Accountants Chester | Instagram Income
Accountants Chester | How to Declare Instagram Earnings in the UK
If you are an Instagram influencer in the UK, you may be wondering how to declare your earnings to HMRC. Here is a guide to help you do just that.
Accountants Chester | What are Instagram earnings?
Instagram earnings are any income that you receive from using your Instagram account. This can include money earned from sponsored posts, product sales, or affiliate marketing.
Accountants Chester | Who needs to declare Instagram earnings?
Anyone who earns more than £1,000 from their Instagram account in a tax year is required to declare their earnings to HMRC. This includes both individuals and businesses.
Accountants Chester | How to declare Instagram earnings
To declare your Instagram earnings, you will need to complete a self-assessment tax return. You can do this online or by post.
When completing your self-assessment tax return, you will need to include the following information:
- Your total income from Instagram
- The type of income you earned (e.g., sponsored posts, product sales, affiliate marketing)
- The expenses you incurred in earning your income (e.g., travel costs, equipment costs)
Accountants Chester | Penalties for not declaring Instagram earnings
If you fail to declare your Instagram earnings to HMRC, you could face a number of penalties, including:
- A fine of up to £2,000
- Interest on the unpaid tax
- Penalties for late payment
Accountants Chester | Conclusion
Declaring your Instagram earnings is important to ensure that you are paying the correct amount of tax. If you are unsure how to declare your earnings, you can seek professional advice from an accountant.
Accountants Chester | Here are some additional tips for declaring your Instagram earnings:
- Keep good records of your income and expenses. This will make it easier to complete your self-assessment tax return.
- Declare your earnings as soon as you receive them. This will help you avoid penalties for late payment.
- If you are unsure about anything, seek professional advice from an accountant.
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