If you’re earning money through TikTok, Instagram, YouTube, or affiliate links – congrats, you're running a business.

But here's the thing no one tells you:
The HMRC doesn’t care whether you call yourself an “influencer”, “content creator”, or “just someone doing a few brand deals.”
Once the money hits your account? You're a sole trader (or limited company) with tax responsibilities.

And if you're not planning ahead, you're probably overpaying tax.

At Social Commerce Accountants, we work with influencers daily—from six-figure TikTokers to up-and-coming creators who’ve just hit their first £1k month. Here are 7 legal ways you can reduce your tax bill in the UK (without raising HMRC eyebrows).

1. Claim Every Business Expense You’re Entitled To

This is the big one—and it’s where most creators lose money.

If it helps you create content, manage your business, or earn income, it’s probably deductible. For example:

• Camera equipment, ring lights, tripods

• Editing software, Canva Pro, subscriptions

• Props and wardrobe used in content

• Home office costs (portion of rent, electric, Wi-Fi)

• Travel to events or brand meetings

• Phone bills if used for work

Don't leave money on the table because your accountant doesn’t “get” what you do.

2. Set Up a Limited Company (At the Right Time)

This isn’t for everyone—but if you're earning over ~£35-40k per year, a limited company could save you thousands.

Why? Because limited companies are taxed differently from sole traders. You can:

• Pay yourself through a mix of salary + dividends

• Access more tax-deductible expenses

• Reduce National Insurance exposure

• Plan around profit extraction strategically

We’ll run the numbers and show you whether it’s worth it based on your income, not a generic threshold.

“Sam and his team are invaluable—having access to his expertise has been a game-changer.”
— Perry Power, Power Bespoke

3. Use a Separate Business Bank Account (Even If You’re a Sole Trader)

It sounds simple, but separating your business and personal money makes everything easier.

It helps you:

• Track real profit

• Identify missing receipts

• Avoid accidentally spending money you owe in tax

It also makes your accountant’s life easier—and yes, that can reduce your bill too.

4. Register for VAT (Even Before You Hit £90k)

Here’s a spicy one: registering for VAT before you’re required can work in your favour.

If you’re working with VAT-registered brands or charging for UGC services, you can reclaim VAT on your own purchases.

It’s not right for everyone, but it’s a powerful tool when used properly—and most “normal” accountants won’t even bring it up.

“The best accounting team we've worked with—meticulous, responsive, and provided valuable guidance for our company setup.”
— Kevin & Mel, Moicha Matcha

5. Track Mileage If You’re Driving for Work

If you’re travelling for shoots, events, or brand meetings, you can claim mileage.

As of 2025, HMRC allows:

• 45p per mile for the first 10,000 miles

• 25p per mile after that

Every mile adds up—and it’s fully legal.

6. Consider Pre-Tax Pension Contributions

Putting some of your income into a pension (especially through a limited company) can:

• Save tax

• Build long-term wealth

• Help you plan for the future like a real business owner

We’ll guide you through this based on your setup and goals.

7. Hire a Specialist Influencer Accountant (Who Actually Gets It)

And no—we don’t mean your parents' accountant or the local firm who handles hairdressers and plumbers.

You need someone who understands:

• Paid collabs vs gifted

• TikTok Creator Fund

• Affiliates, merch, UGC services

• International clients & payment platforms

At Social Commerce Accountants, we do this all day. It’s our bread and butter. We’re UK-based, fully regulated, and we speak your language.

“100% recommend Sam—he quickly sorted out incorrect filings and helped us set up everything correctly.”
— Jiri Lasa, Better Vue Ventures

Final Thoughts: Don’t Sleepwalk Into a Tax Bill

Being an influencer is a real business. The minute you start making money, you have to think like a business owner.

And the best business owners?

They don’t just make money. They keep more of it.

We’ll help you structure your income, claim what’s yours, and keep HMRC happy—without the stress, jargon, or boring spreadsheets.

Want an accountant who actually understands your world?

Book your free intro call now:
https://tidycal.com/socialcommerceaccountants/uk-intro-call

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