How to Pay Your Taxes as a Creative in the UK

If you're a singer, artist, influencer, or performer earning money from your creative work, you need to pay taxes—but the process can feel overwhelming if you're not familiar with how the UK tax system works.

The good news? Paying taxes as a self-employed creative doesn’t have to be complicated. With the right approach, you can stay on top of your finances, avoid late penalties, and even reduce your tax bill by claiming the right expenses.

Here’s a step-by-step guide to understanding and paying your taxes in the UK.

1. Do You Need to Pay Tax?

If you’re making any money from gigs, sponsorships, sales, or commissions, you may need to register for Self-Assessment and file a tax return.

You must pay tax if:

• You earn more than £1,000 per year from self-employment (this includes gig payments, royalties, brand deals, content monetisation, and sales).

• You have untaxed income (such as earnings from YouTube, Twitch, Patreon, or online sales).

• You do freelance or contract work and receive payments directly.

  
  

You do not need to pay tax separately if:

• You only earn income through PAYE employment, where tax is deducted automatically.

  
  

If you have a regular job and a creative side hustle, you must still report your side income to HMRC.

2. Registering for Self-Assessment

If you meet the criteria above, you must register for Self-Assessment with HMRC.

Deadline to register: 5 October following the end of the tax year in which you started earning.

How to register:

• Go to the HMRC website and create a Government Gateway account.

• Register as self-employed and get a Unique Taxpayer Reference (UTR).

• HMRC will send you your UTR and activation code by post, which takes a few weeks.

  
  

Once registered, you’ll be required to submit a tax return each year.

3. How to Work Out How Much Tax You Owe

The UK tax year runs from 6 April to 5 April, and you must submit your tax return by 31 January each year.

When filing your return, you will need to calculate your taxable income and deduct any allowable expenses before paying:

• Income Tax – You only pay tax on earnings above £12,570.

  • Basic rate (20%) – If your taxable income is between £12,571 and £50,270.

  • Higher rate (40%) – If your taxable income is between £50,271 and £125,140.

  • Additional rate (45%) – If your taxable income is over £125,140.

• National Insurance Contributions (NICs)

  • Class 2 NICs (£3.45 per week) – If your profits are over £12,570.

  • Class 4 NICs (9% on profits above £12,570).

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Use HMRC’s tax calculator or accounting software such as FreeAgent, QuickBooks, or Xero to estimate how much you owe.

4. How to Reduce Your Tax Bill with Allowable Expenses

You do not pay tax on all your earnings—you can deduct business expenses before calculating taxable profit.

Common tax-deductible expenses include:

• Equipment and software – Instruments, cameras, laptops, microphones.

• Studio or workspace costs – Rent, soundproofing, internet bills.

• Work-related travel – Train tickets, mileage, accommodation for gigs.

• Marketing and advertising – Website costs, social media ads.

• Professional services – Accountants, legal fees, PRS/PPL membership.

  
  

Keep receipts and invoices for at least five years, in case HMRC asks for proof.

5. Submitting Your Tax Return

Once you have worked out your taxable income and expenses, it is time to submit your tax return online.

Deadline: 31 January (for the previous tax year).

How to file your tax return:

1. Log in to your HMRC Government Gateway account.

2. Go to Self-Assessment and fill in the required details about your income and expenses.

3. Check how much tax you owe and submit the form.

4. Pay your tax bill before 31 January.

   
   

If you miss the deadline, HMRC fines you £100 immediately and more if you delay further.

6. Paying Your Tax Bill

Once your return is submitted, you can pay your tax bill in different ways:

• Online banking or bank transfer – Send payment to HMRC using your Unique Taxpayer Reference (UTR) as the payment reference.

• Debit or credit card – Pay online via HMRC’s secure portal.

• Direct Debit – Set up a payment plan if you cannot pay in full.

• Through an accountant or tax agent – If you use one, they can arrange payments for you.

  
  

7. What Are Payments on Account?

If your tax bill is over £1,000, HMRC asks for advance payments toward your next tax bill, called Payments on Account.

Two payments per year:

• 31 January – First payment (50% of last year’s tax bill).

• 31 July – Second payment (another 50%).

  
  

If your actual tax bill is lower than expected, you will get a refund. If it is higher, you will pay the difference by the next 31 January.

To avoid unexpected bills, set aside 20 to 30 percent of each payment you receive for tax.

8. What If You Cannot Afford Your Tax Bill?

If you cannot pay your tax in full, do not ignore it—HMRC offers a Time to Pay arrangement where you can spread payments over time.

How to set up a payment plan:

• Log in to your HMRC account.

• Go to “Time to Pay” and apply for a repayment plan.

• HMRC will let you pay in monthly instalments.

  
  

If you ignore your tax bill, HMRC will charge interest and penalties, and may take enforcement action.

Final Thoughts: Stay on Top of Your Taxes

Paying tax as a singer, artist, influencer, or performer might seem daunting, but with good organisation, you can avoid stress, save money, and keep HMRC happy.

• Register for Self-Assessment if you earn more than £1,000 per year.

• Track your income and expenses to claim deductions.

• File your tax return before 31 January to avoid penalties.

• Plan for Payments on Account if your tax bill is over £1,000.

• Use an accountant or accounting software to make things easier.

  
  

By staying ahead of your tax responsibilities, you will avoid nasty surprises and keep your finances in order, so you can focus on your creative career without financial stress.

If you're ever in need of help with setting up a limited company, sorting out your bookkeeping, accounting and tax submissions or would like some personal financial coaching, drop us a line by clicking on the 'Contact Us' button at the top of the page and we'll be happy to help.

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