Almost one in four content creators in the United Kingdom admit to being part of an underground economy. This clandestine group avoids detection by His Majesty’s Revenue and Customs (HMRC), but as the curtain lifts on this informality, they may face substantial repercussions as creative expert, and CEO of Quirky Digital, Liam Quirk warns.

An Underreported Problem

A recent survey by Quirky Digital, targeted at 2000 content creators, reported that an alarming 24% confessed to not declaring their taxes. These create a covert group who, perhaps unknowingly, are part of a growing number of individuals participating in tax evasion, a crime punishable by heavy fines or even imprisonment.

The Hidden Cost of Creativity

It is paramount to acknowledge that the purpose of this article is not to vilify content creators. In fact, their work, often characterised by vivid imagination, talent and inimitable creativity, provides immeasurable value to the entertainment industry and society as a whole. Rather, the aim is to shed light on this growing issue, where unknowing creators, often self-employed or running small businesses, fail to understand or comply with the UK’s complex tax laws.

Expert Advice from Quirky Digital

Data analysis by Quirky Digital expert Liam Quirk emphasises the gravity of the issue. He advises,

“HMRC has indicated a tougher stance on tax evasion. The incoming tide of fines, due to swept in the new year, should serve as a wake-up call to content creators. As a proactive measure, if you fall within this category, it might be prudent to seek advice from a tax professional.”

Quirk’s advice comes to support these micro-enterprises navigating the labyrinthine tax rules:

1. Consider Professional Help: A tax advisor can alleviate the burden of tax complexity, ensuring that you are compliant while also helping you benefit from possible tax breaks.
2. Educate Yourself: A basic understanding of the tax regulation is essential. It’s important to know what constitutes a taxable income, allowables, reliefs and deadlines.
3. Record Keeping: Maintain a log of all income and expenses. These will serve as vital evidence if HMRC investigates.

HMRC estimates that this non-compliance could amount to billions in lost yearly tax revenue. With the economy embattled by the financial implications of the pandemic, every pound counts. If you are a content creator who doesn’t declare income to the HMRC, now is the time to make amends and put yourself on the right side of the law.

In championing the value of creators, Liam Quirk adds,

“The creative industry is valued for its financial and cultural contributions. But like every sector, it must uphold its fiscal responsibility. Taking steps towards tax compliance will only strengthen its integrity, appreciated by fans, followers, and the taxman alike.”

As we approach the new year, tighten up those loose ends, keep your peace of mind, and keep on creating. Above all, remember the old saying, “Taxes are the price we pay for a civilised society.” Keep contributing — to creativity and to society.