Influencers are being warned that the party is over when it comes to undeclared free gifts and luxury perks. HMRC has launched a fresh wealth squad specifically targeting social media stars who fail to declare high-value items as income. Whether it is a free Caribbean holiday or a designer handbag sent by a brand, the taxman insists it counts as taxable earnings. Officials have started using sophisticated software to cross-reference Instagram posts with tax returns to catch out those living the high life on the sly. Industry experts suggest thousands of creators could be hit with backdated bills and hefty penalties for failing to report their commercial deals correctly. This crackdown follows a record year for the creator economy which is now worth billions to the UK Treasury. Many content creators have expressed shock, claiming they did not realise a gift could be treated the same as a pay cheque. Digital marketing students are being urged to brush up on tax law as part of their professional development. The revenue service has confirmed it will be sending out thousands of warning letters to known influencers over the coming month.