"The problem, says Tide's UK Managing Director, Heather Cobb, is that many casual creators don't realise their side hustles count as taxable income: "It's great that TikTok and Instagram have opened new ways for people to earn. But even if you're paid in free products, those items have a value - and that value counts towards the £1,000 allowance. If you don't track it, you could face unexpected penalties.""
"According to Tide, the UK's leading business management platform, the average social media earner now makes £1,223 a year - exceeding the HMRC £1,000 trading allowance that lets individuals earn small sums tax-free. Yet more than half of social media users remain unaware of the rule, putting them at risk of self-assessment penalties that start at £100 and can quickly escalate."
"Tide's study found that 42% of UK adults have received either money or gifts in exchange for social media posts on platforms such as TikTok, Instagram, X (Twitter) and YouTube. For some, this means small perks or free products. But for a growing number of creators - particularly younger users - it has evolved into a significant revenue stream. A fifth (21%) of earners now make more than £1,000 a year from their content, while 55% of 18-24-year-olds report earning from social media."
The average social media earner in the UK now makes £1,223 annually, exceeding HMRC's £1,000 trading allowance for tax-free small earnings. Over half of social media users are unaware of the allowance, exposing creators to self-assessment penalties that start at £100. Forty-two percent of UK adults have received money or gifts for posts, and 21% of earners make more than £1,000 a year. Among 18-24-year-olds, 55% report earning from social media but only 36% have filed tax returns. Earnings beyond £1,000 must be declared and registered for self-assessment.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]