- Influencers can experience sudden income spikes from viral posts or big deals.
- Such income increases can lead to tax and VAT obligations.
- VAT registration is required if taxable turnover exceeds £90,000 in any rolling 12-month period.
- Registration is also needed if the threshold is expected to be exceeded in the next 30 days.
- Income sources include brand collaborations, sponsored content, affiliate links, merchandise, digital products, and event appearances.
- VAT registration must be completed within 30 days of exceeding the threshold.
- All VAT-taxable supplies count towards the threshold, even if zero-rated.
- Influencers should track turnover monthly to monitor the threshold.
- Understanding the VAT registration date and choosing the right VAT scheme is crucial.
- Consider the impact of VAT on pricing and profits.
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.
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