When it’s work F
Travel writers fear taxes on hospitality could surpass earnings. Eugene Costello reports
or decades, the mechanics of travel journalism have rested on an unspoken understanding. Writers travel in order to report; destinations, tourist boards and hotels provide access so that journalists can see, assess and write. The
resulting articles inform readers, shape travel choices and, at their best, hold the industry to account. That compact is now under strain. A growing number of freelance travel journalists say anxiety is spreading amid warnings that HMRC is scrutinising non-cash benefits more closely, including flights, accommodation and hospitality received in the course of work. What has unsettled writers is not changes to tax law but that existing regulations could be applied more aggressively to a profession already operating on precarious margins. Content creation has become a lucrative industry that
HMRC and other regulators are justified in examining more closely. The concern is that, in attempting to clamp down on those pursuing freebies under the guise of work, a swingeing axe could turn out to be a blunt instrument that also penalises legitimate travel journalists and responsible micro-influencers.
Stricter approach Accountant Mahmood Reza, founder of consultancy I Hate Numbers, says the anxiety circulating among travel writers is not the result of new tax rules but of HMRC applying long-standing principles more assertively to a rapidly expanding content economy. “In HMRC’s view, income is not limited to cash payments:
where freelances receive flights, accommodation or hospitality in exchange for their work, those benefits may still carry a taxable value,” says Reza. The distinction between a ‘work trip’ and a ‘jolly’ is often less important in law than whether something of measurable monetary worth was received as consideration for professional activity, he says. Reza notes that freelances are particularly exposed as they
lack the buffer of an employer and because HMRC’s increasingly sophisticated data matching, including social media visibility, now makes undeclared benefits easier to identify. His advice is pragmatic rather than alarmist: keep clear records, declare where required, offset legitimate expenses and do not assume professional intent alone provides protection. Reza especially highlights the issue of writers and creators
bringing family or friends on trips. “That is very likely to be a taxable benefit under the ‘money’s worth’ principle,” he says, “but, as with all areas of tax, there are exemptions and individual circumstances must be considered.” Tim Dawson, the NUJ’s freelance organiser, says HMRC has
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made no secret of examining benefits received by self- employed taxpayers more closely. “Some of this focus is on benefits in kind,” he says. “For the
vast majority of freelances, this will only become an issue if HMRC believes there is reason to investigate their accounts. For any journalist provided with valuable services for the purpose of review, it is wise to retain as much evidence as possible to demonstrate that what they received was necessary to carry out their work rather than a gift. The NUJ will, of course, defend members who find themselves being taxed on the value of products they have legitimately received for review.” HMRC told The Journalist that the tax treatment of travel and hospitality depends on individual circumstances rather than blanket rules. In a written response, it said benefits received ‘by reason of employment’ or self-employment are assessed on a case-by-case basis, taking into account whether what was provided was necessary for a person to do their job. For employees, HMRC notes that benefit-in-kind rules can
apply to third-party benefits, but that exemptions exist where the benefit would have been tax deductible as a necessary work expense, as well as for small gifts and certain forms of third-party entertainment. For the self-employed, HMRC says the tax treatment of travel and hospitality depends on the facts of each case, adding that guidance is available to help individuals understand their obligations when receiving gifts or non-cash benefits. While HMRC emphasises proportionality and exemptions,
many freelance writers say the lack of clear, sector-specific guidance leaves them feeling exposed in a profession already operating on tight margins.
When the sums don’t add up For many travel journalists, the fear is not theoretical. It is mathematical. Antonia Windsor, who has written extensively for the
Where freelances receive flights or accommodation in exchange for work, those may carry a taxable value
Telegraph, the Guardian, the Observer and the Financial Times in her 20-year-plus career, argues that treating hosted travel as taxable ‘money’s worth’ on anything like its notional market value would be catastrophic for freelance travel writers because the value of complimentary trips routinely dwarfs the tiny fees paid for the work. Tax liabilities could exceed income. She says the problem is most exposed when journalists
travel with companions. Family and accessibility reporting can make a partner or child genuinely relevant, but HMRC can still challenge why a writer ‘needs’ them rather than interviewing other guests, turning a legitimate commission into an unpayable bill. Windsor situates this tax anxiety inside a wider collapse of the profession. Rates have effectively fallen to a fraction of their 1990s level, expenses are routinely refused even on labour-intensive assignments and payment delays are common, pushing many writers below minimum wage. At the same time, she says, travel journalists feel compelled to produce unpaid social media output to stay visible to editors
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