Make sense of the technical talk

General key words and explanations

Here is a collection of words with their explanations that generally crop up in the context of tax issues.

  • HMRC – The acronym and common term for Her Majesty’s Revenue and Customs; a department of the UK Government who are responsible for the collection of tax.
  • Tax Avoidance Scheme – A legal method to reduce the amount of tax an individual or business is required to pay by law so to gain an advantage over other taxpayers.
  • Tax Dispute – An official, and sometimes lengthy, argument between two parties over the amount of tax that a taxpayer has been instructed to pay to HMRC.
  • Tax Rebate – When tax has been paid, a refund, commonly known as a rebate, can be provided by HMRC if the amount owed was less than the tax that was paid.
  • Understated Tax – An additional amount of tax determined by a designated officer that is due to be paid if a tax advantage has been denied by HMRC.

Advanced Payment Notification Key words and explanations

This second collection of words with their explanations all relate to the specifics surrounding Advanced Payment Notifications.

  • Advanced Payment – A specified amount of money that is paid upfront; in tax terms, to remove any advantage gained by those using tax avoidance schemes.
  • Advanced Payment Notification – A letter issued to an individual or business instructing them to make an upfront payment of tax of the amount specified in the tax payment notice.
  • Designated Officer – An official working for HMRC who determines the amount of tax a taxpayer is requested to pay based on calculations of understated tax.
  • Tax Payment Notice – A reminder sent out to individuals and businesses informing them of an upcoming payment of tax that is to be paid upfront to HMRC.
  • Tax Tribunal Ruling – Where a case is resolved between the taxpayer and HMRC if the taxpayer disputes the amount of tax paid upfront to HMRC.

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