If you earn money (or receive goods) through social media — brand deals, sponsorships, affiliate links, ad revenue, or "gifted" products — you are running a business in HMRC's eyes. This guide covers what you need to know about tax as a UK-based influencer or content creator.
When is a "gift" actually income?
HMRC is clear: if you receive a product or service in exchange for promotion (a post, a story, a review), it is not a gift — it is payment in kind and its market value is taxable income. This includes:
- Products sent for review or unboxing
- Free hotel stays or experiences in exchange for coverage
- PR packages where there is an expectation of posting
- Wishlist items purchased by brands for you
Genuine gifts with no obligation to post are not taxable — but the bar is high. If a brand sends a tracking link or follows up asking for content, it is income.
Types of taxable income for creators
- Sponsorship/brand deal fees — direct payment for content
- Affiliate commissions — percentage of sales you generate
- Ad revenue — YouTube AdSense, TikTok Creator Fund
- Subscription income — Patreon, OnlyFans, paid newsletters
- Product sales — merch, courses, e-books
- Gifted products — value of items received for promotion
Allowable business expenses
You can deduct genuine business expenses from your income:
- Camera equipment, lighting, microphones
- Editing software subscriptions
- Props and backdrops
- Travel to shoots or events (if primarily for content)
- Portion of phone bill and internet
- Home office costs
- Agent or management fees
- Accounting fees
Clothing and beauty products are generally not deductible unless they are clearly costume/props that would not be worn personally. This is a grey area — keep clear records of what is exclusively for content.
VAT registration
Once your taxable turnover exceeds £90,000 in a 12-month period, you must register for VAT. Many successful influencers hit this threshold without realising it — especially when you add the value of gifted items to cash income.
Sole trader vs limited company
Most influencers start as sole traders. Once income exceeds £40,000–£50,000, incorporating as a limited company often saves tax — see our sole trader vs limited company guide for a comparison.
Estimate your tax bill
Use the income tax calculator to see your estimated tax on total content income. If you have a day job as well, enter your combined salary + creator profit to see the total liability and which band your creator income falls into.