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.

What is a PAYE Tax Code? A PAYE (Pay As You Earn) tax code is issued by HMRC and tells employers how much income tax to deduct from an employee’s salary. It’s your responsibility to check that you’re on the right tax code, not your employer’s. Most people will have a tax code like 1257L - this is the standard code for the 2025/26 tax year, which gives a £12,570 tax-free personal allowance. But not everyone will have this code. Reasons for a different code can include: Having more than one job or pension Receiving benefits in kind (e.g. company car, private medical insurance) Underpaid tax from previous years Marriage Allowance claims Student loan repayments or adjustments Other common codes include: BR – all of your salary or pension will be taxed at the basic rate of tax (currently 20%) – this is common if you change jobs during the year or if it’s a second job 0T – you won’t get any personal allowance with this tax code as HMRC expect your earnings to be over £125,140 D0 – all of your salary or pension will be taxed at the higher rate of tax (currently 40%) D1 – all of your salary or pension will be taxed at the additional rate of tax (currently 45%) Tax code letters The letters at the end of your tax code are for different situations: L – the numbers show how much tax free allowance you get K – the numbers show how much additional income you need to pay tax on – this can happen where you have high benefits in kind/low personal allowance S – Scottish tax rates apply C – Welsh tax rates apply W1/M1 or X – your salary or pension will be taxed on a single week/month basis (usually tax is calculated cumulatively for the tax year to date) Why It’s Important to Check PAYE Tax Codes Before April Payroll Tax codes are generally cumulative so issues can be fixed easily during the year, but checking and correcting any errors before your April salary is processed means you won’t have any shocks with your first pay of the year. If you’re not sure what your tax code, sign up to or log into your personal tax account ( https://www.gov.uk/personal-tax-account ). What Employers Should Do Although it’s ultimately an employee’s responsibility to check their own tax codes, and you won’t have any information about how the tax code has been calculated, it’s worth reviewing tax codes prior to running the first payroll. This means you’re less likely to have employees querying their pay, HMRC sending updates later and time-consuming adjustments/re-runs. Download the latest codes Check for any non-cumulative or BR codes Check that employees earning more than £125,140 are on a 0T or K tax code Encourage employees to check their codes It’s far easier to get it right from the start. Need Help with Payroll? We’re here to help. At CJL Accountancy, we offer friendly, expert payroll support as part of our accounting compliance packages so you can focus on running your business without the stress of tax surprises.

This year brings several significant tax adjustments, which could affect both individuals and businesses. Key Tax Changes Effective 6 April 2025 1. Employer National Insurance Contributions (NICs): - The rate for employer NICs has increased from 13.8% to 15%. - The threshold at which employers begin paying NICs has decreased from £9,100 to £5,000. This means businesses will incur higher employment costs, potentially influencing hiring decisions and wage structures, ultimately affecting employees. 2. Employment Allowance - This is an allowance against employers NI and has increased from £5,000 to £10,500. - It is also open to more employers as you can now claim if your employer NI in the previous year was over £100,000, however, you’re still unable to claim if the only person on the payroll is a director. 3. National Minimum Wage (NMW): - NMW increased from 1 April 2025 to £12.21 per hour for those aged 21 and over, £10.00 for those aged 18-20 and £7.55 for under 18’s or apprentices. 4. Stamp Duty Land Tax (SDLT): - The temporary reductions in SDLT stopped on 31 March 2025 so new purchases will be at the higher rates. 5. Business Asset Disposal Relief (BADR): - BADR is a reduction in capital gains tax for sales of business or company shares (where you’re an employee or director) – various criteria apply. - The rate has increased from 10% to 14%. 6. Non-Domiciled ('Non-Dom') Tax Status Abolition: - The government will abolish the non-dom tax regime, which previously allowed certain residents to avoid UK taxes on foreign income. This change may influence the residency decisions of high-net-worth individuals and could have broader economic implications. 7. Late Payment Interest Rates: - HMRC will increase interest rates on late tax payments to 8.5%, effective from 6 April 2025. This adjustment aims to encourage timely tax payments and ensure fairness among taxpayers. 8. ISA’s - Although nothing has been announced yet, HMRC are looking at potentially reducing the ISA allowances later in the year. Tax Rates and Thresholds The income tax rates and thresholds remain unchanged from previous years rather than increasing in line with inflation which means that people pay more tax as their incomes increase. This is known as fiscal drag. Implications for Taxpayers The combination of these tax changes and the effects of fiscal drag underscore the importance of proactive financial planning. Individuals and businesses should: Review Financial Plans: Assess how the new tax rates and thresholds impact your financial situation and adjust budgets accordingly. Seek Professional Advice: Consult with tax professionals to explore strategies that mitigate increased tax liabilities, such as tax-efficient investments or restructuring income. Stay Informed: Keep abreast of tax legislation changes to ensure compliance and optimize financial decisions. At CJL Accountancy, we are committed to guiding you through these changes and helping you navigate the complexities of the evolving tax landscape. For personalised advice and support, please contact us.