How brand deals, gifted products and platform income are taxed in the UK

When does content become a business in HMRC’s eyes?

HMRC looks at what you actually do, not what you call yourself. Regular posting with the aim of earning money, from brands or platforms, points towards trading.

Once you are trading, the profit is usually taxed as self-employed income through Self Assessment. GOV.UK sets out the general position in its guide to working for yourself.

A hobby that occasionally brings in money can be treated differently. Where that line falls depends on the facts, so it is worth having someone review them.

How are cash brand deals taxed?

A fee from a brand for a post, video or campaign is normally income of your creator business. It goes into your accounts in the period you earn it.

If an agency or manager negotiates the deal, they may take commission before paying you. The full fee is often treated as your income, with the commission as a cost, but contracts vary.

Keep every contract and invoice. They show what was agreed, who paid and when the work was done.

Are gifted products taxable?

Sometimes. The key question is whether the product came with an expectation that you would promote it.

A product sent on condition that you post about it can be treated as payment in kind. In that case HMRC may expect its value to be counted as income. A product sent with no strings attached may be treated differently.

The value used, and whether you keep, sell or return the item, can also matter. These points depend on the facts of each deal, so record what arrived and what was asked of you.

How is platform income treated?

Ad revenue, creator funds, subscriptions, tips and fan payments are usually part of your trading income. This applies whether a platform pays you directly or through a payment provider.

Some platforms are based outside the UK and pay in other currencies. You report the income in pounds, so you need a consistent way to convert it.

Some overseas platforms may withhold tax before paying you [VERIFY WITH HMRC / ADAM]. Whether you can offset any of that against UK tax depends on the rules and your paperwork.

What might HMRC treat as income?

The table below is a starting point for sorting your income. It is not a ruling on any one case. "Depends" means the facts decide, and "Ask" means the answer needs a closer look.

Can I use the trading allowance?

HMRC offers a tax-free trading allowance for small amounts of trading income. GOV.UK explains how it works in its guide to tax-free allowances on property and trading income.

The allowance has a fixed annual limit [VERIFY WITH HMRC / ADAM]. If your gross trading income is under it, you may not need to report that income.

You usually choose between the allowance and claiming your actual expenses. For creators with real equipment and production costs, claiming expenses can work out differently. It is worth comparing both.

What expenses can creators usually claim?

Costs incurred wholly for your creator business can usually be deducted from your income. GOV.UK lists the main categories in its guide to expenses if you are self-employed.

Equipment you also use personally, such as a phone or laptop, may need to be split between business and private use. Everyday clothing is not usually allowable, even when worn on camera [VERIFY WITH HMRC / ADAM].

• Cameras, lighting, microphones and editing software.
• Props and products bought specifically for content.
• Agency and management commission.
• A share of phone and internet costs used for the business.

When does VAT come into it?

VAT registration becomes compulsory once your taxable turnover passes the registration threshold over a rolling period [VERIFY WITH HMRC / ADAM]. Brand fees and some platform income can count towards that turnover.

Where your customer is based can change how VAT applies to a supply. Products received in return for promotion can also raise VAT questions. The GOV.UK guide to registering for VAT explains when you must register.

AFE covers this in its VAT and business structure service.

What records should you keep?

Good records turn a messy year into a straightforward tax return. Keep them as you go, not in a rush before the deadline.

• Every brand contract, invoice and payment confirmation.
• A log of gifted products, what was asked of you and their approximate value.
• Monthly payout statements from each platform.
• Receipts for equipment and other business costs.
• Exchange rates used for any foreign currency payments.

GOV.UK sets out what the self-employed should keep in its guide to business records.

How does AFE help with brand deal and platform income?

AFE matches your contracts, payouts and gifted products to your bank records, then prepares your figures and tax return. Its brand deals and platform income service covers this, and the creators page explains the wider offer.

If you already run a limited company, AFE can also prepare the company accounts and advise on how you draw money from it. Guides on this site are checked by Adam Feyzi FCCA before they are marked as reviewed. Your first consultation is free, and you can book a time that suits you.