Brand deals
How Are Brand Deals Taxed?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
Income is recognised when you earn it, so invoice on time and track unpaid invoices.
If an agency collects and takes commission, record the gross fee and the commission as a cost, unless the agency acts purely as your agent.
Overseas brand fees are usually outside UK VAT but still taxable income.
Contracts, usage rights and late payers
Usage-rights and licensing fees, such as allowing a brand to run your content as ads, are part of the same trading income.
Ambassador retainers are taxed the same way as one-off deals. They are often paid monthly, which helps with budgeting.
If a brand pays late, the income is still taxable when earned under the accruals basis. Under the cash basis — the default for most sole traders — it is taxed when received. A written contract helps if you need to chase payment.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, ask agencies for a yearly statement of gross fees and commission.
Example
Ola earns £20,000 in cash fees, £3,000 in gifted trips and pays £4,000 agency commission. Her brand-deal profit is £19,000 before other costs.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Invoice every deal.
- Record non-cash value.
- Track agency commission.
- Check VAT status.
Want us to handle this for you? Our Growth package covers VAT, brand-deal income, overseas payouts and Making Tax Digital. See also our VAT for influencers and our page for professional influencers.
Common mistakes
- 1Ignoring paid trips.
- 2Recording only the net from agencies.
- 3Charging VAT when not registered.
From our client work: We often see creators record only what reaches their bank after agency fees.
Frequently asked questions
Related questions
Official sources
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This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
