Glossary – E to H
E
| Term | Explanation |
|---|---|
| E-reminders | An email reminder service from Companies House which tells you when your company’s accounts and Confirmation Statements are due. More than one email address can be registered for this free service, but you do need to sign up to receive them. |
| EBITDA | EBITDA stands for ‘earnings before interest, tax, depreciation and amortisation’. It is a way to measure a company’s profitabilty, without taking account of daily oerating expenses. This can make it a useful way to compare businesses. |
| EIS Schemes | There are two types of Enterprise Investment Share Schemes, designed to offer tax relief to investors buying new shares in qualifying companies. The Enterprise Investment Scheme is available for companies at any point in their lifecycle, as long as they meet the qualifying criteria, while the Seed Enterprise Investment Scheme helps new businesses who have not yet traded that meet qualifying criteria. |
| Electric Vehicle Grants | A discount on the price you pay for a brand-new electric vehicle; the grant value is paid by the Government as long as the price of the new vehicle is below a certain level. |
| EMI Share Schemes | A scheme approved by HMRC to give shares to employees without them having to pay tax on them. The scheme works by giving people options on shares that can be exercised at a later date. |
| Entrepreneurs Relief | A reduction in the rate of Capital Gains Tax payable when you sell certain business assets. There is a maximum amount you can claim in a lifetime. |
| EORI Number | Economic Operators Registration and Indentification number. This is used on import and export documentation with the EU and currently includes your VAT number within it. |
| Equity | The value of capital and retained profits in a business, or the mortgage free value of a property. |
| Exempt | In relation to VAT, transactions that are exempt are free from any VAT element being added. |
| Exit | The process of leaving a business, either by sale or stopping the trade of the business. |
| Expenses | Costs in a business that aren’t directly related to the product or service you are selling, sometimes also known as overheads. |
F
| Term | Explanation |
|---|---|
| Factoring | A way of raising money by lending against invoices that a business has issued but has yet to receive money for. |
| FCA | The Financial Conduct Authority, responsible for overseeing banking, investment and insurance matters. |
| Fee Protection | A service or insurance that covers the professional costs of dealing with HMRC enquiries. |
| Fixed Assets | Anything used in the business that will provide benefit to that business for more than a year. The cost of those assets is spread over their useful life by either depreciation or amortisation depending on whether the fixed asset is a physical thing or Intangible in nature. |
| Fixed Cost | A regular recurring cost that doesn’t fluctuate when sales vary, for example rent. |
| Forecasts | An estimate of what is likely to happen in the future. A forecast could cover many things but usually is for the Profit and Loss Account or the Cash Flow. |
| Full Expensing | Full Expensing allows companies to claim 100% capital allowances on qualifying plant and machinery investments to an unlimited amount against their Corporation Tax, until the 31st March 2026. |
| FRS102 | The accounting standard under which company accounts are prepared where the company is not deemed as a micro company. |
| FRS105 | The accounting standard under which micro company accounts are prepared. |
| FSB | The Federation of Small Businesses, an organisation that looks after the interests of small businesses and lobbies Government on their behalf. |
G
| Term | Explanation |
|---|---|
| GAAP | Generally Accepted Accounting Practice, the way that accounts are usually prepared, and comprises a series of standards that cover all the prosepctive details, complexities and legalities of accounts. |
| Going Concern | A statement of whether or not a business can continue to trade and pay what it owes when those amounts fall due. |
| Goodwill | The value paid for a business over and above the assets and liabilities that exist in the business at their fair value. |
| Google My Business | A free online business marketing tool offered by Google, of particular benefit to businesses with a local audience. |
| Gross Profit | The amount of money made by a business after deducting the costs that are directly related to the prioduct or service that has been sold. |
H
| Term | Explanation |
|---|---|
| Health & Social Levy | An additional tax brought in to help fund the NHS and equivalent social care bodies in the UK. It will initally be levied as an increase in National Insurance contributions but will then payable as an additional tax in 2023-24. |
| HMRC | ‘Her Majesty’s Revenue and Customs’, the body tasked with ensuring the correct amount of taxes are collected on behalf of the Treasury. |
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Related Info
Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!
Limited Company
Tax
Management & Growth
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