S definitions
| salary and wages | Regular amounts of income paid to you by your employer under your contract of service, often weekly, 4-weekly or calendar monthly. |
| save as you earn | Now only available in conjunction with approved savings related share option schemes. Enables you to set aside a regular sum from your salary for a three year term. A tax free bonus is then paid to you at the end of the 3 year term. You can use your contributions and bonus to exercise your share options. |
| savings | Generally refers to deposits made with a bank or building society, but also includes investments in shares, unit trusts etc. Does not include land and property held as an investment. |
| savings institutions | Organisations which you can use to look after your savings. Includes banks, building societies and so on as well as friendly societies and similar organisations. |
| savings rate tax | The rate of tax on "savings income" for 1999/2000 is 20%. This is also the rate applicable to capital gains taxable at the basic rate (determined by treating the taxable gain as if it were additional taxable income above the top part of actual income). "Savings income" for these purposes is all income from interest payments such as bank deposits, building societies, debenture interest, other loan interest, UK gilts interest, other fixed-interest securities including those of civic authorities or corporations, overseas interest of any kind including interest on foreign government bonds and Eurobonds. UK dividends are not savings income for this purpose, as they are subject to a special 10% rate of tax in 1999/2000. Income from letting property (in the UK or overseas) is not savings income for this purpose and is therefore taxable at the normal basic rate of 23% for 1999/2000 (22% for 2000/01). Some savings income (such as most UK bank deposit interest) is paid net of the 20% tax due, which is paid direct to the Inland Revenue by the deposit-taker. Other savings income is paid gross (such as interest on UK gilts after 6 April 1998, unless the taxpayer has elected for net payment). Taxpayers whose savings income is within the first £1,500 of taxable income and has suffered tax by deduction at 20% can obtain a repayment as the final liability on savings income within the starting rate band is only 10%. Capital gains falling within the starting rate band are however taxable at 20% in 1999/2000. (The Chancellor has indicated that in 2000/01 the starting tax rate will be permitted to apply to capital gains for anyone whose income is at the appropriate level.) |
| SAYE | Acronym for Save As You Earn. Now only available in conjunction with approved savings related share option schemes. Enables you to set aside a regular sum from your salary for a three year term. A tax free bonus is then paid to you at the end of the 3 year term. You can use your contributions and bonus to exercise your share options. |
| SC60 | A certificate of deduction of tax used in the construction industry if a contractor has deducted tax from payments to subcontractors. If you are a subcontractor, contractors must deduct tax from payments they make to you for your labour (but not from payments for materials) unless you hold a subcontractor's exemption certificate. |
| scale benefit charge | If you are provided with a car by your employer and you are also provided with fuel which you can use for private motoring, you are taxed on the fuel benefit according to a scale charge set for each tax year. A scale benefit charge also arises if you are provided with a mobile telephone which you can use for private calls. |
| schedular system of taxation | The tax system divides income into different categories known as schedules. These are based on the underlying source of income. Schedules may be further subdivided into cases. Each schedule has its own rules for calculating its taxable income. Employment income, for example, is taxed under Schedule E, whilst income from a trade, whether carried on alone or in partnership, is taxed under Schedule D Case I. |
| schedule | See Schedular System of Taxation. |
| scrip dividends | A dividend which you elect to receive in the form of shares instead of cash. |
| scrip issue | A free issue of shares to existing shareholders in proportion to their existing shares. Commonly called a bonus issue. |
| self-assessment | The system under which you are required to complete a Tax Return and calculate your tax liability for the year. Provided you submit your Tax Return by 30 September, you can ask the Inland Revenue to prepare the tax calculation for you. Self-assessment is enforced by a system of automatic penalties for failing to file Tax Returns as well as the addition of interest on any unpaid tax. |
| self-employed | You are self-employed if you are in business on your own account. |
| self-employed contributions | Contributions made by the self-employed. Normally refers to contributions you make to a retirement annuity contract or personal pension plan, but may be used to refer to class 2 or class 4 national insurance contributions. |
| selling costs | The costs of selling a capital asset, such as land and property, shares and so on. Includes charges made by auctioneers, stockbrokers, estate agents, solicitors and so on. |
| seminar and conference fees | Fees you pay for attending seminars and conferences. If you are self-employed and the seminar or conference is related to your business, the fees are tax deductible. If you are an employee and your employer sends you to a conference or seminar this is not a taxable benefit. |
| separated | You are separated if, although still married, you are no longer living together with your spouse. |
| SERPS | Acronym for State Earnings Related Pension Scheme. You will receive an increased state pension if you are a contracted-in employee earning above the national insurance lower earnings limit. |
| settlement | A trust, or any disposition, arrangement or transfer of assets made with gratuitous intent. This is a wide ranging term and covers anything you do which has an element of gift. |
| settlor | A person who transfers assets into a trust, or who makes a settlement. |
| share disposals | The selling or giving away of shares owned by you to another person. |
| share dividends | A dividend which you have elected to receive in shares instead of cash. |
| share option schemes | Schemes under which you are granted options enabling you to buy shares at a set price and at a set time or within a set period. The schemes may be approved by the Inland Revenue, in which case they will have certain tax reliefs or they can be unapproved by the Inland Revenue. |
| share options | Rights given to you which entitle you to acquire shares at a set price and at a set time or within a set period. |
| share related benefits | Benefits which you get from shares you hold in the company you are employed by. An example is vouchers. |
| share schemes | Schemes where you can obtain shares in the company you are employed by, normally on preferential terms. Certain schemes, if approved by the Inland Revenue, enjoy certain tax advantages for you the employee. |
| shares | The ownership of a company is divided between its members who will each own a number of shares in that company. There can be different types of members (shareholders) with different rights represented by different classes of shares. |
| shares acquired | Shares acquired by reason of your employment may be taxable. The amount taxable is based on the increase in the value of your shares in the period after you acquired them, where the shares had either restrictions on them, or they were in a subsidiary company. Special benefits you receive by owning the shares may also be taxable. |
| shares as benefits | If you do not pay the full price for shares you receive from your employment you are normally taxed on the undervalue (the difference between the value of the shares and the amount you pay). If you have not been taxed, then you are treated as if you had been made an interest free loan of this amount. You will be taxed on the interest benefit. |
| shares received from your employment | Shares which you received because you were an employee. If you do not pay the full price for the shares you receive, you will be taxable on the undervalue (the difference between the value of the shares and the amount you pay). You will also be taxable if you received the shares subject to restrictions, the tax charge applying to the increase in value of the shares when the restrictions are lifted. |
| simpler basis | The simpler basis of calculating your motoring costs allows you to use mileage rates published by the Inland Revenue called the Fixed Profit Car Scheme rates. The rate varies according to the cylinder capacity of your car and a higher rate is used for the first 4,000 business miles. |
| single parent's allowance | This is an additional allowance that you can claim if you are single, separated, divorced or widowed and have a child living with you. The child must be under 16 or in full time education or training. You can only claim one allowance and the amount you claim may be restricted if you marry or separate during the tax year. This allowance has been abolished from 6 April 2000. |
| social security | The Department of Social Security (DSS) oversees the Benefits Agency (which deals with the payment of state benefits), and until 6 April 1999, was responsible for overseeing the Contributions Agency that dealt with the collection and recording of national insurance contributions. |
| social security benefit | A benefit received from the Department of Social Security (DSS). There are many types of benefits that are available. Benefits may be based on national insurance contributions that you have paid, or on your needs if you are elderly, disabled or on a low income. If you think you may be entitled to any, ask the Benefits Agency of the DSS. |
| social security payments | Payments made to you by the Department of Social Security. These payments may be based on national insurance contributions that you have paid, or on your needs if you are elderly, disabled or on a low income. |
| social security pensions | Pensions paid to you by the Department of Social Security. Your entitlement to such a pension depends on your national insurance contributions and whether you have contributed towards an earnings related pension. See also "State Earnings Related Pension" |
| special commissioners | The Special Commissioners sit as a tribunal to hear disputes between the Inland Revenue and taxpayers. They are professionally qualified and normally hear disputes of a technical nature. Other disputes are heard by the General Commissioners. |
| specific legacies | A legacy (a gift left in a will) such as a sum of cash or property. does not include gifts of residue (the remaining assets of the estate after paying inheritance tax, administration expenses and specific legacies). |
| Split View | Split View divides the working area in half horizontally. This view enables you to see the Inland Revenue Form you are currently working on in the lower frame as you answer interview questions in the top frame. An adjustable bar, used to resize the frames, separates the top and bottom frame. |
| split-year treatment | You are either resident or not resident in the UK for a whole tax year. However "split-year" treatment is a concessionary treatment that may be available if you come to, or leave, the UK part of the way through the tax year. |
| starting rate tax | For 1999/2000 the starting rate of income tax is 10%. You pay tax at the starting rate (10%) on the first £1,500 of your taxable income (the starting rate band), at the basic rate (23%) on any income between £1,500 and £28,000 (the basic rate band), and tax at the higher rate (40%) on any income in excess of £28,000. However, you do not pay basic rate tax on savings income, such as interest and dividends. To the extent that your interest from banks or building societies falls within the basic rate band it is taxed at the savings rate of 20% instead of the basic rate. To the extent that your dividend income falls within the basic rate band it is taxed at the savings rate of 10%. To the extent that dividend income falls into the higher rate band it is taxed at 32.5%. |
| state earnings related pension scheme | You will receive an increased state pension if you are a contracted-in employee earning above the national insurance lower earnings limit. |
| state pensions | Pensions paid to you by the Department of Social Security. Your entitlement depends on national insurance contributions you have made and whether you have contributed towards an earnings related pension. |
| state retirement pension | Women are entitled to a state pension from the age of 60, and men from the age of 65. It is paid by the Department of Work and Pensions (DWP). |
| statement of account | Statement that you will receive from the Inland Revenue showing the payments of tax you are to pay as well as any payments you have already made to the Inland Revenue. |
| statutory maternity pay | Paid to you if you are on maternity leave because you are pregnant or have recently had a baby. Normally paid by your employer, but occasionally paid by the Department of Social Security. |
| statutory sick pay | Paid to you if you are unable to work because of sickness. Normally paid by your employer but occasionally paid by the Department of Social Security. |
| step-by-step interview | Completing your Tax Return step-by-step by answering several sets of interview questions. TaxCentral Online Tax Return uses your answers to complete the appropriate Inland Revenue Forms. |
| stock | Raw materials used in your business for and goods bought for resale, which you have on hand. |
| stock dividends | A dividend which you have elected to receive in shares instead of cash. |
| stock or scrip dividends | A dividend which you have elected to receive in shares instead of cash. |
| stock raw | Unprocessed materials bought in by a business for processing (manufacturing). |
| subcontractors | People who carry out work for other people. The term is usually used to refer to workers in the building industry. Tax is deducted at source from payments for labour made to subcontractors in the construction industry unless the subcontractor has an exemption certificate. |
| subscriptions | Amounts you pay regularly to belong to a trade union or association, professional body or club. |
| subsistence | Meals, refreshments and accommodation taken whilst working away from your normal place of work. |
| surplus allowance | The unused part of your married couple's allowance and/or blind person's allowance that arises because of insufficient income. It can be transferred to your spouse. |
This page was last reviewed on 07 July 2004. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
