Tax tips for content creators UK: how free gifts and PR packages are taxed

If you are a content creator, YouTuber, or influencer in the UK, you may receive free gifts, PR packages, or paid collaborations as part of your work. These opportunities can be rewarding, but they also come with tax responsibilities. HMRC often views freebies as income, and understanding how to handle them correctly can help you stay compliant and save money on taxes.

This article explains how HMRC taxes free gifts, what you can claim as expenses, and how accountants for content creators can help you manage your finances professionally.

When free gifts count as taxable income

Whether you are a YouTuber reviewing gadgets or an influencer showcasing fashion brands, many of the products you receive have a taxable value. HMRC considers these gifts as payment if you are expected to post, review, or feature them in your content.

Here’s what you need to know:

• If a brand sends you an item and expects you to feature it, the gift is taxable.

• If you receive a product with no request or agreement to post, it might not be taxable, but you should keep clear evidence.

• The taxable value is the item’s market value at the time you received it.

For example, if a skincare brand sends you a £200 product in exchange for a post or video, you need to include £200 as income in your self-assessment or company accounts.

Typical examples for creators and influencers

• A clothing brand sends you an outfit to promote on Instagram → Taxable.

• A tech company sends you equipment to review on your YouTube channel → Taxable.

• A restaurant invites you for a free meal in exchange for a TikTok post → Taxable.

• A brand sends you an unsolicited sample without asking for anything → Possibly not taxable, but record it anyway.

Common tax deductions for creators and YouTubers

The good news is that creators can claim a wide range of allowable business expenses. Anything that is wholly and exclusively used for your content business can reduce your taxable profit.

Typical expenses include:

• Equipment such as cameras, tripods, microphones, lights, or computers (capital allowances may apply).

• Editing and design software, storage tools, and online subscriptions.

• Internet, phone, and home office expenses (a fair percentage only).

• Travel costs for filming, events, and collaborations.

• Marketing, advertising, and paid promotions.

• Props, materials, or products you buy to feature in your videos or posts.

Keep receipts and record what each purchase was for. HMRC expects detailed evidence if they ever review your tax return.

How to record PR gifts and free items properly

1. Keep all messages and emails that show what the brand expected.

2. If you agreed to promote the item, include its value as income.

3. If you later sell or give away the item, record the transaction.

4. For limited companies, gifts count as company income, and any items kept by directors or employees may be treated as benefits in kind.

Good record keeping will protect you if HMRC asks how you handled PR gifts.

VAT considerations for influencers and content creators

Once your turnover exceeds the VAT threshold, PR gifts and samples can affect your VAT calculations. HMRC distinguishes between samples, which are usually given to promote sales, and business gifts, which can trigger VAT charges.

Essential VAT points:

• Marketing samples can sometimes be zero rated if they meet HMRC’s definition.

• Business gifts worth more than £50 per person in a year may require you to pay output VAT.

• Seek specialist VAT advice before distributing or receiving large PR packages.

Trivial benefits: when they apply and when they don’t

Trivial benefits are small gifts employers can give to employees, costing £50 or less, that do not trigger tax. These rules generally do not apply to self-employed creators or YouTubers who receive gifts from brands. However, if you operate through a limited company and want to reward your team, the trivial benefits rules can sometimes be used legitimately.

Why good record keeping matters for creators

For creators managing multiple collaborations, brand deals, and free gifts, record keeping is essential. Keep:

• Dates and descriptions of each gift or PR item.

• Proof of any agreement with a brand.

• How you valued each product.

• Receipts for all business expenses.

Having organised records helps you stay compliant and makes tax returns far easier.

How accountants for content creators and YouTubers can help

Working with an accountant who understands the creator economy makes a huge difference. An experienced accountant can:

• Identify which gifts are taxable and how to value them correctly.

• Ensure you claim every allowable business expense.

• Help you plan for VAT registration and avoid errors.

• Structure your business efficiently for long-term tax savings.

• Manage your self-assessment or company accounts with HMRC compliance in mind.

At TaxQube Accountants, we specialise in helping content creators, YouTubers, and influencers stay compliant while maximising legitimate tax savings. Whether you are starting out or managing multiple brand deals, our team can help you navigate tax rules confidently.

Practical takeaways for creators

1. Keep detailed records of every PR package and brand collaboration.

2. Declare taxable gifts in your income.

3. Claim every business-related expense you are entitled to.

4. Use capital allowances for high-value purchases like cameras or computers.

5. Speak to a specialist accountant early to protect your income and save time.

FAQ

Q: Do YouTubers and content creators pay tax in the UK?
A: Yes. If you earn income from brand collaborations, ad revenue, or receive free products in exchange for promotion, this must be declared on your self-assessment or company accounts.

Q: What expenses can creators and influencers claim?
A: You can claim any cost used entirely for your business such as filming equipment, travel, internet, software subscriptions, and home office expenses.

Q: Are all PR gifts taxable?
A: Not always. If a brand sends a product without expecting you to post or review it, it may not be taxable. If promotion is expected, it counts as taxable income.

Q: When should a creator hire an accountant?
A: If you regularly receive PR packages, run paid collaborations, or are close to the VAT threshold, hiring a specialist accountant ensures you stay compliant and avoid unnecessary tax bills.

Q: How can content creators save money on taxes?
A: Keep accurate records, claim all allowable expenses, use capital allowances for equipment, and get professional help from accountants who understand the creator industry.

TaxQube can help your business 

We help taxpayers in the UK to ensure compliance with HMRC – It is a legal responsibility. If you need help in submitting your Tax reports or accounts preparation, please do feel free to get in touch with us by completing the contact us form.