Do You Pay Tax on Gifted Goods? A Guide for UK Content Creators

Free PR gifts might feel like a perk of the creator life but guess what? HMRC may want a cut.

Whether you're sent a skincare bundle, luxury handbag, or the latest gadget, some “gifts” are actually taxable income. If you promote it, declare it. That’s the rule and it’s one too many influencers overlook.

In this guide, we’ll break down:

• What HMRC considers a taxable gift

• The £50 rule (and when it doesn’t apply)

• How to report PR gifts on your tax return

• What creators often get wrong

Let’s clear the confusion and keep your content business compliant.

Quick Answer: Are Gifts Taxable?

If a brand gives you a product in exchange for content, it's classed as payment even if you weren’t paid in cash. That means it's taxable.

What Makes a Gift Taxable?

HMRC doesn’t tax every freebie just those that meet three criteria:

Taxable or Not? A Few Examples:

How Do I Report Gifted Goods?

If you’re a sole trader or freelancer:

1. Include the fair market value of the gift in your income total on your Self-Assessment

2. Keep records: the item, value, date received, and the related brand deal

3. Pay tax based on your income tax band (20%, 40%, or 45%)

If you operate via a limited company:

• The gift’s value counts as company income and is subject to Corporation Tax

• If you use the item personally (not just for business), it could also be a benefit-in-kind

Common Misunderstandings

“It’s a gift, not income.”
Wrong. If there’s a brand expectation or brief, it’s income.

“They didn’t say I had to post.”
Even if it’s not written, if the intent was promotional, HMRC may still consider it taxable.

“I didn’t even like it, I never used it.”
Doesn’t matter. If you accepted it, it counts.

Pro Tips for Creators

Track Everything
Use an expense/income tracker or spreadsheet to log gifted items with dates, values, and links to campaigns.

Be Honest About Use
Only exclude items if they were truly unsolicited, unused, and unpromoted.

Get an Accountant (Who Knows Your World)
Many accountants don’t understand the creator space - find one who does (👋 I help creators like you).

What Happens If You Don’t Declare?

• HMRC Penalties: Up to 30% of tax owed for mistakes, and 70–100% for deliberate non-disclosure

• Investigations: Late-night YouTube? Not worth it when you’ve got an open tax case

• Backdated Tax Bills: Yes, they can look back up to 4–6 years

Final Thoughts

Not all PR gifts are taxable but most gifts over £50 that are tied to content promotion are. If it looks like payment, and smells like payment, HMRC will treat it like income.

Creator Q&A: Gifted Goods and HMRC

Q: I didn’t ask for the PR gift, do I still need to report it?

A: Only if something was expected in return. If you didn’t agree to promote it and didn’t post or feature it, you’re usually fine.

Q: What if the brand never said I had to post?

A: Doesn’t matter. If it was clearly part of a PR campaign like press materials asking for tags and you posted it, it’s still taxable.
👉 It’s not about a contract. It’s about intent and action.

Q: Do I include PR gifts in my income?

A: Yes, if you posted or promoted the product, include its value (what it would cost new) in your Self-Assessment.

Q: What if I gave it away or sent it back?

A:

• If you returned it and didn’t post, no income arises.

• If you kept it or promoted it, it’s taxable even if you later gave it away.

Q: Can I claim it as a business expense too?

A:

• If you declared it as income, and it’s used for business (like a camera), you may be able to claim tax relief.

• But if it was a genuine freebie with no strings attached, you can’t claim it as an expense.