In today’s increasingly (some would even say chronically) online world, where there’s a constant battle for people’s attention, it’s not just a good idea to have multiple strings to your bow; it’s a necessity. That is, if you want to stand out from the crowd and give yourself the best chance of success.

Like it or not, TikTok has emerged in recent years as the premier social platform for people to connect with a global audience and cultivate a following. This can lead to opportunities for monetisation, meaning you can make money from the content you create.

Now, whether you secretly harbor a dream of one day becoming a viral sensation (your secret is safe with me) or you just like the idea of having an additional revenue stream, TikTok is an incredibly powerful tool.

Get ready to set a new trend as we explore the different ways you can turn your TikTok account into a viable source of income (and what this means for you tax-wise!).

What is TikTok?

With over a billion users, TikTok might just be the most popular social channel in the world, specialising in short-form, easily digestible content. In contrast to platforms like Instagram, which mainly functions as a kind of digital scrapbook for people to document their lives through photos, TikTok places an emphasis on virality and entertainment. You have to be prepared to think outside the box or you’ll just get lost in the shuffle.
 

How can I make money on TikTok?

The million-dollar question. As ever, there are several factors to consider as part of your overall marketing strategy. There are actually a number of ways to make money on TikTok, but it all hinges on content creation.

To start making money, you need an audience. To attract an audience, you need to post high-quality content that people want to engage with. If it can go viral, that’s even better! The key thing to remember is that the more followers you have, the more opportunities you’ll have to earn.

Content creation

Not only do you need to post high-quality content, but you need to do it consistently. Again and again and again. The TikTok algorithm rewards those who post on a regular basis, as this helps with engagement on the site.

In terms of the posts themselves, try and use relevant hashtags and jump on any trends you come across that you feel could be naturally worked into your unique brand of content.

Most importantly, though, focus on finding your niche – carving out your own little corner of the internet. This will allow you to have your cake and eat it, making content you enjoy and that feels fresh because it’s authentically ‘you.’

It’s also important to interact with your followers (by responding to comments, etc.) and engage with other creators’ videos. Essentially, you want to have a presence in the space, and this ties back to posting regularly and often.

Join TikTok’s creator fund

This only becomes an option once you reach a certain level – namely, 10,000 followers and 100,000 video views in the last 30 days. What it does, though, is pay you based on the number of views your videos receive, further incentivising you to put out great content and grow your page. The more engaging your content, the more views you’re likely to get. Needless to say, as you scale your platform over time, this fund can prove to be an incredibly lucrative income source.

Brand partnerships and sponsored content

Considering TikTok has over one billion users worldwide, it’s no real surprise that brands want to try and leverage its popularity to promote their products, and they’re constantly on the lookout for influencers who can help them with this.

To be in contention, you need a sizable following that would appeal to a brand looking to reach a large number of people. Some brands may even want to target specific demographics, and so will select you (or not) based on how well your followers match up with their target audience.

How does the ball get rolling with becoming an influencer, though? Well, you can wait for brands to contact you, or you can take the initiative and reach out to them directly. If you’re super committed, you can even put together a pitch explaining why you’d be a good fit to collaborate with them. Also consider signing up for platforms like Influencity or TikTok’s own Creator Marketplace; these can help you to connect with relevant brands and companies.

One thing to remember is that promotions should feel genuine and in line with your own unique brand – as we mentioned before, authenticity is key.

TikTok shop

This is really handy, existing within the TikTok ecosystem and enabling you to sell your own products or merchandise directly on the app. The visual nature of the platform means it’s easy to show off your stuff in a way that’s fun and engaging (e.g. via tutorials and behind-the-scenes vids). If you happen to have a separate online store, you can simply link this in your bio.

Affiliate programmes

Encouraging your followers to click on affiliate links is yet another way to make money on TikTok, with you earning commission on any consequent sales. To take this a step further, you could even make reviews or tutorials featuring the products you’re promoting – or, for a more natural approach, weave references to products into your videos.

Again, though, try not to lose sight of why people follow you in the first place and choose products that fit into your niche.

Offer a paid subscription

Once you pass the thousand follower mark, TikTok lets you introduce a paid subscription to your followers. This is an opt-in monthly fee, which you’ll earn a portion of. The main way to make this an attractive proposition is by offering exclusive content and increased access.

Will I have to pay tax on my TikTok income?

The vast earning potential of TikTok also comes with financial and tax responsibilities that you need to be aware of. You can use the Trading Allowance to earn up to £1,000 of self-employed or side hustle income before you need to tell HMRC about what you’ve been up to. The amount doesn’t include anything you might earn from an employer.

What happens if I make money on TikTok?

If you do go over the £1,000 threshold, you’re considered self-employed and will need to sign up for Self Assessment – but the amount of tax you’ll end up paying depends on how much you make.

It is still possible to reduce your tax bill, though. You can either claim expenses relating to your TikTok earnings (such as purchasing equipment like cameras, lighting, microphones, etc.) or you can claim the Trading Allowance against your tax bill.

 
Even if this is a side hustle to your main business and you technically have multiple businesses or income streams, you still only need to submit one single Self Assessment – just make sure to give each a section of its own.

 
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