The role of a full-time content creator is becoming increasingly popular with 19% of 18-26 year olds saying they hope to make a living from creating for social media apps instead of going into medicine or becoming teachers, according to research from Just Entrepreneurs.
However, perhaps due to the casual nature of social media, research from Quirky Digital has found that almost a quarter of those earning money from social media haven’t been declaring their earnings to HM Revenue & Customs (HMRC).
Which earnings need to be declared to HMRC?
The HMRC states that if you have earned any money that you need to pay tax on and haven’t yet declared it, getting in touch with them sooner rather than later means your case will be reviewed more favourably.
If you have already paid tax on earnings, through wages, for example, you don’t need to take further action. However, if you own a rental property, have capital gains or earn money from working for yourself be it creating monetised social media content or even car boot sales, you need to register as self-employed and declare that income.
Not declaring income is considered tax evasion and is punishable by heavy crimes or even imprisonment so if you have earned some extra pennies and haven’t yet told HMRC, there’s no time like the present!
Which taxes do content creators need to pay?
According to the money experts at Blackbullion, if your gross income is more than £1000, you must register with HMRC and complete a self-assessment tax return or, put simply, if you earn more than £83 a month outside of your full-time job you need to complete a tax return.
Blackbullion adds that if you generate a profit of over £6,000 selling second-hand items, you may also owe capital gains tax.
The next self-assessment deadline is January 31st, 2024.