Unusual Tax Relief Claim Makes Headlines

By Graham | April 15, 2023

An unnamed OnlyFans creator had claimed tax relief on breast enhancement surgery, causing surprise when the news made headlines. The content creator convinced HMRC that the surgery was a legitimate business expense.

About OnlyFans and the Industry

OnlyFans is a subscription-based website where users pay a monthly fee to access creator content. Although it is not exclusively a platform for adult content, the creator involved in this case is part of that industry.

Previous Similar Claims

This case is the first known instance of a creator claiming tax relief for cosmetic surgery. In a previous case, a tax break was reported when an anonymous radio broadcaster who moved into TV successfully argued they needed their teeth straightened to land a new role. HMRC’s Business Income Manual uses a similar claim as an example. Since then, facelifts, breast implants, Botox injections, and teeth whitening could be claimed.

Self-employed Tax Returns and Business Expenses

Creators using the OnlyFans website are not considered employees and must submit self-employed tax returns. As a result, they can claim back business expenses.

HMRC Guidelines and Allowable Expenses

HM Revenue and Customs (HMRC) allows self-employed “performers or entertainers” to claim concessions for cosmetic surgeries – should they be able to show that it was needed solely for professional purposes. According to the NHS, the average cost for breast enhancement surgery is between £3,500 and £8,000.

An HMRC spokesperson stated, “While guidance on the interpretation of tax legislation is available, we don’t provide assurances for specific cases.” Despite some successful claims, HMRC added: “It’s very unlikely that a non-health-related operation would be an allowable expense when calculating profits.”

Outdated Guidance and the Need for Updates

An accountant, who had an OnlyFans client claiming the breast enhancement for tax concessions, said that HMRC guidance was outdated in the age of social media, with an estimated 100,000 influencers working in Britain. “These rules were made when people didn’t create the kind of content they do now. We need more guidance from HMRC,” the accountant stated.

Closing the Loophole

Tory MP Alexander Stafford, who sits on the Business Committee, expressed concern about taxpayers’ reactions to learning that tax allowances are being used in this way. “I think it is entirely right to review this loophole relating to cosmetic procedures and, preferably, close it as soon as possible,” Stafford said.

Table of Contents

Other resources for Onlyfans Creators

OnlyFans Creators and HMRC Letters

Professional advice

Navigating tax and accounting procedures can be challenging for all business owners, especially with the evolving landscape of content creation and the associated expenses. By staying informed, keeping detailed records, and seeking professional guidance, taxpayers can ensure they comply with tax regulations while maximising their allowable deductions.

If you need tax and accounting assistance, Mercian Accountants can help. Our experienced team can provide guidance on allowable expenses, tax return preparation, and ongoing financial management. Don’t hesitate to contact us for a consultation, and let us help you manage your finances effectively.