OnlyFans, a content subscription service popular with amateur pornographic models, could face a VAT bill covering more than three years’ worth of uncollected taxes, Sky News has learnt.
The service, which has spiked in popularity during the coronavirus lockdown, functions like a social media platform where fans pay a monthly subscription fee to access content creators’ protected posts.
Last week, for the first time since it began operating in 2016, the service started charging VAT on fans’ monthly subscriptions following discussions with Her Majesty’s Revenue and Customs (HMRC).
Sky News understands HMRC is currently reviewing whether the company should have been collecting VAT since its inception.
HMRC could issue the business with a penalty doubling the amount of tax owed if it assesses OnlyFans was careless or deliberately inaccurate with its returns.
The company stated the review of its tax status was