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 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, web designers or marketing people – should sit up and take notice of these changes.
“The Chancellor’s adjustments to employers’ National Insurance contributions will apply in Scotland, so it is particularly important for firms to understand their eligibility for Employment Allowance.
“Claiming this relief is not automatic. Businesses must notify HMRC that they qualify and wish to claim, so checking eligibility is crucial.
“Fortunately, help is available through our service, taxadvice.scot, which is designed to guide people in Scotland through the complexities of the UK tax system.
“Our advisers are ready to assist businesses and individuals with any tax-related questions, completely free of charge.
“Anyone unsure about the changes should know that calling HMRC isn’t their only option. Visit taxadvice.scot or call us on 0800 756 3381 for support.”
Recent official data shows that the number of microbusinesses in Scotland, those with between zero and nine employees, grew by more than 17,000 between 2023 and 2024.
Separate Scottish Government figures show that the number of microbusinesses in the creative sector, including digital media, rose from around 4,000 in 2010 to more than 5,000 in 2024.
Backed by HMRC, taxadvice.scot can help business owners navigate the process and understand their obligations. Specialist advisers can be reached on 0800 756 3381.
Staff can provide support on a range of tax-related areas, including PAYE, self-assessment, pensions, inheritance tax, capital gains tax, and marriage allowance.
They can also assist with claiming child benefit, tax credits, refunds, and managing tax-related debts. Scottish businesses can access advice on VAT registration, corporation tax, and compliance issues.
