Glossary / Useful Words
Allowable expenses
Costs incurred wholly and exclusively for business purposes which may be deducted when calculating taxable profits.
Benefit in Kind
A non-cash benefit provided by an employer, such as a company car or private medical insurance.
Capital Gains Tax (CGT)
A tax that may apply when you make a profit from selling certain assets.
Dividend
A payment made by a company to its shareholders from after-tax profits.
Employer's National Insurance
National Insurance contributions paid by employers on employee earnings.
Flat Rate VAT Scheme
A VAT scheme designed to simplify VAT reporting for some small businesses.
Gift Aid
A scheme that allows charities to claim additional tax relief on donations.
HMRC
His Majesty's Revenue & Customs, the UK government department responsible for collecting taxes.