Retailers may get unexpected tax bills by using social media

Retailers using social media influencers to ‘advertise’ their products may face unexpected tax bills as HMRC views the arrangement as a benefit in kind, warns tax and advisory firm, Blick Rothenberg

This started with the concept of celebrity endorsement, which has now expanded, and many retailers now seek ordinary people with a sizeable following on social media to blog, podcast, post or create video content about their brands with a view to influencing the general public’s purchasing decisions.

While the online promotion of products may be seen as a straightforward endorsement, HMRC views the arrangement as a benefit in kind and it is therefore taxable.

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