Exclusive Contribution By Francesca Wilson, Associate, Tax Resolutions, at national audit, tax, advisory and consulting firm, Crowe.

The influencer economy is thriving. In 2024, YouTube creators alone contributed an impressive £2.2 billion to the UK economy, supporting over 45,000 jobs. Recognising this growth, an all-party parliamentary group has been established to represent and champion UK creators and influencers.

Yet, amid this rapid expansion, one critical issue remains largely overlooked: tax compliance.

Many influencers and content creators are simply unaware of their obligations. There is limited guidance from HMRC and the financial sector at large and this lack of clarity often leads to costly mistakes that can impact both income and reputation. To avoid these pitfalls, creators need to understand the essentials of tax compliance and take proactive steps to get things right the first time.

Why tax compliance matters for influencers

Influencers are hot on HMRC’s radar. Their high-profile lifestyle and public exposure make them particularly susceptible to scrutiny.  Problems can arise when an influencer’s online persona does not align with the income HMRC expects to see on their tax return, particularly when content showcases a lifestyle that is more glamorous than reality.

The challenge? Influencer income is complex. It often spans multiple platforms and revenue streams, from brand collaborations and gifted products to international payments. What needs to be reported? How is the taxable value of a bundle of luxury items provided by your favourite brands determined? Without proper tracking, it is easy to fall behind on your reporting obligations.

Demystifying the rules is essential – not just to avoid penalties, but to protect your reputation and secure your financial future.

What happens if you get it wrong?

HMRC is stepping up its efforts to tackle undeclared income.  All platforms are now obliged to collect and share annual payment data with HMRC. Targeted campaigns are already underway, aimed at individuals identified as having earnings from digital activity that has not been fully declared. HMRC are sending notifications encouraging those who may have failed to report or declare income to come forward and ensure their tax affairs are in order.

Consequences of ignoring these warnings can be serious and lead to:

• Enhanced penalties for late or incorrect filings
• Accumulating interest on unpaid tax
• HMRC launching an investigation that would be disruptive and stressful 

In severe cases, non-compliance can even lead to accusations of deliberate understatements and prosecution for tax evasion. The message is clear: it is far better to take care to get things right early than to try and correct problems later.

The good news? HMRC takes a much more favourable view of those who rectify issues voluntarily and early.

Why it is so complex

Unlike traditional endeavours, influencer income is rarely straightforward. Creators often face a web of financial considerations, including:

• Multiple income streams across various platforms
• Brand trips and gifted products, which may carry taxable value
• International earnings and currency conversions
• Different reporting periods and deadlines, where platform provided figures may not align with the tax year

The rules about deductible expenses are even more complicated. Without expert guidance, these complexities can quickly become overwhelming.

Top tips for influencers and content creators

Managing tax obligations can feel daunting, but these practical steps will help you stay compliant and in control:

1. Register with HMRC on time – generally, once you earn over £1,000 from self-employment, you must register for Self-Assessment by 5 October following the tax year. If you operate through a limited company, you must register with HMRC within 3 months of starting to trade.

• Track all income and expenses – use accounting software or spreadsheets to record earnings and allowable costs.

• Understand what counts as taxable income – gifts, brand trips, and sponsored content need to be declared and accurately valued.

• Keep receipts and invoices – HMRC may request evidence during an enquiry, so maintain clear records.

• Set aside money for tax – a good rule of thumb is 20–30% of your self-employed income, to cover your January and July payments.

• Know the deadlines – Self Assessment tax returns if you are self-employed are due in January (with additional Making Tax Digital filing obligations from April 2026), with VAT and other obligations throughout the year. If you trade through a limited company, corporation tax returns should be submitted within 12 months of the end of the company’s accounting period (and there will be Companies House filings due too).

• Consider VAT registration – if your turnover exceeds £90,000.

• Plan for international income – different countries have different tax rules; seek advice if working with overseas brands or selling globally.

• Claim allowable expenses – filming equipment, editing software, and even your home office may be deductible.

• Seek professional advice – a trusted advisor can save you time, stress, and money.

It is equally important for talent agencies and organisations working with content creators to understand these obligations, ensuring their clients are aware that tax compliance is something they need to address.

Beyond tax: Other key considerations

Tax is just one piece of the puzzle. Influencers should also consider broader aspects of financial and operational security, including:

• Financial planning – Budgeting for growth, managing cash flow and saving for the future.
• Cybersecurity – Protecting social accounts and income streams from fraud and hacking.
• Contracts and legal compliance – Ensuring agreements with brands are clear, enforceable and protect your interests.
• Insurance – Covering risks such as liability, equipment and income protection.

Taking a holistic approach ensures not only compliance but also long-term stability and resilience in an ever-changing digital landscape.

Why specialist advice matters

Every influencer’s journey is unique and that is what makes the industry so exciting. This individuality however, underscores why tailored financial advice is invaluable.

A trusted advisor does not just keep you compliant, they help you optimise your financial position, protect your earnings and unlock opportunities to reinvest in your content, grow your audience and build a global brand.

Final thoughts

Influencing is a creative, dynamic career, but it comes with responsibilities that can feel overwhelming. Staying on top of your tax obligations is essential to avoid penalties and protect your reputation. By planning ahead and seeking expert support, you can gain peace of mind knowing your finances are secure, leaving you free to focus on what you do best: creating.