TikTok Creator Rewards: Do You Need to Pay VAT in the UK?
If you're a TikTok creator in the UK and you've started making money through the TikTok Creator Rewards Program — first of all, congrats! That’s a big milestone. But before you blow the lot on your next camera or ring light, there’s one thing you really need to get your head around:
VAT.
It’s not sexy. But if you’re earning money from TikTok, it’s something you need to understand — especially if you want to avoid any nasty tax surprises later down the line.
So, let’s break it down.
💰 What is the TikTok Creator Rewards Program?
This is TikTok’s way of saying "thanks" when your videos perform well. Once you’re eligible (based on views, engagement, and following), TikTok pays you cash directly into your account. It’s not sponsorship, it’s not brand deals — it’s TikTok itself paying you for your content.
But here’s the key bit: this money counts as income. So it’s taxable.
⚠️ Do I need to pay VAT on TikTok earnings?
It depends.
If your total income from all your self-employed work (TikTok, YouTube, Insta, brand deals, coaching, merch, digital products — all of it) goes over £90,000 in a 12-month rolling period, then yes — you’ll need to register for VAT.
And once you’re VAT registered, you’ll have to charge VAT on UK-based income, and you might also have to account for reverse charge VAT on some income from abroad.
Now here’s where it gets a bit murky...
🌍 TikTok pays you from outside the UK — does that change anything?
Yep. TikTok’s Creator Rewards payments come from ByteDance, which is based outside the UK (usually Ireland or Singapore depending on your settings).
This means the money you’re getting is a ‘business-to-business’ (B2B) service from outside the UK. If you're VAT registered, this could trigger something called the reverse charge mechanism.
In short:
You won’t charge TikTok VAT.
But you might have to account for VAT as if you did — and then reclaim it in the same return.
It sounds mad, but this is how the UK handles services from abroad.
If you’re not VAT registered yet, then none of this applies — but keep an eye on that income level!
🧾 What if I’m under the VAT threshold?
If you’re not earning £90k+ per year from all your content creation work, then you don’t have to register for VAT.
But... you can choose to register voluntarily.
Sometimes it makes sense — for example, if you spend loads on gear or software and want to claim the VAT back. But for most TikTokers starting out, you’re probably fine sticking to the basic self-assessment tax return — just make sure you’re declaring your income correctly.
📌 Quick tips for TikTok creators
Track everything. Keep a log of TikTok earnings — dates, amounts, who paid you, and what for.
Keep your eye on the VAT threshold. It’s a rolling 12-month total, not April–April.
If you’re close to £90k, speak to an accountant. A proper plan could save you thousands.
Don’t forget other income. TikTok might just be one part of your content income. HMRC sees it all as one big pot.
🧠 Final thoughts
TikTok’s Creator Rewards Program is a great way to turn your creativity into cash. But if you're growing fast, it’s easy to forget the boring stuff like VAT — until it's too late.
The good news? With the right setup, VAT doesn’t have to be a headache.
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.