These days, becoming a streamer can be a shortcut to fame and fortune. Typically, the most successful streamers in the business boast seven-figure incomes, and through subscriptions, sponsorship, donations, and contracts, they’ll earn more than some actors, musicians, and even big-business CEOs. That’s all well and good, but do streamers pay taxes? If you’re a content creator, are you legally obliged to pay your taxes and manage your finances effectively?
There’s a lot of money in content creation – that’s why so many young people are turning to streaming to kickstart a career that can last them for several years. It’s a highly competitive and oversaturated business that can be hell to survive in, but once you’ve cracked it, you’re on a path to some relatively easy money.
So, do streamers pay taxes? And if so, how much do they pay?
Do Streamers Pay Taxes?
If you earn enough in any job, you need to pay taxes – that’s the way of the world. It’s a staple of modern life – income tax is just one of our crosses to bear as responsible, financially-aware individuals, and if you earn enough as a streamer, you’re legally obliged to pay taxes.
For instance, in the United Kingdom, you’d register as self-employed (unless you’re hired by a streaming or content creation agency), and you’d complete a ‘self-assessment’ tax return once a year. If you’ve earned over your ‘personal allowance’, you’d owe around 20% tax on earnings over that allowance. If you earn enough to break into the next ‘tax bracket’, then you’ll owe 40% on all earnings that cross that threshold.
Related: Is Kick.com Legit for Streamers?
There are different rules for almost every country in the world, and some will have different fees that apply. Some jurisdictions may charge a lower rate of income tax, some may charge more, and others may waive it entirely under certain circumstances, but it’s vital that you check the rules and regulations where you are to avoid breaking the law.
Is It Hard to Make Money as a Streamer?
If you’re learning how to start streaming, you’ve got a long and arduous path ahead of you. It’s not immensely tough to learn how to make money as a streamer, but it can take quite a while to do so. Those that are just starting out on their path will have many months – and perhaps years – of grinding before they turn a profit, particularly when the cost of building a streaming setup can be so exorbitantly expensive in this day and age.
It’s crucial that you remain on top of your finances, though. If you’re going to become a very legitimate streamer, you’ll need to register as self-employed, keep ledgers that track your earnings, and you’ll potentially need to hire an accountant – even temporarily – when it comes to breaking down the taxes that you owe.
It doesn’t matter if you earn $10,000 a year as a streamer or $1 million a year – it’s important that you get your finances squared away.
