At a glance
- Finfluencers influence tax and financial decisions, especially among the young.
- Many lack qualifications and some offer risky or unlawful advice.
- HMRC and the FCA have responded with crackdowns and warnings.
- Accountants can educate clients and debunk myths.
More and more people in the UK appear to be paying attention to ‘finfluencers’ – people who use social media platforms to share financial advice with the public. That’s the finding of a recent Barclays consumer survey by market research house Savanta. And it’s supported by the experience of qualified financial experts.
Many finfluencers are unauthorised, and so potentially in contravention of UK law. Further, some push products likely to land followers in legal or financial hot water.
How can accountants help prevent finfluencers from playing an advice role that their skills don’t merit?
How finfluencers are changing decisions
Right now, finfluencers appear to be changing how people in the UK make decisions about their money. According to Barclays’ study, 23% are looking to social media, community messaging apps and online forums for help when investing. Among those aged 18-24, 46% use TikTok for financial guidance.
Barclays did not provide the questions asked in the study, which was conducted with a sample of 2,011 respondents in July 2024. But the research does suggest finfluencers are impacting views about finances.
The Financial Conduct Authority (FCA) seems to think so too. In June 2025, the FCA led nine regulators around the world in a week of global action against finfluencers.
But more than 243 million finance videos continue to circulate on TikTok alone. And the FCA continues to worry about the impact of finfluencers.
“Finfluencers appeal to their audience by making tax look easy – sometimes too easy.”
Paul Lodder, VP of Accounting Strategy, Dext
Finfluencers and tax: too good to be true?
Financial Accountant spoke with several accountants about influencers’ impact on tax-related decisions, the risks for those who follow them, and how regulators are responding. They have ideas about how accountants can educate and protect their clients.
“Previous generations may have taken financial or tax advice from their mates down the pub, but the modern-day equivalent reaches an audience of millions, rather than a few dozen,” says Fiona Fernie, a partner at Blick Rothernberg.
Money talk moving online
Why is it that unlawful finfluencers, despite attempts to stop them, remain at large — and continue to have such sway over their audiences? It often comes down to their persuasive powers.
“Finfluencers appeal to their audience and build trust through engaging content, and presenting complex tax information in simplified, digestible formats,” says Paul Lodder, vice-president of accounting product strategy at Dext.
A knack for simplifying finances isn’t necessarily a bad thing, particularly when the finfluencers in question are authorised — and focus on education, rather than advice.
“That means helping people understand how things like tax codes, student loans or pensions work, without telling them exactly what they should do,” says Abigail Foster, accountant, finance content creator, educator and author.
“It’s about giving people the confidence to ask questions, not handing out one-size-fits-all solutions.”
The problem is that many social media users take what finfluencers say at face value, without checking their credentials.
“For generations used to looking at online content for answers, it can be easy to take [finfluencers’ advice] as gospel, without thinking critically about it,” says Paul Brown, tax director at IN Accountancy.
Misleading advice: popular myths and pitfalls
Come tax time, some finfluencers grab attention with inaccurate declarations about deductions.
Perhaps the most dangerous are those that are partially true, as they’re often believable.
“[One] real-world example of potentially misleading tax advice seen online is ‘Put your car or your holidays through your business’ – without explaining what constitutes a legitimate business expense and what could trigger a red flag with HMRC,” says Foster.
Another is that a business-owner could lower a tax bill by paying income to family members, such as spouses or children.
This could be true, such as in the case of rental income, or where a relative is a genuine employee, says Fernie. However, it’s not lawful in all circumstances.
Some finfluencers go further, advising followers about how to structure a business to decrease tax.
“‘Set up a limited company to avoid tax’ is presented as a universal solution, without mention of IR35, reporting requirements or the fact that it doesn’t suit all types of work,” says Foster.
Other finfluencers have incorrectly claimed that certain categories of earnings are tax-free. For example, says Lodders, they might state that tax returns are unnecessary for mere “side hustles” or for income below the personal allowance.
“This falsely suggests that, if your income is below £12,570, you don’t need to file a tax return. But, in reality, if you earn over £1,000 from self-employment, rental, or online activity, a return is mandatory, even if no tax is due.”
In less deliberate yet still concerning examples, risks flow from the Internet’s universal reach.
“Some [finfluencers share content] that relates purely to another country’s tax system, but aren’t specific or clear about it,” says Brown.
“It’s easy to think it’s common sense that tax systems in different countries are different. But, in reality, would someone with little or no tax knowledge know that?”
The cost of following bad advice
“The first question is always whether the individual has taken reasonable care over their tax affairs,” says Brown.
“I’m not convinced that having relied on the word of a finfluencer would be enough to convince the tax inspector that reasonable care has been taken.”
Should HMRC establish a lack of reasonable care, it could investigate an individual’s financial records over the previous six years and impose financial penalties of up to 30% of unpaid tax.
“In [more] extreme cases, where the failure to pay tax is deliberate, then HMRC can go back up to 20 years and impose penalties up to 100% of the tax unpaid – and, in the worst cases, they can prosecute for tax fraud, with the risk of [imprisonment],” says Brown.
Further, the very process of undergoing an HMRC investigation can be highly stressful and expensive, says Fernie.
“[This is] not only because it is sensible to obtain proper professional advice, but also because of the opportunity cost to a business of key personnel being distracted from operating the business efficiently while having to concentrate on HMRC’s requests.”
Compounding this stress is the possibility of reputational damage.
“For business owners, especially sole traders or limited companies, appearing non-compliant can damage credibility with clients and lenders,” says Foster.
Regulators bite back
As part of the global week of action against unlawful finfluencers, the FCA made three arrests, invited four finfluencers for interviews, sent seven cease and desist letters, and issued 50 warning alerts.
This followed an earlier crackdown in 2024, during which the FCA suspended, removed or blocked 1,600 websites suspected of promoting financial services without permission. It also issued 38 alerts against unauthorised finfluencers and interviewed 20 people under caution for the unlawful spruiking of financial products.
Practical tips: protect your clients from online myths
For accountants, educating clients about the risks of unlawful finfluencers begins with building stronger connections.
“Make sure you get to know your clients and understand how they make their decisions,” says Fernie.
“Previous generations may have taken financial or tax advice from their mates down the pub, but the modern-day equivalent reaches an audience of millions, rather than a few dozen.”
Fiona Fernie, partner, Blick Rothernberg
“Give them the opportunity to talk to you and build a proper relationship, so that you become a trusted adviser.”
In doing so, it’s essential to promote open conversation, so that clients feel comfortable to discuss whatever they’ve come across on social media.
“Ask clients what they’ve seen online. This helps you spot misconceptions early, without judgement,” says Foster.
Just as important is taking time to educate. Encourage your clients to check whether the finfluencers in their feeds are legally authorised, and alert them to red flags, such as claims that seem too good to be true. In addition, debunk common tax myths, such as those concerning limited companies, self-employment and expense claims.
You might even consider beating unlawful finfluencers at their own game, by becoming more active on social media.
“Create [your own] simple myth-busting content. A quick explainer on Instagram or in a client newsletter can position you as a trusted source,” says Foster.
Finally, don’t be afraid to remind clients of the consequences of non-compliance with taxation law, says Lodders.
“Highlight the potential legal penalties; financial costs from fines, interest and back taxes; and reputational damage that could occur.”
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