Tax terms, made simple
Tax is full of jargon. TaxTune Explains breaks down the terms people search for into plain English, with a quick example for each and a link to the full guide. Tap any term to understand it in a minute.
Allowable expenses
Allowable expenses are business costs you can deduct from your income before tax, as long as they are wholly and exclusively for the business.
ReadBasis period reform
Basis period reform taxes self employed profits on a tax year basis rather than the accounting year.
ReadCIS deductions
CIS deductions are amounts a contractor takes from a subcontractor's labour payment and sends to HMRC as an advance towards their tax.
ReadCT600
A CT600 is the company tax return a limited company files with HMRC to report its profit and corporation tax.
ReadCapital allowances
Capital allowances are tax relief for larger, longer lasting business assets such as equipment, machinery and some vehicles.
ReadConfirmation statement
A confirmation statement is a yearly filing to Companies House that confirms your company details are up to date.
ReadCorporation tax
Corporation tax is the tax a limited company pays on its taxable profit.
ReadDirectors loan account
A directors loan account records money moving between a director and the company outside pay.
ReadDividend tax
Dividend tax is the tax you pay on dividends taken from a company after corporation tax.
ReadMaking Tax Digital
Making Tax Digital is the move to digital record keeping and filing tax through compatible software.
ReadP11D
A P11D is the form that reports taxable benefits in kind an employer provides, so the right tax can be collected.
ReadP60
A P60 is the year end summary of your pay and the tax taken through PAYE for the tax year.
ReadPayments on account
Payments on account are advance instalments towards next year's Self Assessment tax bill.
ReadPayroll RTI
Payroll RTI is Real Time Information, the system where employers report pay and tax to HMRC each time they pay staff.
ReadTax code
A tax code such as 1257L is used in PAYE to tell your employer how much tax free pay you get before tax is taken.
ReadUTR number
A UTR is a 10 digit Unique Taxpayer Reference that HMRC uses to identify you or your company for tax.
ReadVAT threshold
The VAT threshold is the level of turnover at which you must register for VAT.
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