Tax and influencers | Severn Accounting

The rise of social media influencers has created a whole new category of self-employed professionals, and with that comes a fresh set of tax challenges. Whether you’re earning money through sponsored posts, affiliate links, or brand partnerships, HMRC views influencer income the same way it views any other business income—and it expects you to declare it. If you’re building an influencer career, or advising someone who is, here’s what you need to know about staying on the right side of the taxman.

Is influencer income taxable?

The short answer is yes. If you’re earning money from your social media presence, HMRC considers this self-employment income, regardless of whether you call yourself an influencer, content creator, or something else entirely. This applies whether you’re receiving cash, free products, or other benefits in kind.

Many influencers assume that smaller earnings don’t need to be reported, but that’s a dangerous misconception. HMRC doesn’t have a minimum threshold for declaring income. If you’re self-employed and earning anything above the trading allowance threshold of £1,000 per tax year (2024/25), you’ll need to register for self-assessment and report your earnings.

Even if you’re below that threshold, it’s worth reporting anyway to build a clear record—especially if your income grows year-on-year.

Registering and reporting your income

Once you start earning as an influencer, you should register for self-assessment with HMRC. The deadline is by 5 October following the end of the tax year in which you start trading (for example, if you start in the 2024/25 tax year, you’d register by 5 October 2025).

You’ll then submit a self-assessment tax return each year, detailing all your influencer income. This includes:

Sponsored posts and brand collaborations
Affiliate commissions
Ad revenue from YouTube, TikTok, or other platforms
Income from selling your own products or courses to your followers
Gifts or free products given in exchange for promotion (valued at their market price)

The tax year runs from 6 April to 5 April, and you have until 31 January following the end of the tax year to submit your return and pay any tax owed.

Claiming expenses and allowable deductions

Here’s the good news: being self-employed means you can offset expenses against your income, which reduces your taxable profit. Common allowable expenses for influencers include:

Equipment (cameras, lighting, microphones, computers)
Software and apps (editing software, scheduling tools, analytics platforms)
Subscriptions (phone contracts, broadband, platform memberships)
Homeworking costs (a proportion of rent, council tax, utilities, and internet)
Professional services (accountancy, tax advice)
Marketing and promotional costs
Travel and accommodation for collaborations or events

Keep detailed records of all receipts and invoices. HMRC expects you to substantiate claims with evidence, and poor record-keeping is a common reason for enquiries.

VAT considerations

If your turnover exceeds £85,000 in a twelve-month period, you must register for VAT. As a VAT-registered influencer, you’ll charge VAT on your services and can reclaim VAT paid on business expenses, but you’ll also need to submit quarterly returns to HMRC.

Many smaller influencers won’t hit this threshold, but it’s worth monitoring as your income grows.

National Insurance contributions

As a self-employed person, you’ll need to pay Class 2 and Class 4 National Insurance contributions. Class 2 is a flat rate (£163.80 for 2024/25), whilst Class 4 is calculated as a percentage of your profits (8% on profits between £11,908 and £50,270, and 2% above that). These contributions count towards your state pension and some benefits, so it’s important to factor them in.

Getting it right from the start

The influencer industry is relatively new, and HMRC is increasingly scrutinising this sector. The more transparent you are about your income and expenses from day one, the smoother your tax affairs will be. Many influencers find it helpful to work with an accountant who understands the sector—we’ve helped several Worcester-based content creators navigate their tax obligations whilst they focus on what they do best: creating content.

For tailored advice, contact Severn Accounting — we’re here to help.