Influencers

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.

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

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.

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.

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.