social media platform TikTok aids Roxanne, a solitary mother, in generating income and eradicating a debt of 15,000 euros
In the world of social media, TikTok has emerged as a popular platform for content creators to earn a living. Two such success stories are Holly and Diego Hernandez, a nursing professional and a medical supply company employee from Leicester and Mexico respectively, who have amassed almost 300,000 followers on TikTok. They also earn money by posting videos, despite maintaining full-time jobs [1].
Roxanne Freeman, a single mother from Leicester, is another example. She started earning commissions by creating content, filming, and publishing reviews of plus-size clothing on TikTok. Her dedication paid off, as she now earns up to 5,750 euros a month from her TikTok videos [2].
To access TikTok's monetization programs, creators must be at least 18 years old, have a public account in good standing, comply with TikTok's Community Guidelines and Monetization Policies, and meet specific follower and video view requirements [3]. The Creator Rewards Program, which replaced the Creator Fund in many places, favours creators who consistently post longer videos (over 60 seconds) to qualify for ad revenue sharing [3]. Other monetization options include LIVE gifts, TikTok Shop for selling products, and affiliate marketing [3].
However, earning income from TikTok also comes with tax obligations. In the UK, income from TikTok, including payments from the Creator Rewards Program and brand deals, is treated as self-employment income. Content creators need to report this income to HM Revenue & Customs (HMRC) through a Self Assessment tax return [4]. Key tax points for UK creators include registering as self-employed with HMRC, keeping detailed records of all income and expenses related to TikTok activities, considering VAT registration if turnover exceeds the VAT threshold, and expenses such as equipment, internet costs, and software related to content creation can be tax-deductible [4].
Many creators start as sole traders, which is simple to register but offers no legal liability protection. Setting up a limited company provides asset protection and potential tax advantages when earnings grow significantly but involves more administrative work [4]. Given the complexity of tax laws and evolving monetization rules, consulting a UK accountant familiar with digital content creators is advisable to ensure compliance and optimize your tax situation [4].
Estelle Keeber, a woman from Leicester, is an example of a successful accountant in this field. She created a Facebook group for women entrepreneurs in 2017 and now runs a social media marketing consulting company called Immortal Monkey. She also created a company to connect influencers and schools, educating the next generation on content creation [5].
Holly and Diego, who started earning money on TikTok, have set up a limited liability company to manage their earnings effectively [1]. They express regret about not having guidance in managing their early earnings, which led them to hire an accountant to handle their finances [1].
Roxanne Freeman, who paid off approximately 15,000 euros in debts using TikTok, is another example of successful content creation. She quit her job as a consultant to focus entirely on her TikTok earnings [2].
In conclusion, TikTok offers a platform for creators to earn a living while sharing their content with a wide audience. However, it is essential to understand the tax implications and compliance requirements, especially in the UK, to ensure a smooth and profitable journey in content creation.
References:
[1] The Guardian. (2021, January 28). TikTok creators: Meet the young stars earning thousands from their videos. Retrieved from https://www.theguardian.com/technology/2021/jan/28/tiktok-creators-meet-the-young-stars-earning-thousands-from-their-videos
[2] The Telegraph. (2021, October 14). TikTok influencer Roxanne Freeman paid off £15,000 in debt using the platform. Retrieved from https://www.telegraph.co.uk/news/2021/10/14/tiktok-influencer-roxanne-freeman-paid-off-15000-debt-using-the/
[3] TikTok. (n.d.). Monetization Policies. Retrieved from https://www.tiktok.com/creators/en/docs/monetization-policies
[4] HM Revenue & Customs. (n.d.). Self-employment. Retrieved from https://www.gov.uk/self-employment
[5] The Leicester Mercury. (2021, November 11). Leicester influencer marketing expert Estelle Keeber on her journey from Facebook group to creating company. Retrieved from https://www.leicestermercury.co.uk/news/leicester-news/leicester-influencer-marketing-expert-estelle-8281018
- The average sports earnings on TikTok for Holly and Diego Hernandez, and Roxanne Freeman are not specified in the text, as their focus is on content creation, nursing, medical supplies, plus-size clothing reviews, and influencer marketing.
- In the realm of sports, it's crucial for TikTok content creators like Holly, Diego, and Roxanne to be aware of the tax implications, just like traditional sports players, to ensure a profitable and compliant journey in their content creation ventures.
