How HMRC sees content creator income
HMRC does not treat influencing as a hobby once it earns real money. Its guidance for online platforms lists creating online content, including making videos, producing podcasts and social media influencing, as a source of income you may need to report. That covers ad revenue, brand deals, sponsorships, affiliate commission, subscriptions and memberships, tips, and the value of gifts and services you receive for promoting products.
If your total income from content and any other side hustles is £1,000 or less in a tax year, the trading allowance usually means you do not need to tell HMRC. Above £1,000, you register for Self Assessment as a sole trader by 5 October after the end of the tax year. The £1,000 is measured before expenses, and it is one allowance across all your trading activities, not one per platform.
HMRC also has more information than it used to. Since 1 January 2024, digital platform operators may have to collect sellers' details and report their income to HMRC each January. Whether or not a platform reports you, declaring the income is your responsibility.
Gifted products, barter and brand deals
This is where creators most often get it wrong. HMRC says that when you receive gifts or services instead of money for promoting products, you count the value of what they would have cost if you had paid for them. A product sent in return for a post is income, just as a fee would be.
Example: a mixed brand deal
In one tax year a creator receives £2,500 in cash for a sponsored series, keeps products worth £600 sent as part of the deal, earns £400 of affiliate commission and £900 of ad revenue. Their income from content is £2,500 + £600 + £400 + £900 = £4,400. That is well over the £1,000 trading allowance, so they need to register and file a return, then deduct allowable expenses to find their profit.
Practical habits that help: keep a simple log of every gifted item with the brand, the date, what you agreed to post and a fair retail value; keep contracts and briefs; and note where a deal was part cash, part product. If you receive a package with no request to post anything, record it anyway and ask your accountant how to treat it.
Brand deals also carry a non-tax obligation. The Competition and Markets Authority's guidance for content creators says you must tell your audience when you have a business connection with a brand, including when you received a product free or at a discount.
Sole trader or limited company
Most creators start as sole traders. Once profits are large, many ask about a limited company. The honest answer for 2026/27 is that the saving is smaller than it was, because employer National Insurance is 15% above £5,000, a company whose only employee is its director cannot claim the Employment Allowance, and dividends above the £500 allowance are taxed at 10.75% and 35.75% for 2026/27.
Worked example: £70,000 profit in 2026/27
Assumptions: an influencer in England with no other income, £70,000 of profit before paying themselves. The company pays a £12,570 director's salary and pays out everything left after Corporation Tax as dividends.
| Sole trader | Limited company | |
|---|---|---|
| Profit before owner's pay | £70,000.00 | £70,000.00 |
| Employer National Insurance | None | (£12,570 minus £5,000) x 15% = £1,135.50 |
| Corporation Tax | None | Profit £56,294.50 (£70,000 minus £12,570 minus £1,135.50). £56,294.50 x 25%, less marginal relief of 3/200 x (£250,000 minus £56,294.50), = £11,168.04 |
| Income Tax | £37,700 x 20% = £7,540.00, plus £19,730 x 40% = £7,892.00. Total £15,432.00 | Salary uses the personal allowance. Dividends of £45,126.46: £500 at 0%, £37,200 x 10.75% = £3,999.00, £7,426.46 x 35.75% = £2,654.96. Total £6,653.96 |
| Class 4 National Insurance | £37,700 x 6% = £2,262.00, plus £19,730 x 2% = £394.60. Total £2,656.60 | None |
| Total tax and National Insurance | £18,088.60 | £18,957.50 |
| Take home | £51,911.40 | £51,042.50 |
When all the profit is drawn out, the sole trader keeps £868.90 more in this example. A company tends to help when you leave profit in the business to reinvest or smooth uneven years, and it brings separate legal liability, but also public filings and payroll. The right salary and dividend mix depends on your situation, so model your own figures with our sole trader vs limited company calculator and talk it through with an accountant.
Overseas platform income
A lot of creator income comes from businesses outside the UK, which raises three questions.
- US tax on YouTube earnings. Google withholds US tax only on the part of your earnings from US viewers if you submit valid tax information, at a rate that depends on your country's treaty with the US. If you do not submit it, Google may withhold up to 24% of your total worldwide earnings on an individual account. Submit your tax information to Google each year, and claim Foreign Tax Credit Relief in the UK for any tax that is withheld.
- Currency. Payments in dollars or euros need converting to sterling for your records and return.
- VAT. Services you supply to a business customer based overseas, such as a brand paying for a campaign, are generally outside the scope of UK VAT and do not count towards the £90,000 threshold. Fees from UK brands do count.
Allowable expenses for influencers
| Cost | Allowable? | Notes |
|---|---|---|
| Cameras, lenses, lighting, microphones, laptop | Yes | Expense under the cash basis, capital allowances otherwise. Reduce for personal use. |
| Editing software, apps, stock music and subscriptions | Yes | Where used for the business. |
| Freelance editors, designers and managers' commission | Yes | Payments to subcontractors and agencies. |
| Paid ads and promotion | Yes | Advertising and website costs are allowable. |
| Props and costumes used only in content | Usually | Not everyday clothes, which are disallowed even if bought for a video. |
| Travel to shoots and events | Yes | Business trips only, not holidays you also film. Mileage at 55p a mile for the first 10,000 miles in 2026/27. |
| Phone and broadband | Business share | Work out the business proportion. |
| Working from home | Yes | £10, £18 or £26 a month by hours, or a reasonable share of costs. |
| Gym, beauty treatments, everyday grooming | Generally no | HMRC treats these as having a private purpose. |
| Entertaining brands or other creators | No | Client entertaining is not allowable. |
For more detail on everyday costs, see our guide to self-employed expenses.
VAT and Making Tax Digital
You must register for VAT if your taxable turnover goes over £90,000 in a rolling 12 months, or you expect it to in the next 30 days alone. Bartered goods count towards taxable turnover. Services you buy from overseas businesses can also count in some cases under the reverse charge, so it is worth checking before you reach the threshold.
Making Tax Digital for Income Tax uses turnover before expenses. It has applied since 6 April 2026 if your self-employment and property income was over £50,000 in 2024/25, from April 2027 if it was over £30,000 in 2025/26, and from April 2028 if it is over £20,000 in 2026/27. You then keep digital records and send quarterly updates by 7 August, 7 November, 7 February and 7 May.
Key deadlines for 2026/27
- 5 October 2026: register for Self Assessment if your content income started in 2025/26.
- 31 January 2027: file your 2025/26 return online and pay the balance, plus the first payment on account for 2026/27 if your bill is £1,000 or more.
- 31 July 2027: second payment on account for 2026/27.
- Limited companies: Corporation Tax is due 9 months and 1 day after the year end, accounts to Companies House 9 months after it, and the company tax return 12 months after it.
How GoForma helps influencers
GoForma is an online accountancy practice working with clients across the UK by phone, video, email and WhatsApp. Our accountants are ACCA and AAT qualified, and FreeAgent accounting software is included in every package, so brand payments, platform payouts and receipts sit in one place.
- Start Sole Trader, £44 a month plus VAT with 50% off for the first 3 months, including your Self Assessment return and a dedicated accountant.
- Start Sole Trader + MTD, £68 a month plus VAT, once quarterly updates apply to you.
- Start Bundle, £88 a month plus VAT, or Operate Bundle, £128 a month plus VAT, which adds VAT returns, your director Self Assessment and a London business address.
Compare packages, see our wider work with creatives, or book a free consultation.