposes includes income from regular subscriptions on OnlyFans, ad revenue from platforms such as TikTok and Instagram, through to one-off tips or gifts.

Tax you need to be aware of as a social media content creator include personal tax such as income tax and National Insurance, and if you are operating as a limited company, you may also be liable to pay corporation tax.

What happens to social media tax debt if you cannot pay?

If you cannot pay the tax debt you have built up through your online content work – perhaps you have decided to close your channel or account, or maybe you are looking at scaling down how much content you upload to TikTok, Instagram, or OnlyFans and are expecting a drop in income – you may need to consider entering into a debt solution to help you deal with the money you owe.

In Scotland, there are a variety of options available to those in debt, regardless of how the money they owe has built up.

For those operating on a self-employed basis, a Trust Deed or a Debt Arrangement Scheme (DAS) could offer you the ability to repay your tax debts – plus any other unsecured debts you may have such as outstanding credit cards, personal loans, or bank overdrafts.

What happens to debts if my OnlyFans or social media activity is through a limited company?

If you have incorporated your social media or OnlyFans activities as a limited company, however, the tax debts will belong to the company rather than you as an individual.

While this does not make the situation any less serious, it does mean that you are not personally liable for repaying these debts if the company is not able to. If your company does not have the funds to repay the tax arrears, and you do not believe it will be in the position to generate the income needed in the near future, you may need to consider placing the company into an insolvent liquidation process known as a Creditors’ Voluntary Liquidation.

A CVL is administered by a licensed insolvency practitioner and will see the company being wound down in an orderly manner, with all outstanding debts and liabilities being taken care of in the process. So long as you have not personally guaranteed any of this borrowing, any debt which remains at the end of the liquidation process will be written off.

How Scotland Debt Solutions can help

If you are resident in Scotland, the team at Scotland Debt Solutions are here to provide you with the expert help and advice you need when facing unmanageable debt problems. We can talk you through our options and recommend the most appropriate course of action for you based on your individual circumstances.

Take the first step towards a debt-free future by contacting a member of our team today.