A relatively new profession, YouTubers and Bloggers (also known as Vloggers) are earning income from many sources including royalties, advertising and appearance fees, our accountancy services ensure you will pay the right levels of tax.
The first important question – are you employed or self- employed? In our experience most people in this field are self employed and working from home.
Our tax experts will determine if your income from self employment should be referred to as trading income. We manage your account so that you will pay any tax due twice a year through the Self Assessment system.
If you are employed as a Blogger or YouTuber our tax experts will ensure the correct tax is deducted at source by your employer.
Your dedicated tax accountant will help you if you are working on multiple contracts in the UK and abroad. Our experts will assist you with both optimising your tax so you only pay what is due and are fully compliant with the law. Nobody wants an HMRC investigation but with the complexity of UK tax law it is very easy to get yourself in to trouble and we aim to give our clients piece of mind.
‘I first heard about Axia due to it’s specialised services in international tax planning. As my channel is International, Axia matched my need perfectly. It was made even better with the addition of the office locations, which made communication with Andy and his team even easier for me.’
Choose from our 3 accounting packages for YouTubers and Bloggers
Our 3 fixed price accounting packages offer something to suit everyone whether you’re just starting out or have multiple income streams earned across continents.
Working as a YouTuber or Blogger income can come from a variety of sources including royalties from YouTube, advertising & product endorsements and appearance fees – all must be accounted for.
HMRC must ensure people are correctly classified as being employed or self-employed. The exact rules to determine the position are defined by HMRC and our tax expert will assist you in correctly registering.
In exceptional circumstances, some YouTubers may qualify for what is termed Reserved Trading Income Status (previously known as Reserved Schedule D Status). They will continue to be taxed on income as if they were self-employed so long as tax liabilities are properly discharged and there is no break in their employment.
What expenses can a YouTuber or Blogger claim?
Expenses are defined as being necessary for the operation of your business. We have provided a list of typical tax deductions available for musicians:
- Marketing costs – Online adverts.
- Equipment – Cameras, laptops and any special software such as Adobe Creative Suite.
- Computer and camera insurance – Protect your essential tools.
- Clothing – If this is an integral part of your image.
- Recording fees – Studio rental.
- Music – Backing tracks for your posts.
- Travel expenses – Train tickets, petrol costs.
- Accommodation – Hotels during overnight appearances.
- Agents fees – helping you to find work.
If you are self-employed and work from home then we can advise you household costs which can be offset including heating, using a room as an office and phone services.
The United Kingdom has Double Taxation Agreements with many countries. It is your responsibility to minimise the tax paid in the other country and we can help you do this. If a tax can be avoided or reduced, and the taxpayer does not take action to organise this, HMRC can deny the relief and it is our job to ensure this doesn’t happen.
If a country is not covered by the Double Taxation Agreement we will advise you to ensure you are compliant and therefore don’t pay more than you need.
What are the top mistakes YouTubers & Bloggers make on their tax returns?
A common error is to show income after deduction of agent’s commission and VAT. Gross income, before deductions, should always be shown, with a separate claim being made for the commission and VAT costs.
Last year a new problem cropped up, in the form of the new cash basis, described by HMRC as simplified expenses. Opting for this denies Vloggers and Bloggers the ability to set losses off against other income, and limits certain claims to expenses. The earnings basis where income is declared as earned, rather than as received, and where expenses are declared as incurred allows more flexibility.
To find out more about how The Showbiz Accountant could help your business, call Keith Rennie (Managing Partner) in the UK on: 0203 384 2224.
To schedule a call or email a question please click here.
We look forward to hearing from you. Please read our Vlogger related Blogs below for more information: