Employed creators
Building a YouTube, TikTok or Twitch channel alongside a PAYE job.
Using a creator business loss against your salary
A channel built alongside a job often makes a first-year loss. If it is a real trade, that loss can reduce the tax on your salary.
- ICAEW/ACCA regulated
- Chartered Accountants
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Part of our guide to creator tax guide UK.
Quick answer
If your creator business is a genuine trade run commercially with a view to profit, a loss can usually be set against your salary or other income for the same tax year, the previous year, or both. That can produce a refund of PAYE tax. If you spend under 10 hours a week on it, the relief is capped at £25,000 a year, and hobby channels do not qualify.
On this page
Contents
Who this is for
Is this you?
New full-time creators
Left employment recently and made a loss in the first years of trading.
Income streams
Everything we handle for you
- PAYE salary alongside creator income
- AdSense, TikTok and Twitch payouts
- Brand deals and affiliate commission
- Start-up kit and software costs
Sound familiar?
Problems you face, answered
Often, yes. Sideways loss relief under section 64 ITA 2007 reduces your total taxable income, so the refund is the loss multiplied by your marginal rate, not the whole loss. Class 1 National Insurance paid through your job is not refunded.
Relief against other income is only available if the trade is carried on on a commercial basis with a view to profit, under section 66 ITA 2007. A posting schedule, a monetisation plan and proper records help show this. Our page on hobby or business explains the signs.
How we help
The work we do for you
Tax explained
How Creator Loss Relief Works
Which income can a creator loss reduce? You can set a trading loss against your total income, such as salary, pension, savings or rental income, in the tax year of the loss, the previous tax year, or both. HMRC explains the claim in its HS227 losses helpsheet. You cannot use only part of the loss against a year, so it can absorb income already covered by your £12,570 Personal Allowance.
What about the first four years of trading? Early trade losses relief under section 72 ITA 2007 lets a loss from the first four tax years of a new trade be carried back against income of the three previous tax years, earliest year first.
Are there limits? Yes. If you spend less than an average of 10 hours a week on the commercial activities of the trade, sideways and early trade relief is capped at £25,000 a year under section 74A ITA 2007. A wider cap also limits certain reliefs to the greater of £50,000 or 25% of adjusted total income, as HS227 notes.
Is there a deadline? A claim against other income must be made within 12 months of the 31 January filing date for the tax year of the loss, under section 64(5).
Source: GOV.UK: HS227 Losses (2026) · legislation.gov.uk: Income Tax Act 2007, section 64 · legislation.gov.uk: Income Tax Act 2007, section 66 · legislation.gov.uk: Income Tax Act 2007, section 72 · legislation.gov.uk: Income Tax Act 2007, section 74A · legislation.gov.uk: Income Tax Act 2007, section 83
General information only, based on 2026/27 UK rules. Not personal advice. Speak to us about your circumstances.
At a glance
Ways to use a creator trading loss
| Option | Set against | Key condition |
|---|---|---|
| Same-year sideways relief | Total income of the loss year | Commercial trade with a view to profit |
| Prior-year sideways relief | Total income of the previous year | Same tests and time limit |
| Early trade losses relief | Income of the three earlier years | Loss in the first four tax years |
| Carry forward | Future profits of the same trade | No cap; first available profits |
Action plan
Claiming a creator loss on your return
- 1
Separate the business
Keep creator income and costs in their own records.
- 2
Work out the loss
Deduct actual allowable expenses from your creator income.
- 3
Check the tests
Confirm the commercial basis and the hours you spend.
- 4
Choose the year
Compare current year, prior year and carry forward.
- 5
Claim on Self Assessment
Enter the claim in the losses section of your return.
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 PAYE salary alongside creator income, AdSense, TikTok and Twitch payouts, Brand deals and 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: 2026-11-13
FAQs
Frequently asked questions
No. The loss reduces taxable income, so the refund depends on your tax rate. At 20%, a £2,000 loss saves up to £400 of income tax. Class 1 National Insurance paid through your job is not reduced.
No. The trading allowance can reduce profit to nil but cannot create a loss. To claim a loss you must deduct your actual expenses instead.
Yes. The claim must be made within 12 months of the 31 January filing date for the tax year of the loss. Most people make it on that year's Self Assessment return.
Yes. Book a free introductory call; we confirm what is needed and quote any return or advice work before starting.
Keep reading
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