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CAC stands for company authentication code. It is like a secret password that Companies House gives to every business registered with them in the UK. This code is really important because it’s used to access and manage the company’s official information online. It lets you do things like update company details, file reports, and submit your yearly accounts. Think of it as the key to the company’s digital file cabinet at Companies House. You need to keep it safe because if someone else gets it, they could make changes to your company’s information without you knowing.
HMRC stands for His Majesty’s Revenue and Customs. HMRC’s responsibility is to collect taxes on behalf of the UK Government.
A P45 is a document that an employer must give to an employee when they leave their job.
Self Assessment is a system that HM Revenue and Customs (HMRC) uses to collect Income Tax. Taxpayers must report income and capital gains, and submit a tax return annually if they have taxable income that hasn’t been taxed at source or involves Capital Gains Tax (CGT).
A Unique Taxpayer Reference, commonly known as a UTR or UTR number, is a code utilised by HMRC to identify self-employed individuals or their businesses for taxation purposes. It is commonly required to submit tax returns such as Self Assessment or Corporation Tax known as CT600.
VAT stands for Value Added Tax. It is a consumption tax levied on the price of goods and services at each stage of production or distribution. It is ultimately paid by the end consumer and collected by businesses on behalf of the UK Government.
Businesses charge VAT on their sales and pay VAT on their purchases. They then calculate the difference between these two amounts. If the VAT collected from sales is greater than the VAT paid on purchases, the business owes the difference to HMRC. If the VAT paid on purchases exceeds the VAT collected from sales, the business can claim a refund from HMRC for the difference.