Glossary – I to L
|ICAEW||The Institute of Chartered Accountants in England and Wales, the first Chartered body of Accountants, it was set up to promote the status of acountants and improve teir standing as a profession.|
|ICO||The Information Commissioner’s Office, a public body that deals with UK Data Protection matters.|
|Income Tax||The tax paid by individuals on their earnings or profits.|
|Indirect Taxes||Any tax that is levied on what you spend rather than what you earn, a good example is Value Added Tax.|
|Inheritance Tax||The tax payable on the assets owned by a person when they die, colloquially known as Death Duties.|
|Insolvency||The state of being unable to pay debts as they fall due.|
|Intangible Fixed Assets||Items that the company gains benefit from that aren’t represented by something physical, for example goodwill.|
|Investigations||The process that HMRC uses to determine whether the amounts disclosed on a Tax Return are correct or otherwise. (See also Fee Protection)|
|Invoice Finance||A way of obtaining funding based on invoices issued but not yet paid. If it is solely for sales invoices it is normally called factoring, but invoice finance can be provided in certain circumstances on purchase invoices.|
|IR35||Inland Revenue Press Release 35, that setup the rules by which people working through a limited company can be forced to pay employment taxes (including National Insurance) on the earnings in that company. It was introduced in 1999 and has been superseded by the off-payroll rules.|
|IVA||The abbreviated version of ‘Individual Voluntary Arrangement’, an agreement entered into by an individual that sets out how they will pay back their debts over a period of time. The Arrangement has to be agreed with a majority (by value) of the people that are owed money by the individual.|
|Journals||Strictly this is a detailed account that records all of the financial transactions of a business, but the term is more normally used today to refer to a method by which transactions are moved from one account to another within the businesses books.|
|KPIs||Key Performance Indicators, a way of identifying and measuring the performance of a business.|
|Late Payment of Commercial Debts Act||The Late Payment of Commercial Debts (Interest) Act 1998 – An Act of Parliament that gives businesses the legal right to charge interest if their invoices aren’t paid on time by other business customers, whether included in their terms or not.|
|Liabilities||Amounts owed by a business.|
|Limited Company||A particular business structure that means the liabilities of the owners is limited to the amount they initially invested in the company. It is a separate legal entity; as a result of its special treatment selected details of the company must go on public record at Companies House.|
|Limited Liability Partnership||Similar to Limited Company except the tax treatment is the same as for a normal partnership. As with a limited company details of the business are on public record at Companies House.|
|Liquidation||The process of winding up a limited company which can only be undertaken by a Liquidator who holds special qualifications to enable them to do so.|
|Loss||The opposite of a profit, where in selling an item or service you receive less money that you spent to generate it.|
|Lower Earnings Limit||Applicable to National Insurance. If you earn below the Lower Earnings Limited you make no National Insurance contributions, but earn no benefit rights. Beyond this limit you will be entitled to some basic benefits but won’t actually pay National Insurance until your earnings reach the Primary Threshold.|
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Management & Growth
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Can I just say we are so pleased that we have moved to Baranov Associates. As we discussed when you visited, we had to find a way to take the stress out of all of the financials and you’re doing that for us! We can see how to use Xero more efficiently and so with us being as on top of it as we can be and with you and Liz we feel a lot more confident about our business being in good shape.
Mrs S James, Sandbanks Capital Partners Limited
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