If you’re an influencer, receiving freebies might feel like part of the job.
From designer handbags to luxury holidays, it can seem like easy perks for a bit of content.
But if you’re not careful, these so-called gifts could land you with an unexpected tax bill.
HMRC is now keeping a close eye on online creators, and ignorance is no defence when the taxman gets involved.
(Read Time: Approx. 4 minutes)
Topics Discussed:
- When free gifts and perks become taxable income for influencers
- How businesses and influencers must report non-cash payments to stay compliant
The £1,000 Threshold and Why It Matters
HMRC considers any free items or experiences you receive in exchange for content creation as taxable income if their total value goes over £1,000 in a tax year.
This applies even when no money changes hands.
Meals, dresses, holidays and handbags are all considered taxable if you’re given them in return for reviewing, showcasing or tagging them online.
The value is treated as income. If you’re doing this professionally, or even semi-regularly, and the value of these perks exceeds £1,000, you are expected to declare it for tax purposes.
Take an example: you’re gifted a £400 designer handbag and post about it on TikTok.
There’s no cash involved, but HMRC still views this as income that must be declared.
Even if you think of your content creation as a hobby, once the value of what you receive crosses the threshold, HMRC sees it as a source of income.
You can read HMRC’s official guidance here: taxhelpforhustles.campaign.gov.uk
Business Expenses You Can Claim
The good news is that once HMRC treats your activities as a business, you are also allowed to claim expenses that relate to it.
You might be able to claim for things like:
- Cameras and filming gear
- Travel to and from shoots
- Editing software and subscriptions
- Computer hardware
- Accounting services
These can be deducted from your income to reduce the tax you owe, provided you keep proper records and the expenses are genuinely linked to your content creation work.
Brands and PR Companies Need to Be Cautious Too
If you’re a business sending products or experiences to influencers, you also need to be aware of your tax responsibilities.
Everything you give out, whether it is handbags, meals, hotel stays or other gifts, must be recorded correctly in your accounts.
HMRC does not see these as free giveaways. Instead, they are viewed as part of your promotional spending, and they carry a tax value.
For example, if you distribute £20,000 worth of items across the year, you need to treat this as a business cost and ensure it is properly accounted for.
Just like influencers, brands must ensure these figures are declared accurately to avoid any scrutiny or penalties from HMRC.
Avoiding Trouble with HMRC
The influencer space is no longer under the radar. HMRC now actively tracks content on social platforms, and it doesn’t take much effort for them to spot potential income being undeclared.
Even without formal investigations, HMRC’s tech and data-matching tools can easily identify high-value items being showcased online.
If you’re benefitting from gifted goods, they will expect this to be reflected in your tax return.
Influencers must now treat content creation as a legitimate business activity. Keep detailed records of what you receive, understand the rules around taxable benefits, and if in doubt, seek expert advice.
Similarly, if you’re a brand or PR company, make sure you know exactly what you’ve handed out and why. Transparency is vital.
Summary
Influencers today are more than just content creators. In the eyes of HMRC, they are running businesses.
From handbags to hotel stays, if you’re receiving perks in exchange for exposure or promotion, you may be liable to pay tax on them.
The key is to stay informed and act early. Track the value of everything you are given, declare your income, and make use of any relevant business expense claims to reduce your tax bill.
Contact Tax Expert today for professional advice on managing influencer income and ensuring you remain compliant with the latest HMRC requirements.
Fill out our form here for any questions, email us at info@taxexpert.co.uk, or message us on our WhatsApp for out of office hours.
Kind regards,
Ilyas Patel