- 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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