Companies House are implementing some of the biggest changes in recent years for limited companies in the UK. These reforms aim to improve transparency, combat economic crime, and ensure greater accountability. As a business owner or director, you must understand how these updates affect you. Here at CJL Accountancy Limited, we're helping clients across the UK stay compliant and ahead of the curve. Here's what you need to know. 1. New Identity Verification Rules for Company Directors A key change is the mandatory identity verification for: All company directors People with significant control (PSCs) Anyone filing documents on behalf of a company This is part of the Economic Crime and Corporate Transparency Act and aims to prevent fraudulent company formations and misuse of the UK corporate register. What this means for you: If you're a director or PSC, you'll need to verify your identity through Companies House directly or via an authorised agent. Unverified individuals will not be allowed to act as directors or file information which may lead to late filing penalties and possibly legal action. There's no firm deadline for this at the moment but Companies House say it will be mandatory from the Autumn. You can complete your ID verification now and you will be given a unique code which is personal to you and can be used for all of your companies. 2. Mandatory Filing via Software Companies House will soon no longer accept paper forms or outdated digital filing methods. All filings - including confirmation statements, changes to company information, and annual accounts - must be submitted using approved software. Why this matters: You’ll need to use approved software that’s compatible with Companies House systems. If you currently file yourself or use basic digital forms, this may require an update. Our solution: At CJL Accountancy Limited, we already use compliant filing software to manage submissions for our clients, so you're covered. 3. Changes to Your Company’s Accounting Period Companies House is tightening the rules on changing accounting reference dates. Right now, companies can routinely extend their financial year, but in the future, this flexibility will be restricted. You will no longer be allowed to extend your accounting period multiple times in succession or for non-commercial reasons. Plan ahead: If you’re considering changing your company’s year-end, talk to us first. We’ll assess the pros, cons, and whether your change would be permitted under the new rules. 4. Filing Your Profit and Loss (P&L) Account Perhaps the most impactful change is that small and micro companies will now have to file their Profit and Loss account at Companies House from 1 April 2027. At the time of writing, there are news articles suggesting that this requirement may change but the legislation allows for this to be implemented. Previously, small and micro-entities could file abridged or filleted accounts to keep sensitive information private. These exemptions are being removed to improve transparency. What’s changing: Micro and small companies will no longer be able to “fillet” accounts Your company’s turnover and profits will now be visible to the public If you'd like limited liability then this will be a cost of achieving that. You may have other options such as operating as a sole trader, partnership or unlimited company. We can talk through these options with you. How CJL Accountancy Can Help The upcoming changes may feel overwhelming - but you don’t have to face them alone. At CJL Accountancy Limited, we specialise in helping limited companies stay compliant, reduce stress, and focus on growth. ✅ We file everything through approved software ✅ We ensure your accounts are prepared to the new standards ✅ We keep you informed of all deadlines and rule changes

Don’t worry - this is completely normal if you’re registered for Self-Assessment. Let’s break it down so you can fully understand why this July payment is due and how Payments on Account work. What Is the July Payment on Account? In the UK Self-Assessment system, many taxpayers are required to make Payments on Account - advance payments towards their future tax bill. Payments on Account help spread your tax liability across the year, instead of paying your entire tax bill in one lump sum after the year has ended. Who Has to Make Payments on Account? You’ll usually need to make Payments on Account if: Your tax bill for the previous tax year was over £1,000, and Less than 80% of your tax was collected through PAYE or other deductions at source This typically applies to: Self-employed individuals Landlords with rental income Investors and individuals with significant untaxed income How Do Payments on Account Work? Here’s a simple example: You complete your Self-Assessment for the 2023/24 tax year and owe £4,000. HMRC assumes your income for 2024/25 will be similar. You are asked to make two Payments on Account towards 2024/25: £2,000 due by 31 January 2025 (first instalment) £2,000 due by 31 July 2025 (second instalment) When you file your 2024/25 tax return, the actual tax owed is calculated. If you’ve overpaid, HMRC will refund you. If you’ve underpaid, you’ll settle the balance by 31 January 2026. Payments on Account vs PAYE: Why Is It Different? If you’ve previously worked under PAYE (Pay As You Earn), tax feels much simpler — that’s because: Your employer deducts tax and National Insurance from your salary each payday You’re always paying tax as you earn — in real time There are no large bills at the end of the year (unless your tax code is wrong) With Self-Assessment, HMRC needs a way to collect tax on income that isn’t automatically taxed - like self-employment income, rental profits, dividends, or side hustles. Since your tax isn’t deducted automatically, Payments on Account help HMRC collect your tax in advance based on your previous year’s income, similar to how PAYE collects it throughout the year. Can I Reduce My July Payment? Yes. If your income has dropped or you expect to owe less tax for the current year, you can apply to reduce your Payments on Account. This can help ease cash flow, but you need to be careful - if you reduce your payments too much and still owe more tax when you file your return, HMRC will charge interest on the shortfall. What If I Can’t Afford My July Tax Payment? HMRC can sometimes agree to a Time to Pay arrangement, allowing you to spread your tax payments over a longer period. The key is to act early - the sooner you speak to HMRC, the more options you may have. Quick Recap The July payment is an advance instalment towards your next tax bill. Self-Assessment taxpayers usually pay twice a year: January and July. PAYE employees pay tax automatically throughout the year - Self-Assessment taxpayers don’t. Payments on Account help HMRC collect tax more evenly across the year. You may be able to reduce payments if your income has fallen. Help is available if you’re struggling to pay. Need help with your Self-Assessment or Payments on Account? At CJL Accountancy, we help individuals and businesses navigate the UK tax system with confidence. If you're unsure how much you need to pay or whether you can reduce your Payments on Account, we're here to support you. 👉 Contact CJL Accountancy Today

What is Capital Gains Tax? Capital Gains Tax is a tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value. It’s the gain that’s taxed, not the total amount you receive. For example: You bought a property for £200,000. You later sell it for £300,000. Your gain is £100,000 (less any allowable costs). CGT applies to individuals, partnerships, and trustees. Companies pay Corporation Tax on chargeable gains instead. When Does CGT Apply to Property? You may need to pay CGT when you dispose of: A second home or holiday home. A rental or buy-to-let property. A property you’ve inherited and then sold (if it's not your main residence). Land. In most cases, you won’t pay CGT on your main home due to Private Residence Relief - but there are exceptions, especially if you've let the property out, used part of it for business, or if it’s grounds are very large. How is CGT Calculated on Property? Calculate your gain: Sale proceeds – Purchase price – Allowable costs (e.g. legal fees, stamp duty, estate agent fees, certain improvement costs) = Chargeable gain Apply your CGT allowance: For 2025/26, the annual CGT allowance (Annual Exempt Amount) is £3,000 for individuals. Companies don't get an allowance and it's a different rate for Trustees. Apply the correct tax rate: The tax rate you pay depends on your other income in the year. The rates for 2025/26 are 18% in the basic rate band and 24% in the higher rate band. Example Calculation Sale price: £350,000 Purchase price: £250,000 Allowable costs: £10,000 Gain: £90,000 Less annual allowance (£3,000): £87,000 If you're a higher rate taxpayer: CGT due: £87,000 × 24% = £20,880 Reporting and Payment Deadlines For UK residential property disposals, you need to submit a CGT return to HMRC and pay any CGT due within 60 days of completion. There may be exemptions to this reporting and payment deadline for UK tax residents but non-residents will always need to comply, regardless of whether there is any tax payable or not. For overseas properties, you will need to submit and pay via your usual annual self-assessment tax return. Failure to report on time can result in penalties and interest charges. Reducing Your CGT Liability There may be ways to minimise your CGT bill, including: Private Residence Relief (if applicable) Lettings Relief (limited and specific) Spousal transfers to utilise both allowances Timing disposals to maximise allowances and lower rates Claiming all allowable costs and deductions Professional advice is highly recommended, especially as property disposals can involve complex rules. How CJL Accountancy Can Help At CJL Accountancy, we specialise in helping property owners, landlords, and investors navigate the complexities of Capital Gains Tax. Whether you're planning a sale, need help with reporting, or want to explore tax-saving opportunities, our expert team is here to support you. 📞 Contact us today to book a free consultation and ensure your property sale is as tax-efficient as possible.

1. Mixing Personal and Rental Finances One of the biggest mistakes is using one bank account for both personal and property-related transactions. Keep a separate account for rental income and expenses to stay organised and simplify tax preparation. 2. Poor Record-Keeping Missing receipts, unclear expenses, and forgotten income entries can lead to overpaying tax or facing HMRC penalties. Keep detailed records of: Rental income received Repairs and maintenance Mortgage interest Letting agent fees Insurance, council tax, and utilities (if you pay them) 3. Not Using Software Modern accounting software like Xero or FreeAgent can automate much of the bookkeeping, track income and expenses, and generate reports at the click of a button. 4. Ignoring Allowable Expenses You may be missing out on valuable deductions. Common allowable expenses include: Property repairs Accountancy fees Landlord insurance Mileage for property visits Make sure you claim everything you're entitled to, including the tax reducer available for mortgage interest. 5. Forgetting Tax Deadlines Late submissions or payments can result in penalties. Stay on top of key dates for Self Assessment and ensure you file and pay on time. At CJL Accountancy, we help landlords maximise profits and stay HMRC-compliant. Get in touch for support tailored to your property portfolio.

1. Understand What Counts as Income Many influencers receive compensation not just in cash, but through gifted items, affiliate links, brand collaborations, and even experiences. It’s essential to know that: Gifted products and experiences are considered taxable income if you receive them in exchange for promotion. Affiliate earnings and brand sponsorships must be declared just like any other self-employed income. 2. Keep Good Records Proper record-keeping is crucial. Track everything, including: Dates and descriptions of gifted items Messages/emails around gifts Contracts of brand deals Affiliate income reports Business expenses like camera gear, editing software, and travel 3. Set Aside Tax Money One of the biggest pitfalls influencers face is failing to plan for tax payments. A good rule of thumb is to set aside 20-30% of all earnings into a separate savings account for taxes. 4. Register as Self-Employed If you're earning more than £1,000 (before costs) from your influencing activities, you must register as self-employed with HMRC. This allows you to file a Self Assessment tax return and claim allowable business expenses. 5. Work with a Specialist Accountant Influencer income can be unique and complex. Working with an accountant who understands the digital creator space ensures you're not overpaying tax or missing key deductions. At CJL Accountancy, we specialise in helping digital creators understand their finances and thrive. Contact us today for a free consultation.

How Long Should a Tax Refund Take? Typically, HMRC aims to process tax refunds within: 5 working days if submitted online and payment is made directly to your bank Up to 8 weeks if your return is more complex or requires additional checks However, during busy periods like January (Self Assessment deadline) or April (end of the tax year), delays are common. Why Might Your Refund Be Delayed? There are a number of reasons HMRC might take longer than expected: Security Checks - HMRC may flag your return for additional verification to prevent fraud. These random checks can delay your refund by several weeks. Errors or Inconsistencies - if your tax return contains mistakes, mismatched information (such as figures not matching PAYE data), or missing documentation, HMRC may pause the process to investigate. Outstanding Debts - HMRC may offset your refund against any unpaid tax, student loan, or other government debts. This can lead to a reduced refund—or none at all. System Backlogs - Especially during peak times, HMRC’s systems and teams get overwhelmed, which causes processing delays across the board. What You Can Do About It If you’re facing a delay, here’s how to take action: Check Your Online HMRC Account - log in to your HMRC personal tax account to check that your tax return has been received, if your refund has been issued or if HMRC has sent you any messages about additional checks or missing info. Where's my reply - you can check here when you should receive your refund based on how and when it was requested. Contact HMRC - if the date on Where's my reply has passed, you can contact HMRC to chase the refund. Be sure to have your UTR (tax reference) or National Insurance number handy. Tips to Avoid Future Delays File your return early to miss the busy periods Double-check all figures and details Make a note of when you should receive your refund and chase as soon as that has passed At CJL Accountancy, we understand how stressful waiting for money you're owed can be. If your refund has been delayed or if you're unsure whether your return was filed correctly, we’re here to take the stress off your shoulders. 📩 Get in touch today for friendly, jargon-free advice and support.

What Happens If You Miss the Deadline? 2023/24 tax returns were due to be filed by 31 January 2025. HMRC's penalty system is designed to encourage timely filing. Here's what you can expect: Immediate £100 fine as soon as the 31 January deadline is missed. £10 per day for up to 90 days starting May 1, 2025 - that's an additional £900 if you still haven’t filed. Further penalties if your return is more than 6 or 12 months late, based on the tax owed. Can You Appeal a Penalty? Yes, but only in certain circumstances. Remember, it's Self-Assessment - it's your responsibility to tell HMRC if you need to file a return, even if they've previously told you that you didn't need to, based on older information. HMRC will consider appeals if you had a reasonable excuse such as: Serious illness Bereavement Unexpected delays (e.g. postal strikes, software failures) You must appeal within 30 days of the penalty notice and provide supporting evidence. What Should You Do Now? File your return as soon as possible. Even if you can’t pay your tax bill right away, filing stops further daily penalties. Pay what you can. You’ll reduce interest and might avoid further late payment penalties. Speak to an accountant. A professional can help you navigate penalties, appeal if needed, and arrange payment plans with HMRC. To stay ahead of the game next year: Keep digital records year-round Use accounting software or outsource to a trusted accountant Set calendar reminders for key deadlines At CJL Accountancy , we help individuals and small businesses stay compliant and penalty-free. If you’re unsure what to do next, get in touch for no-obligation support. Need help with your tax return or penalties? Contact us today - we're here to help you get back on track.

While some companies opt for in-house finance teams, many are discovering the benefits of partnering with external accountants. Outsourcing financial tasks can offer flexibility, expertise, and cost savings. Cost-Effective Expertise Hiring an in-house finance team involves significant expenses, particularly if you don’t currently employ any other staff. Costs include salaries, employers’ national insurance (which has increased from April 2025), running payroll, employers’ liability insurance, HR costs, providing benefits and training. Onboarding an employee can also have significant costs and it may not always work out. In contrast, external accountants provide access to a broad range of financial services without the overhead costs. This approach allows businesses to allocate resources more effectively, investing in growth and innovation. Access to Diverse Skills and Knowledge External accountants bring a wealth of experience from working with various industries and clients. This exposure equips them with insights into best practices, regulatory changes, and innovative financial strategies. By leveraging this expertise, businesses can make informed decisions and stay ahead in a competitive market. Scalability and Flexibility Business needs fluctuate, and external accountants offer the flexibility to scale services up or down accordingly. Whether it's handling increased transactions during peak seasons or managing complex financial projects, external partners can adapt to your requirements without the need for long-term commitments. Enhanced Focus on Core Business Activities Outsourcing financial tasks allows business owners and managers to concentrate on their core competencies. By entrusting accounting responsibilities to professionals, you can focus on strategic planning, customer engagement, and other areas that drive business growth. Mitigation of Risks External accountants stay updated with the latest financial regulations and compliance requirements. Their expertise helps in identifying potential risks and implementing controls to mitigate them. This proactive approach ensures financial integrity and reduces the likelihood of costly errors or penalties. Objective Financial Perspective An external accountant provides an unbiased view of your financial health. This objectivity is invaluable when assessing performance, planning investments, or considering strategic changes. Their impartial analysis supports sound decision-making and long-term success. At CJL Accountancy , we are committed to delivering tailored financial solutions that align with your business goals. We can help you navigate the complexities of financial management. Contact us today to learn how we can support your business's financial journey.

Whether you're self-employed or running a small limited company, managing your finances can sometimes feel like juggling blindfolded. While it might be tempting to go it alone, there comes a time when calling in a professional isn’t just helpful, it’s essential. 1. You're Spending Too Much Time on Finances If you’re spending hours each week wrestling with spreadsheets, chasing invoices, or trying to decode tax rules, that’s time you’re not spending growing your business. An accountant can help streamline your processes and free up your schedule. 2. You’re Not Sure What You Can Claim Business expenses can be a minefield. If you're uncertain about what qualifies as an allowable expense (and what doesn’t), you could be missing out on tax relief—or worse, risking a fine. An accountant can help you claim everything you're entitled to. 3. You’re Worried About Making a Mistake From tax returns to payroll, there’s a lot that can go wrong. If you're constantly second-guessing your figures or dreading HMRC letters, working with an accountant brings peace of mind with accurate, compliant filings. 4. You’re Planning to Grow Thinking of hiring, investing in equipment, or taking on a new premises? Growth is exciting, but it’s also the perfect time to get financial advice. An accountant can help you plan sustainably and avoid cashflow pitfalls. 5. You’re Not Sure About Your Business Structure Sole trader or limited company? If you’re unsure which structure is best for you, an accountant can explain the pros and cons, and help you choose the best option. 6. Your Tax Bill Was a Shock If your last tax bill left you reeling, or you had no idea how much you owed until the deadline loomed, it’s a clear sign you need more proactive financial management. 7. You Want to Pay Yourself Properly Getting paid from your business isn’t always straightforward. Should it be salary, dividends, or both? An accountant can help you take money out of your business in the most efficient way. 8. You're Not Using Accounting Software Still using paper cashbooks? An accountant can help set you up with a spreadsheet or easy-to-use accounting software that saves you time, keeps you organised, and gives you a real-time picture of your finances. 9. You Want to Plan Ahead Whether it’s budgeting, forecasting, or planning for retirement, an accountant can help you look beyond the day-to-day and take control of your financial future. 10. You Just Don’t Like Numbers And that’s okay! If doing your accounts fills you with dread, it’s a sign to hand them over to someone who actually enjoys it (yes, we exist!). At CJL Accountancy , we’re here to make your life easier. Whether you’re just starting out or already well established, we can take the stress out of your finances and help you build a stronger business. Ready to stop stressing about your books? Get in touch today and let’s chat.