Unless you are an accounting influencer, you probably prefer filming reels to thinking about tax returns. But if you’re earning money from your content creation, keeping detailed records isn’t optional — it’s essential.
Tracking your income properly isn’t just about staying organised (although that helps too). It’s about protecting yourself from unexpected tax bills, staying compliant with tax regulations, and making sure you don’t pay too little – or too much – tax.
Read on for essential info on how to track your income as an influencer. For personalised advice about your financial responsibilities, contact the experts at Smooth Accounting.
Why it’s essential for you to track your income as an influencer
Influencing becomes a business when you start to earn from it, and influencers these days can earn a substantial income. Like any business, HMRC expects you to report your income and expenses accurately and pay the correct amount of income tax and National Insurance.
Failing to track your finances properly can lead to stressful tax returns, missed tax deductions or even penalties. Well-kept financial records can avoid all of this, plus provide insights into how your business is performing. For example, they can highlight which of your income streams are the most profitable and where you might want to invest more time, money and effort.
Common revenue streams for influencers
Influencers can have multiple income sources, which is why accurate record-keeping matters.
Common ways influencers earn money include:
- Sponsored posts and brand collaborations
- Affiliate marketing commissions
- Platform monetisation (like YouTube ads or TikTok Creator Fund)
- Selling digital products or online courses
- Appearance fees or event hosting
- Licensing content or photography
- Gifts
Yep, that’s right – even gifted items may count as taxable income if given in exchange for promotion or content. So it’s essential to know their market value and keep records of everything you receive.
What tools should I use to keep accurate records?
Ditch the fancy notebook and the Post-Its and step away from the spreadsheet – it’s time to get cloud accounting software into your life. The right software can make tracking your income and expenses a whole lot easier.
At Smooth Accounting, we recommend cloud-based tools like Xero and Apron that let you track your business finances on the go, link to your bank account, and keep all your financial documents in one secure place.
Xero Cloud accounting software
Xero is one of the most popular accounting software platforms for small businesses. It helps you stay on top of your income and expenses, send invoices and track payments received on any device.
Xero connects directly to your business account and bank statements, giving you a real-time view of your finances and helping you budget for tax liabilities.
What is Apron?
Apron is a great tool for influencers, helping you to manage invoices and expenses with ease. It helps to log receipts, track business expenses, and manage payments – essential to stay organised and avoid missing out on valuable deductions.
Apron and Xero work really well together because they handle different parts of your financial management. Apron focuses on the day-to-day admin — things like capturing receipts, managing invoices, and tracking expenses — which helps keep everything organised. Xero is full accounting software that pulls all this data together to give you the bigger picture of your business finances, including your income, tax liabilities, and bank transactions. You don’t have to use both, but using Apron alongside Xero can save a lot of time and hassle, especially if you’re self-employed or managing lots of payments and expenses.
Methods we recommend for tracking influencer income
Every content creator runs their business slightly differently, but these habits can help you stay in control of your finances and reduce tax-related stress.
Keep invoices and contracts organised
Every time you work with a brand or agency, create an invoice for the agreed fee. This helps with accurate record-keeping and gives you proof of income if HMRC ever asks. Save copies of contracts, too — they’re essential financial documents that show the terms of your brand partnerships.
Track allowable expenses
Business expenses can be deducted from your profits to reduce your taxable income and your eventual tax bill.
Let’s say you forgot to claim £500 of deductible expenses — maybe on travel costs, equipment or software for your content creation. If you’re a sole trader paying 20% income tax and Class 4 National Insurance at 6%, that £500 could cost you around £130 in unnecessary tax (£100 income tax + £30 NI). Over time, missed expenses like this can really add up.
Make sure you’re keeping records so that, come tax season, you can claim all your allowable expenses. The golden rule is that the expense should be solely for the purpose of running your business.
Common allowable expenses for influencers include:
- Office supplies
- Equipment (like cameras, lighting, or laptops)
- Travel costs for business purposes
- Software subscriptions
- Phone bills (business use portion, see our video on What can you claim working from home)
- Home office expenses (again, the business use portion)
- Marketing and website costs
Record all payments received
Make sure every payment is recorded, whether you get paid by bank transfer, PayPal, or another platform. Don’t forget this includes gifted products if they’re given in exchange for work. Good accounting software links to your bank account to track payments automatically — but it’s still good practice to double-check.
Separate business and personal finances
If you’re serious about content creation, opening a separate bank account for your influencer income and expenses is a smart move. A dedicated business account helps avoid confusion, keeps your bank statements clean, and makes it easier to track income and expenses when it comes to tax time.
Budget for tax returns
Unlike being employed, as a self-employed influencer, you are solely responsible for declaring your income to HMRC and paying the tax you owe. What you don’t want is for that bill to come as a surprise.
It’s crucial to keep records of your transactions so you have an idea of your estimated tax payments. That way, you can put money aside for your tax bill throughout the year. We recommend saving around 20-30% of your earnings for taxes (depending on your income level – this can be substantially higher once you enter the higher rate tax bracket).
Want to focus on followers, not finances? Get in touch with Smooth Accounting
Many business owners find financial management daunting and time-consuming. But with the right accounting tools and expert support, managing income, expenses, and tax obligations doesn’t have to be stressful.
At Smooth Accounting, we specialise in helping content creators and influencers stay organised, ensure compliance with tax laws, and keep on top of their business finances.
From setting up accounting software to bookkeeping and managing your tax return, we’re here to help you stay focused on what you do best — creating amazing content.
Need help tracking your income and expenses as an influencer? Get in touch today.
