Glossary

A wide range of services to support the accountancy side of running your business. Typical services include accounting, book-keeping, VAT, payroll processing, completion of management accounts and tax returns and data entry. Look for accountancy services that have qualified accountants amongst its team.

The collation of financial information for interested parties about an organisation's financial performance, assets and liabilities.

The recording of the financial accounts of an organisation. These accounts may be recorded manually or stored electronically on a computer system.

Unfortunately anyone can call themselves an accountant. There are however a number of recognised qualifications: ATT, ACA, CIMA and ACCA are all examples of recognised accounting, A true accountant will be a member of one of these bodies.

A tax on the profits of UK-based companies and organisations.

The total amount earned, before employee's NICs, PAYE and other deductions.

Her Majesty's Revenue and Customs, formerly known as the Inland Revenue and HM Customs and Excise which are now a single body.

The tax levied on monies received by an individual during a tax year from earnings, investments and profits.

A legal structure where the shareholder is protected from any liabilities the company may incur.

This tax legislation determines whether an individual is a disguised employee of their end client, despite working through an intermediary such as a limited company partnership. Individuals within IR35 are effectively in deemed employment for tax purposes and must therefore be paid salaries subject to PAYE and NICs. Individuals outside IR35 can decide to receive their remuneration as a mix of salary and dividends based on their individual circumstances.

The remaining amount of income after employee's National Insurance, PAYE and other deductions have been made from your salary.

National Insurance Contributions.

The HMRC (Expenses and Benefits) form that is filled in by UK employers for each director and employee earning over £8,500 per annum, detailing any expenses and benefits in kind received by the employee.

Pay-as-You-Earn, the payroll deduction system whereby income tax is deducted from an employee's salary. The amount deducted is established by their tax code and is designed to try to collect the correct amount of tax over the tax year.

Value Added Tax, the charge levied on the final consumption of goods and services.

These companies employ contractors. They receive full employments rights and receive a salary, paying PAYE and NICs on all earnings. Contractors are not directors or shareholders so cannot receive dividends.