Accounting and tax glossary.
This accounting and tax glossary defines every acronym used across the site, once, with the authority that owns the term and the page that covers it in depth. It spans five markets: the United Kingdom, the United States, the United Arab Emirates, Canada and Australia, from HMRC's MTD rules to ASC 606.
This glossary defines the accounting, tax and compliance terms used across Accountaire's service, industry and market pages, covering the United Kingdom, United States, United Arab Emirates, Canada and Australia. Each definition states what the term means, which authority owns it, and where on this site the subject is covered in depth. Terms that need more than a paragraph link through to the longer treatments on the Accountaire blog.
Accounting and tax glossary: United Kingdom terms
IR35 and the off-payroll working rules
Tax rules deciding whether someone working through their own limited company should be taxed as an employee. Since 6 April 2021, medium and large private sector clients make the determination and the fee payer operates PAYE. HMRC's guidance is Understanding off-payroll working. Covered in full in our IR35 guide for contractors.
Status Determination Statement (SDS)
The written statement a client must give a worker and the party it contracts with, setting out its IR35 conclusion and the reasons for it. It must be reached with reasonable care, and the client has 45 days to respond to any disagreement. Relevant to freelancers and contractors.
CEST
HMRC's Check Employment Status for Tax tool, which produces an employment status result from answers about substitution, control and financial risk. HMRC stands behind the result only where the inputs are accurate and reflect actual working practices.
CIS (Construction Industry Scheme)
A withholding regime requiring contractors to deduct 20 per cent from registered subcontractors, 30 per cent from unregistered ones and nothing from those with gross payment status, on the labour element of each payment. See HMRC's CIS overview, our CIS scheme explained guide and our construction accountants page.
Gross payment status
An HMRC status allowing a construction subcontractor to be paid without deduction. It requires business, turnover and compliance tests to be met, is reviewed annually, and since 6 April 2024 VAT compliance forms part of the test.
MTD (Making Tax Digital)
HMRC's programme requiring digital records and software-based filing. MTD for VAT applies to VAT-registered businesses now, and MTD for Income Tax phases in from April 2026. See our Making Tax Digital for VAT guide and MTD for Income Tax guide.
PAYE
Pay As You Earn, the UK system for deducting income tax and National Insurance from wages at the point of payment and reporting each pay run to HMRC in real time. Handled by our multi-jurisdiction payroll service.
Self-Assessment
The UK personal tax return regime. The online filing and balancing payment deadline is 31 January following the tax year, with payments on account due 31 January and 31 July. See HMRC's Self Assessment guidance and our Self-Assessment filing service.
UTR
Unique Taxpayer Reference, the ten digit number HMRC uses to identify a taxpayer or a company for Self-Assessment and Corporation Tax. It is required for CIS verification and for authorising an agent to act.
Companies House
The UK registrar of companies, which holds the public register and receives annual accounts and confirmation statements. See Companies House and the public company register. Statutory filings are handled by our outsourced company secretary service.
VAT domestic reverse charge
A VAT mechanism, in force for building and construction services since 1 March 2021, under which the customer rather than the supplier accounts for the VAT. It applies to most CIS-reportable supplies between VAT-registered businesses and stops at the end user. See HMRC's guidance on the VAT domestic reverse charge for building and construction services.
ACCA
The Association of Chartered Certified Accountants, a global professional body whose members complete examinations, a practical experience requirement and continuing professional development. Membership status can be checked on the body's own register. See bookkeeper versus accountant for how qualifications differ between the two roles.
United States terms
LLC
A limited liability company, formed under state law. Federally it is disregarded if single-member, taxed as a partnership if multi-member, or taxed as a corporation if it elects. The IRS explains it at limited liability company.
S corporation
A federal tax classification under Subchapter S, elected on Form 2553, under which income passes through to shareholders and only a reasonable wage carries payroll tax. Limited to 100 shareholders, one class of stock and no nonresident alien shareholders. See our S corp versus LLC tax guide.
Form 941
The quarterly federal return reporting wages, withheld income tax and Social Security and Medicare taxes. See About Form 941 and our PAYE versus Form 941 comparison.
Economic nexus
The sales or transaction threshold at which a seller becomes liable to register for and collect a state's sales tax without having a physical presence there, following South Dakota v. Wayfair. Thresholds differ by state. See our US sales tax nexus guide.
EIN
Employer Identification Number, the federal tax identifier for a business entity, required for payroll, most business bank accounts and many state registrations. Obtained from the IRS.
ASC 606
The US revenue recognition standard, Revenue from Contracts with Customers, issued by the Financial Accounting Standards Board. Its five step model mirrors IFRS 15. Critical for subscription businesses, as covered on our SaaS accountants page.
United Arab Emirates terms
FTA
The Federal Tax Authority, which administers UAE VAT, Corporate Tax and excise tax. Registration, filing and payment all run through its systems.
EmaraTax
The FTA's online platform for tax registration, return filing, payment and refunds. See the EmaraTax service page and our UAE VAT and Corporate Tax compliance calendar.
Small Business Relief
A UAE Corporate Tax relief under which an eligible resident person with revenue below the prescribed threshold may elect to be treated as having no taxable income for the period. Details at the FTA. Covered on our UAE accounting service page.
WPS
The Wage Protection System, the UAE electronic salary transfer regime that requires employers to pay wages through approved financial institutions so payments can be monitored. It shapes how UAE payroll runs are prepared and timed.
Canada terms
GST and HST
The federal Goods and Services Tax at 5 per cent, and the Harmonized Sales Tax charged in provinces that combined their provincial tax with it. Both are reported on one return to the Canada Revenue Agency. See our GST/HST filing guide for Canada.
Input tax credit (ITC)
The mechanism for recovering GST/HST paid on business purchases. Most businesses have four years from the due date of the relevant return to claim, with a shorter window for certain large businesses and financial institutions.
T2
The Canadian corporate income tax return, due within six months of the fiscal year end, with tax payable earlier than the filing deadline. Covered on our Canadian accounting service page.
Australia terms
BAS
The Business Activity Statement, a single return reporting GST, PAYG withholding and PAYG instalments to the Australian Taxation Office. Most businesses lodge quarterly. See our BAS lodgement guide.
STP
Single Touch Payroll, the Australian requirement to report salary, tax withheld and superannuation information to the ATO at the time of each pay run rather than annually.
Super guarantee
The compulsory employer superannuation contribution, payable quarterly by 28 October, 28 January, 28 April and 28 July, at 12 per cent of ordinary time earnings since 1 July 2025. Late payment costs the deduction and triggers the superannuation guarantee charge. See accountants for Australian SMEs.
ABN
Australian Business Number, the identifier required to register for GST, to appear on tax invoices, and to avoid having tax withheld from payments at the top rate by other businesses.
The same obligation, five different names
Most of the confusion in cross-border accounting comes from one idea wearing five labels. This table maps the consumption tax and payroll reporting regimes across the markets Accountaire serves.
| Market | Consumption tax | Return name | Payroll reporting | Authority |
|---|---|---|---|---|
| United Kingdom | VAT | VAT return under Making Tax Digital | Real Time Information under PAYE | HMRC |
| United States | State sales tax | State sales tax return, per state | Form 941, quarterly | IRS and state departments of revenue |
| United Arab Emirates | VAT | VAT return via EmaraTax | Wage Protection System file | Federal Tax Authority |
| Canada | GST and HST, plus provincial sales tax | GST/HST return | Source deductions remittance | Canada Revenue Agency |
| Australia | GST | Business Activity Statement | Single Touch Payroll | Australian Taxation Office |
Accounting, reporting and role terms
IFRS
International Financial Reporting Standards, issued by the IFRS Foundation and used for consolidated reporting in over a hundred jurisdictions. The full list of standards is published by the Foundation.
Management accounts
Internal financial statements produced monthly or quarterly, comparing performance against budget with written commentary, and designed to inform decisions rather than to satisfy a registrar. Delivered through our monthly management accounts service.
Chart of accounts
The structured list of nominal accounts a business posts transactions to. A well-designed chart makes margin visible by channel or contract. See our Shopify and Amazon chart of accounts guide.
Fractional CFO
A part-time senior finance executive engaged for a set number of days against a defined mandate, as distinct from a virtual CFO delivering ongoing remote finance leadership. Compared in virtual CFO versus fractional CFO and delivered through our fractional CFO service.
Catch-up bookkeeping
Reconstructing and reconciling a period of records that were never kept properly, usually before a filing deadline or a funding event. See our catch-up bookkeeping service and the six week process behind it.
Thirteen week cash flow
A rolling weekly forecast of cash receipts and payments over the next thirteen weeks, reconciled to the bank each week. The standard short-horizon tool in turnaround and lending situations. Template and method in our 13 week cash flow guide.