Twitch Streamer Tax Deductions in the UK: What You Can Actually Claim

You’ve got chat going wild, subs coming in, and your streaming setup running smooth - then the tax bill hits. Not quite as hype as landing a clutch play, is it?

If you're making money from Twitch subs, bits, donations, sponsorships you’re considered self-employed by HMRC. That means you need to file a Self-Assessment. But here's the good news: there are loads of expenses you can claim to lower your tax bill.

Let’s break down exactly what you can (and can’t) write off.

What Are Tax Deductions?

Think of tax deductions like your in-game power-ups. They reduce the amount of your income that’s taxable which means you keep more of your hard-earned cash.

Example: If you earned £25,000 on Twitch and spent £5,000 on legitimate business expenses, HMRC only taxes you on the remaining £20,000.

The key? These expenses must be “wholly and exclusively” for business use. No mixing - HMRC plays on hard mode when it comes to grey areas.

What Counts as Streaming Services?

Streaming services are tools or subscriptions that directly support your content. This includes:

Deductible Examples:

• Netflix/Disney+ (if you review or stream their content)

• Streamlabs Prime, Restream, HypeAuditor

• Patreon subscriptions for tools or community networking

Not Deductible:

• Netflix for personal viewing

• Twitch subs to streamers you don't collaborate with

• Spotify for your gym playlist

Always ask: “Is this helping me run or grow my channel?”

What You Can Write Off as a Twitch Streamer

Gear & Equipment

• Gaming PC, monitors, capture cards, cameras, lighting

• Consoles used on stream

• Stream decks, green screens, headsets

Software & Subscriptions

• Adobe Creative Cloud, Final Cut, OBS plugins

• Streamlabs, Canva Pro, royalty-free music libraries

• Analytics tools like HypeAuditor or TwitchTracker

Tip: Keep invoices, and make sure they’re in your name or your business alias.

Games & In-Game Purchases

• Games you stream

• DLCs, skins, battle passes used in content

Streamed Fortnite skin = deductible. Private match skin = not deductible.

Promotion & Branding

• Paid ads to grow your channel

• Logo design, emotes, overlays, alerts

• Website or landing page hosting

Home Office Deductions

If you stream from home, you can claim:

• A portion of your rent/mortgage interest

• Internet, electricity, heating

• Council tax (if part of your space is used exclusively for work)

Tip: HMRC allows flat-rate options or more detailed percentage-based claims.

Business Costs

• Accountant or bookkeeper (yep, including me 😉)

• Legal help with contracts or licensing

• Insurance for gear

• Business bank fees

Travel for Business

Heading to TwitchCon, a tournament, or a networking event?

You can claim:

• Train, flights, mileage

• Accommodation

• Meals (if business-related)

Mistakes to Avoid

Full personal claims: You can’t write off your entire Netflix bill unless it’s fully business-use. Same for games or gear.

No receipts: HMRC loves documentation. No proof = no deduction.

Over-claiming your home: Only claim what’s fair. Shared-use spaces need split calculations.

FAQs

Can I claim games I only play off-stream?
No only if they’re used in content.

What if I stream part-time?
You still need to file a tax return if you earn over £1,000 per year from Twitch.

Do I need a business account?
It’s not mandatory, but separating business and personal finances makes taxes way easier.

Final Thoughts

Twitch isn’t just a platform it’s a business. If you’re taking your streaming seriously, you should be serious about your finances too.