Do YouTubers Pay Tax in the UK?
A Simple Guide for Creators Making Money Online
Let’s keep this easy: if you're a YouTuber earning money from your channel, you probably need to pay tax in the UK.
Yep—even if it’s just a side hustle or you’re not earning much yet. HMRC still wants a slice.
Whether you're making ad revenue, doing brand deals, or selling your own courses—this post will walk you through what you need to know about tax as a UK-based YouTuber.
Do YouTubers Have to Pay Tax in the UK?
Short answer: Yes.
If you’re making money, even a few hundred quid a month, that’s taxable income.
It doesn’t matter if:
You haven’t set up a business
You’re not registered as self-employed (yet)
You only do it part-time
If you’re earning, HMRC sees it as income. And that means you’ve got to report it.
When Do I Need to Tell HMRC?
If you make over £1,000 from YouTube in a tax year, you must register with HMRC and file a Self Assessment tax return.
That £1,000 threshold is called the Trading Allowance. If you stay under that, you don’t need to tell HMRC (unless you're already self-employed).
But once you pass it—even by £1—you’re expected to register and sort your taxes.
How Are YouTubers Taxed?
There are two main ways you might be taxed, depending on how you’ve set things up:
1. As a Sole Trader (Self-Employed)
Most YouTubers start here. You report your income and expenses on a Self Assessment tax return.
You’ll pay:
Income Tax (on your profit, after expenses)
National Insurance (Class 2 and Class 4, if you’re over certain thresholds)
2. Through a Limited Company
Some creators set up a limited company when their earnings grow. You can pay yourself a mix of salary and dividends, which can be more tax efficient—but it’s also more admin.
What Income Counts as Taxable?
Basically, all of it. Here's what HMRC will want to know about:
💰 YouTube Ad Revenue (from AdSense)
📦 Brand Deals & Sponsorships
👕 Merch Sales
🧠 Online Courses or Coaching
💼 Affiliate Marketing
🎁 Free Gifts (yes—some freebies count as taxable income if they’re part of a deal)
Can I Claim Expenses as a YouTuber?
Absolutely—and you should! You only pay tax on your profit, not your total income.
Some common expenses:
Camera, mic, lighting, laptop
Editing software (like Final Cut Pro or Adobe)
Home office portion of rent or bills
Internet costs
Travel to filming locations or events
Accountant fees (yep, that’s tax deductible too)
What Happens if I Don’t Pay Tax?
Honestly—HMRC will catch up eventually.
They’ve got smart systems to flag online income, especially from platforms like YouTube, Etsy, TikTok, and Instagram.
If you get caught not declaring income, you could face:
Fines
Backdated tax
Interest charges
In extreme cases, legal action
Better to get ahead of it.
What If I’ve Already Missed a Tax Return?
Don’t panic—just act fast. You can still register late and file. HMRC is usually much more lenient if you reach out first, rather than waiting for them to chase you.
Should I Become a Limited Company as a YouTuber?
Not straight away.
A limited company can save tax once you're earning over £50–60k profit, but there’s more paperwork and responsibility involved.
For most YouTubers starting out, staying as a sole trader is simpler and gives you everything you need.
✅ Quick Recap:
YouTubers do pay tax in the UK
You must register if you earn over £1,000
You can claim expenses to reduce your tax bill
Ad revenue, sponsorships, and merch all count as income
Don’t leave it too late—HMRC’s watching
Need Help With Your YouTube Taxes?
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.