Making money online? Here’s how to stay on top of tax (without the stress)

Making money online? Here’s how to stay on top of tax (without the stress)

So you’ve started making money online, exciting!
But now the tax questions are creeping in.

If you’re earning through subscription-based content, fan platforms, or paid online services, you’re far from alone. And yes, HMRC still expects that income to be reported.

From Self Assessment to keeping your finances tidy as things grow, there’s more to running a successful online income stream than just getting paid. This is our guide to help online creators and digital professionals stay compliant (and sane).

1. Get your bank accounts sorted early

One of the first things we recommend to people earning direct-to-fan or subscription income is separating business and personal money.

Having a dedicated bank account for your online income:

• makes record-keeping much easier

• keeps things clear if HMRC ever asks questions

• saves a lot of stress at tax return time

Mixing everything into a single personal account is one of the most common and completely avoidable issues we see. Sorting this early is a simple win.

2. Keep records (even if admin isn’t your thing)

If you earn from platform payouts, subscriptions or digital services, keeping records isn’t optional, it’s essential.

You should be tracking:

• payments received from platforms or subscribers

• business expenses (equipment, software, subscriptions, props, workspace costs, etc.)

• any other costs linked to creating or promoting paid content

Good digital records make your tax return easier, help you claim what you’re entitled to, and protect you if HMRC ever asks for clarification. Many people find that basic accounting software reduces much of the mental load.

3. Self Assessment: What you need to know

If you’re not being employed, you’ll usually need to register for Self Assessment as a self-employed individual.

That involves:

• declaring income from online content or subscriptions

• submitting a tax return each year

• paying tax and National Insurance by 31 January

Missing deadlines or under-reporting income is one of the biggest risks for online creators, not because people are doing anything wrong, but because the rules weren't clearly explained early on.

4. Making Tax Digital is coming

HMRC’s Making Tax Digital (MTD) rules are expanding beyond VAT.

In the near future, most self-employed people including online creators will be expected to:

• keep digital records

• send regular updates to HMRC

If your income comes from subscription platforms or online services, now is the time to start building good habits. It’s far easier to adjust gradually than panic when the rules become mandatory.

5. Set aside money for tax (future you will thank you)

When money hits your account from subscriptions or fan platforms, it’s easy to forget one thing:

Not all of it is yours.

We usually suggest setting aside a percentage of every payment into a separate “tax pot”. Many online creators aim for 30–40%, depending on income level and expenses.

This avoids nasty surprises and gives you confidence that your tax bill is already covered.

6. Should you stay self-employed or set up a company?

Most online content creators start as sole traders, and that’s absolutely fine.

As income grows and becomes more consistent, it can make sense to review whether a limited company might be more suitable. For some creators, this can improve tax efficiency and help with longer-term planning.

It’s not a one-size-fits-all decision, but it is worth revisiting as your online income develops.

7. Get support from someone who understands online income

Accounting for online creators and subscription-based professionals isn’t the same as accounting for a high-street shop or café.

You need advice that understands:

• platform payouts and subscriptions

• irregular or fluctuating income

• privacy and discretion

• HMRC compliance

Working with someone who genuinely understands this space can make all the difference.

In short

If you’re earning through subscription-based content, fan platforms or other online income streams, tax and admin aren’t things to ignore, but they are manageable.

Get organised early, keep clean records, plan ahead for tax, and you’ll put yourself in a much stronger position now and in the future.