Overview
- Tax advisers report HMRC is paying closer attention to how social media users earn and promote content, putting millions at risk if they fail to comply.
- Receiving products or services in return for posts counts as income that must be declared at the item’s normal retail price, even if discounted.
- Items provided with no expectation of promotion are treated as genuine gifts and are not taxable.
- Influencers, including hobby accounts that accept such deals, are treated as businesses and may deduct allowable costs like editing software or travel related to creating content.
- Exceeding the £1,000 trading allowance requires registration and filing, and advisers warn penalties for failing to declare or filing late can surpass the value of the gifts, with average side earnings cited at about £1,223 a year.