Creators holding an HMRC letter
Headed "Income you have earned from creating content on digital platforms".
HMRC nudge letter about your creator income: what to do next
A letter saying HMRC has information about your content income is a prompt to check, not a tax bill. How you reply in the next 30 days matters.
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- Chartered Accountants
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Part of our guide to creator tax guide UK.
Quick answer
HMRC has been writing to people it believes earn money from creating content on digital platforms but have not declared all of it. The letter includes a certificate of tax position to return, usually within 30 days. If you owe tax, tick the disclosure box and you then get 90 days to calculate and pay through HMRC's disclosure service.
On this page
Contents
Who this is for
Is this you?
Side-hustle creators
Employed people whose content income was never added to a tax return.
Income streams
Everything we handle for you
- Platform payouts and creator funds
- Brand deals and sponsored posts
- Affiliate commission
- Subscriptions and fan payments
- Gifted products in return for posts
Sound familiar?
Problems you face, answered
LITRG reports HMRC used third-party information to choose who to write to. Since 1 January 2024 digital platforms also collect seller details and report earnings to HMRC each year.
No. HMRC asks for a reply by the date on the letter, even if you have nothing to declare. Silence makes a formal check more likely.
How we help
The work we do for you
Undeclared income disclosures
Past years rebuilt from platform reports and bank statements, then disclosed and settled.
Learn moreHMRC enquiries for creators
We deal with HMRC for you and reply to letters on your behalf.
Learn moreSelf Assessment going forward
Registered and filing correctly so the problem does not repeat.
Learn moreTax explained
How an HMRC Nudge Letter Works
What does the letter say? According to the Low Incomes Tax Reform Group, it says HMRC has information that you earned money from creating content and may not have declared all of it. Box 1 on the enclosed certificate says you intend to make a voluntary disclosure; the other boxes are for people with nothing to declare.
Do I owe anything? Add up your gross trading income for each tax year, including platform payouts, brand fees, affiliate commission and products received in return for posts. If the total, together with any other trading income, stays within the £1,000 trading allowance, you may have nothing to declare. Above that, the income needed reporting on a Self Assessment return, with allowable expenses deducted.
How does the disclosure work? Once you tell HMRC you intend to disclose, it sends an acknowledgement with a disclosure reference and a payment reference. GOV.UK says you must then submit the disclosure and pay within 90 days of that acknowledgement, or agree a payment arrangement before that date. See HMRC's guide to making a disclosure.
How many years go back? It depends on your behaviour. HMRC's guide says up to 4 years if you took reasonable care, up to 6 if you were careless, and up to 20 years if you never registered for Self Assessment when you should have. Interest is added and penalties are usually lower when you tell HMRC yourself.
From our experience: The figures usually already sit in platform dashboards and payout emails. The work is matching them to tax years and adding the expenses creators forgot to claim.
Source: GOV.UK: Make a voluntary disclosure to HMRC · GOV.UK: Check if you need to tell HMRC about income from online platforms · GOV.UK: Selling goods or services on a digital platform · LITRG: HMRC letters about income from digital platforms
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
At a glance
Your situation and the usual response
| Your situation | Usual response |
|---|---|
| Income not declared, above £1,000 | Tick the disclosure box, then disclose and pay within 90 days |
| Income already on your tax returns | Tick the box confirming your returns are correct |
| Total trading income within £1,000 each year | Tell HMRC the trading allowance covers it |
Action plan
Replying to the letter
- 1
Note the reply date
It is printed on the letter, usually 30 days from issue.
- 2
Download your earnings
Export payouts and brand invoices, split by tax year (6 April to 5 April).
- 3
Work out the profit
Deduct allowable costs such as equipment, editing and software.
- 4
Return the certificate
Tick the box that matches your position and keep a copy.
- 5
Disclose and pay
Submit the disclosure and payment within 90 days of HMRC's acknowledgement.
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
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 Platform payouts and creator funds, Brand deals and sponsored posts, Affiliate commission 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: 2026-11-10
FAQs
Frequently asked questions
HMRC reserves criminal investigation for serious cases. Its guide says a full, unprompted disclosure points towards civil handling.
Yes. A disclosure is based on profit, so genuine allowable costs reduce what you owe.
Yes. Book a free call and we will review the letter and your figures before the deadline.
Keep reading
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Accountant for adult content creators
Subscriptions, tips, custom content and tributes, handled by chartered accountants who treat your work as a business and your privacy as a priority.
Get a fixed-fee quote in 60 seconds
No jargon, no sales calls you did not ask for. Just a clear price and a plan.
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