With millions of users scrolling through TikTok daily, it’s no surprise that tax advice has found its way onto the platform. From quick tips on expense claims to promises of easy tax savings, these bite-sized videos can seem incredibly appealing—especially when they’re presented with confidence and a catchy soundtrack.
However, as chartered accountants, we’ve seen firsthand the consequences of following misleading tax advice from social media. What might seem like a clever loophole could actually land you with hefty HMRC penalties, legal troubles, or worse—a full investigation into your affairs.
The Problem with TikTok Tax Tips
Social media thrives on engagement, not accuracy. Content creators often prioritise views and shares over providing reliable, compliant advice. This creates a perfect storm where:
- Complex tax rules are oversimplified into 60-second videos
- One-size-fits-all advice ignores individual circumstances
- Unqualified creators share information without proper expertise
- Misleading claims spread faster than corrections
Unlike qualified accountants who are bound by professional standards and regulations, TikTok creators face no consequences for giving poor advice—but you certainly will if you follow it.
The Most Dangerous TikTok Tax Myths
1. “You Can Claim Anything as a Business Expense”
One of the most persistent myths is that simply labelling something as “work-related” makes it tax-deductible. We regularly see people attempting to claim their daily coffee, personal clothing, or even holidays as business expenses.
The reality: HMRC requires expenses to be “wholly and exclusively” for business purposes. Your morning latte or new trainers don’t qualify, regardless of what you tell yourself—or HMRC.
2. “Cash Payments Are Tax-Free”
Another dangerous misconception is that cash income doesn’t need to be declared. Some TikTokers even suggest this is a legitimate tax strategy.
The reality: All income must be declared, regardless of how you receive it. Cash is simply a payment method, not a tax exemption. Failing to declare cash income is tax evasion and can result in severe penalties.
3. “Side Hustles Under £1,000 Are Invisible to HMRC”
While there is a £1,000 trading allowance, many TikTok creators misrepresent how this works, suggesting small earnings don’t need to be reported at all.
The reality: You still need to declare all income, even if it falls within allowances. HMRC’s digital tracking capabilities mean your online earnings are far from invisible.
4. “Setting Up a Limited Company = Tax-Free Personal Expenses”
Perhaps the most dangerous myth is that incorporating a business allows you to claim personal expenses as tax-deductible.
The reality: This is fraud, pure and simple. Creating a shell company solely to funnel personal expenses through it will trigger an HMRC investigation and potentially criminal charges.
Why Professional Tax Advice Matters
Qualified accountants understand the nuances of tax legislation and how it applies to your specific situation. We stay updated on changing rules, represent you during HMRC enquiries, and provide advice tailored to your circumstances.
TikTok creators are under no obligation to verify their information, face no consequences for mistakes, and often lack the qualifications to provide tax advice in the first place.
The Real Cost of Bad Tax Advice
Following incorrect TikTok advice can result in:
- Significant financial penalties from HMRC
- Interest charges on unpaid tax
- Full investigations into your tax affairs
- Reputational damage to your business
- Criminal prosecution in serious cases
- Stress and anxiety from dealing with HMRC
Is saving a few hundred pounds on professional fees worth risking thousands in penalties and the stress of an HMRC investigation?
Protecting Yourself from Misleading Advice
Red Flags to Watch For:
- Promises of “guaranteed” tax savings
- Advice that seems too good to be true
- Claims that HMRC “doesn’t know” about certain strategies
- Suggestions to be deliberately vague on tax returns
- Advice from unqualified individuals
What to Do Instead:
- Consult qualified professionals for tax advice
- Verify information through official HMRC guidance
- Be sceptical of “too good to be true” claims
- Keep detailed records of all income and expenses
- Seek second opinions on significant tax decisions
Making Informed Tax Decisions
Whilst TikTok can be entertaining and occasionally educational, tax planning requires expertise, experience, and accountability. Your financial future is too important to trust to viral videos and unverified claims.
At Jermyn & Co, our chartered accountants provide reliable, compliant tax advice tailored to your specific needs. We stay current with legislation changes, understand HMRC’s expectations, and have the professional qualifications to guide you safely through the complexities of UK tax law.
Don’t let a 60-second video cost you thousands in penalties. Contact us today for professional tax advice you can trust.
Need expert tax guidance? Our team of chartered accountants at Jermyn & Co is here to help. Contact us for a free consultation and discover how proper professional advice can save you money whilst keeping you compliant with HMRC requirements.