Quick answer: UK influencers usually pay tax as sole traders through Self Assessment. In the 2026 to 2027 tax year, the trading allowance covers up to £1,000 of income, and above that you must register and file a return. Gifted products you receive for promoting count as income, at what they would have cost you. A £3,000 allowance is planned from 6 April 2027, but as of 1 November 2026 it is a proposal and not law.
Most creators start by asking how much tax they owe. The better first question is whether your total income, including gifts, passed £1,000 in the tax year. Here is how the rules work, using gov.uk figures as read on 1 November 2026.
How influencers pay tax in the UK today
HMRC's page for content creators says that if you need to tell it about extra income, you register for Self Assessment as a sole trader, because HMRC likely classes you as trading. A main job on PAYE does not sort this out for you.
- Step 1. Add up everything for the tax year, 6 April to 5 April, before expenses: brand fees, ad revenue, affiliate income and gifts. Other side income counts too. HMRC gives one £1,000 allowance, not one per activity.
- Step 2. If the total is £1,000 or less, you generally don't need to tell HMRC, but you must keep records.
- Step 3. If it is over £1,000, register by 5 October after the tax year ends.
- Step 4. File online and pay by 31 January.
If you owed a return for 2025 to 2026: the 5 October 2026 registration date has passed. Gov.uk says that if you tell HMRC after it, you could get a penalty. Register now. You must still pay by 31 January 2027, and a late return starts with a £100 penalty.
Rates for 2026 to 2027
| Band | Income Tax | Class 4 National Insurance (on profits) |
|---|---|---|
| Up to £12,570 | 0% | 0% |
| £12,571 to £50,270 | 20% | 6% |
| £50,271 to £125,140 | 40% | 2% |
| Over £125,140 | 45% | 2% |
Those come from gov.uk's Income Tax rates and self-employed National Insurance rates. The Personal Allowance shrinks above £100,000 of income. Scotland has its own Income Tax bands. If you run a limited company, you are not self-employed and these examples don't apply. If you are unsure how you are classed, ask an accountant.
What the £1,000 trading allowance means today
It works in two ways:
- Income of £1,000 or less. Fully covered. No tax and generally no need to tell HMRC.
- Income over £1,000. You choose: deduct £1,000, or deduct your actual allowable expenses. You cannot do both.
Three catches. The allowance can't be used on income from a company you or someone connected to you owns or controls, from a partnership you or someone connected to you is in, or from your employer or your spouse's or civil partner's employer. You may still want to register below £1,000, for example to claim a loss or pay voluntary Class 2 contributions. And if HMRC writes asking for a return, you must send one by the deadline on the letter. If any of these fit you, check with an accountant.
Do influencers pay tax on gifts in the UK?
If you receive them for promoting products, they count. HMRC's creator page says you must include the value of gifts or services received from promoting products online. Its example is £700 from brands, £300 of gifted products and £200 from adverts, a total of £1,200. HMRC's conclusion: “You need to tell HMRC as it’s above £1,000.”
On value, HMRC's online platforms guidance says: “If you received gift or services instead of money, you would use the value of what it would have cost if you had to pay for them.”
The result can be a tax bill on a product with no cash attached. Set money aside from your paid work to cover it.
Two grey areas I could not settle from HMRC's public pages:
- Unsolicited items you never promote. HMRC's wording is about gifts from promoting products. The pages don't address a parcel you never mention.
- Non-transferable trips. HMRC's internal manual says non-monetary trading income is taxable in full, but also gives an example of a supplier's non-transferable holiday reward for a good customer with nothing to include in profits. It does not discuss influencers.
Take both to an accountant rather than guessing.
What the planned £3,000 allowance would change
HMRC's policy paper, published 28 October 2026, says legislation in Finance Bill 2026-27 will raise the allowance from £1,000 to £3,000, with effect from 6 April 2027. Until that passes, it is a plan.
| Law today (2026 to 2027) | Planned from 6 April 2027 | |
|---|---|---|
| Allowance | £1,000 | £3,000 |
| Self Assessment reporting threshold for trading income | £1,000 | £3,000 |
| Income above the allowance | Deduct £1,000 or actual expenses | Deduct £3,000 or actual expenses |
| Applies to | Income up to 5 April 2027 | 2027 to 2028 tax year onwards |
The Budget 2026 legislation overview confirms the reporting change, and the policy costings say people above the allowance can choose to deduct it instead of actual expenses. HMRC estimates up to 1.4 million people could benefit, with 400,000 seeing a tax reduction of £380 on average.
Don't stop reporting early. Income you earn now, up to 5 April 2027, is still under the £1,000 rule. HMRC's creator page, as read on 1 November 2026, still says a claim that you can wait until £3,000 is not true, and it talks about a reporting tool due by 2029. It does not mention the April 2027 date. The policy paper is the newer document, but the £1,000 answer is right for now. Check with an accountant before relying on the new figure.
Know your rate before you work out the tax. Get an estimate of what to charge per post, Reel or video from your followers and engagement.
Try the creator pricing calculatorThree worked examples
These use 2026 to 2027 rules for a sole trader outside Scotland, with the standard Personal Allowance, no student loan and no other trade. The people and figures are invented. The sums follow the gov.uk rules above.
| A: £800 | B: £2,500 | C: £40,000 | |
|---|---|---|---|
| Situation | Hobby account, any job | £30,000 salary on PAYE | Full-time creator, no job |
| Cash from brands and ads | £600 | £2,000 | £38,000 |
| Gifted products at cost to buy | £200 | £500 | £2,000 |
| Total income | £800 | £2,500 | £40,000 |
| Actual expenses | £100 | £350 | £6,000 |
| Best deduction | Allowance covers it all | £1,000 allowance | £6,000 expenses |
| Taxable profit | £0 | £1,500 | £34,000 |
| Income Tax | £0 | £300.00 (£1,500 at 20%) | £4,286.00 (£21,430 at 20%) |
| Class 4 National Insurance | £0 | £0 (profit under £12,570) | £1,285.80 (£21,430 at 6%) |
| Total for the year | £0 | £300.00 | £5,571.80 |
| Register by | Generally not needed | 5 October 2027 | 5 October 2027 |
| Pay by | Nothing to pay | 31 January 2028 | 31 January 2028 and 31 July 2028 |
| Same figures if the £3,000 plan passes | No change | £0 and nothing to report | No change, expenses still beat £3,000 |
Example A. Watch the gifts. £800 in cash plus £300 of kept product is £1,100, and you would need to tell HMRC. Keep your records either way.
Example B. Using expenses instead would give £2,150 of profit and £430 of tax, so the allowance saves £130. No Class 2 either, because profits under £7,105 don't require it. Payments on account don't apply, because the bill is under £1,000.
Example C. The first bill is bigger than the tax for the year. Gov.uk's payments on account add half of this year's bill towards next year, so a first-time filer pays £8,357.70 by 31 January 2028 (£5,571.80 plus £2,785.90), then £2,785.90 by 31 July 2028. That is £11,143.60 in about six months. You can ask to reduce those payments if you expect to owe less. C is well under the £90,000 VAT threshold, and Making Tax Digital applies, as below.
Real allowable expenses will change these numbers. Note that everyday clothing can't be claimed, even if you wear it for work. Ask an accountant to check your own figures before you file.
Making Tax Digital for influencers
Making Tax Digital for Income Tax means digital records, compatible software and quarterly updates. HMRC's thresholds:
| Qualifying income over | In tax year | You use it from |
|---|---|---|
| £50,000 | 2024 to 2025 | 6 April 2026 |
| £30,000 | 2025 to 2026 | 6 April 2027 |
| £20,000 | 2026 to 2027 | 6 April 2028 |
- Qualifying income is self-employment plus property income before expenses, so Example C counts as £40,000, not £34,000. HMRC treats gifts as income, so I have counted them. PAYE wages and dividends don't count.
- Example C would start on 6 April 2028 on these figures, or 6 April 2027 if the 2025 to 2026 return also showed over £30,000.
- Already in? The next deadlines for the 2026 to 2027 year are 7 November 2026, 7 February 2027 and 7 May 2027.
- HMRC writes to people above the threshold, but if no letter arrives, it is still your job to check. Some people are exempt.
Check your start date with HMRC's tool or your accountant.
Records checklist
Gov.uk requires records of all sales and income and all business expenses, with proof such as receipts, bank statements and invoices. Keep them for at least 5 years after the 31 January deadline. Even if you only use the allowance, you must keep a record of income. The creator-specific lines below are my suggestion:
- Invoices and emails confirming each brand fee
- Payout statements from each platform and affiliate network
- Bank statements, ideally from one account for this work
- A gift log: date, brand, item, what it would have cost to buy, and a screenshot of the price
- For each gift, the post it was promoted in, or a note that it was not promoted
- Receipts for kit, software and travel, with the business share noted
- The date you received each payment. Cash basis is the default, so income is recorded when received
- Your £1,000 running total, updated every month
Not sure what brands pay? Our UK, US and Gulf rates breakdown and UGC rate calculator help you price the work, and a guide to becoming a UGC creator covers getting started. If you work with US clients or live there, the rules differ: our US creator tax guide is the equivalent of this page.
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Join as a creatorFAQ
Do I pay tax if I earn under £1,000 as an influencer?
Generally no, if your total trading income, gifts included, is £1,000 or less and you can use the allowance. You still must keep records.
I have a full-time job. Do I still need to tell HMRC?
Yes, if your side income is over £1,000. HMRC says this income is not on your payslip and it is your responsibility to tell it.
Does the £3,000 allowance apply to this tax year?
No. The plan starts on 6 April 2027 and depends on Finance Bill 2026-27. The £1,000 rule applies up to 5 April 2027.
Can I claim the allowance and my expenses?
No. You pick one for the year. If your expenses are above the allowance, claiming expenses usually gives the lower profit.
What if I never declared past income?
HMRC says to pay what you owe as soon as you can and talk to it early. It mentions a Time to Pay arrangement if you can't pay in full. Speak to an accountant first.
Sources
- HMRC: Tax rules for content creators
- HMRC: Check if you need to tell HMRC about your income from online platforms
- HMRC: Tax-free allowances on property and trading income
- HMRC: Increasing the trading allowance, policy paper, 28 October 2026
- HM Treasury: Budget 2026 overview of tax legislation and rates
- HM Treasury: Budget 2026 policy costings (PDF)
- HMRC: Business Income Manual BIM40051
- GOV.UK: Check if you need to send a tax return
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Income Tax in Scotland
- GOV.UK: Self-employed National Insurance rates
- GOV.UK: Check how to register for Self Assessment
- GOV.UK: Self Assessment deadlines
- GOV.UK: Self Assessment penalties
- GOV.UK: Payments on account
- GOV.UK: Expenses if you're self-employed
- GOV.UK: Clothing expenses
- GOV.UK: Business records if you're self-employed
- GOV.UK: What records to keep
- GOV.UK: How long to keep your records
- GOV.UK: VAT registration thresholds
- HMRC: Find out if and when you need to use Making Tax Digital for Income Tax
- HMRC: Work out your qualifying income
- HMRC: Quarterly updates with Making Tax Digital