Personal Tax Glossary

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Accountant
An accountant is someone who helps businesses and individuals to stay on top of their financial affairs.
Accounting Software
Accounting software is a type of computer programme that automates some bookkeeping and accounting tasks.
Additional Tax Rate
The additional rate tax is the top rate of income tax for high earners in the UK.
Adjusted Net Income
The adjusted net income is your total taxable income, including your Personal Allowance piece of your income (which is tax-free) but without tax reliefs like losses from previous years, pensions contributions, or donations to charities.
Annual Investment Alliance
The Annual Investment Allowance (or “AIA”) is a way for sole traders to claim tax relief for buying equipment. It’s a kind of capital allowance.
Auto-Enrollment
Auto-enrolment means that all employers have to enrol eligible employees into a workplace pension automatically. It’s short for “automatic enrolment for workplace pensions”.
Autumn Budget
The Autumn Budget is a statement made every year by the Chancellor of the Exchequer to the UK Parliament, setting out the UK Government’s plans for raising and spending money.
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BACs payment
You’ve probably seen it on your bank statement, but actually what is a BACs payment? BACs (or Bankers Automated Clearing System) is an electronic system used to make payments directly from one bank account to another. It’s a secure method of payment that’s been used in the UK since 1968, and for over 100 billion transactions.