OnlyFans could be hit with a huge Tax Bill
After discussions with the UK tax office, content subscription platform OnlyFans has very recently (July 1st, 2020) began charging VAT on fans’ monthly subscriptions.
According to an article from Sky News, Her Majesty’s Revenue and Customs (HMRC) is believed to be investigating whether the company should have been collecting VAT since it launched in 2016.
If HMRC finds the company has been deliberately evasive with its tax returns, it could be handed a penalty worth double the tax they owed.
OnlyFans takes 20 percent of the subscription fees, with the rest (80%) going directly to content creators.
As such, if the HMRC determines the company should have been collecting VAT since it began operating – which is almost always charged at 20 percent – it would have to hand over all of its UK income to cover this.