What is an Operating Lease?
An operating lease is a rental agreement where a company uses an asset without owning it. The company (lessee) pays the owner (lessor) to use the asset for a set time. After the lease ends, the asset goes back to the owner. This type of lease is common for things like vehicles, equipment, or office […]
What are Prepayments?
Prepayments are payments made before their due date. This can apply to settling debts early or paying for goods and services in advance. For instance, paying off a loan ahead of schedule or covering several months of rent upfront are examples of prepayments. Types of Prepayments: Benefits of Prepayments: Considerations: In summary, prepayments involve settling […]
What is a Debenture?
A debenture is a type of debt instrument companies use to raise funds from the public or private investors. It works like a loan where the company borrows money and agrees to pay it back with interest over a specific period. These instruments are widely used in the financial world due to their simplicity and […]
Company UTR Number.
A Company UTR (Unique Taxpayer Reference) number is a 10-digit number given by HM Revenue and Customs (HMRC) to businesses in the UK. This number is used to identify your company for tax-related matters, like filing returns and making payments. How is a Company UTR Number Issued? When you register your company with Companies House, […]
What is a Floating Charges?
A floating charge is a loan security allowing lenders to claim changing assets like stock, inventory, or receivables.
what is CIS tax
The Construction Industry Scheme (CIS) tax is a system used in the United Kingdom to manage and streamline tax payments in the construction sector.
What is Marginal Relief Calculator
A marginal relief calculator is a tool designed to help taxpayers estimate the relief they may receive under marginal tax rules.
What is Input VAT?
Input VAT refers to the Value Added Tax (VAT) a business pays on goods or services purchased for business use. It is the VAT charged by suppliers on items or services the business needs to produce its products or deliver its services. Businesses that are VAT-registered can typically reclaim input VAT through their VAT returns, […]
What is P85?
The P85 form is a document used in the UK for tax purposes when an individual leaves the country. It is submitted to HM Revenue and Customs (HMRC) to: This form is particularly useful to ensure your tax affairs are handled correctly after becoming a non-resident for UK tax purposes. However, its use is optional […]
What is a Purchase Ledger
The purchase ledger records and tracks all purchases and related financial transactions with suppliers.