VAT for UK Influencers: What Counts, When to Register, and How to Stay Compliant

You’re landing brand deals, posting sponsored content, and maybe even selling digital products or merch. You’ve crossed “side hustle” territory and now someone asks:
“Are you VAT registered?”

If you’re a UK-based content creator or influencer on TikTok, Instagram, YouTube or beyond VAT isn’t just for big companies.
It’s a legal and financial responsibility you might already be close to triggering.

This blog breaks it all down: what income counts, when you need to register, how VAT works, and the mistakes creators make most.

What Is VAT and Why Does It Matter to Influencers?

VAT (Value Added Tax) is a 20% tax on most goods and services in the UK. If your taxable turnover exceeds £90,000 in any rolling 12-month period, you must legally register and charge VAT.

As an influencer, your content isn’t “just for fun” anymore it’s a business. And many of the ways you earn money are considered taxable supplies under VAT rules.

 What Counts Toward the £90,000 VAT Threshold?

Even non-cash income (like gifted skincare you post about) may push you closer to the threshold.

Example: How Fast You Could Hit £90,000

You earn:

• £2,500/month in brand deals

• £1,000/month in TikTok Shop commissions

• £500/month selling digital products

That’s £4,000/month = £48,000/year already halfway to the VAT limit.
Add merch, events, a few viral months… and you’re there.

What Happens Once You Register for VAT?

• You must charge 20% VAT on most UK services and sales

• You can reclaim VAT on your business expenses

• You must file quarterly VAT returns

• You must keep digital records (as part of Making Tax Digital)

What Can Influencers Claim VAT Back On?

If you’re VAT registered, you can claim VAT back on eligible business purchases like:

What If You Sell to the EU?

If you’re selling digital or physical products to EU customers, two EU VAT systems apply:

OSS (One-Stop Shop) – Digital Products

• For things like eBooks, online subscriptions, digital plans

• You must charge VAT based on the customer’s country

• OSS lets you file all EU VAT via HMRC

IOSS (Import One-Stop Shop) – Physical Products

• For physical goods under €150 sent to EU customers

• You collect VAT at checkout

• IOSS speeds up customs and delivery, avoiding delays for customers

If you sell via TikTok Shop EU, IOSS may already apply - but you’re still responsible for tracking and declaring.

Barter = Business Too

If a brand sends you a £400 outfit in exchange for a tag, you didn’t get paid in cash but you did provide a service.

HMRC calls this “non-monetary consideration.” If you’re VAT registered, you must:

• Add it to your turnover

• Charge VAT on the market value

• Include it in your quarterly return

Common VAT Mistakes Creators Make

Should You Register Before £90k?

Some influencers choose to register voluntarily to:

• Reclaim VAT on expenses

• Look more professional to brands

• Avoid surprises or admin headaches later

Just know: once registered, you must file returns whether you’re earning or not.

Final Thoughts: VAT Doesn’t Have to Be Scary

If you’re making serious income as an influencer, VAT is something to understand not fear. Once you know what counts, what to track, and what systems to use, it’s not as overwhelming as it sounds.