VAT Implications for Influencers: HMRC Warning and Considerations for Business Gifts

• Influencers have the power to affect purchasing decisions due to their authority, knowledge, position, or relationship with their audience
• The growth of social media has increased the importance of influencers
• HMRC has issued assessments for underdeclared output tax on gifts received by influencers
• HMRC considers gifts to influencers as consideration for a taxable supply of marketing or advertising
• Output tax is due if the influencer is, or should be, VAT registered
• If an influencer receives gifts valued at over £90,000 in any 12-month period, VAT registration is mandatory

Source: marcusward.co

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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