Sole trader creators
Self-employed YouTubers, TikTokers, streamers and UGC creators filing Self Assessment.
Cash basis or traditional accounting: which suits your creator business?
Since April 2024, sole traders work out profit on the cash basis unless they opt out. For creators paid weeks after the work, the date money arrives decides the tax year.
- ICAEW/ACCA regulated
- Chartered Accountants
- Fixed monthly fees
- MTD-ready
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Part of our guide to creator tax guide UK.
Quick answer
From the 2024/25 tax year, the cash basis is the standard way for sole traders to work out profit: you count income when you receive it and expenses when you pay them. There is no longer a turnover limit, and losses can be used in the same ways as under traditional accounting. You can choose traditional accounting instead by saying so on your Self Assessment return.
On this page
Contents
Who this is for
Is this you?
Creators with late payers
Brand fees and platform payouts that arrive weeks after the work.
Income streams
Everything we handle for you
- Brand deal invoices paid on 30 to 90 day terms
- AdSense and Creator Rewards payouts
- Affiliate commission paid in arrears
- Shop and merch sales
Sound familiar?
Problems you face, answered
Under the cash basis, the year you receive it. GOV.UK's own example is an invoice sent on 15 March 2024 and paid on 30 April 2024, which is recorded as income on 30 April (GOV.UK). Under traditional accounting it would fall in the earlier year.
No. Since 2024/25 it applies automatically to eligible sole traders and partnerships of individuals. You only need to act if you want traditional accounting, which you state on your return (GOV.UK).
How we help
The work we do for you
Tax explained
How Cash Basis Accounting Works
What changed in April 2024? The government's policy paper on expanding the cash basis made it the default, removed the old £150,000 entry limit, removed the £500 cap on interest costs and lets cash basis losses be set against other income or carried back, under the same rules as traditional accounting.
How is kit treated? Under the cash basis, cameras, laptops, lighting and other equipment you keep and use in the business are claimed as normal expenses when paid, not through capital allowances. Cars are the exception and stay within capital allowances unless you use simplified mileage (GOV.UK). Our camera, laptop and phone guide covers business use.
When might traditional accounting suit a creator better? GOV.UK suggests it for businesses that are complex, for example with high levels of stock, or that need accounts for finance. A creator selling merch or running a TikTok Shop with significant stock, or applying for a mortgage, may prefer it. Switching methods can require adjustments, so it is worth checking first.
Who cannot use it? Limited companies and partnerships with corporate partners are outside the cash basis. A creator trading through a company prepares accounts on the accruals basis.
Source: GOV.UK: Cash basis overview · GOV.UK: Cash basis, how to record income and expenses · GOV.UK policy paper: Expanding the cash basis · GOV.UK: Business records if you're self-employed
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
At a glance
Cash basis and traditional accounting compared
| Point | Cash basis | Traditional accounting |
|---|---|---|
| Income counted | When received | When invoiced or earned |
| Expenses counted | When paid | When billed or incurred |
| Equipment | Expense when paid | Capital allowances |
| Cars | Capital allowances or mileage | Capital allowances or mileage |
| Losses | Same reliefs since 2024/25 | Usual loss reliefs |
Action plan
Getting the cash basis right
- 1
Pick a date rule
Use the date money reaches your account, and keep it every year.
- 2
Date each payout
Record platform payouts and brand fees when received.
- 3
Date each expense
Record costs when you pay them, not when ordered.
- 4
Treat VAT consistently
If VAT registered, record figures all including or all excluding VAT.
- 5
Review the method
Check whether stock or finance plans favour traditional accounting.
Allowable expenses for content creators
How HMRC’s rules apply to content creators
If you are self-employed
Self-employed costs must be incurred wholly and exclusively for your trade. If you use the £1,000 trading allowance, you cannot also deduct actual expenses against that same income. Equipment treatment depends on cash basis or traditional accounting.
If you run a limited company
A limited company deducts costs incurred wholly and exclusively for its business. Equipment may need capital allowances rather than an immediate expense deduction. Personal use or company-paid private costs can create a taxable benefit or director’s loan entry; company ownership is not a blanket deduction.
For separable mixed-use costs, such as a phone bill, claim only the identifiable business proportion and keep evidence. This does not make ordinary clothing or every dual-purpose purchase deductible. A receipt alone does not prove a business purpose: retain the brief, invoice or usage record too.
Costs to review for your work
- Business-use cameras, lighting, audio equipment and editing software
- Editors, thumbnail designers, virtual assistants and licensed music
- Travel to business shoots and the evidenced business share of home-working costs
Everyday clothing, ordinary grooming, personal meals, private gaming and fines are generally not deductible. Qualifying costumes or protective clothing and business-travel subsistence have different rules. Client entertaining is generally disallowed. Receiving a product from a brand does not automatically create an expense: record the income treatment separately and deduct only an allowable business cost.
HMRC: self-employed expensesHMRC: business travelHMRC: clothingHMRC: company deductionsHMRC: capital allowancesHMRC: creator income and gifts
Keep records alongside our creator expenses checklist, or discuss your costs with our bookkeeping team.
General UK guidance, not personal advice. The deduction depends on your facts and accounting basis.
Structure
Sole trader or limited company?
£
Sole trader£46,111
Limited company£46,091
Illustrative estimate only. Uses the published 2026/27 tax configuration. Assumes a single-director company drawing all profit, with no Employment Allowance. Excludes expenses, student loans, pensions, other income, Scottish rates and individual circumstances. Not tax advice.
Diary
Key deadlines
5 October
Register for Self Assessment for the previous tax year
31 October
Paper tax return deadline
31 January
Online return, balancing payment and first payment on account
31 July
Second payment on account
Making Tax Digital for Income Tax
Qualifying income is total turnover from self-employment and property income before expenses, based on the previous year’s tax return.
- Since 6 April 2026, sole traders and landlords with qualifying income of more than £50,000 must keep digital records and send quarterly updates. If the 2024 to 2025 tax return showed qualifying income of more than £50,000, you need to use Making Tax Digital for Income Tax from 6 April 2026.
- Quarterly updates are due by 7 August, 7 November, 7 February and 7 May (the 7 May deadline falls in the following tax year).
- The threshold drops to more than £30,000 from 6 April 2027. If the 2025 to 2026 tax return showed qualifying income of more than £30,000, you need to use Making Tax Digital for Income Tax from 6 April 2027.
Monthly accounting packages
Accountant packages for content creators
Self-employed or limited company, choose the support that fits how you trade. We review income such as Brand deal invoices paid on 30 to 90 day terms, AdSense and Creator Rewards payouts, Affiliate commission paid in arrears as part of agreeing your scope.
Self-employed accountant packages for content creators
Trading in your own name? Choose support for your personal tax return and, where included, bookkeeping and MTD Income Tax updates.
Up to £25,000: Starter £299, Complete £475 a year. £25,000–£50,000: Starter £499, Complete £599 a year. Above £50,000, fees use the upper limit of your band: Starter 1%, Complete 0.75% (minimum £39.99 + VAT a month). Monthly payments are the annual fee divided by 12, excluding VAT. Starter does not include bookkeeping. Turnover above £1 million is quoted individually.
Self Employed Starter
Turnover: Up to £25,000
For sole trader creators who just need their tax return done properly
£24.92
per month + VAT
£299.00 per year + VAT · Bookkeeping not included
- Your annual Self Assessment tax return, prepared and filed
- All your creator income streams covered: AdSense, brand deals, affiliates, tips and subscriptions
- Gifted products, PR trips and freebies declared correctly
- Allowable expense review so you claim everything you are entitled to
- Deadline reminders ahead of every filing and payment date
- Free basic tax advice by email through the year*
Self Employed Complete
Turnover: Up to £25,000
For full-time self-employed creators who want their books kept for them
£39.58
per month + VAT
£475.00 per year + VAT · Bookkeeping included
- Everything in Self Employed Starter
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Making Tax Digital for Income Tax quarterly updates, where required
- Payment on account planning so January never surprises you
- Sole trader vs limited company review as your income grows
- Quarterly check-in on your numbers and tax position
Limited company accountant packages for content creators
Trading through a company? Choose support for company accounts, Corporation Tax and the director services included below.
Essential/Compliance
For creators who have just set up a limited company
From £45.83
per month + VAT
- Year-end company accounts for your creator business
- Corporation Tax return (CT600) and tax computation
- Confirmation statement preparation and filing support (excludes the Companies House filing fee)
- One director Self Assessment return (salary and dividends from the same company)
- Deadline reminders ahead of every filing date
- Free basic tax advice by email through the year*
Core/Complete
For full-time creators with brand deals and platform income
From £62.50
per month + VAT
- Everything in Essential/Compliance
- Monthly bookkeeping across YouTube, TikTok, brand deal and affiliate income
- Quarterly Making Tax Digital VAT returns
- Director payroll with RTI filing and pension submissions
- Quarterly review call on your numbers and tax position
- Gifted items, overseas payouts and payment platform reconciliation
Growth
For creator businesses with editors, managers or a team
From £75.00
per month + VAT
- Everything in Core/Complete
- Payroll for up to five team members, such as editors or assistants
Starting fees exclude VAT. Your turnover, records and agreed work determine the final quote. *Basic tax advice is free; technical work is quoted separately. MTD support applies where required.
See all fees and one-off servicesWant this off your plate?
Talk through your platform income, allowable expenses and next steps with a creator accountant.
Book your free creator tax callPublished by influencers.accountants
Last updated: 2026-11-14
FAQs
Frequently asked questions
Not any more. The £150,000 entry limit and the £300,000 exit limit were removed from 2024/25.
Usually yes, as an expense when you pay for it, as long as it is used in your business. Only the business share counts.
On the cash basis it belongs to the tax year in which you were paid, so an April receipt falls in the new tax year.
No. Limited companies cannot use the cash basis and prepare accounts on the accruals basis.
Yes. Book a free introductory call; we confirm what is needed and quote any return or advice work before starting.
Keep reading
Related pages
Creator tax and expenses checklist 2026/27
Everything to record through the year, what you can claim, and the dates that matter — written for creators, not accountants.
Record-keeping apps for creators: what actually matters
The right app will not do your tax return for you, but the wrong one will cost you hours every month — here is what to check before you commit.
Accountant for content creators
Video, audio, streaming and newsletters. If you make things people watch, read or listen to, we turn the payouts into clean accounts and a filed return.
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