Social media influencers might find that at least one of their ‘followers’ engages with their digital content over the coming months. Unfortunately, that follower is HMRC! Who will be interested whether they pay the correct tax on their earnings from online activities. Even if any such tax liability is complete news to them!
HM Revenue and Customs (HMRC) is sending nudge letters to social media influencers. Alongside, online sellers to remind them about their tax obligations.
In the past, HMRC has nudged on:
An increasing number of people now make a living by promoting lifestyles, brands' products online and selling them on e-commerce platforms.
Some social media influencers who receive payment in the form of holidays, clothes, or beauty products for promoting a brand via digital content might need to realise that they may need to pay tax on these goods and services.
People who make a living from selling goods or services online may need to declare their earnings. They will need to complete a self-assessment tax return if they exceed the annual trading allowance of £1,000.
Sellers of second-hand goods must pay capital gains tax if they make a profit over £12,300. The threshold has been cut to £6,000 from April this year, meaning more sellers will likely get caught out.
Nudge letters can be a valuable tool in efforts to spur individuals who need to pay more taxes into correcting their affairs.
We've previously written about Nudge letter from HMRC.
Nudge, Nudge, Say No More or should you? | ETC Tax
Please get in touch with us if you require help with a Nudge Letter from HMRC.
