close menu

Tax refund jargon buster

by Kobus Van den Bergh | Aug 11, 2014
  • Tax terminology has a reputation for being complicated, but it's easy to digest once you speak the language. Start off by using our tax refund jargon buster, designed to remove the stress of your annual tax return.
    • Allowances: Tax-free amounts set by the government each year. Nearly everyone who lives and works in the UK is entitled to an Income Tax Personal Allowance, which is essentially the amount of income you may receive each year without having to pay tax on it.
    • Basic Rate Tax: The standard percentage of tax that you pay. This is currently 20%, meaning you pay 20p for every taxable £1 you earn at the basic rate.
    • Benefits: The term for anything your employer gives you other than your salary - this can include a company car, medical or dental insurance and accommodation.
    • Deductions: Items deducted off your earnings to get to your taxable income - they reduce your tax payable and increase any refund due to you.
    • Gross income: The salary you earn before any tax is deducted.
    • National Insurance (NI) number: Issued to anyone who is legally allowed to work in the UK. Yours is a unique number and can be found on your payslips, tax returns and other relevant tax documents.
    • PAYE: A system for paying income tax and national insurance contributions, whereby your employer deducts these contributions from your salary before paying you.
    • P45: A form showing your taxable pay and tax paid from the start of the tax year up to your leaving date. It is issued by your employer when you leave a job.
    • P60: This form is issued by your employer just after the end of the tax year and shows taxable pay and tax deducted, the tax code operated on, details of national insurance contributions paid, and any relevant deductions.
    • Self Assessment tax return: Issued by the Tax Office to all individuals who have to report their income and pay tax. Those who are self-employed must fill and file a Self Assessment tax return by 31 January following the end of the tax year.
    • Tax refund: Payments from HMRC to someone who has paid too much tax in any particular year. They used to be called tax rebates. A tax refund is a repayment of tax that you have overpaid during the tax year, as determined by HM Revenue & Customs (HMRC).
    • Tax year: Also known as the financial year or the year of assessment, the tax year runs from April 6 until April 5 the following year. So the 2012/2013 tax year was 6 April 2012 to 5 April 2013.
    • Unique Tax Reference: All those registered as self-employed are issued with a Unique Tax Reference (UTR). The format is 10 numbers in two groups of five (e.g. 12345 67890) and can be found on your tax return and most other correspondence from HMRC.

    Not yet applied for your tax refund? You could be due a bundle. Visit 1st Contact Tax Refunds for your free assessment.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Confused businessman
      Hiring your first employee for your UK business? This is how much it costs
      Oct 31, 2019  |  by Scott Brown
    • business plan
      Step-by-step guide to writing a business plan [template included]
      Aug 29, 2019  |  by Scott Brown
    • female-entrepreneur hot air balloon
      Why we need more women-owned businesses
      Jul 16, 2019  |  by Scott Brown
    • crowdfunding lightbulb
      7 ways to finance your small business
      Jul 16, 2019  |  by Scott Brown
    • Businessman looking to the future
      How to get your business ready for the future
      Jun 19, 2019  |  by Scott Brown
    • Guide to UK PAYE tax forms
      A guide to UK PAYE tax forms P45, P60 and P11D
      Jun 14, 2019  |  by Kobus Van den Bergh
    • Cut-taxes
      The 2019/20 tax year changes: What they mean for you
      Jun 10, 2019  |  by Scott Brown
    • confused
      Do you need to complete a Self Assessment tax return?
      May 29, 2019  |  by Kobus Van den Bergh
    • Tax refund money
      11 excellent ways to spend your UK tax refund
      Apr 09, 2019  |  by Kobus Van den Bergh
    • London-business
      The UK still the best country for business in 2019
      Apr 04, 2019  |  by Scott Brown

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120


    25 Richefond Circle
    Umhlanga 4320 +27 (0) 31 536 8843

    United Kingdom


    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514



    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services Licence issued by ASIC to deal in foreign exchange (1st Contact Group - AFS Licence number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.