10 Reasons You Should Hire an Accountant as a Creator or Influencer in the UK

Sep 11 2024

Being a creator or influencer often means wearing many hats. You’re managing content, engaging with your audience, and building your brand. But when it comes to finances, the complexities of tracking income, managing expenses, and handling taxes can quickly become overwhelming. That’s where hiring an accountant comes in. Here are 10 reasons why every creator and influencer should consider working with a professional accountant.

1. Maximize Your Tax Deductions

One of the key benefits of working with an accountant is maximising your tax deductions. As a creator, you’re likely to have a variety of expenses—from camera equipment and software subscriptions to travel and office space. An accountant knows exactly which expenses are deductible and can help ensure you’re claiming everything you’re entitled to, saving you a significant amount of money come tax season.

2. Stay Compliant with Tax Laws

Navigating the complexities of UK tax laws can be tricky, especially as a creator or influencer with multiple income streams. From self-employment taxes to VAT, there are plenty of regulations you need to follow. An accountant helps ensure that you remain compliant with HMRC, avoiding costly penalties and fines for errors or late payments.

3. Manage Multiple Revenue Streams

As a creator, your income may come from various sources—sponsorships, ad revenue, affiliate marketing, or product sales. Keeping track of these income streams and ensuring that they’re properly recorded can be difficult. An accountant can help you manage these streams, keeping your finances organized and making sure everything is accounted for accurately.

4. Save Time on Financial Admin

Financial admin tasks—like invoicing clients, tracking payments, and recording expenses—can quickly eat into your creative time. Hiring an accountant takes these responsibilities off your plate. With a professional handling your bookkeeping, you can focus more on producing content and growing your audience.

5. Plan for Taxes and Cash Flow

One of the biggest challenges creators face is managing cash flow and planning for taxes. Many creators end up surprised by how much they owe at the end of the year. An accountant helps you estimate your tax liabilities and advises you on setting aside the right amount of money throughout the year. This way, you’ll never be blindsided by an unexpected tax bill.

6. Help with Business Structure

As your business grows, it may make sense to change your business structure from a sole trader to a limited company. Each structure has its pros and cons when it comes to taxes, liability, and personal finances. An accountant can advise on the best structure for your situation, helping you make the most tax-efficient choice while also protecting your personal assets.

7. VAT Compliance and Management

If you surpass the VAT threshold or plan to sell products, managing VAT can become a significant burden. VAT registration, compliance, and quarterly returns are time-consuming and can be confusing. An accountant helps ensure you’re complying with VAT regulations, managing returns, and maximising your cash flow by reclaiming VAT on business expenses.

8. Handle International Income and Payments

For many creators and influencers, brand partnerships or platform earnings may come from outside the UK. Dealing with international payments can get complicated due to fluctuating exchange rates and cross-border tax obligations. An accountant ensures that these transactions are handled correctly, making sure you remain compliant with both UK tax laws and any international tax obligations.

9. Support in Long-Term Financial Planning

Growing your creator business means thinking ahead. Whether you’re looking to invest in new equipment, save for future projects, or plan for retirement, an accountant provides valuable financial advice. They help you make smart financial decisions that align with your long-term goals, ensuring that you have a solid plan in place to secure your financial future.

10. Avoid Costly Mistakes

The financial mistakes you make as a creator can be expensive. Misfiling taxes, failing to claim legitimate expenses, or missing a VAT payment deadline can lead to fines and penalties from HMRC. An accountant ensures that everything is filed correctly and on time, helping you avoid costly errors that could damage your finances and reputation.

How Pesto Can Help You as a Creator or Influencer

At Pesto, we understand the unique challenges creators and influencers face when it comes to managing their finances. Our accounting services are designed to help you streamline your financial operations so you can focus on what you do best—creating content and building your brand.

With Pesto, you can benefit from:

Automated Bookkeeping: We handle your day-to-day bookkeeping and invoicing, ensuring that your financial records are always up to date.
Expert Tax Advice: Our team of experienced accountants will help you maximise deductions, stay compliant with tax laws, and plan for future financial success.
VAT Management: If you’re dealing with VAT, we’ll handle everything from registration to quarterly returns, making VAT compliance hassle-free.
Support for International Income: Whether you’re working with brands abroad or earning through international platforms, Pesto ensures your finances are managed properly, minimising complications with cross-border taxes.

Let us take care of your financials so you can focus on growing your influence. Contact Pesto today to learn more about how we can help creators and influencers like you take control of their finances.

Conclusion

Hiring an accountant isn’t just about staying compliant with tax laws; it’s about maximising your income, saving time, and avoiding costly mistakes. Whether you’re a seasoned creator or just starting out, working with a professional accountant can help take your business to the next level.

Ready to make your financial life easier? Get in touch with Pesto and let us help you manage your finances so you can focus on what matters most—creating.