Click on a letter below to find simple definitions to difficult tax terms.
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Glossary: V
Value added tax (VAT): A tax which must be charged by VAT registered businesses on goods and services which they supply. VAT is administered by HM Customs and Excise, not the Inland Revenue.
Registered businesses must pay to HM Customs and Excise any VAT that they charge on their sales (outputs), but can normally deduct VAT they have paid on goods purchased for the business (inputs).
VCT: Acronym for Venture Capital Trust.
Venture capital trust: A Venture Capital Trust (VCT) is a quoted company which invests in unquoted trading companies. You can buy shares in VCT rather than in the underlying companies, thereby spreading your risk. To encourage investment of this type, various tax reliefs are given by the Inland Revenue if you invest in an approved VCT.
Vocational training: Training you undertake to obtain National Vocational Qualifications or Scottish Vocational Qualifications, under certain full time courses lasting for at least four weeks.
Vouchers: Entitles you to cash, and/or to goods and services. Often provided to you free by your employer, in which case they are taxable.
