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

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

What is Capital Gains Tax? Capital Gains Tax is a tax on the profit (gain) you make when you sell or dispose of an asset that has increased in value. It’s the gain that’s taxed, not the total amount you receive. For example: You bought a property for £200,000. You later sell it for £300,000. Your gain is £100,000 (less any allowable costs). CGT applies to individuals, partnerships, and trustees. Companies pay Corporation Tax on chargeable gains instead. When Does CGT Apply to Property? You may need to pay CGT when you dispose of: A second home or holiday home. A rental or buy-to-let property. A property you’ve inherited and then sold (if it's not your main residence). Land. In most cases, you won’t pay CGT on your main home due to Private Residence Relief - but there are exceptions, especially if you've let the property out, used part of it for business, or if it’s grounds are very large. How is CGT Calculated on Property? Calculate your gain: Sale proceeds – Purchase price – Allowable costs (e.g. legal fees, stamp duty, estate agent fees, certain improvement costs) = Chargeable gain Apply your CGT allowance: For 2025/26, the annual CGT allowance (Annual Exempt Amount) is £3,000 for individuals. Companies don't get an allowance and it's a different rate for Trustees. Apply the correct tax rate: The tax rate you pay depends on your other income in the year. The rates for 2025/26 are 18% in the basic rate band and 24% in the higher rate band. Example Calculation Sale price: £350,000 Purchase price: £250,000 Allowable costs: £10,000 Gain: £90,000 Less annual allowance (£3,000): £87,000 If you're a higher rate taxpayer: CGT due: £87,000 × 24% = £20,880 Reporting and Payment Deadlines For UK residential property disposals, you need to submit a CGT return to HMRC and pay any CGT due within 60 days of completion. There may be exemptions to this reporting and payment deadline for UK tax residents but non-residents will always need to comply, regardless of whether there is any tax payable or not. For overseas properties, you will need to submit and pay via your usual annual self-assessment tax return. Failure to report on time can result in penalties and interest charges. Reducing Your CGT Liability There may be ways to minimise your CGT bill, including: Private Residence Relief (if applicable) Lettings Relief (limited and specific) Spousal transfers to utilise both allowances Timing disposals to maximise allowances and lower rates Claiming all allowable costs and deductions Professional advice is highly recommended, especially as property disposals can involve complex rules. How CJL Accountancy Can Help At CJL Accountancy, we specialise in helping property owners, landlords, and investors navigate the complexities of Capital Gains Tax. Whether you're planning a sale, need help with reporting, or want to explore tax-saving opportunities, our expert team is here to support you. 📞 Contact us today to book a free consultation and ensure your property sale is as tax-efficient as possible.

1. Mixing Personal and Rental Finances One of the biggest mistakes is using one bank account for both personal and property-related transactions. Keep a separate account for rental income and expenses to stay organised and simplify tax preparation. 2. Poor Record-Keeping Missing receipts, unclear expenses, and forgotten income entries can lead to overpaying tax or facing HMRC penalties. Keep detailed records of: Rental income received Repairs and maintenance Mortgage interest Letting agent fees Insurance, council tax, and utilities (if you pay them) 3. Not Using Software Modern accounting software like Xero or FreeAgent can automate much of the bookkeeping, track income and expenses, and generate reports at the click of a button. 4. Ignoring Allowable Expenses You may be missing out on valuable deductions. Common allowable expenses include: Property repairs Accountancy fees Landlord insurance Mileage for property visits Make sure you claim everything you're entitled to, including the tax reducer available for mortgage interest. 5. Forgetting Tax Deadlines Late submissions or payments can result in penalties. Stay on top of key dates for Self Assessment and ensure you file and pay on time. At CJL Accountancy, we help landlords maximise profits and stay HMRC-compliant. Get in touch for support tailored to your property portfolio.

1. Understand What Counts as Income Many influencers receive compensation not just in cash, but through gifted items, affiliate links, brand collaborations, and even experiences. It’s essential to know that: Gifted products and experiences are considered taxable income if you receive them in exchange for promotion. Affiliate earnings and brand sponsorships must be declared just like any other self-employed income. 2. Keep Good Records Proper record-keeping is crucial. Track everything, including: Dates and descriptions of gifted items Messages/emails around gifts Contracts of brand deals Affiliate income reports Business expenses like camera gear, editing software, and travel 3. Set Aside Tax Money One of the biggest pitfalls influencers face is failing to plan for tax payments. A good rule of thumb is to set aside 20-30% of all earnings into a separate savings account for taxes. 4. Register as Self-Employed If you're earning more than £1,000 (before costs) from your influencing activities, you must register as self-employed with HMRC. This allows you to file a Self Assessment tax return and claim allowable business expenses. 5. Work with a Specialist Accountant Influencer income can be unique and complex. Working with an accountant who understands the digital creator space ensures you're not overpaying tax or missing key deductions. At CJL Accountancy, we specialise in helping digital creators understand their finances and thrive. Contact us today for a free consultation.

How Long Should a Tax Refund Take? Typically, HMRC aims to process tax refunds within: 5 working days if submitted online and payment is made directly to your bank Up to 8 weeks if your return is more complex or requires additional checks However, during busy periods like January (Self Assessment deadline) or April (end of the tax year), delays are common. Why Might Your Refund Be Delayed? There are a number of reasons HMRC might take longer than expected: Security Checks - HMRC may flag your return for additional verification to prevent fraud. These random checks can delay your refund by several weeks. Errors or Inconsistencies - if your tax return contains mistakes, mismatched information (such as figures not matching PAYE data), or missing documentation, HMRC may pause the process to investigate. Outstanding Debts - HMRC may offset your refund against any unpaid tax, student loan, or other government debts. This can lead to a reduced refund—or none at all. System Backlogs - Especially during peak times, HMRC’s systems and teams get overwhelmed, which causes processing delays across the board. What You Can Do About It If you’re facing a delay, here’s how to take action: Check Your Online HMRC Account - log in to your HMRC personal tax account to check that your tax return has been received, if your refund has been issued or if HMRC has sent you any messages about additional checks or missing info. Where's my reply - you can check here when you should receive your refund based on how and when it was requested. Contact HMRC - if the date on Where's my reply has passed, you can contact HMRC to chase the refund. Be sure to have your UTR (tax reference) or National Insurance number handy. Tips to Avoid Future Delays File your return early to miss the busy periods Double-check all figures and details Make a note of when you should receive your refund and chase as soon as that has passed At CJL Accountancy, we understand how stressful waiting for money you're owed can be. If your refund has been delayed or if you're unsure whether your return was filed correctly, we’re here to take the stress off your shoulders. 📩 Get in touch today for friendly, jargon-free advice and support.