Social media and TikTok influencers now targeted by HMRC
Online trading has exploded in recent years and the number of people selling goods and services online has increased to meet that demand.
Now, thousands of social media influencers who are also on platforms such as TikTok are being targeted by HMRC to pay their taxes.
HMRC has sent nudge letters to people selling goods and services online through marketplaces such as Facebook, eBay and Etsy who might not be paying the tax they owe.
Don’t overlook the tax!
It’s important that social media influencers and content creators must realise that just like the rest of us they are required to pay tax on their income.
If you make money through paid ads, sponsorships, brand collaborations, gifted products or services in exchange for posting content on platforms including Instagram, YouTube and TikTok, you are likely to be liable for tax.
What are the tax implications of online sales?
If you sell goods and or services online, then you be classified as a “trader”, and you may need to pay tax on your sales.
Put simply, individuals are likely to be viewed as trading if they sell goods or services intending to make a profit from their online activity.
If you fall into this category then you should keep a record of your expenses and purchases, and you might need to complete a Self-Assessment tax return.
What shall I do it I get a ‘nudge letter’ from HMRC?
HMRC is in the process of sending thousands of standard nudge letters to prompt the recipients to regularise their tax position by disclosing any tax due to HMRC.
Recipients are requested to complete an enclosed Certificate of Tax Position within 30 days and either declare they will voluntarily disclose any tax liabilities or confirm their current tax position is correct.
If you wish to disclose any previously undeclared tax then you are encouraged to do so using HMRC’s Digital Disclosure Facility and the details can be found here.
If you need our advice though please get in touch, especially if you’ve already had the ‘nudge’ letter.
The information was correct at time of publishing but may now be out of date.