What is a Salary Sacrifice?
Salary sacrifice, also known as 'salary exchange' schemes, occurs when you agree to 'sacrifice' a part of your salary in exchange for other, non-cash benefits from your employer. These can…
What is a Venture Capital Trust?
A venture capital trust (VCT) is a tax-efficient investment vehicle in the United Kingdom that provides funds to small, and early-stage businesses. CTs are either traded or unquoted on the…
What is Additional rate tax
The UK follows a progressive taxation system which means as your income increases, so does your tax liability. Additional rate tax is the rate tax payable by people who have…
What is a Payroll?
Payroll is the total of all compensation that a company must pay to its employees over a specific period or on a particular date. Payroll is managed by a company's…
What is Goodwill?
Goodwill is an intangible asset linked with one company's acquisition by another that indicates non-physical objects that contribute to a company's value but can not be easily defined or priced.…
What is an Equity Release?
Equity release refers to a set of items that enable you to access the equity (cash) in your home. Suppose you are above the age of 55. You may release…
What is Gross Margin
Gross margin, also known as Gross Profit Margin, refers to the profit generated from sales after subtracting the cost of goods sold. In simple words, Gross Margin is a measure…
What is a Charitable donation?
A charitable donation is a gift of money or property given to a nonprofit organisation to help it achieve its goals in exchange for nothing in return. For certain nonprofit…
What is Accruals
An accrual is an expense or income generated when no invoice or payment has been made at the end of that period. Accruals allow an organization to maintain detailed records…
What are Debtors?
The term debtor originates from the Latin word 'debate', which means no one. A debtor is a phrase used in accounting to describe an entity or person who owes money…