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Managing my money for young adults
Managing my money for young adults

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Glossary

Child Benefit
A cash benefit paid in respect of dependent children.
excise duties
A tax on the production or sale of particular goods (e.g. beer and wine).
gross income
Incomes (or earnings) before any deductions for tax and other items.
Her Majesty’s Revenue & Customs (HMRC)
The government body responsible for collecting taxes.
Housing Benefit
A payment to cover rent costs for those living on low incomes and state benefits.
Income Tax
A tax paid on all forms of earnings (including pensions). This tax is normally deducted from earnings by the employer or pension provider.
Income Tax codes
Codes provided to employers and pension providers to inform them how much Income Tax needs to be deducted from the gross salaries on their employees and pensioners.
Inheritance Tax
A tax on the money left (also known as the ‘estate’) of someone who has died.
Jobseeker’s Allowance
A cash benefit paid when unemployed and looking for employment.
National Insurance Contributions (NICs)
A deduction from earnings from employment. As with Income Tax, NICs are normally deducted directly from earnings by employers.
net income
Incomes after deductions for tax and other items.
‘progressive’ taxation
A tax structure where the proportion of a person’s income paid as tax increases as their income increases.
Stamp Duty Land Tax (SDLT)
A tax on the purchase of property and certain other assets including company shares (securities issued by companies to raise money).
Value Added Tax (VAT)
A tax on goods and services (known also as a consumption tax).
Universal Credit
A cash benefit that is in the process of replacing other state benefits for those on low incomes or who are unemployed.
‘zero-hours’ contracts
An employment contract where there is no commitment from the employer to the employee in terms of hours of employment each week or month