OnlyFans Isn’t Taking Creators’ Money, But It May Be in Tax Trouble

This is an out-of-character post for me. However, I wrote about this topic because this information is pretty important. A lot of dear friends—and thousands of others—use OnlyFans as a major source of income. And while there’s no imminent danger to their account balances right now, I want them to be aware of what’s happening. However, the publication I wrote this short round-up piece for turned it down. So, I’m publishing it here in the interest of keeping everyone informed!

Viral Tweet About OnlyFans

Adult-friendly subscription social platform OnlyFans has seen massive growth over the past six months, as the global pandemic drove consumers and adult content creators alike into isolation. With both production and consumption skyrocketing—as of early July, the company boasted 44 million users worldwide—hiccups and complaints were inevitable. The latest of these appears to have started as a rumor, but it turns out that it may have been based in troubling reality.

Here’s what happened: On August 9, Twitter user caseywaves tweeted: “If you are on OnlyFans, Withdraw your money ASAP and stay withdrawing it. They’re in court for tax evasion and they’ve been blocking content creators so they can keep their money. There’s no policy against this. Withdraw your money every chance you get.” His tweet thread continued, “Once they block your account it’s game over. All the money you had sitting in your OnlyFans Account will be gone forever. And there’s nothing you will be able to do about it.”

To back up his claims, caseywaves provided screenshots of a headline from the Independent about OnlyFans subscribers being hit with a new tax, a headline from SkyNews about the company being in trouble for unpaid taxes, and two one-star app reviews from a former content creators who claimed their profits were stolen when accounts were mysteriously deleted. 

OnlyFans Denies Allegation

The latter harkens back to a Rolling Stone article from May, which alleged that creators’ accounts were being deleted without warning, and that sex workers’s accounts may have been targeted. OnlyFans responded in a statement that it “would never deactivate accounts without due cause. In most cases, creators who violate our terms have their account restricted or suspended pending investigation and remedial action. In serious cases of fraud, for example, we deactivate accounts.” The statement also reasserted its commitment to allowing NSFW content: “OnlyFans is one of the most inclusive social platforms, and our progressive policies towards content creation enables the success of adult content creators without discrimination.”

Nevertheless, rumors of mysterious account deletions have apparently continued to swirl. Or, at least, caseywaves on Twitter thinks they did. The two screenshots he posted of content creators disgruntled by loss of their accounts are from months ago, with the more recent of the two dating to April. And, whether those rumors are still going around or not, his tweet about OnlyFans stealing creators’ money to pay off their overdue taxes hit a nerve. It earned over 26K likes and nearly 20K retweets.

OnlyFans addressed the viral tweet in a statement to Input, where they said, simply, “The claim of accounts being purposefully removed by OnlyFans is false.” 

But Those Taxes Though…

But that little thing about the tax evasion? Yeah, that could be a problem.

Back in July—as caseywaves noted on Twitter—OnlyFans announced to subscribers that it would “begin collecting and remitting VAT in your country on your active subscription,” reported the Independent. “By collecting and remitting tax on behalf of the creators that you generously support,” the platform told users, “we are helping our creators stay compliant with the current laws.”

Sounds above the board—and it is. But, as reported by Input: “It’s possible OnlyFans should have been collecting this tax from subscribers and paying it to the British government for the entirety of its existence.” Since OnlyFans launched in 2016, that may mean that the company owes four years’ worth of VAT. And the company told Input, “OnlyFans’ tax position since inception is being reviewed.” 

Yikes.

The review appears to be ongoing, and it’s unclear what the result may be. But the platform maintains that content creators have nothing to fear: “Any potential tax obligation arising from the switch of VAT basis would not have an impact on the continued operations of the business which continues to grow rapidly in every region,” the company told Input.

Still, it may be smart for OnlyFans creators to keep a close eye on what happens next—and take caseywaves’s advice on watching their account balances in the meantime. History has shown adult content creators that even their favorite platforms may not stay friendly to the work, and the profit, they create.

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