Are press trips classed as taxable income for freelance journalists and influencers?
A recent Linkedin post by a travel blogger and content creator Claire Hall suggested they are and and has been widely shared by freelance journalists. In it she suggested that, rather than press trips being a free experience for the reporter/blogger/content creator, they should also be paid by the PR organiser.
She said: “Dear PR people: I’m not open to unpaid press trips or ‘gifted’ gigs, and here’s why.
“HMRC now classifies gifted experiences (meals, hotels, press trips) as taxable income. That means unless there’s an actual fee attached, creators lose money promoting your brand.
“If you want credible coverage, pay for it. Gifting is over. Transparency and fair pay are the new standard.”
Hall told Press Gazette: “I ranted to let off steam after coming off the phone to HMRC, and never expected it to blow up in the way that it did.
“First of all, I was told that I would have to calculate the value of any gifted trips to include on my tax return. I asked if this would apply to staff journalists as well. They said, hang on, went off and came back after ten minutes, and said, yes it does.
“I am pleased that you are looking to find some clarity around this because as a content creator who tries to do the right thing, I am really fed up seeing reels on Instagram and so on where the influencer does not disclose that they were gifted the trip. It seems to me to be dishonest and potentially corrupt, and at the very least is a disservice to readers or consumers of your media.
Press Gazette contacted HMRC for clarification. A spokesperson said: “Each case will be judged on the facts of that case, but largely taxable income for self-employed people can include income that is money, as well as non-cash receipts (Items/events and so on in exchange for services). Some non-cash receipts will be ‘money’s worth’.
“For something to be ‘money’s worth’ for a self-employed person, it has to be something which is capable of being converted into money; if this is the case, the self-employed person will likely need to bring the value of that into account when calculating their taxable income. It is worth noting that some non-cash receipts that do not have a money’s worth may still count as taxable income.”
So a group press trip with various other journalists and content creators probably doesn’t have a “money’s worth” because it is not capable of being converted into money.
NUJ Freelance Organiser Tim Dawson said: “In a sense, this has always been an issue in arts and travel journalism. People will say, why shouldn’t you pay tax if you receive tickets to a football match or the opera or go on a press trip.
“But I would say, if you are in the press box scribbling notes or doing the same at the opera with a reviewer’s notepad or being ferried around in a group to go and see some kind of obscure museum in Norway, it is work, surely.
“The more professional you can be in terms of keeping notes and records, and by joining a professional body such as the NUJ, the better you can make your case. We will defend journalists’ rights not to be unfairly taxed in a way that inhibits their ability to report..”
Does that change if a journalist or creator is gifted a holiday for their exclusive use or with family or friends? Yes, says Dawson: “The benefit to readers that should avoid the tax liability is that experienced by the creator, not their family, children or friends.
“If you were on a group trip hosted by the Metallic Industries of Norway to visit mines and sites, and can prove that with emailed itineraries and so on, you are more likely to be in the clear. Holidaying with your family at an upmarket resort could lead to a a hefty tax bill. Considered over two decades, you could find yourself in a very precarious position.”
The UK Competition and Markets Authority has issued guidance for both content creators and journalists.
It says: “It is the responsibility of both the brand and the influencer promoting the brand’s product/service to ensure a paid-for post is clearly labelled. Brands must make clear to influencers that they pay; send free gifts/loans to; or that they host, that the influencer needs to label any subsequent post an advert (for example by using #Ad in a prominent place, so it is the first thing people see). Brands should set this requirement out in contracts they have with influencers and should check to make sure influencers they are working with make these disclosures – and take prompt and effective action if they don’t.”
The Advertising Standards Association has confirmed that content creators must declare if an experience was provided for free: “Our guidance states that if an influencer was given a free trip, this would be considered a form of payment, just as much as if they were given money. If the advertiser gave them that trip in exchange for social media coverage, we would likely consider the post to be an ad and require it to be obviously identifiable as such. We advise against the use of ‘gifted’ as a label, and likely would also say ‘hosted’ wasn’t clear enough.”
The post Are press trip freebies taxable income for freelances and influencers? appeared first on Press Gazette.
