TikTok and Instagram influencers who employ their own members of staff are among hundreds of thousands of small business owners across Scotland being warned to brace for big tax changes.
Advice Direct Scotland is urging people who run their own social media businesses to check how they will be affected by the changes, due to come into force in April.The charity, which provides free tax advice through its service taxadvice.scot, says some online entrepreneurs and small businesses may be unclear about how changes to National Insurance contributions (NICs) will impact them.
The threshold for employers to start paying National Insurance is being lowered from £9,100 to £5,000, with the contribution rate rising from 13.8 per cent to 15 per cent.Many smaller firms will be exempt from paying National Insurance due to the Employment Allowance increasing from £5,000 to £10,500, but claiming this relief is not automatic and must be done annually.Small businesses can claim Employment Allowance through their own payroll software or one provided by HM Revenue and Customs (HMRC).Claiming the relief can have a significant impact.
For instance, if a firm's total NI liability for the 2025/26 tax year is £11,000, they would only need to pay £500 after applying the allowance.Small business owners are being encouraged to act now to ensure they are prepared for these changes and to take full advantage of available support.Andrew Bartlett, chief executive of Advice Direct Scotland, said: “Online influencers represent a growing section of the economy, and those who have created their own businesses need to check how they will be impacted by the National Insurance shake-up.“Influencers who employ their own staff - whether it is content creators,