The moment you start earning money as an influencer—whether it’s £50 from an affiliate link or £5,000 from a brand deal—you’ve officially stepped into the world of business. And like any business owner, you need to understand the financial basics that come with it.
In 2025, the influencer space is more competitive and regulated than ever before. Brands are investing more, and HMRC is watching more closely. That’s why having a strong financial foundation is no longer optional—it’s essential.
At JungleTax, our Accountants for Influencers work with creators across platforms like YouTube, TikTok, and Instagram, helping them stay compliant, tax-efficient, and financially secure. Whether you’re new to the game or just starting to earn consistently, these accounting tips will set you on the right path.
1. Register Your Income—Even if It’s “Just a Side Hustle”
One of the most common mistakes new influencers make is assuming small income doesn’t need to be reported. In reality, if you earn over £1,000 from self-employment in a tax year, HMRC expects you to register as self-employed and complete a Self Assessment.
Whether you’re receiving brand sponsorships, affiliate payouts, platform bonuses, or selling digital products, it all counts as taxable income.
Our Accountants for Influencers help you register correctly and avoid penalties by making sure your Self Assessment is accurate and submitted on time.
2. Open a Separate Business Bank Account
Keeping your business and personal finances together might seem convenient at first—but it quickly turns into chaos when tax season arrives. Having a separate account makes it easier to track income, calculate expenses, and show HMRC you’re running a professional operation.
This is especially important if you’re planning to transition into a limited company down the line—a move we cover in our blog on Should You Register as a Limited Company?
3. Track Every Income Source
As an influencer, your income may come from multiple platforms and streams—YouTube AdSense, TikTok Creator Fund, Instagram brand deals, affiliate links, subscriptions, or even your own eBooks.
It’s vital to track each stream separately. Not only will this help you measure which revenue streams are performing best, but it will also make filing taxes easier and more accurate.
Our team at JungleTax can help you set up automated tracking tools so every income source is properly recorded—and nothing gets lost in the chaos of content creation.
4. Understand What You Can (and Can’t) Claim as Expenses
One of the benefits of being a self-employed influencer is that you can claim allowable expenses to reduce your tax bill. This includes equipment (cameras, microphones, lighting), software subscriptions (editing tools, scheduling platforms), and even part of your home costs if you use it to film or edit content.
However, HMRC has strict guidelines on what qualifies. For example, personal clothing typically isn’t allowable—but wardrobe specifically purchased for branded content may be, if used exclusively for work.
Accountants for Influencers are essential in helping you navigate what’s claimable and what might raise red flags with HMRC.
5. Budget for Tax – It’s Not Automatically Deducted
Unlike traditional employment, taxes aren’t deducted from your payments as an influencer. That means it’s up to you to put money aside for tax season.
We recommend setting aside at least 25–30% of your income to cover Income Tax and National Insurance. If your income continues to grow, you may also need to consider VAT registration.
Don’t leave it to chance—let our accounting team build a personalised tax-saving strategy for you.
6. Keep Digital Records for Everything
In 2025, HMRC is leaning into Making Tax Digital, which means digital records will become mandatory for most self-employed individuals. This includes storing invoices, receipts, contracts, and bank statements in a digital format.
Using accounting software—or working with accountants who provide cloud-based solutions—ensures you’re ready for these changes and won’t be caught off guard.
At JungleTax, we offer full integration with tools like QuickBooks and Xero to keep everything streamlined and compliant.
7. Know When to Go Limited
While most influencers start as sole traders, once your income passes a certain threshold—typically around £30,000–£40,000 annually—it may be more tax-efficient to operate through a limited company.
A limited company can offer:
- Lower overall tax rates (with Corporation Tax and dividend payouts)
- Better financial protection (your personal assets are safer)
- Greater credibility with brands and sponsors
We provide complete support for influencers who want to incorporate and grow as a business—from formation to year-end accounts.
8. Invest in Professional Help Early
Influencer income can get complicated fast. You might have foreign payments, joint projects, multiple platforms, or collaborations involving IP rights. DIY accounting can only get you so far.
By working with experienced Accountants for Influencers, you avoid costly mistakes, stay ahead of compliance changes, and unlock more time to focus on content creation.
We don’t just file your taxes—we help you scale, plan ahead, and build long-term financial success in the creator economy.
Just a call or click away – Let’s Connect
Email: hello@jungletax.co.uk
Phone: 0333 880 7974
FAQs
- Do I need to register with HMRC even if I earn just a few hundred pounds?
Yes. If you earn more than £1,000 in a tax year from self-employment, you must register and file a Self Assessment. - Can I claim camera gear and software as expenses?
Yes, if they are used solely for your business. Our team can help you categorise and maximise allowable expenses. - When should I consider forming a limited company?
Once your annual income reaches around £30,000 or more, a limited company could reduce your tax liability and improve legal protection. - What happens if I don’t keep records?
Poor or missing records can result in fines, rejected claims, or overpaid tax. We recommend digital bookkeeping from day one. - How much should I set aside for taxes?
Around 25–30% of your income, depending on your earnings and expenses. We can provide precise projections based on your financial activity