An A to Z of Tax from...
Tax Glossary
Welcome to the Taxbuddies glossary. To help you interpret the jargon
that you can come across in dealing with your tax, our team of experts
have written a brief explanation for hundreds of technical terms. Click
on a letter to show entries.
| Abroad (also referred to as overseas): : | Any country that is outside of England, Northern Ireland, Scotland and Wales. | |
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| Accountant : | A person professionally qualified to prepare a set of business accounts for you. He or she may also prepare a Tax Return for you. | |
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| Accounting and Audit Fees : | The amount you pay your accountant for preparing your business accounts are allowable expenses and can be deducted from your taxable profits, meaning you receive tax relief on the amount paid. | |
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| Accounting Date : | This is the final day in your accounting period - usually the end of your financial year. e.g. accounting period ends 30 June each year - the accounting date is 30 June. The date can be changed, but there are complicated rules and it is wise to consult an accountant if this is required. |
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| Accounting Period : | The period on which your accounts are based. Usually this includes the twelve months of your Financial Year. The rules concerning your accounting periods during the starting and final years of your business can be complicated. | |
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| Accruals : | Amounts earned and included in your accounts for which payment has not yet been received. | |
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| Accruals Basis of Accounting : | A method of accounting which basically includes income earned and expenses incurred during your accounting period, even though you may not have received or paid the cash. | |
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| Acquisition : | Is an important term in Capital Gains Tax rules meaning obtaining an item by purchase or other means.. | |
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| Age related allowances : | For individuals aged 65 and over in the tax year, additional age related allowances are available. However, these allowances are restricted where total taxable income exceeds the limits set for the year. | |
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| Allowances : | Allowances are standard tax-free amounts set by the government every year. They are given to all UK & commonwealth citizens and others who qualify under specific criteria. The most common is the Personal Allowance. This is given to everyone resident in the United Kingdom for tax purposes. Other main allowances previously included Married Couples` Allowance, but since 6th April 2000 married allowance has been restricted to those over 65 at that date. Allowances for children have now been abolished but were available up to 5th April 2003 for children born after 6th April 1985. |
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| Anti-avoidance : | Anti-avoidance rules are included in tax legislation in order to close any loopholes which may be used to avoid paying tax. | |
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| Appeals : | There is usually a given right of appeal against a decision given by H M Revenue & Customs. The new system of Revenue enquiries means most appeals are now against amendments made to Self Assessments.
The appeal must be made within 30 days of the assessment or amendment, although late appeals may be accepted, and the grounds for the appeal must be stated. If there is no agreement, the appeal is usually heard by the General Commissioners, although some are heard by the Special Commissioners. |
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| Approved Mileage Allowance Payments : | AMAP is a simple way of calculating tax-free mileage expenses. An employer can pay up to 40p per mile for the first 10000 business miles and 25p per mile thereafter without any tax being due on the payment. If reimbursement is at less than these rates a claim for the remainder can be made. See Mileage Allowance Relief and our Mileage Expenses calculators. | |
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