If you're an influencer based in the UK, you're probably aware that most of your income, whether it comes from brand deals, affiliate sales, or digital products, is taxable. But are there any circumstances where you can legally earn income tax-free? The short answer is: yes, to a limited extent.

This guide breaks down the tax-free allowances influencers can benefit from and how to make the most of them.

1. The £1,000 Trading Allowance

If your total self-employed income is under £1,000 in a tax year, you don’t need to register with HMRC or pay any income tax. This is known as the trading allowance.

✅ Applies to:

Micro-influencers just starting out
Occasional income from affiliate links or paid posts
Side hustles with small earnings

But if you exceed this threshold, even by a little, you’ll need to register for Self Assessment and report all your income.

2. The £1,000 Property Allowance

If you rent out a room or space (perhaps filming content in your home studio), and it brings in under £1,000 annually, that income can also be tax-free under the property allowance.

However, you can’t combine this with other expense claims; you have to choose one or the other.

3. Personal Allowance (£12,570)

Every UK resident is entitled to earn up to £12,570 per year before they start paying income tax. This is known as your Allowance.

So, if your influencer business is your only income source and you earn under that amount, you won’t owe any income tax (though you may still owe National Insurance).

4. Tax-Free Gifts? Not Really…

Many influencers assume that gifted products and PR packages are tax-free, but that’s not the case if you're expected to post about them. HMRC views this as non-monetary compensation, meaning it’s taxable.

You need to declare the fair market value of such items if there was a direct expectation to promote them in return.

5. Tax-Free Income from Savings or Dividends?

If you’ve started investing some of your influencer earnings:

The savings allowance lets basic-rate taxpayers earn up to £1,000 in savings interest tax-free.
The dividend allowance (2025/26) allows you to earn up to £500 in dividends tax-free.

These only apply if you’ve set up investment accounts or limited companies with dividend structures.

Important Reminder: Keep Records!

Even if your income falls below the tax-free thresholds, it’s crucial to keep detailed records. You never know when your income might spike or when HMRC might want to take a closer look.

And remember, these allowances can change year-to-year, so always stay up to date with current HMRC rules.

This is where Accountants for influencers come in handy; they can help you structure your finances to legally maximise tax-free income while staying fully compliant.

Final Thoughts

While UK influencers can take advantage of a few tax-free allowances, the window is narrow. As your business grows, you’ll likely surpass these limits, and that’s a good thing! With the right planning and professional guidance, you can keep more of what you earn and avoid unpleasant surprises at tax time.

Can UK Influencers Earn Tax-Free Income?