Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 1 Leach’s Tax Dictionary Provided by Tax Training Ltd. www.taxtrainingltd.co 020 8224 5695. October 2018 Please read the Preface and Fair Use Dealing. Neither the compiler nor the company can accept any liability for any loss occasioned by using this dictionary. © Robert Leach 2003-2018 and licensed to Tax Training Ltd. A A National insurance National insurance contribution letter for an employee who is liable to pay the full rate of class 1 national insurance. Council tax For council tax, the lowest band of property values: • in England, up to £40,000 in 1993 • in Wales, up to £30,000 in 1993, or £36,000 from 1 April 2005 • in Scotland, up to £27,000 in 1993. A band A property pays council tax at two-thirds of the rate for an average band D property. Company cars From 6 April 2011, the code used for completing PAYE form P11D in relation to most company cars. The only exclusions are cars with diesel engines or that produce zero emissions of carbon dioxide. Tax code Suffix to a tax code used for only two years. In 2002/03 it meant the taxpayer was entitled to half the children’s tax credit. In 2001/02, it meant the taxpayer was entitled to the married couple's allowance and was taxed at the higher rate. Vehicle excise duty Rate band for vehicles with emissions up to 100 gm/km. Full Payment Supplement form For real time information, indicator in the “Number of hours worked” box that the employee works up to 15.99 hours a week. Lateness in submitting an FPS or EPS under Real Time Information Letter used to indicate that the lateness was due to the payment being a notional payment, such as to an expat by a third party. First person The term is used in various contexts to indicate the first person. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 2 Examples in tax law include company or director that is liable to a degrouping charge under Corporation Tax Act 2009 s795, and a principal company in a group structure under ibid s767. Final character in national insurance number When national insurance was recorded on cards, a final character of A denoted that the card ran for a year from the first Monday in March. It is now simply a control character. Other meanings (1) In planning law, the use class for retail premises. (2) CFI code for a registered financial instrument. (3) In hexadecimal notation, the number 10. (4) The highest category in any grading system, examination or similar. (5) Series of paper sizes where the height is √2 times the width, so that this ratio is maintained if the paper is cut in half. A4 is the standard paper size. A5 is half the size of A4. A3 is double the size of A4. (6) Amperes (amps), angstrom and many other abbreviations. (7) Abbreviation to denote agency in Income Tax Act 2007 s46A. (8) In relation to residence nil rate band for inheritance tax, means another person as defined in Finance (No 2) Act 2015 s8L(4) as inserted by Finance (No 2) Act 2015 s9. (9) Amount of a person’s income, as used in the formula in Finance Act 2004 s228ZA(1). (10) Expression for augmented profits in the formula for calculating ring fence profits of the oil industry (Corporation Tax Act 2010 s279D). (11) Assignee of a peer-to-peer loan, in Income Tax Act 2007 s412F. (12) Amount of activated cluster area allowance, in Corporation Tax Act 2010 s356JHB. (13) Figure used in formula in Corporation Tax Act 2010 s356JK(5). (14) Annual value of an employer’s asset made available to an employee, as used in Income Tax (Earnings and Pensions) Act 2003 s205A(3). (15) Figure used in relation to accommodation provided to an employee in Income Tax (Earnings and Pensions) Act 2003 s103A(8) as inserted by Finance Act 2017 Sch 2. (16) Figure used in relation to a lump sum from a foreign pension in Income Tax (Earnings and Pensions) Act 2003 s554Z4(9) as inserted by Finance Act 2017 Sch 3. (17) For apprenticeship levy, the amount of any levy allowance to which an employer is entitled (Finance Act 2016 s99(2)). a Indefinite article. For tax purposes, the word means “one”. For example, in the case Bell’s College [2015] TC 4369, a college did not meet the requirement of providing services to “a university” when it provided those services to several universities. Bills of exchange Abbreviation of accepté . Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 3 @ At. It is a symbol once commonly used for prices, such as “potatoes @ 4d a pound”. It is now most commonly used as part of an email address. A$ or $A Abbreviation: Australian dollar. £A Amount of individual’s savings allowance for income tax (Income Tax Act 2007 s12A(2) as inserted by Finance Act 2016 s4). A01 Leaflet from the Adjudicator explaining his or her powers. It is available in English, Welsh and nine other languages. A1 Description of something in the best condition. The term comes from Lloyd’s Register of Shipping. A1 form Form issued from 1 May 2010 to UK workers travelling to other European Union countries. The form indicates that the worker is paying UK national insurance and is therefore exempt from making equivalent payments in the host country. The form is valid for 24 months. It replaces the E101 form which was valid for 12 months but could be extended for a further 12 months using form E102. A1P1 Article 1/1 of the First Protocol to the European Convenion of Human Rights, which has been quoted in several tax cases. It reads: “Every natural or legal person is entitled to the peaceful enjoyment of his possessions. No one shall be deprived of his possessions except in the public interest and subject to the conditions provided for by law and by the general principles of international law. “The preceding provisions shall not, however, in any way impair the right of a State to enforce such laws as it deems necessary to control the use of property in accordance with the general interest or to secure the payment of taxes or other contributions or penalties.” A2 form Form issued by HMRC giving a decision notice about whether a person is liable to pay national insurance in the UK or another European Union country. This form replaces the decision note previously issued on form 181. A8 Abbreviation for eight of the accession states that joined the European Union in 2004 and whose workers were subject to the Worker Registration Scheme until 2011. The states are Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia. AA (1) Annual allowance. (2) Automobile Association. This organisation provides a breakdown service for motorists, but also produces widely accepted AA running costs of a car. (3) Attendance allowance. (4) Certificate issued by Mercantile Marine Office stating that a vessel and its crew are in order. (5) Abbreviation used in the formula for unauthorised employer payments in Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 4 Finance Act 2004 s213(9). (6) Actual amount, used in the formula in Income Tax (Trading and Other Income) Act 2005 s274AA(5). A&A Additions and amendments AAA (1) Highest rating by a credit agency. It is also called a triple-A rating. A country, company or other body with such a rating will usually find it easy to borrow money at a low rate of interest. (2) Association of Authors’ Agents. AAAI Associate of the Institute of Administrative Accountants. AAB Aircraft Accidents Board AAD Accompanying Administrative Document. AAE Actuarial Association of Europe. AAFES Army and Air Force Exchange Service AAG Anti-Avoidance Group, a department of HM Revenue and Customs. AAG6 Form used to notify HMRC that a taxpayer is involved in a disclosed tax avoidance scheme. AAG7 Form used by an employee to notify HMRC that he or she is involved in a tax avoidance scheme implemented by their employer. AAIB Air Accidents Investigation Branch. AAII American Association of Individual Investors. AAM Agent account manager. AAR Advance Assurance Request. AARA Aggregate amount of the relevant sums and assets. This abbreviation is used in Finance Act 2004 s185. AA running costs Tables of the cost of running a car as produced by the Automobile Association. These are regarded as authoritative. The table distinguishes between standing charges and running costs. Standing charges relate to costs of ownership of a car rather to using it. Such costs are MOT, insurance, cost of capital, depreciation and road tax. Running costs are those which relate to using the car, namely fuel, tyres, servicing, replacement parts and parking. The standing charges are amortised as a mileage charge for different bands of mileage, and added to the running costs, to give a cost per mile. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 5 AAT Association of Accounting Technicians. AB Able-bodied seaman. A&B Arts and Business, an organisation that sought to link arts to industry. ABA American Bar Association. ab absurdo Latin expression that refers to a presumption that leads to an absurdity. abacus Device comprising beads on wires in a frame that can be used for calculating. ab agendo Latin expression that describes the inability of a person to engage in a legal activity, such as by being under age or lacking mental capacity.