* Occasionally, a new employee will start without a P45. An Employer must then use an emergency tax code. The emergency tax code is currently: 543L, although, from 7 September 2008 it will be 603L. Using this code usually means that the employee gets their basic personal allowance, but does not take into account any [read more]
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Other Tax Codes*Sometimes a tax code may have two letters and no numbers or be another combination: BR Code This code is commonly used where it is an employee’s second job and the all their personal allowances are used in the first/main job. All income earned under a BR tax code will be taxed at basic rate. D0 [read more] |
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Common Tax Codes*L Codes Used for employees who are eligible for the basic personal tax allowance and also as an “emergency tax code”. This is the usual code for employee’s main (or only) job with straightforward tax affairs. P Codes Used for people aged 65-74 who are eligible for the full Personal Allowance. V Codes Used for people [read more] |
What is a Tax Code*A tax code is the short alphanumeric (eg. 543L) code that an employer uses to work out the correct tax to deduct from an employee’s gross pay. * |
Net Book Value*Also, called the “carrying value”, the net book value is the value of an asset in the accounts at any given point, calculated by: original value less accumulated depreciation OR previous year’s value less current year’s depreciation. (Ignoring, for the time being, revaluations and so on) In yesterday’s examples, the net book values would be [read more] |
Calculating Depreciation*There are several ways of calculating depreciation. Two of the most popular are: Straight line method If an asset is bought for £10,000 and it’s useful life is estimated at 10 years (with no residual value at the end of the ten years), then the annual depreciation charge is £10,000 ÷ 10 = £1,000 per [read more] |
What is Depreciation*Depreciation is the decrease in value of an asset. It reflects the use of the asset and the passage of time. It spreads the cost of the asset across the years (or more correctly, accounting periods) of it’s useful life. * |
