Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 1 P P Tax forms Series of forms used by HMRC to administer the PAYE scheme. The more common forms include: P1 tax return P7X general instruction to update employee tax codes P11 record of employee’s pay and tax P11D annual return of employee benefits P 45 employee leaving Company cars Before 6 April 2011, the P11D code for a company car that had a petrol engine. This is now code A. Tax code Suffix for tax code used until 2009/10. It indicates that the taxpayer is entitled to the age allowance by being born before 6 April 1935. Such taxpayers now have the V suffix. National insurance From 6 April 2015, national insurance contribution letter to indicate that the employee is a mariner under 21 who has deferred rate contributions. Previously, it was the equivalent to a contribution letter once used to indicate that an employee was the subject of a national insurance contributions holiday. Other meanings (1) Abbreviation sometimes used in an Act of Parliament to identity a person, eg Identity Documents Act 2010 ss4-6, now repealed. (2) Probate, Divorce and Admiralty Division Law Reports, published from 1891 to 1971. (3) Old Roman numeral for 400. (4) Abbreviation: pula, currency of Botswana. (5) Abbreviation: Philippine peso. (6) Relevant profits as used in averaging formula in Income Tax (Trading and Other Income) Act 2005 s223(4). (7) Total amount of additional deductions given for previous periods, in Corporation Tax Act 2009 s1200. (8) For capital allowance for an assured tenancy, the amount of any proceeds from a balancing event (Capital Allowances Act 2001 s522). (9) Figure used in formula for cluster area allowance in Corporation Tax Act 2010 s356JHA. (10) Number of days in pay period (Income Tax (Earnings and Pensions) Act 2003 s452D(3)). (11) Party to a cost-sharing arrangement for patent box (Corporation Tax Act Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 2 2010 s357GCZA(1) and following sections as inserted by Finance (No 2) Act 2017 s23. (12) Figure used to calculate additional deduction for video games tax relief (Corporation Tax Act 2009 s1217CG(1)). (13) In newspaper lists of share prices, the letter may indicate an initial dividend. p Pence or penny, from introduction of decimal currency in 1971. P2P Peer to peer, a description of lending between two individuals. P2P platforms “P2P platforms work by providing a connection and management service that puts lender (the investors) in contact with borrowers; the platforms themselves are not party to the loans being made” (Inspector’s Manual at SAIM 12020). P2P sector “The peer-to-peer lending sector (the P2P sector) enables individuals and businesses to lend to each other through the intermediary of an internet platform.” (Inspector’s Manual at SAIM 12020). P9D Rare form used in the PAYE system to disclose expenses paid to employees who are not P11D employees. The law is found in PAYE regulations SI 2003 No 2682 from reg 85. The form is last used for 2016 (completed in 2017), after which almost all employees are taxed on benefits under P11D rules. P11 Card or deductions sheet which records pay and tax deductions under manual forms of PAYE system. The card was square with one corner cut off for filing. P11 calculator Calculator provided free by HMRC on the employer CD-ROM or website to calculate the value of benefits provided. P11D Annual return of expenses for directors and employees who earn over £8,500. The law is found in PAYE regulations SI 2003 No 2682 from reg 85. This figure has remained unchanged from 1979. Previous limits are: Date P11D limit 6 April 1979 £8,500 6 April 1978 £7,500 6 April 1977 £5,000 P11D code Single letter used on a P11D form to indicate what type of fuel is used in a company car. From 6 April 2011, only four letters are used: • A: petrol and equivalents • D: diesel • E: electric Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 3 • H: hybrid. Before 6 April 2011, the letters B, C, G L and P were also used for various alternative fuels. P11D employee Widely used but unofficial term for an employee who comes within the scope of the P11D tax return. Such an employee is one whose earnings are at least £8,500 a year (including taxable expenses) or who is a director (with a few exceptions). Before 6 April 1989, the legislation referred to such people as “higher paid” employees. This distinction is abolished from 6 April 2016, except that ministers of religion paid less than £8,500 are exempt from tax on benefit in kind such as accommodation. P38(S) Form that could be completed by a student working in the Easter, summer or Christmas vacations. It allowed the student to be paid without deduction of income tax under PAYE, provided their total income did not exceed the personal allowance for the year. If the Easter vacation spanned 6 April, separate forms had to be completed for each year. The system was abolished with the introduction of real time information in 2013. P45 Three-part form produced when an employee leaves for any reason. The contents of it are as set out in PAYE Regulations SI 2003 No 2682 from reg 36. P45ESA Form that is completed by the Department of Work and Pensions when an awrd for employment and support allowance ceases )PAYE regulations SI 2003 No 2682 reg 184L). P45U Form that is completed by the Department of Work and Pensions when an award for a taxable social security benefit ceases (PAYE regulations SI 2003 No 2682 s158). P46 Form that was completed by a new employee who does not provide the employer with a P45 certificate. It is no longer used from the introduction of real time information (in 2012 or 2013). Details of the form were given in PAYE Regulations SI 2003 No 2682 para 42ff. P46(car) Form that an employer completes to tell HMRC about changes in a company car provided to an employee. This allows adjustments to be made to the employee’s tax code. The form was discontinued from 6 April 2010, but was reintroduced in electronic form from 6 April 2011. The law is PAYE regulations SI 2003 No 2682 s90(1). P46(pen) Form used for a new pensioner who does not have a P45 certificate from a previous employment. Details of the form and its use are given in PAYE regulations SI 2003 No 2682 from reg 54. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 4 P47 limit Limit on the amount of tax refund that could be given to a new employee on their first payslip, under the PAYE system. A larger refund needed permission from the tax office. Permission was requested on form P47 and given on form P48. The limit was abolished from 6 April 1996. It had been £200 from 6 April 1991; £100 from 6 April 1988; and £50 previously. P60 Statement of earnings and tax that an employer must provide to each employee in respect of each tax year by 1 June following the end of the tax year. The employee is advised to keep the form as evidence of pay and earnings. The requirements of form P60 are set out in PAYE regulations SI 2003 No 2682 reg 67. P326 Form provided by the Post Office for use when a single packet is sent by a VAT-registered business to a business customer in another EU member state. This form is part of the documentary evidence needed to justify zero-rating such a supply. The matter is explained in VAT notice 725. PA (1) personal assistant (2) per annum (3) public accountant. (4) abbreviation used in Capital Allowances Act 2001 s212O in relation to balance sheet value pools. PA1 Primary authority under Regulatory Enforcement and Sanctions Act 2008 s29C(1)(b) as inserted by Enterprise Act 2016 s20. PA2 Another qualifying regulator nominated as a primary authority under Regulatory Enforcement and Sanctions Act 2008 s29C(1)(b) as inserted by Enterprise Act 2016 s20. paan Mixture of betel nut, coconut, rose petals, sugar and honey, wrapped in betel leaves. The tribunal held that this could be zero-rated as food as it had nutritional value. It rejected Customs’ view that the main ingredient, betel nut, was a stimulant rather than a food. G R Soni [1980] VTD 897. pa’anga Currency of Tonga. PAB ISO code for Panamanian balboa. PACAC Public Administration and Constitutional Affairs Committee, a parliamentary committee of MPs. PACE Police and Criminal Evidence Act 1984. pace Latin: by permission of. PACE code of practice One of several codes of practice issued under Police and Criminal Evidence Act 1984. Leach’s Tax Dictionary. Version 9 as at 5 June 2016. Page 5 There are eight such codes: • A: searching a person who has not been arrested • B: searching premises and seizing property found • C: detention, treatment and questioning of suspects • D: identification of suspects • E: sound recording of interviews of suspects • F: visual recording of interviews of suspects • G: statutory powers of arrest • H: detention of terrorism suspects. PacMan defence Defensive strategy to a hostile takeover, in which the target comany attempts to take over the acquiring company, usually in the hope that the acquiring company will abandon the takeover. pacesetter In investment, the best product or company in the market. pace tua Latin: by your leave.