Tangible assetsAssets with physical substance controlled by an entity which provide expected future economic benefits either by use on a continuing basis in the company’s activities, e.g. plant and machinery, or for use within the trade of the company, e.g. stock.
Tax allowancesTax allowances are concessions given by the tax authorities available to be used to reduce a person’s or company’s taxable income.
Tax avoidanceThe minimising of individual or company tax liabilities using legal methods.
Tax codesSupplied by HM Revenue & Customs for employees and used by employers to determine how much tax to deduct from salaries or wages for remittance to the tax authorities.
Tax evasionThe minimising of individual or company tax liabilities by failing to declare or understating taxable income or taxable capital gains to the tax authorities. This is a criminal offence with potentially severe penalties.
Tax shelterMethod of reducing taxable income and thereby reducing tax liabilities.
Tax year12 month period commencing 6th April and ending 5th April the following year. Also known as the fiscal year.
Taxable earningsThe portion of an individual’s annual income subject to taxation. Generally calculated as gross income less reliefs and allowances.
Taxable gainThe portion of a sale that is liable to taxation.
Tied agentA financial advisor who has an agreement with a company to recommend their products to others. Tied agents cannot be assumed to give impartial advice. They are regulated by the FSA.
Time depositsDeposits that require notification before a withdrawal can be made in order to avoid incurring a penalty.
Time value of moneyRepresents the interest potentially earned on a payment received today if held until a future date, hence £1 received today is worth more than £1 received in a years time.
Total returnCalculation that examines the combination of capital growth with income, such as dividends or interest.
Trade creditorAn amount owed to a supplier as a result of trading with them on credit terms.
Trade debtorAn amount owed from a customer as a result of having supplied them with goods or services on credit terms.
Trial balanceA listing of all debit and credit nominal account balances of a business as taken from the nominal ledger, sales ledger and purchase ledger over a specified period.
TrustArrangement empowering an individual or organisation (the trustee) to safeguard and administer the assets within the trust, e.g. land and property, on behalf of another (the beneficiary).
TurnoverA person’s or company’s total net sales recorded over a specific period.