OnlyFans Tax UK: Self Assessment, National Insurance & VAT

Do you pay tax on OnlyFans in the UK?

Yes. OnlyFans does not employ creators: it pays them as independent businesses, so a UK creator is a self-employed sole trader unless they trade through a limited company. OnlyFans is run by Fenix International Limited, a company registered in England, but it does not operate PAYE on creator payouts: no Income Tax or National Insurance is taken off, and declaring the income is your job. Your taxable profit is what you earn from OnlyFans (and any other creator income) minus allowable expenses. For the general picture in other countries, see OnlyFans taxes.

Registering for Self Assessment

1. Check the £1,000 test. If your gross trading income in a tax year (6 April to 5 April) is over £1,000, you need to register.
2. Register as self-employed on GOV.UK with a Government Gateway account. Do it by 5 October after the end of the tax year in which you passed the threshold — earlier is better.
3. Wait for your UTR. HMRC sends your 10-digit Unique Taxpayer Reference by post, which can take a couple of weeks.
4. File your return online by 31 January (paper returns are due by 31 October).

Your OnlyFans “tax ID number”: when OnlyFans asks UK creators for a tax identification number during payout setup, UK accountants report that the National Insurance number is what is normally entered. Your UTR is a different number used for Self Assessment; if the form specifically asks for a UTR, give that.

The £1,000 trading allowance

The first £1,000 of trading income each tax year is tax-free under the trading allowance, and if your gross income stays at or below £1,000 you generally do not need to tell HMRC about it. The test is on income, not profit: £1,500 of OnlyFans income with £800 of costs is still over the limit.

Above £1,000 you choose one of two options on your return: deduct the flat £1,000 allowance, or deduct your actual allowable expenses — not both. If your real costs are higher than £1,000, claiming expenses is usually better.

Income Tax and National Insurance

Income Tax is charged on your total income, including any job. In England, Wales and Northern Ireland the personal allowance is £12,570; the basic rate of 20% applies up to £50,270, the higher rate of 40% above that, and the additional rate of 45% above £125,140 (the personal allowance is also reduced for incomes over £100,000). Scotland sets its own bands and rates for earned income.

National Insurance for the self-employed is paid through Self Assessment:

Since 6 April 2024 nobody has to pay Class 2. If your profits are at or above the small profits threshold you get a qualifying year for the State Pension without paying it; below the threshold you can pay voluntary Class 2 to protect your record, which is much cheaper than Class 3.

Key dates and payments on account

Payments on account are advance payments towards next year’s bill. They apply when your last Self Assessment bill was over £1,000, unless at least 80% of your tax was already collected at source (for example through PAYE on a job). Each one is normally half of the previous year’s bill. This is why a creator’s first January bill can be about 150% of a year’s tax: the full balance plus the first advance. Setting aside a share of every payout from the start avoids the shock.

Allowable expenses and records

Costs are allowable when they are incurred wholly and exclusively for your business. For creators that typically includes:

• Cameras, lighting, microphones and editing software (the business share if also used personally).
• The business share of your phone and internet.
• Props, costumes and sets used only for content — everyday clothing, general beauty and grooming are usually not allowed.
• Advertising, paid tools, agency or management fees, and accountant’s fees.
• Working from home: a share of household costs, or HMRC’s simplified flat rate based on hours worked at home each month.

Keep your monthly OnlyFans statements, bank records and receipts for at least 5 years after the 31 January filing deadline of the year they relate to. Payouts arrive in US dollars and are converted by your bank, so use the pounds actually received and keep the statements that show it. Accountants differ on whether to record the gross amount fans paid and deduct OnlyFans’ 20% fee, or just the 80% you receive: profit comes out the same, but the choice affects turnover tests such as the trading allowance, Making Tax Digital and VAT, so agree one approach with your accountant. How the 80/20 split works is explained in how much OnlyFans pays.

Making Tax Digital for Income Tax

Making Tax Digital (MTD) for Income Tax started on 6 April 2026 for sole traders and landlords whose qualifying income (gross self-employment plus property income) was over £50,000 in their 2024/25 return. The threshold falls to £30,000 from April 2027 and £20,000 from April 2028. If you are in, you must keep digital records in MTD-compatible software and send HMRC quarterly updates, plus a final declaration by 31 January. HMRC writes to people it expects to be affected, but checking is your responsibility.

VAT and OnlyFans

You must register for VAT if your taxable turnover goes over £90,000 in any rolling 12-month period, or you expect it to within the next 30 days. Below that, registration is voluntary. Two points are specific to OnlyFans:

• OnlyFans charges VAT to fans. Its Terms state that fan payments are exclusive of VAT, which is added at checkout where it applies. In 2023 the EU Court of Justice, in a case referred from the UK (Fenix International v HMRC, C-695/20), confirmed that the platform is liable for VAT on the full amount fans pay, not only on its 20% fee.
• Creators supply their services to OnlyFans, not directly to fans. A VAT-registered UK creator therefore accounts for VAT on what they supply to Fenix, and OnlyFans provides VAT documents for this in the creator’s account. How the VAT amount is paid between OnlyFans and the creator is set out in the Terms of Use for Creators, and accountants describe it in different ways — read the current terms and take advice before you register.