Accounting Period

This is the period in which your usual accounts will be prepared. Typically, a 12-month period but can be greater or lesser depending on your personal circumstances.

CGT

Stands for Capital Gains Tax. This is a tax on any gains on the disposal of assets. For example, sale of shares or sale of non-residence properties.

Financial / Fiscal Period

This is the period in which you normally collates your tax affairs and traditionally runs from 6th April - 5th April each year.

HMRC

HM Revenue and Customs, previously known as Inland Revenue and Customs and Excise.

IHT

Stands for Inheritance Tax. This is a tax based on the value of a deceased’s estate under probate or a trust and is calculated in reference to an excess over the current threshold.

PAYE

Stands for Pay As You Earn. This is the process in which tax and national insurance is deducted from individuals earnings when they are employed. Deductions are made monthly and the net amount after tax and national insurance is paid to the individual.

RTI

Stands for Real Time Information. This is the new regime for operating PAYE from the 6th April 2013 onwards and requires the employer to submit weekly / monthly online reports to HMRC identifying precisely how much each individual has suffered in tax and NI during that week / month.

SDLT

Stands for Stamp Duty Land Tax (“Stamp Duty”). This is a tax charged on transactions involving shares or land and is payable at different rates depending on the amount involved.

SIPP

Stands for Self Invested Pension Plan. This is a pension which is setup for individuals or business owners and is highly flexible, allowing for various of types of investment including property, land and shares.

Tax Credits

This is the main way in which the tax system provides support with people with children and workers on lower incomes and are paid only to those who claim.

Tax Return

This is the document which HM Revenue and Customs issue each year to all taxpayers and which relates to a particular financial / fiscal period.

VAT

Stands for Value Added Tax. This is tax on supplies and the main rate is currently 20%.

Still unsure?

Contact us to see how we can help simplify your accounts for you.