Journalists warned clear documentation needed to ensure ‘freebies’ aren't taxed
Journalists will be required to pay tax on goods and services offered to them without payment according to new guidance issued by HMRC.
The advice, aimed at ‘content creators’ is not based on new rules, but a fresh campaign to ensure that internet ‘side hustlers’ pay their due. The rules will apply equally, however, to reviewers, sports writers and any other journalists who receive goods and services without charge.
The impact could be particularly felt by travel writers who could have to pay tax on ‘free’ holidays worth many thousands of pounds.
The way that the rules operate means that most of those sports writers and reviewers who enjoy free access to arts and sporting events will not be required to pay tax on their value. To be sure of this, however, specific criteria must be met, documentation obtained and saved, and the nature of the transaction accurately recorded.
The real impact on journalists is likely to fall if their tax returns are called in for inspection – a process that occurs both through random selection, and when a return raises questions. Subjected to a ‘fine-tooth-comb interrogation’, journalists should expect to answer questions and provide documentation for any goods or services accepted free-of-charge.
Full guidance is available to members on the NUJ website.