Cryptocurrency has moved from a niche interest to a mainstream topic. Whether you’re buying Bitcoin for the first time, dabbling in Ethereum, or trading NFTs, you’ll quickly realise there’s one thing you can’t ignore: tax. In the UK, HMRC treats crypto very differently from traditional currency - and not knowing the rules can land you with unexpected tax bills (and penalties). This beginner’s guide will walk you through the basics of crypto tax in the UK, so you can stay on the right side of the law. What counts as crypto for UK tax purposes? HMRC refers to cryptocurrency as cryptoassets. This includes: Exchange tokens (e.g. Bitcoin, Ethereum, Litecoin) Utility tokens (tokens that let you access a service) Security tokens (tokens representing ownership or debt) Non-fungible tokens (NFTs) If you own or trade any of these, you may have a tax liability. Is crypto taxed in the UK? Yes - but not in the way you might think. HMRC does not treat crypto as money or currency. Instead, it’s treated more like a form of property or investment. The two main UK taxes that might apply to your crypto are: Capital Gains Tax (CGT) – When you sell, swap, spend, or gift crypto. Income Tax – When you’re paid in crypto or receive it through mining, staking, or airdrops. Capital Gains Tax on crypto If you sell or dispose of crypto, you may need to pay Capital Gains Tax. This includes: Selling crypto for GBP or another currency Swapping one crypto for another Using crypto to pay for goods or services Giving crypto away (other than to a spouse or civil partner) You only pay CGT on your profits, not the total value. There's a tax free CGT allowance (£3,000 for 2025/26) and you'll pay tax on any gains above this. You can also claim your crypto losses to be used against other capital gains. Example: You bought 1 Bitcoin for £15,000 You sold it for £25,000 Profit = £10,000 Rates: 18% for basic rate taxpayers 24% for higher and additional rate taxpayers Income Tax on crypto You may need to pay Income Tax if you receive crypto as: Salary or payment for services Mining or staking rewards Airdrops (if received in exchange for doing something, like promoting a project) In these cases, the value of the crypto at the time you receive it is added to your income and you'll pay income tax and national insurance on your profits. How HMRC knows about your crypto HMRC has agreements with major UK crypto exchanges and can request customer data. If you think they won’t find out, think again - it’s safer (and cheaper) to declare your gains correctly from the start. Record keeping for crypto tax HMRC expects detailed records for every crypto transaction, including: Date of transaction Type of asset Number of units Value in GBP at the time Transaction fees What the transaction was for (sale, swap, etc.) Using crypto tax software (like Koinly or CoinTracker) can save hours of admin. Do you have to pay tax if you haven’t cashed out? Yes - in some cases. Even if you haven’t converted crypto to GBP, swapping one coin for another or using it to make a purchase can trigger a taxable event. How to report crypto on your tax return If you have taxable crypto gains or income: Register for Self Assessment (if you’re not already registered). Complete the Capital Gains section and/or Income section of your return. Pay any tax due by the deadline (31 January following the end of the tax year). Common crypto tax mistakes to avoid Thinking “it’s not real money” so it’s not taxable Forgetting that swaps count as disposals Ignoring small gains that push you over the allowance Not keeping records from the start Missing the tax return deadline Final thoughts If you're investing in crypto then you need to understand your tax obligations as it will save you stress, fines, and unwanted surprises later on. If you’re unsure, speak to a tax professional who understands crypto. FAQs: Crypto Q: Do I pay tax when I buy crypto? A: No. Buying crypto isn’t taxable — tax applies when you dispose of it. Q: What’s the CGT allowance for 2025/26? £3,000 per person. Q: Do I pay tax on crypto losses? You can offset crypto losses against gains to reduce your tax bill - but you must report them to HMRC. Q: Can HMRC track my crypto? Yes. They can request information from UK-based exchanges and international partners.

HMRC’s Campaign: A New Enforcement Focus HMRC has recently announced a campaign aimed at Self-Assessment taxpayers (sole traders, partnerships and landlords) to discourage claims for personal expenditure disguised as business costs on tax returns for the 2024/25 tax year. This follows a trial in 2024 that generated over £27 million in additional revenue and flagged widespread issue with personal use being misclassified as business expenditure. The campaign signals HMRC’s intention to ramp up enquiries and investigations into reported personal expenditure, ensuring only wholly and exclusively business-related deductions are claimed. Why It Matters: The “Wholly and Exclusively” Principle The crux of HMRC’s stance stems from the long-established “wholly and exclusively” rule, which mandates that expenses must be incurred purely for business purposes to be deductible. Even partial personal benefit can render the claim disallowable unless a clear, separable business-only portion exists. For example, if a self-employed individual uses a vehicle partly for personal and partly for business purposes, they must adjust their taxable profit by adding back any personal-use portion. Key Risk Areas for Self-Assessment Taxpayers There are some cost categories which are more likely have a personal element: Travel and subsistence - you can only claim business related travel to a temporary workplace, your normal commute to work and lunch in the office is personal - you should keep a mileage log and other evidence of the business purpose for the costs. Home office - you would typically apportion this based on the number of rooms or floor area, and time spent working - see our separate blog on this here . Phone and internet - if this is a mobile or home phone/internet, you should split between personal and business use. Subscriptions - there might be a personal element to subscriptions and things like streaming services and gym memberships accepted by HMRC as business expenses. How CJL Accountancy Can Help 1. Accurate Expense Classification We’ll help ensure your expenses genuinely satisfy the wholly and exclusively test, including: Identifying and separating personal vs business costs (e.g. motoring, heating, phone use) Making necessary add-back adjustments to taxable profits 2. Robust Record-Keeping Maintain clear, auditable documentation for all claims Show evidence of business purpose and usage splits where applicable 3. Proactive Tax Return Review We’ll review your draft Self-Assessments ahead of submission to flag potential issues. Where mixed-use expenses exist, we'll discuss apportionment strategies with you. 4. Preparation for HMRC Enquiries If HMRC contacts you, we'll manage communications and provide guidance, and assist in voluntary disclosures if errors are discovered. Next Steps for Business Owners Audit your last Self-Assessment: Have you included any dual-use expenses? Review your records: Ensure your receipts clearly outline business-related use. Update bookkeeping systems: Track business vs personal costs separately. Speak to us: CJL Accountancy can help revise past returns before any HMRC contact. Final Thoughts HMRC’s current campaign makes it clear: personal expenditure claims are under the microscope. With the right systems, advice, and documentation, you can reduce risk and remain compliant. CJL Accountancy is here to help you navigate this evolving landscape with confidence. Contact us .

Many business owners stick with an accountant they’ve outgrown. Maybe your business has changed, your needs have evolved, or you simply want more proactive advice. But here’s the thing: switching accountants is easier than you think - and it’s not awkward at all. In this guide, I’ll bust the myths, explain how the process works, and show you how we make it simple. Myth 1: “I have to wait until my year-end to switch.” Not true. You can change accountants at any point in the year - even mid-tax return or VAT quarter. In fact, switching sooner can help fix problems and get you back on track faster. Your new accountant will pick up where the old one left off. Myth 2: “It’ll be awkward to tell my current accountant.” Think of it like switching energy suppliers - it’s a business decision. Your new accountant will usually handle the handover for you. We simply get your permission, contact your previous accountant, and request the records we need. You don’t have to get into a long conversation about why you’re leaving unless you want to. Myth 3: “It’s too much hassle.” It’s actually very straightforward: Choose your new accountant (hopefully us!) Complete quick Anti-Money Laundering (AML) checks - this is a legal requirement for all accountants Sign a Letter of Engagement Give written permission to your old accountant for them to provide information and documents to us We request your records We request authorisations from HMRC You get back to running your business What Happens When You Switch to CJL Accountancy When a client joins us, we: Contact your old accountant directly Request your accounts, tax returns, and bookkeeping records Register as your agent with HMRC so we can file on your behalf Review your current position to make sure nothing’s been missed Get you set up with clear processes, deadlines, and support We make sure there’s no gap in compliance Signs It Might Be Time to Switch You only hear from your accountant at year-end You’re not sure what you can and can’t claim as expenses You’re worried about missing deadlines or penalties You never get proactive tax-saving advice You don’t feel like a priority If any of these sound familiar, it might be time for a change. Why Switching Now Can Save You Money A more proactive accountant can: Spot tax savings you’re missing Help you pay yourself more efficiently Keep you ahead of VAT or MTD requirements Give you better tools for managing your finances ✅ Ready to Make the Move? Switching accountants is simple, stress-free, and can make a big difference to your business. If you’re ready for: Clear advice in plain English Proactive support (not just at year-end) A friendly accountant who knows your business 📩 Get in touch today: Contact Us We’ll handle the handover - so you can get back to running your business.

Just formed a UK limited company? Here's your step-by-step checklist to stay compliant, pay yourself properly, and avoid common startup mistakes.

If you're self-employed or a landlord, it’s time to start preparing for Making Tax Digital (MTD). Here’s what you need to know, and what to do now. What is Making Tax Digital? Making Tax Digital (MTD) is an HMRC initiative designed to make the UK tax system more efficient, accurate and easier for taxpayers to manage. It replaces traditional paper-based records and manual submissions with a digital-first approach. MTD affects how businesses and individuals keep their financial records and how they submit tax information to HMRC. Who Does MTD Apply To? MTD is being introduced in phases. Here’s a breakdown of who’s affected and when: ✅ Already in place: VAT-registered businesses for VAT submissions (Making Tax Digital for Business - MTDfB ) 🚨 From April 2026: Self-employed individuals and landlords with annual income over £50,000 (Making Tax Digital for Income Tax - MTD for ITSA) 🚨 From April 2027: The threshold drops to £30,000 🚨 From April 2028: The threshold drops to £20,000 There were plans to implement for corporation tax in the future too but this has been cancelled. How do you calculate your annual income? To work out whether you fall within the scope of Making Tax Digital for Income Tax (MTD for ITSA), you need to calculate your total gross turnover - not your profit. Self-employment (sole trader income before expenses) UK property income (rental income before costs) This does not include: PAYE income (employment) Pensions Dividends Interest Any other non-business income 🔍 Important: You must add together your gross self-employment income and gross property income (if you have both). If the combined total exceeds the threshold, you will fall within MTD for ITSA. What Are the Key Requirements? If you're within the scope of MTD for ITSA, you must: Keep digital records of your income and expenses Use MTD-compatible software to send tax data to HMRC File updates quarterly instead of annually Submit an end-of-period statement and final declaration annually Why You Need to Start Planning Now 🔄 Quarterly reporting is a big change Going from one annual return to five digital submissions (4 updates + 1 final declaration) is a major shift - and not something to leave until the last minute. 💻 You’ll need to use software Spreadsheets are an acceptable digital record, but you'll need compatible software for the submission to HMRC, or to use accounting software such as Xero, Quickbooks, FreeAgent, Sage etc. If you’re switching systems, you’ll need time to get comfortable with the new setup. 🧾 Better records = fewer mistakes Digital record-keeping reduces human error, which can lead to fewer HMRC penalties and more reliable cashflow management. The sooner you switch, the better for your business. 📆 Deadlines are coming fast April 2026 might seem far away, but building the right systems and habits now will save you time, stress, and money later. How CJL Accountancy Can Help At CJL Accountancy, we help businesses and landlords prepare for Making Tax Digital with: ✅ Advice on whether MTD applies to you ✅ Support choosing and setting up the right software ✅ Ongoing bookkeeping and tax compliance services ✅ Quarterly and annual reporting support under MTD rules Whether you're unsure if you're affected or already feeling overwhelmed, we’re here to help you navigate MTD with confidence. FAQs: Making Tax Digital Q: Do I need to register for MTD? A: Yes, you’ll need to register when MTD ITSA applies to your income level. Q: Can I still use spreadsheets? A: Spreadsheets can be used with bridging software. Q: What software do I need? A: You can either: Use spreadsheets + bridging software, or Switch to MTD-compatible software like Xero, QuickBooks, FreeAgent or Sage. We can help you choose the best option. Q: What if I don’t comply? A: HMRC will apply penalties for non-compliance, including missed deadlines or failure to keep proper records. Don’t Wait – Let’s Get You MTD-Ready Making Tax Digital isn’t going away – and the sooner you act, the easier the transition will be. Whether you’re a landlord or self-employed, CJL Accountancy is here to make things clear, simple, and stress-free. 📞 Get in touch today to start your digital tax journey with expert support every step of the way.

If you’re a landlord or property investor in the UK, you might be wondering: Does VAT apply to rental income? When should a landlord register for VAT? What about VAT on commercial property? VAT and property can be complex, but understanding the basics could help you make better investment decisions and avoid costly mistakes. At CJL Accountancy, we help landlords navigate VAT, tax, and property finances with confidence. Here's your essential guide to VAT for landlords. Is There VAT on Residential Rental Income? In most cases, residential rental income is exempt from VAT. This means: ✅ You do not charge VAT to your residential tenants. ❌ You also cannot reclaim VAT on expenses related to residential lettings. Common residential lettings that are VAT-exempt: Houses, flats, apartments rented to private tenants Student accommodation Housing association lets However, because the income is exempt, you can't reclaim VAT on: Repairs and maintenance Estate agent or letting agent fees Legal and professional costs Are There Exceptions for Residential Property VAT? Yes, if you let out properties as holiday accommodation, you may need to register and charge VAT. See our general VAT guide here. VAT on Commercial Property For commercial property, VAT works differently. Commercial property rental is generally exempt from VAT, but landlords can "opt to tax”, allowing them to: ✅ Charge VAT on rent (typically at 20%) ✅ Reclaim VAT on associated costs (repairs, refurbishments, professional fees) This is especially useful if: You’re leasing to VAT-registered businesses You’ve incurred VAT on refurbishment or construction You want to recover VAT on professional services Opting to Tax: Things to Consider Once elected, the option usually applies for 20 years. Opting to tax can complicate matters for tenants who are not VAT-registered. You must formally notify HMRC when opting to tax. Should a Landlord Register for VAT? You must register for VAT if your VAT-taxable turnover (from holiday lets, opted commercial property rents, or other taxable activities) exceeds £90,000 in a 12-month period. If your activities are a mix of exempt (e.g. residential rent) and taxable (e.g. holiday lets, opted commercial property) then it can be complex. Can Landlords Reclaim VAT? ✅ On residential lettings: No - unless it's a holiday let or part of a taxable business. ✅ On commercial property with an option to tax: Yes - you can reclaim VAT on related expenses. How CJL Accountancy Can Help Landlords At CJL Accountancy, we help residential and commercial landlords with VAT registration and compliance. Quick FAQs – VAT for Landlords Q: Do I need to charge VAT on residential rent? A: No, residential rent is usually VAT-exempt. Q: Do I charge VAT on commercial property rent? A: Not by default, but you can opt to tax and charge VAT to reclaim expenses. Q: What about holiday lets? A: If your holiday let income exceeds £90,000 in 12 months, you must register for VAT and charge it on bookings. Q: Can I reclaim VAT on a property refurbishment? A: Only if the property is part of a taxable supply, like an opted commercial property or a holiday let. Final Thoughts VAT for landlords can be complex, especially if you have mixed residential and commercial property. Getting the VAT treatment right can save you money - or help you avoid costly penalties. Contact CJL Accountancy today to get clear, practical advice for your property business.

Do Influencers and Content Creators Have to Pay VAT? The short answer: Yes, potentially. In the UK, VAT applies to taxable business activities, and that includes income from: Brand partnerships Sponsored posts Affiliate links Ad revenue (e.g. YouTube AdSense) Digital products like presets, courses, or downloads Merchandise sales If your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period, you are legally required to register for VAT. 👉 This threshold includes all your taxable income, not just cash payments - even gifted items or free services in exchange for exposure can count as business income. Why VAT Gets Complicated for Influencers VAT for content creators isn’t always straightforward. Here’s why: 1. Gifted PR Products You might receive PR gifts in exchange for posts or reviews. If there’s a contractual obligation to post, this is income, meaning VAT would be due on the value of the product - even if you didn’t receive cash. 2. International Clients Many influencers work with brands based outside the UK, which can be complex. If the client is a business based overseas, you might not need to charge UK VAT, but you’ll need to report it properly on your VAT return. If you're selling digital products to overseas consumers, different VAT rules apply. 3. Platform Earnings Income from platforms like: YouTube (AdSense) TikTok Creator Fund Patreon all count towards your VAT threshold, even though some are paid from companies based abroad. And its income when you've earned it, whether you take it out of the account or not. 4. Multiple Income Streams Most influencers have more than one income stream - sponsored content, ads, affiliate links, merch - and all taxable income contributes to the £90,000 threshold. You'll need to add up all types of income each month. Should You Register Voluntarily? Even if you’re under the threshold, voluntary VAT registration might make sense if: You have significant business expenses (like equipment, software, studio costs). You work with VAT-registered brands, who can reclaim VAT. You want to appear more established when negotiating with corporate clients. But if most of your audience or clients are individuals, VAT registration might mean you have to increase your prices. VAT Rates Influencers Need to Know For most influencer services, the standard 20% VAT rate applies, including sponsored content, brand deals, and services. If you sell digital products, they are usually subject to 20% VAT too. Sometimes they qualify for a reduced or zero rate, but it's rare in this sector. Making VAT Less Stressful We get it - VAT can feel like a minefield when you’re juggling content calendars, partnerships, and platform algorithms! At CJL Accountancy, we can: Help you track whether you’re nearing the VAT threshold Advise on VAT treatment for PR gifts and brand deals Register you for VAT and handle your returns Make sure you’re compliant with the latest rules on international sales and digital products Quick FAQs — VAT for Influencers Q: Do gifted products count towards my VAT threshold? A: If there’s an obligation to post, HMRC may treat the value of the gift as taxable income - so yes, it could count. Q: Do I need to charge VAT to overseas brands? A: Often no, but you still need to report these transactions correctly. Q: Can I reclaim VAT on my camera, lighting, and subscriptions? A: If you’re VAT-registered, you can reclaim VAT on qualifying business expenses. Final Thoughts As a content creator, keeping up with tax is probably the last thing you want to do - but if your business is growing, VAT isn’t something to ignore. It can be very expensive if you get it wrong or miss going over the threshold. 👉 Need help navigating VAT, tax, and everything in between? Contact CJL Accountancy today — we’ll help you stay compliant so you can focus on creating.

Learn what VAT is, when to register, and how to submit VAT returns in this beginner’s guide for UK businesses. Written by CJL Accountancy.

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