The Retailer Spring Edition 2023

SPRING 2023

47

Three key takeaways 1. Retailers should undertake an employee status review when engaging an influencer. Ensure you know what you are paying for, what you are getting in return and that the influencer is clear about their own tax obligations. 2. Put a formal agreement in place. In the absence of a formal agreement between business and influencer, HMRC could argue a ‘worst case’ VAT or employment tax position for both parties. 3. Ensure the correct tax position has been taken and keep relevant paperwork for any investigation. When done well, an influencer strategy can build the brand and grow the business. The authentic partnership between Michael Jordan and Nike has certainly stood the test of time. This may not result in a Ben Affleck film for your business – but you never know.

Sources ¹ Statista (2023) Influencer marketing worldwide – statistics & facts. Link: https://www. statista.com/topics/2496/influence-marketing/#topicOverview

Diana Savory Diana.Savory@mazars.co.uk

Stephanie Jackson Stephanie.Jackson@mazars.co.uk

Claire Cowen Claire.Cowen@mazars.co.uk

Tax tips for engaging an influencer: • Agree employee status • Put a formal agreement in place • Keep a paper trail