Our specialists can assist in a range of VAT & Tax areas

In the last decade, influencers and online content creators have established a new branch of industry. This kind of entrepreneur has constructed a lucrative business from what was once a down-time hobby. Social media channels such as Instagram and TikTok have made this a booming industry. 

Being an influencer embraces a variety of disciplines, including bloggers, vloggers, fitness gurus, how-to crafters and technical demonstrators. However, as this is a new industry, the old and complex VAT and tax rules need to be re-interpreted. 

As yet, there is no specifically tailored influencer tax, or VAT advice for such online content creators. Technically, influencers and online content creators are self-employed, and must declare income tax. Many influencers are also promoting goods and services and may take payment in kind. This raises doubts about whether they’re liable for VAT on their income streams. 

However, calculating VAT on promotional gifts such as clothes, electronics or holiday destinations is much more confusing. Any products that are given in exchange for endorsement may be considered as trading, which would make them liable for tax on their monetary value. 

Deeks VAT Consultancy advise and assist on issues with legal tax compliance in this fast-growing marketplace. We can review the potential VAT and tax liabilities and how to calculate payments correctly. As a new industry, practitioners may be unfamiliar with HMRC and we can guide clients through the existing regulations.