- HMRC has issued assessments for underdeclared output tax on “gifts” received by influencers
- Influencers are individuals who 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
- Businesses are not required to account for VAT on gifts to influencers if the total cost is less than £50 in a 12-month period
- HMRC has determined that gifts to influencers are not considered “free gifts” but rather consideration for a taxable supply of marketing or advertising
- If an influencer receives gifts valued at over £90,000 in any 12-month period, VAT registration is mandatory.
Source: deeksvat.co.uk
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.