Earning a living comes in all shapes and sizes these days, with a massive array of options for generating income, such as creating content for OnlyFans.
We explore what OnlyFans is, why it qualifies as a legal job, and what your tax liabilities are whether it’s your full-time job or a self-employed side hustle.
What is OnlyFans?
OnlyFans is an app created in 2016 which has since grown into a large online community of content creators and subscribers, with more than 120 million registered users worldwide. OnlyFans creators share their content with subscribing members for a monthly subscription fee.
Content covers a range of topics such as fitness and music, although the platform is probably best known to cater for adult tastes.
Whilst most platforms have strict rules which censor or disallow content of a sexual or pornographic nature, OnlyFans doesn’t, enabling creators to share or sell this type of material more freely.
Does OnlyFans qualify as a legal job?
Yes, OnlyFans is classed as a legal job and does qualify as a valid way to generate income. There are many individuals who have turned to OnlyFans as their primary source of income, while others use it as a side hustle to earn extra money.
Like most online creator sites, running an OnlyFans account can involve:
- Dedicating substantial time and effort to creating content – such as producing, shooting, and editing, which are all skill sets in their own right
- Engaging and interacting with subscribers
- Developing a marketing strategy, such as creating and managing content on additional platforms like Twitter, TikTok, or Instagram
- General account management and maintenance
Creators who use the platform are generating income just like any other business or online content creator, and so the rules about recording and reporting income will still apply.
Do creators pay tax on OnlyFans earnings?
Yes, the money which OnlyFans creators can earn from paid subscriptions or selling content is taxable just like any other income can be, regardless of its source.
This is because any money generated through OnlyFans contributes to your total personal income during the tax year, and this is subject to Income Tax and National Insurance.
As a creator you’ll pay tax based on the total amount you earn in the year, with your self-employed income being added to any other earnings you might have.
This means that if you have a full-time job and run an OnlyFans in your spare time, the money you make from self-employment will be added to the money you’ve already paid tax on through your employer in order to work out which tax rate will apply to your OnlyFans earnings.
- Personal Allowance: You won’t pay any income tax on earnings between £0 – £12,570.
- Basic rate: 20% on income between £12,570 and £50,270
- Higher rate: 40% on earnings between £50,271 and £125,140
- Additional rate: 45% on earnings over £125,140
The good news is that OnlyFans still counts as ‘miscellaneous’ income, so the trading allowance will apply. If the total amount you receive from self-employment is less than £1,000 in a tax year, you won’t need to tell HMRC or pay tax on it. Once you cross the threshold, you’ll need to register as self-employed.
Can I claim any allowances or tax relief?
As with any other type of self-employment earnings, you can claim tax relief for allowable expenses that are directly related to the running of the business. This might include a portion of your utility bills and internet usage if you’re working from home.
Can I have an OnlyFans side hustle if I am employed?
Technically, yes – somebody who is employed could also be self-employed and run an OnlyFans account as a side hustle. However, there are some important things to consider and establish first.
It’s often worth looking at your employment contract to check if there are any guidelines around what you can and cannot do in terms of additional employment or secondary earnings.
Broaching the topic of OnlyFans with your employer might not be something you’re willing to consider, but you may be able to take advice elsewhere if you’re unsure.
Even if secondary earning is permitted within your contract, the nature of your OnlyFans account might cause a separate issue. For instance, someone who works with children or vulnerable people may be required to disclose this.
Some employment contracts now include a reference to online behaviour or expectations around employee conduct, so take some time to consider what this might mean for you.
Looking for more advice on all things finance and accounting? Head to our information hub where we’ve got a whole host of handy guides and resources for you to explore.
