An accounting period is a standardized time frame for tracking and reporting a company's financial performance and tax obligations. Commonly used in financial statements, accounting periods are vital for consistency and comparison.
Annual accounts, also known as annual financial statements, are comprehensive reports on a company's financial position and performance over a fiscal year. These accounts include the balance sheet, income statement, statement of changes in equity, and cash flow statement.
Annual earnings represent the amount of profit a business or individual realizes in one fiscal year. The concept is crucial for financial performance assessment, taxation, and strategic planning.
An exempt transfer under inheritance tax legislation allowing £3,000 to be given each year as a gift without liability to inheritance tax. This amount has remained unchanged since 6 April 1981.
The basis upon which personal income or business profits are assessed in the UK for each fiscal year. The specific rules for each income-tax schedule detail the profits or income to be assessed in that year.
The Basis Period is a critical concept in accounting and taxation, referring to the specific period, usually a fiscal year, during which income generated or profits earned are used as the basis for assessing tax liabilities for the following tax year.
The term 'Beginning of Year' (BOY) is commonly used in financial analysis and reporting to indicate the start of a fiscal year. In accounting, it acts as a reference point for comparing year-over-year performance and financial statements.
Non-cash benefits provided to employees from employment, which are subject to UK tax regulations, often reported on form P11D.
A budget period is a designated timeframe during which a specific budget is planned and implemented, aligning closely with the accounting periods utilized by the organization. Typically, this period spans a year but can be broken down into shorter control periods like months or quarters for enhanced financial oversight.
A calendar year refers to a continuous period beginning on January 1 and ending on December 31, widely used for financial and accounting purposes. In contrast, a fiscal year can vary depending on the organization's specific reporting requirements.
The current-year basis is an accounting principle used for tax assessment in the UK, wherein profits are taxed in a fiscal year based on the profits arising in the accounts for the period ending within that same tax year.
End-of-Year (EOY) represents the completion of the accounting period, typically the fiscal year, where businesses close their books and prepare year-end financial statements and reports.
An estimated assessment is a tax assessment raised by HM Revenue based on estimated profits or income of a taxpayer, often derived from the previous period's assessment.
The federal deficit (or surplus) refers to the shortfall (or surplus) resulting when the federal government spends more (or less) in a fiscal year than it receives in revenue. The deficit is financed by borrowing from the public via long and short-term debt instruments.
A financial period, also known as an accounting period, is a specific timeframe within which financial performance is measured and reported for both businesses and individuals. This span is essential for preparing periodic financial statements and evaluating profitability, financial position, and cash flows.
An in-depth overview of the financial year, including definitions, examples, related terms, online resources, and suggested reading materials.
A fiscal year is a 12-month period used for calculating annual financial statements in businesses and other organizations. The start and end dates of a fiscal year can vary between countries and organizations.
Income tax code is a code number issued by HM Revenue and Customs (HMRC) which takes account of the personal allowance and any other additional allowances. It is used by employers through the PAYE scheme to calculate the taxable pay, ensuring the tax due for the fiscal year is deducted from the employee's earnings in equal weekly or monthly amounts.
Interim financial statements are financial reports covering a period of less than one full fiscal year, typically used by companies to provide updated information to stakeholders between annual reports.
A fiscal year that aligns with the natural cycle of a given business rather than the calendar year, often ending when inventories and activities are at their lowest level.
The time span over which financial activities and statements are assessed, often corresponding to an accounting period.
A basis for assessing profits where the assessment in any given fiscal year is based on the accounts that ended during the previous tax year. In the UK, the PYB was replaced by the current-year basis of assessment from 1997--98 onwards.
Prepaid income refers to rents, interest, or other forms of compensation received in advance for services or deliveries to be provided at a later date. It is generally included in taxable income in the year it is received.
A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.
A repayment claim is a request made by taxpayers to recover overpaid taxes for a fiscal year. Such claims are necessary when basic rate taxes are deducted at source from income without considering personal allowances.
A reporting period is the specific span of time covered by a financial statement. This time frame is crucial as it provides stakeholders with the necessary context to evaluate a company’s financial performance and position.
A tax assessment is a schedule issued by HM Revenue and Customs (HMRC) showing a calculation of a taxpayer's liability to income tax. Income sources are identified separately, and individuals could receive multiple tax assessments for each fiscal year, depending on the number of different income sources.
Under the UK taxation system, a tax month runs from the 6th day of one month to the 5th day of the following month. This ensures that there are 12 complete tax months in the fiscal year.
A tax year is a period used for calculating annual income tax returns. It is commonly a calendar year but can also be a fiscal year, which is any consecutive 12-month period that does not necessarily start on January 1st.
A taxable year is a period, usually 12 months, during which the tax liability of an individual or entity is calculated. In the case of certain nontaxable entities, it is the period for which tax information is provided.
Total income refers to the income of a taxpayer from all sources before any income-tax allowances are applied. This is often referred to as statutory total income and includes income calculated on various bases depending on the source of income. This concept is pivotal for calculating a person's income tax for a given year.
A year is traditionally understood as a period of time consisting of 365 days, or 366 days in a leap year, which represents one complete orbit of the Earth around the Sun.
The Year of Assessment (YA) is the calendar year in which income for the preceding year, referred to as the 'basis year,' is assessed for tax purposes. It is a crucial concept in understanding the tax cycle and filing deadlines.
Year-end refers to the end of an accounting period, which may align with the calendar year or a fiscal year, and is a pivotal moment when financial books are closed.
The accumulation of accounts from the start of the fiscal year to the latest available period. Sales, purchases, and profits for any current week or month may be displayed year-to-date.
