SJD Accountancy
Join Now
Join now
we're open, call us

0123456789

  • Services
    • Our Services
      • Accountancy Packages
        • Compare Services
        • Essential
        • Essential Pro
        • Premium
        • Elite
      • Sole Trader Packages
      • Company Formation
      • Switching Accountant
      • Tax & Audit Services
        • Self Assessment
        • Questionnaires
      • Insolvency Services
      • IR35 Contract Reviews
      • Special Offers
    • Partner Services
      • Umbrella
      • Business Insurance
      • Contractor Mortgages
      • Wealth Planning
      • Health Insurance
      • IPSE Membership
      • Rewards
  • Contractor Resources
    • Contractor Library
    • Top Guides
      • The Contractor’s Guide
      • Limited or Umbrella. The Ultimate Guide
      • Complete Guide to IR35
    • Contractor Tools
      • Limited Company Name Generator
      • Compare Your Day Rate
      • Gender Pay Gap Tool
    • Contractor Calculators
      • Take home pay
      • IR35 calculator
    • Becoming a Contractor
      • Permanent to Contracting
      • How to contract
      • Contractor earnings
      • Contracting in the UK
      • Umbrella take home pay
      • Limited or umbrella
      • Contracting through an umbrella
      • FAQ’s for new contractors
    • Existing Contractor
      • Expenses
      • Taking money out your company
    • Financial Advice
      • Business banking
      • Contractor and business insurance
      • Contractor pensions
      • Contractor mortgages
      • Off-Shore
    • Understanding Legislation
      • IR35
      • Flat Rate VAT scheme
  • About
    • Company
      • About SJD
      • Contact us
      • Careers
      • Terms of Business
      • Terms & Conditions
      • Privacy Policy
    • News
  • Clients
    • Refer to SJD
    • SJD Online
Search Search

SJD Accountancy > News and Opinion > Contractor Advice > How to Become a Self Employed Influencer

SJD Accountancy > News and Opinion > Contractor Advice > How to Become a Self Employed Influencer

How to Become a Self Employed Influencer

Author
Written by:Tom Jones
Contractor Advice
3 minutes
Published: October 22, 2020 Updated: December 3, 2020
  • Twitter
  • Facebook
  • LinkedIn
  • Email

It’s a career path that didn’t exist just a few years ago, but today the idea of becoming an online influencer is a viable route to making money for many people. 

But how (and why) should you explore the idea of turning your love of social media into a full-time job? This guide is here to help.

In less than a decade, the online influencer sector has gone from almost non-existent to a $9.7 billion industry and it’s not hard to see why. People today consume more digital content than ever before, and it doesn’t seem to show any signs of slowing.

Content creators on YouTube, Instagram, and a whole host of other channels are building up large and lucrative audiences every day. And, thanks to advertising revenue and sponsored posts, they’re starting to earn money from it too.

But, if you’ve found yourself earning money from your digital output, how do you go about turning it into a business? In this guide, we’ll explore the ways you can do just that, as well as taking in some other considerations, too.

At what point does your influencer hobby become a business?

The path to becoming an influencer is something that can seem simple – you take something that is your passion; you post content regularly about that subject; you build up an audience, simple. However, it can actually be a lot more difficult than that.

Well, it’s a great hobby for sure. But, as soon as you start to monetise that audience (through selling ad space on YouTube, or promoting products or services on your other social media channels), then you’ve become a business. Congratulations!

However, with the excitement of making money from your passion, it’s easy to forget that, as with any business, you have a legal responsibility to declare your income and pay taxes.

How to set yourself up as a business

When starting out, most people tend to go down the sole trader route. It’s a fairly straightforward process, whereby you register yourself with HMRC as a self-employed person.

Once that’s done, you’ll get your Unique Taxpayer Reference (UTR) number, and you’re on your way.

The main source of stress for many self-employed people is around filling in your annual Self Assessment Tax Return. Fortunately, we’ve put together a handy checklist to help guide you through the process. 

There are, of course, other options when it comes to setting up your business. The most common is to form a limited company.

Why should you consider going down the limited company route? Let’s take a look.

The benefits of a limited company for an influencer

Setting up as a limited company is a little bit fiddlier than taking the self-employment path. But, there are some major benefits too. Here are our top three:

You can build a more robust long-term plan

If you see your business growing in the future, then a limited company framework will allow you to expand more easily—whether that’s taking on employees or planning for tax opportunities.

You’ll be less exposed to risk

If you’re self-employed, you’ll be personally responsible for your company’s debts. So, if the worst should happen, your assets could be at risk. But, as a limited company, your business is a completely separate entity which means you have limited liability.

Greater flexibility

If you set up your own limited company you are free to decide how and when you pay yourself personal income, you can pay into a company pension scheme and choose to pay personal income as salary, dividends or a combination of both. You can also leave money in the business for reinvestment.

In summary

There’s a lot to think about when you take your influencer career from hobby to business. It can be exciting and daunting all at the same time.

But, by taking your time, planning carefully, and remembering not to take it all too seriously, you’ll get to enjoy the adventure of making your dream a reality.

If you want some more information on moving from permanent to full-time contracting, download our guide to contracting through the below link.

Download your Contractor's Guide

Related Articles

The Six Steps You Need to Take to Become a Contractor in 2021
Contractor Advice
2021 Self Assessment Tax Return Checklist
Contractor Advice
How to Become a Self Employed Influencer
Contractor Advice
Coronavirus and Contracting: Looking After Your Mental Health
Contractor Advice
How to turn your lockdown side hustle into a full-time career
Contractor Advice
Contractor Pensions – Practical Tips and Options for 2020-21
Contractor Advice

Back to top

Contact Us

  • 0123456789

Useful Links

  • Terms & Conditions
  • Recruiters
  • Privacy
  • Slavery Statement

New Business Hours

Monday - Thursday8:00 AM — 8:00 PM
Friday8:00 AM — 7:00 PM
Saturday10:00 AM — 4:00 PM
SundayClosed

Copyright SJD Accountancy 2021. All rights reserved. SJD Accountancy Ltd is a company registered in England & Wales. Company Registration Number 06277058.