Understanding Tax as an OnlyFans Creator
DISCLAIMER
The following article is for informational purposes only. It is not intended to provide tax, legal, or accounting advice. Before engaging in any transaction, you should consult your own tax, legal, and accounting advisors to ensure compliance with relevant laws and regulations.
Taxes Overview
If you’re new to taxes and uncertain about where to start, these are important to understand:
You WILL be responsible for paying taxes as an OnlyFans creator.
You MUST handle tax filings yourself or hire an accountant.
Taxes are NOT automatically deducted from your OnlyFans earnings.
Save 20-30% of your income to cover your tax obligations.
Keep ALL receipts, both digital and physical.
OnlyFans income is considered self-employment for tax purposes.
Note: This information is crucial to ensure compliance with tax laws and regulations.
Taxable Expenses
Depending on your local tax laws, you can potentially write off several expenses as tax deductions. These deductions can often refund up to 50% of the item cost if claimed as business expenses. Here are some examples:
Props
Lighting accessories
Sex toys
Gym fees
Beauty treatments
Lingerie
Airbnb used for filming
Portion of your rent if used for filming
Here’s how it works
If 25% of your internet usage is for OnlyFans, you can deduct 25% of your internet bill as a business expense.
Apply the same principle to your phone bill, rent, and any equipment purchased for OnlyFans, like cameras or props.
The key guideline is that the expense must be "ordinary and necessary" for your business. What qualifies as such can vary and is best determined by a knowledgeable accountant.
Keep detailed records of potential expenses in a Google Sheet and consult with a qualified accountant for guidance on maximizing your deductions.
Get A Good Accountant
If you’re earning well on OnlyFans and have a good subscriber base, finding a good accountant can significantly maximise your earnings through business expense deductions.
Here’s how to identify a good accountant:
No Worries About OnlyFans: A professional accountant won’t judge your line of work. Simply describe yourself as a Specialized Content Creator.
Start with Personal Connections: Ask friends and family for recommendations.
Seek Recommendations from Peers: Connect with others in the adult industry on platforms like Twitter, Instagram, and OnlyFans. They can recommend accountants familiar with self-employment and the adult industry.
Look for Non-Judgmental and Experienced: Ensure the accountant is non-judgmental and has experience working with self-employed individuals, with a preference for those knowledgeable about the adult industry.
Conclusion
Finding the right accountant can make a substantial difference in your financial management and tax savings as an OnlyFans creator.
Depending on where you live, filing taxes can be a massive headache. An accountant can be extremely helpful by saving you time, confusion and money. Its not a requirement to get an accountant.
