Ad revenue, sponsorship fees and the value of products you receive for promoting brands all count as income from creating content, and HMRC adds them together for the tax year. If the total before expenses is more than £1,000, you need to tell HMRC through Self Assessment, even if you think of your channel as a hobby. Being paid by a platform based outside the UK does not take the income out of UK tax if you are UK resident.
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What counts as income for a YouTuber or streamer?
HMRC’s guidance for content creators covers everything from sponsored posts to brand partnerships. Its worked example adds together £700 paid by brands for product review videos, £200 earned from adverts shown on the creator’s videos and £300 of products the creator got to keep for free. The total of £1,200 is over £1,000, so the creator needs to tell HMRC.
The test uses total income before expenses, which HMRC stresses is not the same as profit. Income from content creation is also added to any other side income, such as selling things you have made or doing casual paid work, because there is a single £1,000 allowance for each tax year. The tax year runs from 6 April to 5 April. Platforms often show earnings by calendar month, so total your payments for the tax year rather than the calendar year.
Are gifted products and free items taxable?
HMRC’s guidance says you must include the value of any gifts or services you received from promoting products online, because these count as income. Its online platforms guidance says the same: income from creating online content includes gifts and services you receive from promoting products. So a phone, a hotel stay or clothing given to you in return for a review or a post forms part of your income at its value.
The detail, such as how to value an item and what happens with products you return or receive with no obligation attached, is covered in our separate guide on influencers and gifted products.
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When is a channel trading rather than a hobby?
HMRC’s content creator guidance says that once you earn over £1,000, your activity has grown bigger than a hobby, and that HMRC is likely to class you as trading because you receive income from selling goods or services. Its general guidance on working for yourself also lists being paid for a service you provide as a sign of trading.
For borderline cases, HMRC’s Business Income Manual uses nine badges of trade, such as a profit seeking motive and repeated, systematic activity. No single badge decides the question; the overall picture does. A creator who uploads to a regular schedule, accepts paid deals and tracks earnings is likely to look like a trader. Our guide to the badges of trade explains each factor.
How is income from overseas platforms taxed?
Many creators are paid by businesses based outside the UK. gov.uk says that if you are UK resident you normally pay UK tax on foreign income, unless you qualify for the 4 year Foreign Income and Gains regime that has applied from 6 April 2025. If you are not UK resident, you do not pay UK tax on your foreign income. Income you need to pay tax on is usually reported through Self Assessment.
If tax has already been taken off abroad, gov.uk says you can usually claim Foreign Tax Credit Relief when you report the income on your return. How much relief you get depends on the double taxation agreement between the UK and the country the income comes from, and you usually still get relief even where there is no agreement. Rules abroad change often, so check the overseas position with an adviser in that country before relying on it. Our page on declaring foreign income explains the return entries.
What expenses can creators claim?
If you do not use the trading allowance, you can deduct allowable expenses to reach your taxable profit. Where something is used both for your channel and privately, such as a phone or broadband, you can only claim the business part. Equipment such as cameras, lighting and computers is usually covered by capital allowances if you use traditional accounting. Simplified expenses give flat rates for working from home and for vehicles.
You cannot claim expenses and the £1,000 trading allowance together, so compare both. Our guide to what expenses a sole trader can claim lists the main categories.
How do I register, and what will I pay?
If you need to report, HMRC says you register for Self Assessment as a sole trader by 5 October following the end of the tax year. For 2025 to 2026 income, the online return and payment are due by 31 January 2027. Our page on registering as self employed covers the process. Keep your records for at least 5 years after the 31 January deadline for the year.
| Item | Figure | Tax year or date |
|---|---|---|
| Trading allowance | £1,000 across all side income | Each tax year; announced rise to £3,000 from 6 April 2027 |
| Register for Self Assessment | By 5 October after the tax year | 5 October 2026 for 2025 to 2026 |
| Online return and payment | 31 January | 31 January 2027 for 2025 to 2026 |
| Personal Allowance | £12,570 | 2026 to 2027 |
| Class 4 National Insurance | 6% from £12,570 to £50,270; 2% above | 2026 to 2027 |
| Class 2 treated as paid | Profits of £7,105 or more | 2026 to 2027 |
Your profit is added to any wages and taxed at your normal rates, with a £12,570 Personal Allowance for 2026 to 2027. Class 4 National Insurance is due at 6% on profits between £12,570 and £50,270 and 2% above that. See self employed National Insurance. HMRC can open a check into a creator’s return, and the accountant’s fees for dealing with it can be covered by tax investigation insurance.
What might a part time streamer owe?
Illustration only. Leah works full time on a salary that uses her Personal Allowance and pays basic rate tax. In 2026 to 2027 her channel earns £2,400 of ad revenue paid by an overseas platform with no foreign tax deducted, £1,500 in sponsorship fees and a games console worth £400 given in return for a review. She spends £900 on a microphone and lighting.
- Total income: £2,400 plus £1,500 plus £400 is £4,300, well over £1,000.
- Using actual costs: £4,300 minus £900 is £3,400 of profit.
- Using the trading allowance: £4,300 minus £1,000 is £3,300, which is lower, so she uses the allowance.
- Income Tax at 20% on £3,300 is £660. Her profit is below £12,570, so no Class 4 is due.
She registers by 5 October 2027 and files online by 31 January 2028.
Frequently asked questions
Do I need to report a few hundred pounds of ad revenue?
Not if your total side income, including gifts and other hustles, is £1,000 or less for the tax year. HMRC says you do not need to tell it about that.
Is the trading allowance going up?
Budget 2026, published on 28 October 2026, said the trading allowance and the Self Assessment trading income reporting threshold will rise to £3,000 from 6 April 2027. Until then, £1,000 applies.
Does Making Tax Digital apply to creators?
Only once your qualifying income, meaning gross self employment and property income, passes the threshold: £30,000 of 2025 to 2026 income means MTD from 6 April 2027, and £20,000 of 2026 to 2027 income means MTD from 6 April 2028.
Where can I read about other side income?
Our guide to side hustle tax covers selling, services and the wider registration rules.
If HMRC opens a check into your return, tax investigation insurance pays your accountant’s fees. Solar Protect cover pays up to £100,000 with no excess; it never pays tax, interest or penalties. Read how our cover works or get a quote.
Related cover: Public liability insurance for sole traders. Ask for a quote or call 01795 841 310.
Sources
- taxhelpforhustles.campaign.gov.uk: Tax rules content creators
- GOV.UK: Check if you need to tell hmrc about your income from online platforms
- GOV.UK: Working for yourself
- GOV.UK: manual page BIM20205
- GOV.UK: Tax foreign income
- GOV.UK: Taxed twice
- GOV.UK: Expenses if youre self employed
- GOV.UK: Deadlines
- GOV.UK: Register for self assessment
- GOV.UK: How long to keep your records
Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 November 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.