Gifts and PR
Is Barter (Post in Exchange for Product) Taxable?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
HMRC treats a swap as two sales: you supply promotion, the brand supplies goods. Your income is the market value of what you get.
Services count too — free hair treatments, gym memberships or photography in exchange for posts.
For VAT-registered creators, the value of your promotion is a taxable supply, so VAT may be due even though no cash changed hands.
Agreeing barter deals
Get the value in writing from the brand. It helps both of you account correctly.
If you are VAT-registered, discuss VAT upfront — the brand may need to pay VAT in cash.
Barter can be a good start, but tax still applies; make sure the deal is worth it.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, invoice barter deals at their value — it creates a clean record for everyone.
Example
Kira posts three reels for a salon in exchange for treatments worth £450. She records £450 as income. If she were VAT-registered, VAT would be due on the value of her promotion.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Agree a value in writing.
- Log the deal like a cash deal.
- Check VAT if registered.
- Declare the value.
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 micro influencers.
Common mistakes
- 1Thinking no cash means no tax.
- 2Ignoring VAT on barter.
- 3No written value.
From our client work: We often see VAT-registered creators miss VAT on barter deals.
Frequently asked questions
Related questions
Official sources
Not sure where you stand?
Book a free 15-minute call with a Chartered Accountant who works with creators every day.
✓ Fixed monthly fees · ✓ ICAEW & ACCA regulated · ✓ 5,000+ clients served
This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
