Over 400,000 bloggers will receive fines from the tax office: what you need to know.

Financial obligations for micro-influencers in the UK

According to The Sun: About 400,000 Britons may face an unexpected fine of £100 from the tax office.

According to HMRC rules, micro-influencers with follower counts between 1,000 and 25,000 who receive payments or gifts for their content must pay taxes. All additional income exceeding £1,000, including the value of received gifts, must be reported in tax returns, as you are considered self-employed.

You must submit an online declaration by January 31 of the following year. If you miss the deadline or incorrectly declare your income, the fine will be at least £100.

Tax obligations for anyone earning over £1,000

If you earn over £1,000 combined with your main job, any payments or free gifts such as clothing, cosmetics, vacations, or meals will be considered taxable income. However, small gifts worth up to £50 provided without expectation of advertising usually don't need to be reported.

In Ukraine, there are also approximately 400,000 micro-influencers, many of whom have lucrative deals with brands worth thousands of pounds. The rules apply not only to micro-influencers but also to anyone earning over £1,000 alongside their main job, including sales on platforms like Vinted or trading crypto-assets.

If you miss the tax declaration deadline, you will automatically incur a fine of £100. If you still haven’t paid after three months, the fine can increase by £10 per day, amounting to up to £900. After six months, you will have to pay 5% of the debt or £300, which will be charged again if not paid within the year.

Expert Advice

The head of specialized accounting services for influencers at Nordens, Mitch Khan, noted:

“If you receive income from influencing alongside other jobs, HMRC looks at your total income.”

“Any additional income can increase your tax rate. If you are influencing on the side, you have a personal tax allowance of £1,000 after which you start paying taxes.”

“However, even income from content can obligate you to pay taxes, and gifts from brands can also trigger tax obligations,” experts warn.

The new HMRC rule may also surprise about 900,000 entrepreneurs with a penalty of £500. The “Making Tax Digital” provisions will require individuals with income above a certain threshold to keep electronic records and submit updates quarterly. This is part of the government's effort to combat tax fraud, which cost the UK £12.4 billion in 2021-2022.

However, financial advisors warn that the cost of reporting tax figures could be around £500 per year due to staff preparation, software, and administrative time. This rule, which will come into effect on April 6, 2026, will apply to individuals with an income of no less than £50,000 from self-employment or rental income.

Thus, micro-influencers and entrepreneurs in the UK need to be particularly aware of their tax obligations, as the new rules could significantly impact their financial state. Fines for non-compliance can become a noticeable burden, so it is advisable to prepare in advance to meet the new requirements.