HMRC has social media influencers in its sights

The UK Government in its March Spring Statement announced a significant investment in HMRC’s debt collection team with new funding for staff and external debt collection agencies.

It is a measure that the Government hopes will raise an additional £600m a year by 2029/30.

Social media influencers and content creators are already feeling HMRC’s heat, with the Government looking for high-profile examples that suggest its policies are working.

Paul Strutt, creative, technology and media lead explains: 

“HMRC has announced repeated crackdowns on social media influencers and content creators to ensure they pay the tax that it believes is due. The most recent measure – an online tool to help those who sell goods and services online understand the tax they need to pay – was introduced in November last year.

However, since the recent announcement, we are already seeing an increase in influencers and content creators seeking advice following renewed interest from HMRC regarding their tax affairs.

Not all of these influencers and content creators have huge followings or generate large amounts of money from their social media content. Many are young people with a part- or full-time job generating additional income from their social media platforms. Often, they do not realise that additional income needs to be declared and tax paid. Anything over £1,000 a year needs to be declared.

Where income from social media generates a significant income, tax can quickly become complex and more challenging. We see influencers and content creators with revenue streams from many different countries, many of which trigger UK and overseas tax liabilities. 

We also see successful influencers that have not structured their business in the most efficient way, resulting in unnecessarily large tax liabilities, and HMRC wants its slice.

HMRC has previously targeted influencers and content creators with ‘nudge’ letters, and whilst there has not yet been any further campaigns, it appears clear that it has them once again in its sights.

Influencers and content creators who are concerned or unsure of their tax and reporting responsibilities are urged to take advice as soon as they can.” 

If you would like help or guidance with your tax and reporting responsibilities, please get in touch with a member of our team, who will be happy to assist you.