UK Tax Glossary: plain-English definitions

The system for reporting personal income to HMRC when tax isn't fully collected at source — sole traders, landlords, company directors with untaxed income, and higher earners typically file an SA100 return each year.

The Corporation Tax return a UK company files with HMRC, accompanied by the tax computation and statutory accounts, due 12 months after the accounting period ends.

HMRC's programme requiring digital record-keeping and software filing. MTD applies to VAT for all VAT-registered businesses, with MTD for Income Tax (ITSA) following for sole traders and landlords above the entry threshold.

A 10-digit reference HMRC issues to identify a taxpayer (person or company) for Self Assessment or Corporation Tax.

A tax on most goods and services. Businesses over the registration threshold must register, charge VAT on sales, and file returns — usually quarterly under MTD.

The system employers use to deduct income tax and National Insurance from wages and report them to HMRC in real time (RTI) on or before each payday.

The PAYE reporting regime: employers submit a Full Payment Submission (FPS) to HMRC on or before every payday rather than annually.

Rules requiring contractors to deduct tax from payments to subcontractors in construction and pay it to HMRC, with monthly returns and subcontractor verification.

Rules that tax contractors like employees when the working relationship resembles employment. Responsibility for status decisions sits with medium/large engagers in the private sector and all public bodies.

The annual summary of pay and tax an employer gives each employee after the tax year ends (by 31 May).

The form reporting taxable benefits in kind (company cars, private medical, loans) to HMRC by 6 July after the tax year.

UK accounting standards: FRS 102 for most small and medium entities, FRS 105 as a simplified standard for micro-entities.

Advance Self Assessment payments (31 January and 31 July), each normally half the prior year's tax bill, credited against the current year's liability.

The annual Companies House filing confirming a company's registered details (officers, shareholders, PSCs) are up to date.

A tapering calculation that smooths Corporation Tax between the small profits rate and the main rate for companies whose profits fall between the thresholds.

Tax deductions for capital expenditure (equipment, machinery, vehicles) in place of accounting depreciation — including the Annual Investment Allowance and full expensing for qualifying plant.