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.

Building upon previous initiatives, the Chancellor introduced a series of robust measures aimed at closing the tax gap. Enhanced Investment in HMRC The government plans to invest further in HM Revenue & Customs (HMRC), focusing on advancing cutting-edge technology and expanding HMRC's capacity to tackle tax avoidance more effectively. The objective is to increase the number of tax fraud prosecutions by 20%, which is projected to raise an additional £1 billion annually by 2029-30. Consultation on New Anti-Avoidance Measures In a move to further tighten the noose on tax avoidance, the government has launched a consultation titled "Closing in on Promoters of Tax Avoidance." This initiative seeks public and professional input on proposed measures that would grant HMRC additional powers and impose stronger sanctions on those promoting tax avoidance schemes. The goal is to disrupt the business models of the few remaining promoters and contribute to reducing the tax gap associated with marketed tax avoidance. Implications for Taxpayers and Advisors These developments signal a clear message: the government is intensifying its efforts to ensure compliance and fairness within the tax system. Taxpayers and their advisors should be vigilant and proactive in understanding these changes to avoid inadvertent non-compliance. Engaging with professional advisors who are abreast of the evolving tax landscape is more crucial than ever. Conclusion If you’re looking for peace of mind then book a call with CJL Accountancy; we can help you stay compliant.

Understanding Children’s Tax Allowances In the UK, children are entitled to the same tax-free personal allowance as adults. For the 2024/25 tax year, this stands at £12,570. This means that if a child receives income below this threshold, they won’t pay income tax. Additionally, children can benefit from savings allowances, capital gains tax exemptions, and Junior ISAs to grow their wealth tax-free. Ways to Utilise Your Children’s Tax Allowances 1. Setting Up a Junior ISA (JISA) Parents and grandparents can contribute up to £9,000 per tax year into a Junior ISA for a child. The income and gains from these investments are tax-free, providing a great way to build up tax-efficient savings for their future. 2. Gifting Assets to Children Transferring income-generating assets such as shares or property to your child can allow income to be taxed at their lower rate. However, HMRC rules state that if parents gift assets to their children and the income exceeds £100 per year, it will be taxed as the parent’s income. This rule does not apply to gifts from grandparents. 3. Using Trusts for Tax Planning A discretionary or bare trust can help transfer assets to children while potentially reducing inheritance tax (IHT) liability. A bare trust allows income to be taxed at the child’s rate, while a discretionary trust gives trustees control over distributions. 4. Paying a Salary to Your Child If you own a business, employing your child in a legitimate role can be an effective way to utilise their personal tax allowance. The salary must be reasonable for the work performed and comply with minimum wage laws. Payments below the thresholds mean no income tax or National Insurance contributions are due. 5. Capital Gains Tax (CGT) Allowance Children also have an annual capital gains tax allowance (£3,000 for 2024/25). If you gift them assets that appreciate in value, they can sell them and use their CGT allowance, potentially saving tax compared to selling the assets yourself. Key Considerations and HMRC Rules 1. The £100 income rule applies to parental gifts, but not to gifts from other family members. 2. Gifts to children must be genuine and without strings attached. 3. For business payments, children must be employed in a genuine role with reasonable compensation. 4. Trusts can be complex and may have tax implications, so professional advice is recommended. Conclusion Utilising your children’s tax allowances can be a smart way to reduce your tax bill while securing their financial future. However, it’s crucial to comply with HMRC regulations to avoid unintended tax consequences. At CJL Accountancy, we can help you structure your finances efficiently and legally. Get in touch with us today for tailored tax planning advice!