Can You Really Make Money on TikTok UK? (And What About Tax?)

If you’ve ever wondered “Can I actually make money on TikTok?” - the answer is yes. Whether you’re just starting out or growing your audience fast, TikTok offers plenty of ways to earn money in the UK. And with over a billion global users, it’s become one of the most powerful platforms for content creators, influencers, and small businesses.

But earning money on TikTok also comes with responsibilities - especially when it comes to tax and self-employment in the UK.

This guide breaks down the main ways to monetise your TikTok account, plus what you need to know about declaring income to HMRC.

TikTok is a short-form video platform where users post engaging, scrollable content. With its algorithm designed to reward creativity and consistency, it's become a launchpad for viral creators and micro-influencers alike.

If you're aiming to build a personal brand or generate an extra income stream, TikTok is one of the fastest-growing opportunities in 2025.

6 Ways to Make Money on TikTok UK

Here’s how UK creators are turning views into income:

1. Create Consistent, Engaging Content

The foundation of all TikTok income is content. You’ll need to post regularly and build a following by creating authentic, valuable, and shareable content.

Tips:

• Post consistently (daily or several times a week)

• Use trending sounds and hashtags

• Find your niche - whether it’s finance tips, DIY, cooking, or comedy

• Respond to comments and engage with your community

The more engaged your audience, the more monetisation opportunities open up.

2. Join the TikTok Creator Fund (UK)

Once you have:

• 10,000 followers, and

• 100,000 video views in the past 30 days

…you can apply for the TikTok Creator Fund.

You’ll earn money based on how many views your videos get. While rates vary, this is a key income stream for many UK TikTokers looking to go full-time.

3. Work with Brands (Sponsored Content)

Many UK TikTok creators make money through brand deals and influencer marketing. As your follower count grows, brands may reach out — or you can pitch to them directly.

How to get started:

• Sign up to TikTok Creator Marketplace or Influencity

• Create a media kit or pitch deck

• Focus on brands that align with your content and audience

⚠️ Authenticity matters. Sponsored content that feels natural tends to perform better.

4. Sell via TikTok Shop UK

If you sell products or merchandise, TikTok Shop lets you list and sell items directly through your videos or live streams. You can:

• Promote physical products, digital downloads, or services

• Link to your online store

• Use TikTok’s in-app checkout system

This works especially well if you have a strong personal brand or run a UK-based e-commerce business.

5. Use Affiliate Marketing

Join affiliate programmes and earn commission on sales when followers click your links. This is popular with beauty creators, tech reviewers, and lifestyle influencers in the UK.

You can earn money by:

• Promoting affiliate links in your bio

• Reviewing or demoing products in your videos

• Weaving recommendations into organic content

Pro tip: Use a trackable link and disclose affiliate relationships to stay compliant.

6. Offer Paid Subscriptions

Once you reach 1,000 followers, TikTok allows you to offer exclusive content behind a monthly subscription fee. This could include:

• Private Q&A sessions

• Bonus tutorials

• Early access to videos

This feature is great for creators with loyal fanbases looking to monetise their community.

Do I Need to Pay Tax on TikTok Income in the UK?

Yes - TikTok earnings are taxable in the UK if you go over a certain threshold.

You don’t need to tell HMRC if:

• You earn less than £1,000 per year from self-employment or side hustles

• You don’t already complete a Self Assessment tax return

This is called the Trading Allowance - a tax-free allowance for small-scale income.

You do need to register for Self Assessment if:

• You earn more than £1,000 from TikTok or other self-employed income

• You receive affiliate income, brand payments, or TikTok fund payments

Once registered, you can reduce your tax bill in two ways:

1. Claim actual business expenses (camera equipment, lighting, editing software, etc.)

2. Claim the £1,000 Trading Allowance as a flat deduction

Choose whichever gives you the better result.

📌 Even if TikTok is just one of your businesses, you only submit one Self Assessment, just report each income stream separately.

How to Track Your TikTok Earnings

If you're earning money from multiple sources (Creator Fund, affiliate links, shop sales, brand payments) it's important to stay organised.

Here's how to keep on top of things:

• Keep a spreadsheet or use accounting software to log all income and expenses

• Create separate income categories: e.g. “Creator Fund”, “Brand Deals”, “TikTok Shop”, “Affiliate Commissions”

• Save screenshots or invoices for every payment you receive

• If you receive items in exchange for promo, record the market value of those items as income (this matters for HMRC) - read more about this here.

Tools like FreeAgent, Xero, or even a basic Google Sheet can be enough to start.

Do I Need to Register as a Business?

If you're consistently making money through TikTok, even if it's part-time, it's worth thinking of it as a business.

You may need to:

• Register as self-employed with HMRC

• Open a separate business bank account (makes tracking easier)

• Consider whether becoming a limited company would be more tax-efficient (especially if your earnings grow significantly)

💡 If you're not sure which setup is right for you, speak to an accountant who works with content creators (like us!) they'll help you choose the best route based on your income and long-term goals.

What TikTok Creators Can Claim as Business Expenses

If you're earning over the £1,000 Trading Allowance threshold, you can reduce your tax bill by claiming legitimate business expenses. These might include:

• Ring lights, cameras, microphones

• Editing software subscriptions

• Phone/data bills (if used for TikTok)

• Props, costumes, or backdrops for filming

• Travel costs (to collab with creators or shoot content)

• A portion of your rent or utility bills (if you film at home)

The key is to keep receipts and records for everything you claim, HMRC can ask for evidence.

Can I Be Employed and Make Money on TikTok?

Yes! Many creators start as hobbyists or side hustlers while working full-time.

In this case:

• TikTok income is considered self-employed income

• You’ll still file a Self Assessment tax return

• Your employer doesn’t need to be involved, but your income may affect how much tax you pay overall

HMRC will calculate your tax based on your total income, which could push you into a higher tax band.. something to keep in mind when budgeting.

What If I’m Under 18 and Earning on TikTok?

TikTok allows creators aged 16+ to start earning from features like TikTok Shop and the Creator Fund. However, if you're earning money and you're under 18:

• A parent or guardian may need to help you register with HMRC

• You’ll still be responsible for declaring income if it exceeds £1,000/year

• You can still claim the Trading Allowance, but you may want to keep adult supervision over bank accounts and payments for safety

  
  

What Happens If I Don’t Tell HMRC?

If you earn money from TikTok and don’t declare it, HMRC can issue:

• Late filing penalties

• Interest charges

• Fines for undeclared income

HMRC is increasingly monitoring income from platforms like TikTok, YouTube, Etsy, and Instagram - so it’s better to get ahead and register early.

Final Thoughts: Treat It Like a Business (Even If It’s Just a Side Hustle)

TikTok is no longer “just a social media app.” If you’re creating content that’s earning money - whether that’s £50 a month or £5,000 - you’re effectively running a business.

Treat it professionally:

• Track income

• Register if required

• Get advice when needed

This will set you up for success and avoid stress at tax time.

📞 Need Help?

If you’re unsure what you can claim, need help filing your tax return, or want advice tailored being a content creator, we’re here for you.

Visit www.kmaccountancy.co.uk and fill our enquiry form and one of our friendly accountants will be in touch within 24 hours.

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Quick Disclaimer

This info is general guidance and doesn’t replace personalised advice. Always speak to an accountant about your specific situation.