In our previous blog we gave some examples of general expenses that can be claimed. You can read that here. Essentially, the costs need to be for the purposes of generating income for your business.

If you use your home to create content, it’s likely to be more tax efficient to claim a proportion of your household costs rather than the simplified allowance (currently £6 per week). However, you do need to keep detailed records of the costs and your usage so speak to your accountant about this.

As a content creator, you’ll likely need various types of equipment to produce high-quality work. The cost of purchasing and maintaining this equipment is generally an allowable expense. This can include:

• Cameras, lighting, and microphones.
• Laptops, computers, and tablets.
• Software subscriptions, such as Adobe Creative Cloud or video editing tools.
• Mobile phones (if used for business purposes).

For larger items such as cameras or computers, these are often claimed as capital allowances. It’s in a different place in your tax return but you will usually be able to claim the whole cost in full in the year of purchase.

If you travel for business purposes — to attend events, work with brands, or create content on location — your travel and accommodation expenses can usually be claimed. If there is a personal element to any trips then be careful to apportion in a reasonable way. Make sure you keep all receipts but also details of the purpose of the trip in case HMRC check your tax return.

One of the grey areas for influencers is clothing and beauty products. HMRC’s general rule is that you cannot claim for clothing that could be worn in your personal life. However, if you require specific items of clothing for your content creation — for example, costumes, branded clothing, or items that are unlikely to be used outside of your work — these may be allowable.

Similarly, beauty products that you buy for review purposes or for creating content may be able to be claimed as an expense, as long as they are used for the business and not for personal use.

Make sure you keep all receipts but also details of the use of the products in case HMRC check your tax return.

You’ll likely have costs associated with maintaining your online presence, such as SEO services, content creation planning/managing. These are allowable for tax purposes. 

If you send out gifts or promotional items as part of your business strategy — perhaps to followers or brands you work with — these costs may be deductible. However, HMRC has strict rules about what qualifies as a business gift:

• The gift must cost less than £50
• It cannot be food, drink, tobacco, or vouchers exchangeable for goods/cash
• The gift must contain an obvious advert for your business

An example of an allowable gift would be a branded reusable flask.

 

You can claim for memberships and subscriptions to industry-related associations. HMRC recently broadened their allowable training to include developing or learning new skills that help support your business, for example, administrative skills. Other training to keep up to date with the influencer industry will be allowable.

It’s important to keep records of the costs and also the purposes of the costs in case there is a question of some personal element to the cost.

CJL Accountancy are a specialist influencer accountant who can help navigate the complex tax rules and keep your accounting records clear and up to date. We can take the stress away from you so you can continue to grow as a successful content creator.