Understanding Influencer Income

As social media continues to evolve, more people are turning their creativity into income—whether through sponsored posts, affiliate links, or gifted products. If you're one of them, it's worth understanding how HMRC views this kind of income and what that means for your tax responsibilities.

What Is Influencer Income?

Influencer income isn’t limited to cash payments. HMRC considers any benefit received in exchange for content creation or promotion as income. This includes:

• Sponsored posts or brand collaborations

• Affiliate commissions

• Ad revenue from platforms like YouTube or TikTok

• Subscription income from platforms such as Patreon

• Gifts or PR packages received in exchange for promotion

• Digital product sales, such as e-books, presets, or courses

Even if you're paid in products or services rather than money, HMRC may still expect you to declare the fair market value of those items.

It’s important to note that the tax rules themselves aren’t different for influencers. What’s different is the way influencers often receive payment. Unlike traditional businesses that deal mostly in cash, influencers might receive income in the form of gifts, services, or commissions. These are still taxable if they’re part of a business arrangement.

If your total income from these activities exceeds £1,000 in a tax year, you’ll need to register for Self Assessment and file a tax return. This applies even if you’re doing it part-time or alongside another job.

Keeping Good Records

To make tax time easier and more accurate, it’s helpful to keep track of:

• All income received—both cash and non-cash

• Business-related expenses such as equipment, software, and travel

• Receipts and invoices

• Valuations of any gifted items

Good record-keeping helps ensure you claim the right expenses and stay compliant. It’s also important to remember that the burden of proof lies with the taxpayer. HMRC expects you to be able to support your claims with documentation, so I strongly recommend keeping clear and consistent records of all transactions, including any agreements or communications with brands.

Understanding Business Expenses

You can deduct expenses that are wholly and exclusively for your business. This might include:

• Camera equipment or editing software

• Website hosting

• Travel costs for business events

• A portion of your phone or internet bill if used for business

However, one of the more common challenges is splitting personal and business expenses. For example, if you use your mobile phone or laptop for both personal and business purposes, only the business portion can be claimed. It’s important to give careful consideration to what qualifies as a business expense and to keep clear records to support your claims.

Don’t Forget About VAT

The last thing to consider is whether your total revenue—regardless of whether it’s received in cash or other forms—exceeds the VAT registration threshold. If your income goes over £90,000 in a 12-month period, you are required to register for VAT. This applies even if some of your income comes from gifted items or services, as long as they are part of your business activity.

Alongside tax rules, influencers also need to follow advertising guidelines. So please make sure you understand all these rules as well 😊

If you're earning through social media, even in small amounts, it's worth checking whether you need to register with HMRC. The rules aren’t new or unique to influencers, but the way income is received can make things a little more complex. With the right support and systems in place, it’s manageable—and ensures you stay on the right side of the law.

If you’re unsure whether your activity counts as taxable income, or you’d like help setting up your records, feel free to get in touch. I’m here to help you navigate it all with confidence.