Topic 12 key terms(earnings) Flashcards
benefit
definition: government payment made to individuals who meet specific
conditions to help them meet their living expenses
budget
definition: plan of expected incomings and outgoings over a set time period such as a month
chancellor of the exchequer
definition: British Cabinet minister responsible for financial and economic matters and in charge of the Treasury
dividend
definition: A payment of profits from a company to its shareholders, often at twice-yearly intervals, either as cash or further shares or reacquisition of shares
gross interest
definition: Interest paid without tax deducted
HM revenue and customs
definition: The government department that collects various taxes, Formerly the Inland Revenue
income
definition: Earnings, savings and interest payments received within a certain time frame
income tax
definition: Tax paid on earnings from employment, self-employment and interest on savings
individual savings account
definition: An account that pays interest tax-free on savings up to a certain level,cash ISAs and stocks and shares ISAs as well as Junior ISAs are available
interest
definition: Money either paid to an account holder by the provider, or
charged to the account holder by the provider,interest is paid on savings accounts and some current accounts and charged on borrowing
investment
definition: Money paid into financial products; the aim is that the value of
the product will grow over time and so the person will eventually receive back more money than they paid in
junior ISA
definition: Junior ISAs are long-term savings accounts set up by a parent or
guardian specifically for the child’s future
Mortgage
definition: loan taken out to pay for a property, usually over a long term
National insurance contributions
definition: Money deducted from the pay of people who are employed or self-employed and used by the government to fund state pensions and other benefits.
national living wage
definition: minimum that people aged 23 and over must be paid per hour by law. The national minimum wage applies to workers aged under 23.
national minimum wage
definition: minimum pay per hour to which workers are entitled by law, rate depends on a worker’s age and whether they are an apprentice,applies to workers aged under 23.
p45
definition: document legally required from an employer when an employee stops working for them summarises the employee’s tax and National Insurance details
p60
definition: document prepared at the end of every tax year to show all the income tax and National Insurance contributions paid by an individual durinq the preceding 12 months.
pension
definition: income that people receive after retiring from work,in the UK
people receive a pension from the state or private
personal allowance
definition: The amount of income you are allowed to earn before you become liable for income tax
personal savings allowance
definition: amount of savings interest that can be earned before the saver pays tax
self-assessment
definition: method used, often by self-employed people, to calculate the
amount of tax and National Insurance they need to pay
self-employment
definition: Earning an income by selling your goods or services directly to a
consumer, rather than beinq employed by somebody else and being paid a wage or salary
starting-rate band
definition: amount of savinqs that an individual can ear tax-free it their total income is less than the personal allowance
