As a UK influencer, your income can come from various sources like brand collaborations, affiliate marketing, sponsored posts, or product sales. While exciting, these earnings can make your tax obligations more complex, especially when it comes to VAT. Understanding when and how to register for VAT is crucial to staying compliant with HMRC.

What Is VAT and Who Needs to Register?

VAT (Value Added Tax) is a government tax applied to most goods and services in the UK. Influencers must register for VAT if their taxable turnover exceeds £90,000 within any 12-month period (as of 2025). This includes all earnings from UK-based clients and sponsorships.

When to Register for VAT

You should register for VAT:

• As soon as your total taxable income approaches the £90,000 threshold.

• If you expect to exceed this threshold within the next 30 days.

• If you offer digital products or services to UK or EU customers.

Failing to register on time may lead to fines or backdated VAT payments.

How VAT Affects Your Income

Once registered, you must charge VAT (usually 20%) on applicable services and file VAT returns quarterly. While this might seem like extra work, being VAT-registered can actually help influencers appear more professional to brands and enable them to reclaim VAT on eligible business expenses.

Mid-Article Keyword Placement

Many creators rely on VAT Services for Influencers to handle registration, filing, and compliance, ensuring they meet HMRC deadlines without stress.

Common VAT Mistakes Influencers Make

• Ignoring income from foreign clients

• Missing quarterly VAT return deadlines

• Failing to keep proper records or receipts

• Not realising that free collaborations can count as taxable income

Conclusion

Registering for VAT can seem intimidating, but it’s an essential part of managing your finances as a professional influencer. By tracking your income carefully and seeking expert advice, you can avoid penalties and keep your business compliant.