Do OnlyFans Creators Need to Register for VAT? UK Guide

You need to register for VAT as a UK OnlyFans creator once your taxable turnover goes over the VAT threshold in any rolling 12 months. Until then you don’t have to, and plenty of creators never get near it. But if your earnings are climbing towards the threshold, it’s worth understanding now, because getting it wrong can be expensive.

This page covers when you need to register, how the threshold works and the misconceptions that catch people out.

Disclaimer: This article is general information only. It isn’t financial or tax advice. VAT rules are complicated and everyone’s situation is different, so speak to a qualified accountant before you make any decision about VAT registration.

What is VAT?

Value Added Tax (VAT) is a tax on goods and services. Most UK businesses add VAT to their sales and pay it to HMRC. The standard rate is 20%.

Not every business has to register. You only need to once your taxable turnover goes over the VAT threshold in any rolling 12-month period. The threshold rose to £90,000 in April 2024, but it can change, so check the current threshold on GOV.UK. You also have to register if you expect your turnover to go over the threshold in the next 30 days alone.

How does this apply to OnlyFans creators?

This is the part that confuses people, and it’s why VAT catches out so many creators.

OnlyFans charges and accounts for VAT on subscribers’ payments where it’s due. For VAT purposes it’s generally treated as the business selling to your fans.

What OnlyFans pays you (your 80% share after the platform fee) is your income for tax purposes. For VAT, the question is whether that income counts towards the turnover HMRC measures against the threshold.

The generally accepted view is that it does. So keep an eye on your total income from OnlyFans, plus any other self-employed income, against the threshold.

Get professional advice on this. The VAT treatment of income from platforms can be complicated, and HMRC’s guidance has changed over time. Don’t rely on forum posts or social media for something this important. Speak to an accountant who knows VAT.

Monitoring your turnover

Keep a running total of your taxable turnover. Check it against the threshold over a rolling 12 months, not just the tax year.

For example, if you earned £7,000 a month for 12 months, your rolling turnover would be £84,000, under a £90,000 threshold. But if your income rose to £8,500 a month, you could go over £90,000 within 12 months and have to register.

Use our earnings calculator to track where your income is heading and see when you might get close.

If you’re nearing the threshold, talk to your accountant before you go over it. Decisions about timing and structure are much easier to make in advance.

Voluntary VAT registration

You can register for VAT even if your turnover is below the threshold. That’s called voluntary registration.

Why would you? Mainly so you can reclaim VAT on business purchases. If you spend a lot on equipment, software or services that include VAT, registering could get some of that back.

The downside is that you’d have to charge VAT (which can make pricing more complicated) and send VAT returns to HMRC, usually every quarter. There’s more admin.

For most creators under the threshold, voluntary registration isn’t worth the extra work. But if you’re about to make a big purchase, like expensive camera kit, it’s worth raising with your accountant.

The Flat Rate Scheme

If you do register for VAT, whether you went over the threshold or chose to, you may be able to use the Flat Rate Scheme (FRS). It makes VAT simpler.

Under the FRS, you don’t track the VAT on every purchase. You pay HMRC a fixed percentage of your gross turnover instead. The percentage depends on your business category, and HMRC can change the rates, so check the current list on GOV.UK.

You still charge VAT at the standard rate, but you pay HMRC the flat rate and keep the difference. Whether that helps depends on your costs. Be careful if you spend very little on goods, which is common for creators: HMRC’s “limited cost trader” rule puts businesses like that on a higher flat rate, and that can wipe out the benefit. GOV.UK explains how the rule works.

Your accountant can compare the flat rate with the standard scheme and tell you which works out better.

What happens if you exceed the threshold

If your taxable turnover goes over the threshold in any 12-month period, you must register within 30 days of the end of the month you went over. Your registration takes effect from the first day of the second month after you went over.

For example, if you go over the threshold on 15 March, you must register by 30 April, and your VAT registration takes effect from 1 May.

Once you’re registered, you’ll need to:

• Charge VAT on your services (where it applies)
• Send VAT returns to HMRC, usually every quarter
• Keep detailed VAT records
• Follow Making Tax Digital (MTD) rules, which means sending returns through compatible software

Registering late can lead to penalties and VAT charged back to the date you should have registered, so don’t ignore the threshold if you’re getting close.

Making Tax Digital for VAT

If you’re VAT-registered, you must keep digital records and send your VAT returns using MTD-compatible software. This isn’t optional.

Most modern accounting software (Xero, FreeAgent, QuickBooks, Sage) is MTD-compatible. If your accountant files your VAT returns, they’ll use compliant software for you.

Common misconceptions

“OnlyFans handles VAT, so I don’t need to worry about it.” OnlyFans deals with VAT on what subscribers pay, where it’s due. That doesn’t remove your own VAT obligations, and your income from the platform still counts towards your turnover.

“VAT only applies to physical products.” It doesn’t. Services can be subject to VAT too, and making content is a service.

“I’ll just stay under the threshold.” Holding your income down on purpose to avoid VAT isn’t a sensible plan. If your business is growing, you’re better off planning for registration than capping what you earn.

“I’ll deal with it when HMRC gets in touch.” HMRC may not contact you until penalties have already built up. Keeping an eye on your turnover and registering on time is your responsibility.

What to do before you reach the threshold

Most new creators don’t need to think about VAT on day one. But if your earnings are growing steadily, the threshold can come up faster than you expect. Track your income with our earnings calculator, check the current threshold on GOV.UK, and get professional advice before you reach it.

If you work with a management agency, its fees are a business expense and will normally include VAT if the agency is VAT-registered. You can reclaim that VAT if you’re registered too, which is one more thing to factor in.

For more on your tax position generally, try our tax calculator. And if you want to see how working with a management agency fits into your business finances, take a look at how we work or apply to work with us.

This article is general information only and isn’t financial, tax or legal advice. VAT rules and thresholds can change. For advice on your own circumstances, speak to a qualified accountant or tax adviser.