OVER 400,000 Brits could be in line for an unexpected £100 fine from the tax office.
“Micro-influencers” – social media users with between 1,000 and 25,000 followers – may be liable to pay tax if they get paid or gifted for their content.
HMRC rules state that any side earnings above £1,000, including the value of gifted products, must be declared on tax returns as you’ll be classified as self-employed.
You must submit your online tax return by 11.59pm on January 31 next year.
If you miss the deadline or fail to declare your income properly, you could face hefty fines starting at £100.
Once you start earning over £1,000 alongside your normal job, any payments or freebies you receive – whether that’s clothing, makeup, holidays or meals out – counts as taxable income.
However, small gifts under £50, which are given without any expectation of promotion, normally don’t need to be declared.
There are estimated to be around 400,000 micro-influencers in the UK, many with lucrative brand deals and partnerships which can add up to thousands of pounds.
The rules don’t just apply to micro-influencers, however. They apply to anyone earning more than £1,000 alongside their primary job – including selling on marketplaces like Vinted or selling cryptoassets.
If you miss the deadline to declare your tax, you’ll be automatically hit with a £100 fine.
If you still haven’t paid after three months, you could be served daily fines of £10, which can add up to £900.
After six months, you’ll have to pay five per cent of what you owe, or £300. You’ll be charged this amount again if you don’t pay after a whole year.
Boss of specialist influencer accountants Nordens Mitch Hahn said: “If you earn from influencing alongside other jobs, HMRC looks at total income.
“Side earnings of any kind can push you into higher tax brackets. If you’re influencing on the side, you have a £1,000 personal allowance before you have to start paying tax.
“But, even for those getting money from content creation on the side, these earnings could make you liable for tax, with gifts you receive from brands potentially being part of your tax obligation, say experts.
“If you’re not careful, these additional gifts and payments could lead to fines from HMRC.”
It comes as a new rule by HMRC could set nearly 900,000 business owners back by a surprise £500.
The Government’s new Making Tax Digital scheme will require people over a certain income threshold to keep electronic records and file updates every financial quarter.
It’s part of the Government’s efforts to crack down on tax fraud, which cost Britain £12.4 billion from 2021 to 2022.
But financial advisors have warned that the cost of reporting your tax figures could cost up to £500 a year once staff training, software and admin time are factored in.
The rule, which comes into force on April 6 2026, will apply to people who earn at least £50,000 from self-employment or rental properties.
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