Getting started
Is Being an Influencer a Hobby or a Business?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
HMRC looks at factors called the badges of trade: profit motive, frequency, organisation and how you sell your services.
Accepting brand deals, using a media kit or monetising a channel all point to a business.
A business can claim expenses and, if it makes a loss, may offset that loss in some cases. A hobby cannot.
Why it matters
If you are trading, gross income over £1,000 must be declared.
Losses from a genuine business may be set against other income or carried forward. HMRC can challenge losses that look like a hobby.
Treating your channel as a business — separate account, records, plan — supports your position.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, the first paid brand deal is usually the moment it becomes a business.
Example
Lucy posts daily, has a media kit and earns £4,000 from brand deals — she is trading. Her friend posts holiday photos with no income — a hobby.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Ask whether you aim to make money.
- Keep business-like records.
- Register if over £1,000.
- Get advice before claiming losses.
Want us to handle this for you? Our Self Employed Starter package covers registration, your Self Assessment return and expense review. See also our Self Assessment for creators and our page for micro influencers.
Common mistakes
- 1Calling paid work a hobby.
- 2Claiming hobby losses against salary.
- 3No records.
From our client work: We often see creators call their channel a hobby long after the first paid deal.
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.
