COM100 - Glossary of terms

A

ACT

ACT stands for Advance Corporation Tax.

Where a company pays a dividend or other qualifying distribution, it has to make an advance payment of CT. This ACT is calculated by reference to the amount or value of the distribution made.

Full details about ACT are contained in the Company Taxation (CT) Manual.

Active

A computer term used to denote that when you are in an active mode in any function, you can enter and amend data, and give positive instructions to the computer.

Active Version

When applied to a Work List, means that you can do all that the ‘View’ version allows you to do, and also work the cases entered on the list.

Administrative receivership

An administrative receivership is where an administrative receiver (known in Scotland as a receiver) is appointed by a debenture holder or holders. The appointment is to control the whole or a major part of a company’s assets and property for the benefit of a second creditor.

Administration

A company administration order is an order of the Court directing an insolvency practitioner, called the Administrator, to manage the affairs of a company.

For further information see INS3000 of the Insolvency (INS) Manual (Arrangements and company administration).

Administration order

A company administration order is an order of the Court directing an insolvency practitioner, called the Administrator, to manage the affairs of a company.

Agent

The term 'agent', means an accountant, auditor, solicitor, group tax department, or some other person or firm who

• Prepares returns or accounts for a company

And / or

• Advises or acts for it in tax matters

The term does not include

• An administrator, liquidator or receiver

Or

• Any other person or body who has a different relationship with the company from that of accountant or tax adviser 

Agent Identity / Agent ID

The unique code, by which an agent is known to the computer. The Agent ID is entered on the company’s computer record, instead of the name, address and telephone number of the agent concerned.

The code will be in one of the following formats

• 12345A

Or

• A1234A 

AP status

The AP status will be

• Live
• Dormant
• Exempt

Or

• Superseded 

Automatic

In computer terms, automatic distinguishes between an activity that the computer initiates and carries out by itself (that is automatically), and an activity initiated by the operator using the keyboard (that is manually).

B

BACS

BACS is an automated service provided by BACS Ltd to its member banks. It avoids the need for handling cheques or cash when making payment.

BACS payments are transferred electronically into the Revenue account with the Bank of England. The bank notifies the Accounting & Payments Service (A&PS) of payments on magnetic tape.

Bank Giro

Bank Giro is a credit transfer system that enables payment to be made through a bank branch. Each payment is credited to an Inland Revenue Bank Giro account with the Bank of England. The target bank account is indicated on the payslip. Each account is associated with either A&PS Shipley or Cumbernauld.

The Bank of England notifies A&PS of the credits received each day in each Bank Giro account. The credits are notified mainly on magnetic tape but a small proportion is notified on paper.

BROCS

BROCS stands for Business Review of the Collection Service. A separate BROCS system is maintained in A&PS Shipley and Cumbernauld. The BROCS system holds accounting information about employers relating to PAYE and Class 1 National Insurance Contributions.

Buttons

In COTAX, various labelled ‘buttons’ are shown on screens. These are normally at the bottom of the screen. They are used to do many things, for example

• To complete actions
• Move to other functions
• To go back to a previous screen
• To abandon a function

Or

• To call up COTAX System Help (COSH). The [Help] button is available on most COTAX screens

You normally select a button by moving the mouse pointer on to the button and clicking the left mouse button.

C

Capture

The entry into the computer of data from an external source on which work is to be done. For example the ‘capture’ of information provided in CT return forms.

Certificate of Tax Deposit

The Certificates of Tax Deposit (CTD) scheme enables a company to make payments which the Government holds as deposits against future tax liabilities. Only CTDs purchased before 1 October 1993 can be used in settlement of COTAX liabilities. 

CHAPS

Clearing House Automated Payment System (CHAPS) is a facility offered by banks for arranging same day payment and is normally used for paying larger amounts.

Money is transferred electronically into the Revenue account with the Bank of England. The bank notifies the Accounting & Payments Service of each payment on the day of receipt.

Company

A company can be

• A corporate body, showing `Ltd' or `PLC' as part of its title

Or

• An unincorporated association

Unincorporated associations can take many forms. They can include

• Members' clubs
• Trade associations
• Authorised unit trusts

But, do not include

• Partnerships
• Local authorities
• Local authority associations 

COTAX

This is the name of the Company Taxation computer, introduced on 10/11/1999. COTAX

• Incorporates the continuing elements of the old CT Pay and File (CTPF) computer

And

• Introduces the changes needed to accommodate Corporation Tax Self Assessment (CTSA)  

CRI

CRI stands for Centre for Research and Intelligence. It is responsible for many areas of work including, in COTAX

• Setting up the initial company record following notification of a new company incorporated or registered under the UK Companies Act in England and Wales
• Setting up and maintaining records on the COTAX national agent file for agents with addresses abroad 

CT

Corporation Tax

• For a CT Pay and File AP, is the company’s mainstream Corporation Tax liability
• For a CTSA AP, is the company’s Corporation Tax liability and liabilities under S419 ICTA 1988 and S 747 ICTA 1988 

CTA

CTA stands for Corporation Tax Assessing. This is the computer system used prior to CT Pay and File. It still applies to any AP ending before 1 October 1993. In addition a computer record must be set up on CTA in all cases where the Potential Schedule 13 / 16 signal is set on the COTAX record.

CTA APs

A CTA AP is any AP which ends

• Before 1/10/1993 

CT Pay and File AP

A CT Pay and File AP is any AP which ends

• On or after 01/10/1993

And

• Before 01/07/1999 

CT Pay and File return periods

A CT Pay and File return period is any return period which ends

• On or after 01/10/1993

And

• Before 01/07/1999 

CTPF

The computer that supported the CT Pay and File regime for APs ending in the period 01/10/93 to 30/06/99.

CTSA

The Corporation Tax Self Assessment regime covering the period from 01/07/1999 onwards. Under this regime a company is required to

• Pay its CT without an assessment being raised, within 9 months and 1 day of the end of an AP
• File its return and self assessment, normally within 12 months of the end of the AP 

CTSA AP

A CTSA AP is any AP which ends on or after 01/07/1999.

CTSA return periods

A CTSA return period is any return period which ends on or after 01/07/1999.

D

Debenture holder

Where a company borrows or owes money, the lender or creditor, normally a bank, may secure the loan or debt by taking out a charge on the company's assets.

The charge is recorded in a legal document called a debenture and is registered with the Registrar of Companies.

A debenture is issued by a company as security for the loan of a fixed sum of money or as evidence of a debt. The debenture contains a promise to pay the amount recorded in it together with commercial interest. The lender or creditor becomes a secured creditor and is known as the debenture holder.

Delivered

A return must be physically received in a network office before it is regarded as delivered.

Display resolution

The term used to describe the quality and size of the picture shown on a computer screen.

The standard setting on I2K machines is 800x600 pixels, which provides a clear sharp picture, but means that mainframe computer services, originally programmed for displays of 640x480 pixels, only take up about three quarters of the available screen space.

The use of a display resolution of 640x480 pixels for COTAX means that the window fills the whole screen, and the displayed image is larger.

E

Enforcement and Insolvency Service

The Enforcement and Insolvency Service is made up of three elements

• Enforcement Office (Belfast)
• Enforcement and Insolvency Service (Worthing) which embraces Debt Management and Compliance Services. Included under this umbrella is both the Voluntary Arrangement and Insolvency Service
• Enforcement Office (Scotland) which also includes the Civil Recovery Section 

G

Girobank

Girobank is a credit transfer system that enables payment to be made by

• Paying cash or cheque over a Post Office counter (referred to as Transcash)

Or

• Arranging a Girobank Transfer from an account holder’s Girobank account

The payment is credited to one of the Inland Revenue Girobank Accounts. The target Girobank account is indicated on the payslip. Each account is associated with either A&PS Shipley or Cumbernauld.

Girobank notifies the A&PS of the credits received daily in each Girobank account.

Greyed out

Buttons are referred to as ‘greyed out’ if they are not available to use on screen. The name of the button is shown in a lighter shade of grey than active buttons.

A button is usually 'greyed out' until you have entered the information required to enable the button to work and so avoids the need for unnecessary validation and error messages.

A ‘greyed out’ button normally becomes active when for example you

• Have entered outstanding information in a field which must be completed

Or

• Make a selection from a selection list box 

Group Principal Company

The company whose Inspector co-ordinates a special arrangement for group relief claims.

H

Hyper-link

Allows the user to be directed to another area or source of information on the Intranet, without exiting the manual.

Normally also allows a return to the original point from which the hyper-link was opened.

I

Icon

An Icon is a graphical representation, or picture, used to demonstrate specific aspects or functions within the system.

Identity (Id)

In computer terms, the name or code by which an operator is known to the computer.

I2K

This is the acronym for the ‘Infrastructure 2000’ programme, dealing with the replacement of all of the Department’s IRON (Inland Revenue Of The Nineties) computer terminals, with terminals using the ‘Windows NT’ operating system.

IDMS

IDMS stands for the Integrated Debt Management System. It has a number of features that make debt management more effective and consistent. It includes the automated computer support for recovery and enforcement processes.

Incorporation

The formation of a company, in accordance with the rules set out in the Companies Acts, or other legislation.

Incorrect return

There are various references in the Taxes Acts to the requirement to make a return, and to the penalties that may ensue for making an incorrect return.

There is no definition in the Acts of ‘incorrect’, and it is therefore deemed to take its dictionary definition

For more information see the Enquiry Manual (EM) and the Risk Intelligence and Analysis Manual (RIAM).

ITSA

ITSA stands for Income Tax Self Assessment. For more information on ITSA see the SA Manual (SAM).

IT Support Officer

The officer appointed to maintain the user base and functionality of computer systems in each office unit.

J

Joint Amended Return (JAR)

An amended return made under the special arrangements that exist for group relief claims.

K

There are no items listed for K

L

Log

In computer terms to register the receipt of a particular item, for example a completed return, on the computer.

Log On

In computer terms, to enter the information that the computer needs to be able to identify you.

M

Management Unit

For local administration purposes, the computer system controlling access to the COTAX system is set up as follow

• Office Level

• All users are set up at this level, and given an identity in ‘their’ office

• Management Unit (MU) Level

• Users are allocated to management units as required to enable access to the mainframe systems covered by the Roles and Access systems
• Dependant upon its size and responsibilities, an office may consist of a single or several management units 

Manual

In computer terms, manual distinguishes between an activity initiated by you the operator, using the keyboard (that is manually), and an activity that the computer initiates and carries out by itself (that is automatically).

Marginal Small Companies Relief

Relief calculated on a sliding scale where the company’s profits fall between the Lower Relevant Maximum Amount (LRMA) and the Upper Relevant Maximum Amount (URMA). See Section 13 ICTA 1988.

Menu

In computer terms, a list of options or functions from which you make a selection.

Missing / alleged payment

A company or agent may receive an application for payment, but believe that the liability has already been paid.

When the company or agent claim this, and the payment is not shown on their record, the payment is known as a missing / alleged payment.

N

National agent file

The national agent file is a computer list that holds the details, including the Agent Id, of every agent who acts for a company in COTAX.

O

OAS reference number

The OAS reference number is a 9 character reference allocated to any payment for which an OAS record has been opened.

The Official Receiver

An official of the Insolvency Service which is a part of the Department of Trade and Industry.

He / she normally deals with companies that have no realisable assets, and therefore no attraction for professional insolvency practitioners.

Offline

In computer terms, means that there is no direct access to the computer using the keyboard.

When used to describe a particular function, it indicates that the process is automatic, as opposed to ‘online’, where the process is under your control as the operator.

Oil and gas companies

Oil and gas companies are those companies involved in the exploration and development of oil and gas resources within the UK, its territorial waters or the UK continental shelf.

Online

In computer terms, means that there is direct access to the computer, using the keyboard.

When used to describe a particular function, it indicates that the process is under your control as the operator, as opposed to ‘offline’, where the process is automatic.

On screen button

In COTAX, various labelled ‘buttons’ are shown on screens. These are normally at the bottom of the screen. They are used to do many things, for example

• To complete action
• Move to other functions
• To go back to a previous screen
• To abandon a function

Or

• To call up COTAX System Help (COSH). The [Help] button is available on most COTAX screens

You normally select a button by moving the mouse pointer on to the button and clicking the left mouse button.

Overseas address

An overseas address is one which is not within the United Kingdom, Isle of Man or Channel Islands.

P

Parent Company

A parent company owns a majority of the shares of a subsidiary company.

The computer system has no way of checking the precise relationship between companies. You must decide the reference of the parent company that applies to your particular situation.

Password

In computer terms, a method of checking that you are an authorised user of the computer. Passwords are changed at regular intervals for security reasons.

Paymaster

Paymaster payments are payments that the Office of HM Paymaster General transfers direct into the Revenue bank account.

PH

PH means the personal hearing of an appeal, application and so on, by the Commissioners.

Pixels

Pixels are the phosphorescent dots displayed on a computer screen, which merge to form the displayed ‘picture’. The more pixels there are on screen, the sharper the image, but to sharpen the image it is reduced in size in the display.

It follows that while a display of 800x600 pixels may strictly be sharper and clearer than one of 640x480, it is also smaller and potentially not as comfortable in use.

Profits

Profits are profits chargeable to CT, plus Franked Investment Income received other than from a company in the same group.

Q

Quickres

A small additional programme supplied with the Windows NT operating system, which enables the user to change between screen resolutions and numbers of colours displayed.

R

Registered Office

The Registered Office (RO) is the address at which the company is registered at Companies House.

Roles

Every COTAX operator is set up on the computer to perform one, or more, roles. A role determines which of the COTAX functions an operator is authorised to use.

Roles and Access

The 'Roles and Access' computer controls access to the Department's newer mainframe computer systems; such as COTAX, CIS and IDMS.

This system uses the information held on its database to provide the appropriate availability of functions and systems for each registered user.

S

SA enquiry

An SA enquiry is an enquiry by an Inspector, into the self assessment return of the company, for a CTSA AP.

Screen

In computer terms, used to describe what is visible on the screen of your computer at any one time, and also to describe a display, only part of which is visible at any one time.

Scroll

In computer terms, to move the visible screen vertically or horizontally, in order to display further information.

Served (Notice To File)

A notice is deemed to be served on a company on the fourth working day after it has been posted, unless evidence to the contrary is provided.

Single Point Sign On

The mechanism whereby a single action of user authentication and authorisation permits access to all computers and systems to which that user has access permission, without the need to enter multiple passwords.

Sorting

Applied to Work Lists, this is a facility that allows you to rearrange the content into a more convenient order, for your particular purpose.

Substitute return

COTAX issues a blank return form with a Notice to Deliver only if

• The company record does not hold agent details for the specified period

And

• The Substitute Return signal is set to ‘N’

A list of centrally approved substitute return forms can now be accessed via the Intranet. To access this information the path to use is

• Library / Lists & Tables / Substitute Tax Returns and Other Forms

This list is updated on a regular basis.

T

Tab

You use the ‘Tab’ ( ) key on your computer keyboard to move from one

• Active field to another

Or

• On screen button to another 

U

Unincorporated associations

Unincorporated associations are bodies not incorporated under the UK Companies Act but which are liable to CT, for example clubs and voluntary associations.

Update

A computer term used to denote that when you are in update mode in any function, you can enter and amend data, and give positive instructions to the computer.

User roles

A user role reflects a particular job, and gives access to functions used to do that job.

Each office is allocated the user roles needed to perform its business.

Your Office Manager will allocate the user role(s) you need to do your work.

UTR

A UTR (Unique Taxpayer Reference) is a unique set of 10 numerals allocated automatically by the computer when a company is set up.

V

View

In computer terms, a type of function which allows information to be viewed, but not altered.

View Version

When applied to a Work List, means that you can

• See the list
• Filter and sort it

And

• Add B/F notes and dates

You cannot however work any of the cases shown on the list.

W

Work List

In computer terms, a screen list, showing groups of cases with a particular specific feature for which you are required to take some action.

World Wide Web

The World Wide Web (www) is a collection of servers within the Internet that

• Allows general access to material held within the www

And

• Electronically enables the secure transmission of information world wide 

X

There are no items listed for X

Y

There are no items listed for Y

Z

There are no items listed for Z

Numerical list

65 List

List sent to the Clerk to the General Commissioners, of appeals, applications and so on, to be heard at a particular meeting of the Commissioners.

The list is normally produced by CODA, but where sufficient details of a case cannot be captured into CODA, it is necessary to add cases manually, or prepare a manual list, before sending it to the Clerk.