The UK influencer marketing industry is now worth £2.36 billion annually and growing at a remarkable 29.5% per year, with top creators earning six and seven-figure incomes from brand deals, affiliate links, and digital products. But here’s what most people don’t see behind the perfectly curated Instagram feeds: complex tax obligations, multiple income streams, and serious HMRC compliance requirements.
Many influencers assume accountants are only for “traditional” businesses but that’s a costly misconception. Whether you’re earning £20,000 from YouTube AdSense or £200,000 from brand partnerships, managing influencer finances requires specialist knowledge that most content creators simply don’t have.
So, should influencers hire an accountant? The short answer: it depends on your income, business structure, and growth ambitions. While it’s not a legal requirement, working with a specialist accountant can save you thousands in tax, free up hours each week, and help you avoid expensive HMRC penalties.
In this guide, we’ll break down the pros and cons of hiring an accountant as an influencer, explain when it makes financial sense, and show you exactly how accounting firms like Reflex Accounting help influencers and content creators manage their finances professionally.
Let’s break it down why should influencers hire an accountant? By examining the pros and cons of seeking professional help.
The Pros of Hiring an Accountant for Influencers
1. Controlling Complex Income Streams
Influencer income is notoriously complex—one of the main reasons many choose to work with an accountant. Their income future is not from one simple paycheck (a traditional job) but rather many revenue streams. Some of them are brand collaborations, affiliate commissions, YouTube AdSense, and product sales. All of these revenue streams come in different shapes and forms at varied times, creating the complication of maintaining a track.
A bookkeeper can help organize this income so that nothing is left out or missed and everything is noted down properly. Structure systems to monitor payments, generate invoices, and sort revenue by tax year.
2. Spend Your Time on Content Creation
Influencers are busy people. With all the time spent planning content, filming and editing it, and engaging with their audience, there’s little time left to worry about finances. Hiring an accountant gives them more time to do what they´re good at creating content. Accounting is where they do all the bookkeeping, tax filings, and expense tracking which can add up to hours/month. Influencers don’t have to stress about the timeline or expensive financial mistakes, that in a package with professional help.
3. Tax Planning and Savings
Hiring an accountant will you save a lot of money when it comes to tax planning. Influencer taxes can get a bit tricky, especially when accounting for international earnings and the various business write-offs possible. An accountant can help pinpoint some allowable deductions that an influencer may not otherwise consider e.g. travel, equipment purchased which is necessary to put in your work, home office expenses, and even wardrobe for shoots.
Such a move would help them reduce the amount of tax they owe and, most importantly, avoid penalties from tax authorities.
4. Staying Compliant with Laws
Tax law is a rapidly evolving landscape, and what applies to an influencer’s business this year may not next. An accountant stays up-to-date with the latest regulations and ensures that influencers remain compliant.
Having an accountant handle your tax responsibilities can provide a sense of security and comfort. It reduces the chances of errors and potential fines from HMRC.
Accountants have extensive experience in dealing with HMRC. They can manage all the tedious paperwork and communications for you. It means you can relax, knowing your taxes are submitted correctly and on time. You won’t have to spend hours waiting on hold to speak with someone at the HMRC call center.
5. Advice on Business Structure
Most influencers begin as sole proprietors, but these entrepreneurs often push the limits of their income and seek out more ways to grow, leading them to pursue a conducted business entity such as a limited company, which is the UK equivalent of the US LLC structure. They will guide them in structuring their business according to their income, risk, and future goals — accountants.
The business entity has many benefits including legal protection, tax savings, and cash management advantages for influencers. Consequently, an LLC setup would permit the influences to keep their personal and business accounts separately, limiting personal liability in case of legal issues.
The Cons of Hiring an Accountant for Influencers
Of course, there are many advantages to recruiting an accountant, but you also have to be aware of the potential cons. Pros: Now let us see some of the cons.
1. Cost of Professional Help
Should Influencers Hire an Accountant? The answer to this question is accountants do not work free of cost. The cost of accounting services for influencers can vary greatly. It depends on how complex their money matters are. Some might pay a few hundred dollars a year, while others could spend thousands. The final price depends on how much help they need with their finances.
Nonetheless, an accountant may sound like a luxury for baby influencers running on zero budget. In such cases, a social media influencer may feel that they do not earn enough to justify professional advice and would rather manage finances using budgeting apps or software.
2. Determining the Right Accountant
All accountants are equal, and finding someone skilled in the influencer industry can be a hassle. A person who can appreciate the specifics of their businesses such as dealing with royalties, international income, and how they make income on social media. This ultimately leads to no savings on the taxpayer side, mismanaged finances, or even bad financial planning.
Influencers need to do their research, read reviews, talk to other influencers, and interview more than one trusted accountant before deciding. However, this process can be time-consuming and labor-intensive.
3. Loss of Direct Control
For influencers who are more used to being deeply involved in every little part of their business, using the services of an accountant managing finances may appear as a loss of control attributively. Some people may have associated having an expert manage the financial side only as a relief: others might struggle with not having a clear day-to-day picture of their money.
It’s important to establish clear communication and trust with an accountant to ensure that influencers still feel involved in major financial decisions, even if they aren’t handling the daily details.
Should You Hire an Accountant as an Influencer?
Without much further ado, providing we know both sides of the argument now — should influencers hire an accountant? The correct answer is different depending on their situation. When you first start, some might be able to handle the finances on their own or choose a financial software solution. However, when you start making money and accumulating financial obligations it makes more sense to hire an accountant.
Influencers using different avenues for income or those seeking to expand their influence business might find getting an accountant not just helpful but vital. Accountants help provide peace of mind and save on taxes by doing proper tax planning and it allows influencers to keep their eyes set on their content without worrying about the financial side.
When Do Influencers Need to Register as Self-Employed?
Once your influencer income exceeds £1,000 per year, you must register with HMRC as self-employed (sole trader). This is a legal requirement, not optional. You’ll need to submit a Self-Assessment tax return each year and pay income tax on earnings above the £12,570 personal allowance.
Early stage (under £10,000/year): You can likely handle accounts yourself using software like QuickBooks or FreeAgent, with an accountant helping only at tax return time.
Growth stage (£10,000-£40,000/year): Consider hiring an accountant part-time or on retainer to manage bookkeeping, quarterly tax planning, and expense optimization.
Scaling stage (£40,000+/year): At this level, switching to a limited company structure becomes tax-efficient, and you’ll need an accountant to manage corporation tax, VAT registration, payroll (if you hire staff), and ongoing compliance.
Becoming a Limited Company
If your business starts earning over £40k annually, it might be more tax-efficient to register as a limited company. Limited companies also offer the advantage of limited liability, meaning business owners aren’t personally responsible for company debts.
An accountant can guide you on when to make this transition and explain the pros and cons of each business structure.
They can also advise on VAT registration to claim back VAT on expenses and help you navigate rules on selling digital products in the EU. Running a limited company involves numerous legal responsibilities, so it’s best to have an accountant manage these obligations to avoid potential penalties.
Accounting Services for Influencers
Accounting firms like Reflex Accounting offer various services tailored to influencers’ needs:
1. Bookkeeping
Accountants can handle daily bookkeeping tasks, potentially spotting issues you might miss without proper training. They can set up cloud-based accounting software and provide apps for managing receipts and invoices.
2. Tax and VAT Management
Accountants offer valuable tax advice, helping you understand complex legislation and processes. They can help you save money through tax deductions and avoid penalties for late submissions or undeclared taxable gifts.
They also assist with financial planning, ensuring you set aside money for tax and VAT bills to avoid unexpected large payments.
3. Payroll
If you start employing people, accountants can manage your payroll, handle administration, accurate deductions, and timely payments.
4. Expense Claims
Influencers can claim tax back on business-related expenses. Accountants ensure you accurately log and claim expenses, maximizing your tax savings.
Specialized Accounting for Social Media Influencers
Working with a specialist accountant like Reflex Accounting can save influencers and content creators time, money, and stress.
They understand your business and can identify which services you need based on your circumstances. They typically offer an initial consultation and create a customized accounting package for each client.
Conclusion
Influencing has its financial obstacles, spanning multiple streams of income and navigating tax liabilities. In addition to the traditional benefits of using an accountant, support in terms of providing financial organization and ensuring you are operating tax efficiently whilst also planning for future growth as your earnings increase can be invaluable. But it is hard to balance the price with getting a professional who can meet those specific needs.
Ultimately, financial standing and long-term goals as an influencer will determine if it is mandatory to hire an accountant or not. However, for most, the pros of utilizing an accountant will outweigh the cons meaning that their accountancy services provider is helpful.
FAQs:
1. Do I need to register as self-employed if I’m just starting as an influencer?
Yes, once your influencer income exceeds £1,000 in a tax year, you must register with HMRC as self-employed, even if influencing is a side hustle alongside a full-time job.
2. When should I switch from sole trader to limited company as an influencer?
Most accountants recommend considering a limited company structure when your annual profits exceed £40,000-£50,000.
3. Do influencers need to pay VAT?
You must register for VAT once your taxable turnover exceeds £90,000 in a 12-month period (as of 2024/25 tax year). This includes all income from brand deals, affiliate commissions, ad revenue, product sales, and sponsored content.
