- Influencer marketing is big business, with the social media influencer market estimated to be worth approximately £15 billion globally, with more than 50 million people around the world considering themselves to be influencers.
- Working with influencers for social media marketing Unsurprisingly, marketing budgets for influencer spend is increasing as businesses see the opportunities which influencers’ global reach could create in terms of market growth.
- Giving away products for marketing purposes is a legitimate business expense.
- Generally speaking, HMRC would expect VAT on a business gift to be brought to account based on the retail price of the goods.
- The business and indeed the VAT status of the influencer, does not necessarily change the VAT implications which arise when a product is given away, and VAT would still need to be brought to account by the business gifting stock, as described.
Source Saffery
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