The rise of social media has brought opportunities for people to kick-start their own business. If you’re an influencer you’re more than likely going to be self-employed.
It’s important to understand your tax and accounting responsibilities. You have the same responsibility as any self-employed individual.
As your following, and earnings, grows you need to look at different structures that’ll make the most efficient use of the tax system. Here’s how to maintain bookkeeping as an influencer.
Bookkeeping as a Nano influencer
500 – 5k followers
Your following is niche but highly engaged. You’ll probably have a day job and be making small sums of money from your social media.
If you’re making small amounts of money, you’re unlikely you’ll need to be declared self-employed. Any earnings under £1,000 do not have to be declared to HMRC. See our article on what to declare when you earn less than £1k.
5k + 10,000k
When your following increases beyond 5,000 you can start earning a full time living from your platforms.
Typically, micro influencers can earn anything over £20k. At this point, registration with HMRC will be compulsory.
You will also need to keep records of your income, expenditure, and expenses. Don’t know what you can expense? See our article on what expenses you can claim when you’re self-employed.
You’ve made it. You’re essentially a celebrity now.
Your following has grown to the hundreds of thousands, if not millions. Your revenue streams are multiple and you have a list of clients willing to work with you.
With greater levels of income, you can now begin to look at different ways to structure the way you operate your business. A limit company could now be an option.
Setting up a limited company not only protects you from liability if things go wrong but also provides you with tax-efficient options.
If you’re an influencer at any level, it’s important to get the right advice when it comes to taxes. At Kala Atkinson, we can help register your business and administer your taxes efficiently.
Get in touch today to find out how we can help you with your bookkeeping as an influencer.