Influencers

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.

Rates and Thresholds for 2025/26 Most of the tax rates and thresholds for 2025/26 are the same as for 2024/25 with a couple of changes: National Insurance Lower Earnings Limit increased to £6,500 – if you have earnings above this then the year counts towards state benefits including state pension National Insurance Secondary Threshold reduced to £5,000 – this is the point where your limited company begins paying national insurance Employers National Insurance rate increased to 15% – your limited company will pay 15% of your salary above £5,000 in employers NI (the employers national insurance rate for benefits in kind is also increased to 15%) Employment Allowance increased to £10,500 – this allows eligible employers to reduce their employers NI liability by up to £10,500 Considerations: National Insurance Contributions - a salary above £6,500 ensures you receive a qualifying year for state pension purposes. Company Profitability - dividends can only be paid from distributable profits. Ensure your company has sufficient profits before declaring dividends. Employment Allowance Eligibility - generally, companies with more than one employee or those paying NI on employees' earnings may qualify. Single-director companies without additional employees do not qualify. Tax-Free Childcare – there are income requirements to qualify for this Pension Contributions – you can only make personal pension contributions up to your UK relevant earnings (up to the annual allowance) so if your salary is low, your tax-efficient pension contributions will also be low. However, employer pension contributions are only restricted to the annual allowance, not your UK relevant earnings. Recommended Salary and Dividend Strategy A common tax-efficient approach involves drawing a combination of salary and dividends. This method leverages the personal allowance and typically results in lower NI contributions. The level that’s most tax-efficient for you will be dependent on your personal and company circumstances. Contact us to discuss the best solution for you and your business.

Whether you're self-employed, an influencer, a small business owner, or running a limited company, a few strategic moves could reduce your tax bill and improve your financial health. Here are some essential tax planning tips to consider before the deadline. Maximise Your Allowances Each tax year, you’re entitled to various tax-free allowances, and if you don’t use them, you lose them. Some key allowances to consider: Personal Allowance – the first £12,570 of your income is tax-free. Ensure you’re making full use of it, especially if your income fluctuates. Dividend Allowance – if you receive dividend income, the first £500 is tax-free. Check out our previous blog about tax-efficient director salaries and dividends for more information. The Trading Allowance gives £1,000 of tax-free gross income per year from self-employment and the Property Allowance gives £1,000 of tax-free gross income per year from rentals. If you let a room in your home, up to £7,500 per year can be received tax-free. There is also a Capital Gains Tax (CGT) Allowance – you can make up to £3,000 in capital gains tax-free before the allowance resets. If you’re planning to sell assets, consider doing so before the new tax year. Make Pension Contributions Pension contributions benefit from tax relief whether made by you personally or by your employer/limited company. Check out our previous blog about pension contributions for more information. Boost Your State Pension You can pay voluntary National Insurance contributions to fill gaps in your record to boost your qualifying years that are used to calculate your State Pension entitlement. Claim Employment Expenses As an employee there are a few tax reliefs that can be claimed against your employment income if your employer hasn’t re-imbursed you: Professional subscriptions Working from home allowance – only where your employer requires you to work from home, not where you choose to Business miles travelled in your own vehicle Uniform allowance for specific jobs Claim All Allowable Business Expenses If you’re self-employed or running a business, ensure you’ve claimed all eligible expenses, including: Home office costs Business travel and subsistence Equipment and software Marketing and advertising expenses Check out our previous blogs about costs you can claim for more information, for influencers here , landlords here and others here . Invest in Business Equipment Before Year-End Purchasing business-related equipment (such as a new laptop, camera, or office furniture) before your business year end means you can deduct the cost from your taxable profits for the current year, speeding up your tax relief. Marriage Allowance If one party to the marriage/civil partnership is a basic rate taxpayer and the other has income below the personal allowance, it’s worth considering whether to apply for marriage allowance. This transfers 10% of the non-taxpayer’s personal allowance to their spouse which saves up to £252 in tax. Check Your Tax Code Many people overpay tax due to incorrect tax codes. If you’ve changed jobs, gone self-employed, or received benefits like a company car, it’s worth checking your tax code via HMRC’s website. Use Your ISA Allowance If your interest income is above your personal savings allowance or your dividend income is above the dividend allowance, then you’ll be subject to tax on some of your investment income. You can invest up to £20,000 in an Individual Savings Account (ISA) each tax year, shielding it from income tax and capital gains tax. If you haven’t maxed out your ISA, consider contributing before 5 April. The personal savings allowance is £1,000 for basic rate taxpayers, £500 for higher rate taxpayers and £0 for additional rate taxpayers. With interest rates increasing recently, some people will be caught out by this. Tax-Efficient Investments If you invest in Venture Capital Trusts (VCTs), Enterprise Investment Schemes (EIS) or Seed Enterprise Investment Schemes (SEIS) then there are tax reliefs available up to certain limits. However, it must be noted that these investments can be risky so speak to your financial advisor. Act Now to Save on Tax Taking proactive steps before the tax year end can make a significant difference to your tax bill. If you're unsure about the best strategies for your situation, consult a tax professional to ensure you’re making the most of available allowances and reliefs. Need help with your tax planning? Get in touch today to maximise your savings before the 5 April deadline!

Whether your tax return has been filed already or not, if you have a tax liability for the 2023/24 tax year, the payment is due by 31 January 2025. If you pay payments on account, your first payment for the 2024/25 tax year will also be due by 31 January 2025. This is relevant if your 2023/24 tax liability was over £1,000 and you don’t have 80% of your tax paid via payroll. What Happens if You Miss the Deadline? If you miss the 31 January 2025 deadline, it can be costly. HMRC will charge interest (the current rate is 7.25%) until the liability is paid. If you have any tax still owing after 30 days (2 March 2025) then there is also a penalty charged at 5% of the tax due. Another 5% penalty is charged after 6 months and another 5% after 12 months for any tax still owing. What Should I Do? We would recommend logging into your self-assessment account to check whether your tax return is filed and if you owe any tax. If you don’t have a self-assessment account set up yet, you can create one on the HMRC website. If you have an accountant, they’re likely to have contacted you if you have a payment to make but you can also check with them. What If I Can’t Afford My Tax? If you have tax to pay but can’t afford it then it’s worth setting up a Time to pay agreement with HMRC as soon as possible, ideally before the payment deadline. You can do this by searching HMRC time to pay on the internet (make sure you’re on the official gov.uk website). This suspends the late payment penalties as long as you keep up with the agreed payments. Interest will still be payable. Why Work with CJL Accountancy? Tax can be complex, especially if you’re juggling multiple income streams or navigating HMRC’s ever-changing rules. At CJL Accountancy, we specialise in helping influencers, landlords, and small businesses maximise their tax efficiency. We encourage early tax return preparation and in year calculations where relevant so that you have time to plan for your tax payments. We will advise on the costs you can claim to ensure that you don’t pay more tax than necessary. Act Now: Don’t Wait Until the Last Minute With less than two weeks to go, make sure you know if you have a tax payment to make. Let CJL Accountancy take the stress out of your tax return. We’re not guaranteeing 2023/24 tax returns at this late stage but contact us if you’d like help with your 2024/25 tax return. Getting an accountant in place early will mean there’s plenty of planning time to maximise allowances, reduce your tax and plan for payments.