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. D D Tax code Special type of tax code used for PAYE. There are two tax codes of D0 and D1 (letter and number). D0 indicates that all the employee’s earnings are subject to 40%; D1 indicates that they are all subject to 50%. These codes are commonly used for second jobs of high earners. National insurance National insurance contribution letter for an employee contracted out in a COSRS pension scheme. This letter is not used from 6 April 2016. Council tax For council tax, the average value of property, thus: • in England, between £68,001 and £88,000 in 1993; • in Wales, between £73,001 and £100,000 from 1 April 2005, and between £51,001 and £66,000 before; • in Scotland, between £45,001 and £58,000 in 1993. Company cars The P11D code for (from 6 April 2011) all company cars that use diesel. Before 6 April 2011, the code only applied to cars that met Euro IV Standard. Those that did not had the code L. Vehicle excise duty Rate band for vehicles with emissions between 121 and 130 gm/km. Full Payment Supplement form Indicator in the “Number of hours worked” box that the employee works for at least 30 hours a week. Reason for lateness in submitting an FPS or EPS for a tax month The reason is that the payment is subject to class 1 national insurance but is taxed under P11D provisions. Final character in national insurance When national insurance was recorded on cards, this final character indicated Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 2 that the card ran for a year from the first Monday in June. It is now a control character. Purchase tax From 1951, this was the median average price of goods under what was known as the Utility scheme. Goods became subject to tax only on the margin by which they exceeded the D figure in the D-system. This removed the blind spot. Purchase tax was abolished in 1973. Other (1) Roman numeral for 500. (2) Dunlop, Scottish law reports from 1838 to 1862. (3) In hexadecimal notation, the number 13. (4) Abbreviation: dalasi, currency of The Gambia. (5) In relation to residence nil rate band for inheritance tax, a person who has died (Inheritance Tax Act 1984 s8J as inserted by Finance (No 2) Act 2015 s9). (6) Number of days in a period, as used in the formula in Finance Act 2004 s237ZA(5) and in Corporation Tax Act 2010 s356N(13). (7) Difference between profits between two years in averaging calculation in the formula in Income Tax (Trading and Other Income) Act 2005 s223(4). (8) Amount of dividend income (Income Tax Act 2007 s13A). (9) Number of days in the post-employment notice period (Income Tax (Earnings and Pensions) Act 2003 s452D(3)). d (Old) penny. The letter is an abbreviation of denarius. It was used before decimal currency was adopted in 1971. The d was usually placed after the number so 6d meant six old pence, worth 2½p. DA Abbreviation: Algerian dinar. D/A Documents against acceptance. DAC (1) Abbreviation adopted for EU Council Directive 2011/16 on co-operation for tax enforcement. (2) In relation to corporation tax surcharge on banks, an abbreviation used in Corporation Tax Act 2010 s269DE(4). daddy month Colloquialism for the Swedish practice of allowing fathers one month’s paternity leave. The UK allows two weeks. The Liberal Democrats proposed a similar arrangement at their 2012 conference. dagger money Sum once paid to certain judges to buy weapons for their protection. Dail Eireann Lower house of parliament in the Republic of Ireland. daily average agreement Agreement between an employer and a worker engaged in unmeasured work to ensure compliance with national minimum wage (NMW) regulations. The agreement must be made before the work states. It is an estimate Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 3 of how many hours the worker reasonably expects to work each day. The worker must be paid the NMW for those hours. daily change Change in the price of a share or other security from one day to the next. daily close Settled price at which a share or other security was traded at the end of the day. daily cover Material used to cover a waste disposal site at the end of each day to prevent nuisance from odour and wildlife. Material so used is not subject to landfill tax. daily default fine Fine that may be imposed on a company officer who is in default of certain provisions of company law (Companies Act 2006 s1125). daily grind Monotony of routines in life. daily gross takings Amount of daily income received by an organisation before any expenses have been paid. This is a figure which may be calculated by HMRC for the purposes of issuing a tax assessment, particularly when it believes that VAT has been understated. daily high Highest price reached by a share or security during a particular day. daily living component One of the elements of the social security benefit personal independence payment. The law for this component is in Welfare Reform Act 2012 s78. daily low Lowest price reached by a share or security during a particular day. Daily Official List (DOL) The daily record of all trades in shares and other securities on the London Stock Exchange. daily price limit Maximum amount by which a share or other security is permitted by an exchange to rise or fall before trading in that security is suspended. daily trading limit Limit that may be imposed on a trader’s transactions for one day. daily work record Log of tasks performed in one day by an individual employee. daimyo bond In Japan, bearer bond issued by supranational bodies. Dairy Farmers of Britain A UK milk co-operative owned by dairy farmers that was responsible for about 10% of all milk production in the UK. The co-operative bought milk directly from farmers which it either sold or converted in its factories to other dairy products. It went into receivership on 3 June 2009. HMRC provided particular guidance on the taxation of milk retentions and on other aspects of the insolvency. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 4 dais Part of a building which is raised to make it easier for a person speaking there to be seen and heard. Care should be used not to use this term for lectern, podium or rostrum. daisy chain (1) Series of transactions created to produce an allusion of trading volume. Such a chain is usually self-cancelling. (2) In USA, a certification process for euromarket transactions. daisywheel In older computer printers, a metal wheel where each spoke ends with a different character. The printer hits the end of the relevant spoke against a ribbon to print the character. daisywheel printer Computer printer which uses a daisywheel. Daiwa Leading Japanese company dealing in securities. dak Indian term meaning the mail or a letter. dakkenrast Obscure term for the feeling of being embarrassed on the loss of assets. dalasi Currency of Gambia. Dalmyo bond Type of Japanese bond that can be cleared in Europe. Dalton, Hugh Welsh Labour politician (1887-1962) who was Chancellor of the Exchequer from 27 July 1945 to 13 November 1947. He nationalised the Bank of England. He was obliged to resign after an off-the-cuff remark about his Budget was printed in an evening paper before he had finished his speech. He was later exonerated. dam For capital allowances, this is specifically excluded from the scope of plant and machinery (Capital Allowances Act 2001 s22(1) List B). damages Money paid in compensation from a legal claim, such as for breach of contract. In Scots law, “a sum of money awarded by a court as compensation for a wrong or injury” (Judiciary of Scotland website glossary). Generally, damages are regarded as compensation and are therefore not taxable. Interest on damages was held to be taxable income in the case Westminster Bank Ltd v Riches [1947] 28 TC 159. The tax treatment of such payment by a business is discussed in the Inspectors’ Manual at BIM 42951. damnosa haereditas Latin: an inheritance of debts. damnum absque injuria Latin: loss without wrong. Loss or damage for which there is no legal remedy. A modern example is Smith v Scott [1973]. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 5 damnum sentit dominus Latin: the lord suffers the damage. The legal principle that loss falls on the owner. damnum sine injuria esse potest Latin: loss without injury. An example is when someone loses trade to a competitor. damtique Old term that refers to someone who is entirely trusting of the tax authorities. DAN Deferment Approval Number. This is a unique reference number issued to a trader by the Central Deferment Office (part of HMRC) to identify the trader's duty deferment account. dancer A dancer may retire on a personal pension at the age of 35, provided: • the person had the right by 5 April 2006, • the right was unqualified in that it needed no other person to consent, • the right was set out in the governing documentation of the pension scheme by 10 December 2003.