Are you taking accounting advice from TikTok posts – check out the advice and some of the misleading findings below.

Are you taking accounting advice from TikTok posts – check out the advice and some of the misleading findings below.

Here are seven top tips on common TikTok myths, why they are wrong and what to look out for to avoid a HMRC penalty down the road.

Myth 1.  You can claim anything as a work expense if you just say it’s for work

Most people cannot claim everyday purchases as work expenses just because they use them at work or say they’re work-related. Tax deductions must be directly tied to earning your income and not just vaguely associated with your job, therefore unless the expense is necessary, work-specific, and backed by proper records, it’s considered a personal cost and is not deductible.

For the avoidance of doubt, keep personal spending and business claims clearly separated, and speak to your accountant.

Myth 2.  Personal and lifestyle costs are deductible for entertainers and influencers

Many influencers and entertainers assume they can write off clothing, beauty treatments, meals, or holidays simply because they post about them online. But HMRC draws a clear line between personal lifestyle choices and genuine business expenses.

Expenses that are completely and exclusively for business, like a photoshoot, sponsored travel, or advertising cost are likely to be deductible.

Myth 3.  You can deduct gambling losses

Most people cannot deduct gambling losses because gambling is seen as a hobby, not a profession. Claiming losses against income without being a registered, professional gambler will incur consequences. Keep your gambling and taxes completely separate.

Myth 4.  You don’t need to declare income from side gigs / hustles or freelancing

It’s a common myth that if you earn a small amount on the side, say, through tutoring, freelance work, or online sales, you do not need to report it. But all income, no matter how casual or irregular, must be declared.

Anyone selling goods through online platforms needs to make sure they keep within the £1,000 tax free limit as HMRC continues to clamp down, so keep track of all earnings, even if it’s just a side hustle.

Myth 5.  You don’t have to pay tax if you’re paid in cash

Being paid in cash does not mean the money is tax-free. It still counts as income and failing to report it is considered tax evasion.

Always keep records of your income, including cash jobs. You’re expected to declare all income sources regardless of the payment method. Cash is just a form of payment not a tax loophole.

Myth 6.  Forming a limited company means you can deduct personal expenses

Some people think starting a limited company is a clever way to claim personal costs like rent, meals, or fuel. But fabricating a business purely for tax deductions is fraud.

If you are struggling to keep track of expenses, then you should consider making use of accounting software and speaking with your accountant.

Myth 7.  If your friend or family member does your tax return, you don’t need to worry about mistakes

Even if someone else prepares your tax return, you are still legally responsible for everything in it. If they make a mistake the individual taxpayer is the one HMRC will pursue

Here at Kennedys Accounting we are experienced in working with influencers and e-sellers – please get in touch – we are here to help.