A finance expert has issued a warning to anyone with a side hustle, including ‘micro influencers’, to ensure they are on top of their tax responsibilities
A finance expert is urging those with a side-hustle to keep on top of their tax duties and figure out if they need to submit a return before the deadline at the end of January, 2026. It’s believed that there are around 400,000 ‘micro influencers’ in the UK on Instagram alone – ‘micro’ generally refers to accounts with between 1,000 and 25,000 followers.
Micro influencers often provide better returns than major influencers for brands, so it is not unusual for these smaller accounts to receive payments and gifts for content creation. However, even those making money from content creation as a sideline could be subject to tax, with gifts received from brands potentially forming part of your tax liability.
If you are not careful, these extra gifts and payments could result in penalties from HM Revenue and Customs (HMRC).
Late submission of your tax returns could lead to the following:.
Mitch Hahn, CEO of specialist influencer accountants Nordens, has offered some valuable advice to ensure UK micro influencers are aware of their tax obligations, reports the Daily Record.
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Avoid tax complications while influencing on the side
If you are earning from influencing alongside other jobs, HMRC takes into account your total income. Any kind of side earnings can push you into higher tax brackets. If you are influencing on the side, you have a £1,000 personal allowance before you need to start paying tax.
Keeping good record-keeping habits can help prevent unexpected surprises when tax season comes around, so it is crucial to keep track of everything related to your influencer work. You can use a spreadsheet or various apps to help keep things in order.
Know when you need to declare brand gifts
If you are receiving products, experiences, or services in return for promotion, HMRC considers this as taxable income. Keeping a clear record of what you’ve been gifted and its value will assist you in staying compliant when filling out your tax return.
You will likely need to declare gifts you’ve received on your tax return if you: earn over £1,000 from influencing in the tax year, receive gifts worth more than £50, or receive gifts in exchange for promoting services or products on social media.
While free products may seem like a perk of being an influencer, HMRC views them differently. If a brand gives you something and expects promotion in return, that gift is seen as a form of payment – meaning it’s taxable.
For example, across one year if you receive:
- £200 worth of skincare for a sponsored video
- A £150 jacket in return for an Instagram tag
- A complimentary restaurant meal worth £80 in exchange for a TikTok post
These amount to £430 in gifted value.
If you also earned £800 cash for another collaboration, your total income from influencing would be:
- £430 (gifts) plus £800 (cash): Total, £1,230
Since this exceeds the £1,000 trading allowance, you would need to register as self-employed and declare it on your tax return. However, it is worth noting that not every complimentary item is automatically considered income.
If a brand sends you a small gift with no obligation to post, such as a £50 candle, this is typically seen as a genuine gift and isn’t taxable. Similarly, occasional low-value items (under £50) without any expectation of promotion generally do not need to be declared.
Understand personal vs business expenses
Any expenditure made for the purpose of your work – including clothing, travel or products can be claimed as an expense to reduce your tax bill. However, many influencers may not realise that these purchases must be solely for use in their work and hold no personal value.
This is why many celebrities and influencers opt to rent clothing for press events and product launches, as this means the clothes are only used for work purposes and can therefore be expensed.
When documenting your expenses, it’s crucial to make this distinction clear to avoid issues with HMRC.