How to Avoid Tax Evasion as a Content Creator
If you're making money online – whether it’s through brand deals, affiliate links or YouTube AdSense – HMRC will expect their slice.
That’s not to say you have to pay more tax than you need to. There are plenty of legal ways to reduce your tax bill. But if you don’t report your income properly or miss key deadlines, HMRC can hit you with fines… or worse.
Here’s how to avoid getting into trouble with the taxman – without overpaying a penny more than you should.
🚨 First things first: What actually is tax evasion?
Tax evasion is when someone deliberately avoids paying tax they owe. That includes:
Not declaring income (e.g. cash in hand or online payments)
Claiming false expenses
Not registering for tax at all
It's illegal. If HMRC finds out, it could lead to:
Penalties and fines
Interest charges
A criminal investigation (yes, really)
In extreme cases, prison
The worst bit? You could be doing something risky without even knowing it. So let’s break it down.
👀 Common mistakes content creators make (that HMRC hate)
A lot of content creators make the same errors when it comes to tax, like:
1. Not declaring gifted items
If a brand sends you something in exchange for a post, that’s usually classed as payment in kind. HMRC still sees it as taxable income – even if you never got any money in your bank account.
2. Mixing business and personal spending
Bought a camera for work? Great – claim it. Bought a camera and also use it to film your holiday? Now it’s not so simple. If you can’t clearly show it’s for your business, HMRC might disallow the claim.
3. Thinking you’re too small to register
If you earn more than £1,000 from self-employment (total, not profit), you need to register for Self Assessment and submit a tax return.
4. Forgetting about VAT
Once your business income hits £90,000 in a 12-month period, you must register for VAT. Even if you’re just getting paid via Stripe, PayPal or bank transfer – HMRC tracks it all.
🧠 How to stay on the safe side
Here’s what smart content creators do to stay out of trouble:
✅ Track every bit of income
This includes money from:
Brand deals
YouTube or TikTok payments
Affiliate sales
Subscriptions/Course sales
Gifted items (valued at market price)
✅ Keep receipts and records
You don’t need a fancy system – even Google Drive or a spreadsheet works. But the more organised you are, the easier it is if HMRC ever asks questions.
✅ Register for tax early
Don’t wait until the deadline! Register for Self Assessment as soon as you start earning online.
✅ Work with an accountant
Especially one who understands content creators and digital businesses (👋 that’s us). We’ll help you:
Avoid mistakes
Claim legit expenses
Pay less tax legally
💡 Tax avoidance vs tax evasion – what's the difference?
It’s easy to confuse the two. So let’s clear it up:
Tax avoidance
Legal
Using tax rules to your advantage (e.g. claiming expenses, paying through a Ltd company)
Example: Claiming for your phone bill if it’s used for work
Tax evasion
Illegal
Hiding income or lying to HMRC
Example: Not declaring affiliate income from Amazon
HMRC allows – and expects – you to use the system to pay less tax. Just don’t cross the line.
🚦 What happens if you’ve already messed up?
Don’t panic. If you’ve forgotten to register or missed some income, there are ways to fix it. The key thing is: tell HMRC before they find out.
There’s something called the Digital Disclosure Service. It lets you come clean, pay what you owe, and usually avoid serious penalties.
We can help guide you through that, too – no judgement.
📞 Final thoughts
Being a content creator is exciting – but once you start earning, you become a business. And businesses have tax responsibilities.
If you want to stay out of trouble and keep more of your money, get support early.
You don’t need to figure it all out alone.
I help UK-based content creators and online business owners like you:
Pay less tax
Stay compliant with HMRC
Set up limited companies
Structure income from brand deals, ad revenue, digital products and more
📞 Book your free call here — no pressure, just solid advice tailored to how you earn.