Tax and Accounting Terminology
Understand UK business tax and reporting terminology. The accounting framework, contract and individual circumstances can change the treatment, so professional advice remains important.
- Annual Investment Allowance
Annual Investment Allowance is a UK capital allowance that can give a deduction for qualifying plant and machinery expenditure within the applicable limit and conditions.
- Capital Allowances
Capital allowances are UK tax reliefs that can allow qualifying capital expenditure to be deducted when calculating taxable profits under the applicable rules.
- Corporation Tax
Corporation Tax is a UK tax charged on the taxable profits of companies and certain other organisations, according to the rules applying to them.
- FRS 102
FRS 102 is a financial reporting standard used by many entities preparing accounts under UK and Republic of Ireland accounting requirements.
- Full Expensing
Full expensing is a UK capital allowance for qualifying company expenditure on certain new and unused plant and machinery, subject to statutory conditions and exclusions.
- IFRS 16
IFRS 16 is the international accounting standard for leases, including how a lessee recognises and measures many rights to use assets and the related obligations.
- Input VAT
Input VAT is VAT a business incurs on purchases, which may be recoverable only to the extent permitted by the VAT rules.
- Output VAT
Output VAT is VAT that a VAT-registered business accounts for on its taxable sales under the applicable VAT rules.
- VAT
Value Added Tax is a UK tax on taxable supplies of goods and services, accounted for by VAT-registered businesses under the rules applying to their activities.
- VAT Registration
VAT registration is the process by which a business becomes registered to account for VAT on the supplies and activities covered by the UK rules.