Millions of UK Social Media Users Could Face £100 Fines! HMRC Reviews Child Benefit Suspensions; Bank of England Keeps Interest Rates Unchanged
- TBA
- Nov 10
- 5 min read
Millions of UK social media users at risk of £100 HMRC fine
Recently, HM Revenue & Customs (HMRC) warned social media users that they could face tax penalties of at least £100 if they fail to declare income earned online.
According to a new study by business management platform Tide, the rise of the “creator economy” has led millions of Britons to earn extra income through social media, making an average of £1,223 a year.
As more creators turn hobbies into side businesses—promoting products on TikTok Shop, partnering with brands, or monetizing popular content—many overlook HMRC’s £1,000 tax-free trading allowance, potentially putting them at risk of non-compliance.
The research found that 42% of UK social media users aged 18 and over have received income or free gifts from content creation, earning an average of £1,223 per year. Among them, 21% made more than the £1,000 tax-free threshold.
Under UK tax law, anyone who earns over £1,000 a year from content creation—including the value of gifts—must submit a Self Assessment tax return to HMRC. However, only 52% of social media users are aware of this rule, and just 44% of creators have actually filed their taxes.
Those who fail to file on time face an initial fine of £100, with additional penalties accumulating over time, potentially leading to significant financial losses within a year.
HMRC reminds taxpayers that if, within a tax year, you:
Earn more than £1,000 from social media activities;
Receive gifts worth over £50; or
Accept gifts in exchange for promoting a product or service,
these should all be declared as taxable income. Although free products may seem like perks of being an influencer, HMRC considers them a form of taxable benefit.
The data also revealed regional differences: social media users in East England earn on average £700 more than the national average, making them the most at-risk group for potential fines, followed by those in London and North East England.
HMRC to review suspending 23,500 child benefit payments
HM Revenue & Customs (HMRC) is reviewing its decision to suspend child benefit payments for about 23,500 recipients, after the agency used travel data to determine that they had permanently left the UK.
Under existing rules, child benefit payments automatically stop if the recipient has been living outside the UK for more than eight weeks. However, many affected families have said their payments were halted even though they had only been abroad for a short holiday.
The incident has drawn the attention of the UK Parliament’s Treasury Select Committee, which has demanded an explanation from HMRC. Following an initial investigation, HMRC has apologised for any possible errors and urged families who believe their benefits were wrongly stopped to get in touch.
In September last year, the UK government launched a crackdown on child benefit fraud, expected to save about £350 million over five years. The new system allows HMRC to cross-check its records with international travel data from the Home Office, leading to the suspension of payments for thousands of families.
However, as complaints have continued to rise, many people have reported that they had only been abroad briefly and had already returned to the UK.
One such case involved British mother Eve Craven, who took her son on a five-day trip to New York. About 18 months later, she received a letter from HMRC stating that her son’s child benefit had been stopped because the system had no record of her return to the UK.
“The letter gave me a month to provide all the evidence proving I’d come back,” she said in an interview. “It was clearly their system’s mistake, yet we were the ones asked to fix it — that’s just not fair.” Her child benefit has since been reinstated, and the missing payments have been backdated.
The problem first surfaced among families traveling to and from Northern Ireland. Some had flown out of the UK from Belfast, arrived in Dublin, and then driven back home across the border. Because the UK and Ireland share a Common Travel Area, there are no routine passport checks between Northern Ireland and the Republic of Ireland — meaning the UK authorities had no data showing that some people had returned.
HMRC has now decided to review all affected cases, though it remains unclear how many errors occurred. The agency said it would re-examine past cases using PAYE employment data, and where continued UK employment is confirmed, it will reinstate payments and issue backdated compensation.
Bank of England says it expects inflation has peaked as it holds interest rate
The Bank of England’s Monetary Policy Committee (MPC) voted 5–4 last week to keep the benchmark interest rate unchanged at 4%, while signalling that inflation has likely peaked and a rate cut could come soon.
The UK’s Consumer Price Index (CPI) inflation rate remained high at 3.8% in September, the highest among G7 nations. Typically, higher interest rates help to curb price growth.
However, in its latest economic outlook, the Bank said inflation in the UK appears to have reached its peak and is expected to gradually decline over the coming months, stabilising at just above the 2% target within two years.
The decision comes just three weeks before the Treasury’s autumn budget announcement, fuelling speculation that the Bank may be waiting to reassess the economy once the new fiscal plan is revealed. Chancellor Rachel Reeves has previously hinted at potential tax increases and spending cuts, measures that could further weigh on economic growth.
At the same time, the Bank noted that tariff-related factors have contributed to slightly lower-than-expected inflation. According to its latest projections, the UK’s GDP is forecast to grow 1.2% next year and 1.6% in the following year.
Market analysts now widely expect the Bank of England could announce its first interest rate cut as early as next month, during its December 18 meeting, just before Christmas.
Why TB Accountants?
Professional Assurance: Our team includes ACA members and ACCA-certified professionals, delivering services to the highest industry standards.
Responsive Service: We respond to your inquiries within 24 hours, ensuring efficient communication across time zones.
Multilingual Support: Services available in English, Mandarin, Cantonese, Japanese, French, German, Spanish, Italian, Turkish, and more.
Trusted by Clients Worldwide: Consistently praised by global clients for proactive, professional, and reliable accounting and tax support.
For individuals and businesses looking for UK taxation services, use our contact form to get in touch for more information.
Get in touch with us at info@tbagroup.uk or for a free one-to-one consultation.
