Content Creation to Tax Compliance: navigating your success
25/01/24
The current generation of social media has made earning through content creation more accessible than ever before. What often starts as a fun hobby for social media users can quickly turn into an income stream worth quitting their day job for!
When you hear the title ‘influencer’ or ‘content creator’, it’s likely to conjure up images of a few different personalities. These can range from reality stars with million-pound brand deals, to the ‘girl next door’ type who posts short TikTok videos sponsored by small businesses.
If you’re one of the lucky ones whose online success seemed to surge overnight, the associated tax implications might have been overlooked. Last year, HMRC dispatched nudge letters to numerous influencers and content creators, urging them to declare their earnings and fulfil their tax obligations.
“Aha!” you may be thinking, “I only receive gifts from the companies I create content for.” It’s not that black and white though – you need to be wary of any types of compensation you may receive. So, as well as monetary compensation, income could include gifts, tickets, discounts etc.
At the start of your trade your expenses may exceed the income you receive, however even if your current income does not meet the threshold to report to HMRC, there may be beneficial reasons to voluntarily register with HMRC, such as claiming a loss to offset against income etc.
We would recommend keeping track of all income and expenses relating to your content creation, so that it can be reported to HMRC when necessary. For more support and guidance about tax obligations in this newfound business world, please reach out to Esther Ollech: esther.ollech@mgr.co.uk
