22% Rise in Accounting Services For OnlyFans Contributors

A local accountancy firm has seen its biggest rise in clients in the last year from an unexpected source. 

London-based AccountantsFor has seen a 22% increase in enquiries from clients who contribute to a platform known as OnlyFans where individuals offer exclusive content to paying customers either on a one-off or monthly subscription.

Dan Kettle, senior accountant at AccountantFor, explains: “We have received this surprising influx of contributors from OnlyFans. They are similar to Youtubers or influencers in the sense that they create content online. But actually they have a lot of financial and accounting requirements, especially given that they are mostly self-employed and that their income is sporadic. We have met some clients who earn money through OnlyFans as a sideline business, but there are tax implications for this too.”

“The accounting requirements for people who are self-employed are far more than typical employees,” he continues.

“VAT, self-assessment and corporation tax are all part of the mix. For people new to OnlyFans, they will find that their first £12,570 is tax free (known as your tax-free personal allowance), but thereafter, have to get used to paying taxes at different times of the year, rather than an employed person who has tax taken automatically from monthly salary.”

“We encourage all clients using OnlyFans to keep a clear track of their income and expenses, which makes it a lot easier to put together tax returns and to file accounts.”

“For some participants, they have been quick to spend the money they have earned and re-invest it into their channel, or just spent the money very openly, not always understanding that there are tax implications 6 months or 12 months down the line,” he says.

Since launching in 2016, OnlyFans has gained more than 130 million registered members and 2 million contributors ranging from musicians, content creators and adult performers. Since its inception, more than $5 billion has been paid out to creators, with some of the biggest earners wracking in millions each year. The brand has often come under criticism for its adult themed content, with plans to diversify into NFTs and live events.

AccountantFor was started in 2020 and offers bespoke accounting packages for self-employed people and contractors all over the UK. In addition to a filing and tax return service, the company offers more ongoing accountancy help, with tax planning and long-term financial planning available too. The company is also trailing some new technology which incorporates AI and accounting to help make expense management more efficient.