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The rise of the TikTok Shop affiliate programme has turned "making videos" into a serious revenue stream for thousands of UK creators. But as the commissions start hitting your bank account, so does a looming reality: HMRC takes a keen interest in digital income.
As an ecommerce accountant working daily with TikTok Shop sellers and influencers, I see the same pattern. Creators are either terrified of a tax bill they haven't saved for, or they are overpaying because they don't realise what they can actually claim. Navigating TikTok affiliate tax in the UK doesn't have to be a headache if you understand the rules of the game.
This is the most common question I get asked by rising creators. In the eyes of HMRC, if a brand sends you a product in exchange for a video or a mention, that product has a "money’s worth."
Technically, "gifting" is considered a form of payment (Barter Transactions). However, if you are a micro-influencer receiving occasional low-value items, it often falls under the radar. But once you are a professional affiliate receiving high-value tech, designer clothes, or consistent shipments, the market value of those goods is taxable income.
What this means for you: If a brand sends you a £500 espresso machine to review, that £500 is treated as part of your turnover. The silver lining? If that machine is used solely for your content creation business, you can often "expense" it back out as a business cost, effectively cancelling out the tax hit.
To lower your tax bill, you need to understand allowable expenses. The golden rule is that the expense must be "wholly and exclusively" for the purpose of your trade.
As a content creator, content creator tax deductions often include:
Real-world example: If you buy an outfit to wear in your daily life, it’s not claimable. If you buy a specific costume or "uniform" that you only wear for a specific TikTok character or niche review, it likely is.
Since TikTok is a mobile-first platform, your phone is your primary "office." However, you cannot usually claim 100% of the bill if you also use it to FaceTime your mum or scroll Instagram personally.
You must perform a reasonable apportionment. If you use your phone for work 60% of the time, you claim 60% of the monthly contract. The same logic applies to your home broadband. We help our clients calculate a fair percentage that stands up to HMRC scrutiny.
If you earn more than £1,000 in a tax year (6th April to 5th April) from TikTok commissions and brand deals combined, you must register for Self Assessment. This £1,000 is officially known by HMRC as the Trading Allowance (External Link).
How to declare TikTok income to HMRC:
Don't wait until January. TikTok Shop payouts can be messy to reconcile, especially with the lack of direct Xero integration for affiliates. Set up a solid record-keeping system early.
There is no "one size fits all" answer, but here is a general guide to help you decide when to register as a Sole Trader or set up a Limited Company:
If you’re a seven-figure affiliate, a Limited Company is almost certainly the way to go, but you’ll need a specialist influencer tax accountant in the UK to ensure you aren't falling foul of IR35 or personal service company rules.
The biggest mistake creators make is trying to "find" receipts in their email inbox in January.
Because integration software for TikTok affiliates doesn't really exist in a seamless "one-click" way yet, you need a system. I recommend:
If you head to London for a TikTok Shop creator event or a brand launch, your train tickets, Uber, and even an overnight hotel stay are generally 100% claimable.
The "Filming on Holiday" Trap: Can you claim your flight to Bali because you filmed three TikToks there? No. HMRC views this as having "duality of purpose." Unless the trip was exclusively for work (e.g., a specific brand shoot with no leisure time), you cannot claim the flights. You can, however, claim specific costs incurred while there that were work-related, such as hiring a local camera op or paying for a specific filming location.
Sam Hoye Sam Hoye is the founder of Social Commerce Accountants, a firm built specifically for the new wave of digital entrepreneurs. With years of experience in ecommerce accounting, Sam helps TikTok affiliates, Amazon sellers, and D2C brands navigate the complexities of UK tax law while maximising their take-home pay.
This guide is not financial advice. All content is for educational purposes only. Please consult a qualified accountant or financial advisor to discuss how these strategies apply to your specific business circumstances before making any financial decisions.
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