How UK YouTubers Get Taxed, And What You Can Actually Claim

So your YouTube channel’s finally making money, maybe it started with AdSense, or you just landed your first brand deal. Either way, it’s not just a hobby anymore. You’re getting paid to create, which means one thing…

Yep tax.

Let’s make tax one less thing to stress about.

TL;DR: What You Need to Know

• If you earn £1,000+ per year, register with HMRC as self-employed

• You only pay tax on profit (income minus business expenses)

• First £12,570 is tax-free, then it’s taxed in bands (20%, 40%, 45%)

• Expenses like cameras, editing software, props, and part of your rent are deductible

• YouTube gifts and freebies may count as income if promoted

What Income Is Taxable?

Any money or value received for your YouTube activity is taxable:

Rule: If you received value and there’s a business link it’s income.

How Do YouTubers Get Paid?

AdSense: Paid monthly (once you pass £60), directly to your bank

• Sponsorships: Brands pay you via PayPal, Stripe, or bank transfer (often invoiced)

• Affiliates: Via affiliate platforms or direct brand pay-outs

• Fan Support: Memberships and Super Chats included in your AdSense earnings

Keep all records and match payments to platforms monthly.

When Do You Need to Register?

If you earn more than £1,000/year, you must:

• Register with HMRC

• File a Self-Assessment every year

• Keep income/expense records

Register: by 5 October
File return + pay: by 31 January (for the previous tax year)

Forgot to Register?

You’re not alone. If you missed a tax year:

• You can register and file late

• HMRC prefers honesty - penalties are lighter when you own it

• Get advice quickly (especially if you’ve received over £1k in any previous year)

Tax Breakdown (2025-26 Rates)

Example:
Earning £40,000?
You’ll pay tax on £27,430 at 20% → £5,486, plus NI

What You Can Deduct as Expenses

You’re taxed on profit, so claim all business-related costs:

For shared items: estimate % used for YouTube only.

What About PR Gifts?

• Promoted? Count it as income. Declare market value.

• Unsolicited + unused? Might not be taxable, but keep proof.

Keep a log: date, brand, item, value, whether it was posted.

What If You Earn International Income?

• Yes you still pay UK tax on global YouTube income (e.g., US ad revenue)

• If you’ve already been taxed abroad, you may claim a Foreign Tax Credit

• Keep AdSense summaries and any tax documents from abroad

Should You Set Up a Limited Company?

If you’re earning over £30k–£50k in profit:

• You might pay less tax via Corporation Tax + dividends

• You gain limited liability

• You’ll look more professional to bigger sponsors

Book a 15-min call if you want to run the numbers.

Mistakes to Avoid

• Mixing business and personal bank accounts

• Claiming personal expenses like clothes or takeaways

• Ignoring PR gifts

• Leaving your tax return until the deadline

• Guessing your tax instead of tracking it

Creator’s Tax Checklist

• Register with HMRC

• Track income from all sources

• Save 25–30% of income for tax

• Log all expenses with receipts

• File by 31 January

• Ask for help if confused

Final Thoughts

You’re not just a YouTuber you’re a small business owner.
The sooner you treat your channel like a business, the easier (and more profitable) it becomes. Set up your systems now so you can focus on growth not tax panic.