Quick answer
Content creation is self-employment if you’re earning from it. Ad revenue, sponsorships, affiliate commission, tips and the value of gifts you receive in return for promotion all count as income. Your total, before expenses, counts towards the MTD threshold.
Key facts
Ad revenue, brand deals, affiliate income and fan payments all count
Gifts given in return for promotion count at their value
Gross income counts towards the MTD threshold
Equipment and software used for the channel can be expenses
What counts as income
Platform ad revenue and creator funds
Sponsored posts and brand partnerships
Affiliate commission
Subscriptions, tips and donations from fans
Products or services given to you in return for promoting them
Gifted products
HMRC’s content creator guidance says that if a brand gives you something in return for a post or review, it counts as income, valued at what it would have cost you to buy. In HMRC’s own example, a creator paid £700 in cash who also received £300 of products has £1,200 of income, which is over the £1,000 trading allowance.
When MTD applies
Start date | Qualifying income over | Based on your tax return for |
|---|---|---|
6 April 2026 | £50,000 | 2024/25 |
6 April 2027 | £30,000 | 2025/26 |
6 April 2028 | £20,000 | 2026/27 |
The test uses your income before expenses. A creator with £24,000 of brand deals and £4,000 of ad revenue has £28,000, under £30,000 for 2025/26 but over the £20,000 threshold that applies from April 2028.
Expenses creators often claim
Cameras, lighting, microphones and computers used for the channel
Editing software and subscriptions
Props and costumes that aren’t everyday clothing
A share of phone and internet costs used for the business
Everyday clothing isn’t allowable, even if you wear it on camera. See everyday expenses under MTD and claiming business equipment.
Records
Payouts often arrive in different currencies and through several platforms. Record each payment when you receive it, and keep a note of gifted items with their retail value, so your quarterly updates are complete.
Use the MTD checker to see your own start date.