How Content Creators Are Losing Thousands (& How to Stop It)
You’ve started making money online — whether it's from YouTube, TikTok, affiliate deals, brand partnerships or digital products. Maybe the income started as a side hustle, but now it’s growing. Fast.
But here’s the thing: even the most successful content creators make costly money mistakes that could’ve been avoided with a bit of planning.
If you’re creating content for a living (or want to), this post is for you. Let’s walk through the most common money mistakes content creators make — and how to avoid them so you can keep more of what you earn.
1. Mixing Personal and Business Finances
You might have started out using your personal bank account for everything. Fair enough. But as soon as you start earning money regularly, it’s time to separate things.
Why it matters:
Mixing personal and business spending makes it harder to track income, claim expenses, and get a clear picture of how your content business is actually performing. It also raises red flags with HMRC if you ever get audited.
What to do instead:
Open a dedicated business account and run all income and expenses through it. If you're not ready to set up a limited company just yet, at least have a separate current account for your content earnings.
2. Not Setting Money Aside for Tax
HMRC doesn’t care that your brand deal payment came in late, or that your ad revenue was lower this month. If you’re earning, you’re expected to pay tax.
The mistake? Spending it all and then panicking when the tax bill lands.
What to do instead:
Set aside around 20–30% of your income into a separate savings account as soon as the money hits. If you’re smashing it and earning more, speak to an accountant to see if you should be saving even more (especially if you're creeping into higher-rate tax).
3. Staying Sole Trader for Too Long
Starting as a sole trader is easy — no upfront costs and simple to register. But as your income grows, so does your tax bill.
What most creators don’t realise:
Once you start earning around £30k–£40k+ profit per year, you could be better off operating as a limited company. This can significantly reduce your tax bill through a mix of salary, dividends, and other clever strategies.
Still unsure?
A specialist accountant can compare the numbers for you and even handle the company formation.
4. Forgetting to Track Expenses
If you’re not keeping proper records of your business expenses, you’re probably overpaying tax. Simple as that.
Common claimable expenses for content creators include:
Camera gear, lighting, tripods
Editing software and apps
Home office costs
Travel for filming, content trips, or events
Phone and internet (proportionately)
Outsourced help (editors, VAs, etc.)
Pro tip:
Keep digital receipts, use an app to snap expenses on the go, and keep notes on why each expense was for the business.
5. Not Registering for VAT at the Right Time
In the UK, you must register for VAT once your taxable turnover exceeds £90,000 (as of 2025). But even before you hit that, there might be benefits to registering voluntarily.
Example:
If you buy lots of gear or pay other VAT-registered contractors, being VAT registered means you can claim that VAT back.
Heads up:
It’s a complex area — get advice before registering, as it can impact your pricing and how you work with brands.
6. Not Paying Yourself Properly
Many creators dip in and out of their business bank account as and when needed. While that’s common, it can cause problems down the line.
Why it matters:
If you're a limited company, you’ll need to take money out in the right way — typically through a mix of salary and dividends — to keep things tax-efficient and legal.
What to do instead:
Have a regular transfer (like a salary) each month. It keeps things clean and also helps with mortgage applications, loans, and building financial stability.
7. Doing It All Yourself
Trying to manage your own bookkeeping, taxes, Companies House filings, and VAT returns — on top of running your content business — is a fast track to burnout (or costly mistakes).
Let’s be honest:
The tax system isn’t designed for creators. Generalist accountants often don’t understand affiliate income, digital products, ad revenue splits, or working with international platforms.
What to do instead:
Work with an accountant who specialises in creators and online businesses. Someone who understands how you earn and how to help you legally keep more of it.
Final Thoughts: Take Control of Your Money
Being a content creator is a real business — and treating it like one is the key to building long-term success.
Avoid these money mistakes, get the right systems in place early, and you’ll not only stay out of trouble with HMRC… you’ll be in a better position to scale, invest, and grow your income year after year.
👋 Need Help From an Accountant Who Gets the Creator Space?
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.