| Account |
| A record of spending and income; for example bank account or account in accountancy. |
|
| Accounting date |
|
| The last date of the period covered by an company annual accounts. |
|
| After tax |
| An amount of money that a person is left with, after paying tax. |
|
| Annual/Per annum |
| Every year/Each year. |
|
| Annual Cover |
| An insurance policy that a person must renew every year, such as health or car insurance. |
|
| Annuity |
| A regular amount paid out to somebody from an investment. |
|
| Applicant |
| A person who applies for something. |
|
| Arrangement fee |
| A fee that a bank of building society charges a customer for arranging an overdraft. |
|
| Arrears |
| Money a person owes after it is due. |
|
| Articles of association |
| A company’s document that sets out the shareholders’ rights and the directors’ powers. |
|
| Asset |
| Something owned. |
|
| Audit |
| An independent examination of an organisation’s records and accounts to make sure that they show a fair, accurate and legal reflection of the financial position of the company. |
|
| Auditor’s report |
| A report by an independent person or firm on an organisation’s financial records. |
|
| Available credit |
| The difference between a person’s credit limit and the amount of money they have already borrowed or spent on their credit card. |
|
| Balance |
| An amount of money, shown on a person’s statement. |
|
| Balance brought forward |
| An amount shown on a person’s last statement that is brought forward to the next statement. |
|
| Balance sheet |
| A summary of a company’s assets and liabilities at a point of time. |
|
| Bankrupt |
| A situation of not having enough money to pay debts. |
|
| Bankruptcy |
| A type of order issued by a court when a person cannot pay their debts when they are due, which allows the person’s property to be sold to raise money to pay their creditors. |
|
| Beneficiary |
| A person who receives a gift. |
|
| Benefit-in-kind |
| A ‘perk’ of a job, such as a company car, gym membership or health insurance, that a company gives to its employees or directors and that may be subject of tax. |
|
| Bond |
| A written promise made by governments and companies to repay any money borrowed, with interest, on a certain date in the future. |
|
| Bonus issue |
| An offer of free shares to a company’s shareholders, related to the number of shares they already have. |
|
| Book value |
| The value of a fixed asset, such as a building ar machine, after depreciation, as recorded in an organisation’s accounts. |
|
| Booking fee |
| An amount a person pays to book something, for example a concert or plane ticket, to cover a company’s administrative costs. |
|
| Borrow |
| Get money that will be paid back. |
|
| Bounced cheque |
| A cheque that the bank refuses to pay out because the person who wrote the cheque does not have enough money in their account to pay for it. |
|
| Breach of contract |
| An act that breaks a legal duty agreed in a contract. |
|
| Brokerage |
| Commission earned by a broker. |
|
| Budget |
| A plan of spending over a certain length of time, based on how much money a person has. |
|
| Bureau de change |
| A place that changes all major foreign currencies, in cash for a fee known as a commission. |
|
| Calendar month |
|
| A period of time that starts on the first day of the month and ends on the last day of the month. |
|
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| Cancellation rights |
|
| A person’s right to cancel a contract. |
|
|
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| Capital |
|
| An amount of money a person saves. |
|
|
|
| Capital expenditure |
|
| Money a business spends on buying or improving its fixed assets, such as equipment or furniture. |
|
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| Capital gain |
|
| Money a business makes if it sells a long-term asset, such as a building, for more than it cost. |
|
|
| Capital gain tax |
|
| A tax on gifts over a certain value or on a capital gain. |
|
|
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| Cash advance |
|
| A cash withdrawal using a credit card, for which a person may pay a fee as well as interest. |
|
|
| Cashback |
|
| A service with a debit card that allows a person to get money straight from their account when a shop assistant swipes their card to pay for goods and services. |
|
|
| Cashflow |
|
| A record of all the money coming in minus all the payments as they are made, measured over a particular time. |
|
|
| Certificate of insurance |
|
| A document that proves that a person is insured. |
|
|
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| Charges |
|
| Fees and interest that a person must pay, for example when they borrow money. |
|
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| Chargeable asset |
|
| An asset on which a person may need to pay capital gains tax if they sell it. |
|
|
|
| Cheque |
|
| A written order, addressed to a bank, instructing the bank to pay an amount of money to the person or organisation named on the cheque. |
|
|
| Child dependant |
|
| A child up to age 18 who normally lives with a parent. Child who is in full-time education at school, college or university. |
|
|
| Claim |
|
| An action to get compensation based on an existing insurance policy. |
|
|
|
| Clearing |
|
| The time it takes for a bank to transfer money from one account to another. |
|
|
| Commission |
|
| A small fee charged as a percentage of the value of goods or services. |
|
|
|
| Company pension scheme |
|
| A pension scheme organised by a company to provide pension benefits for its employees. |
|
|
| Compensation |
|
| An amount of money paid to make up for an injury, damage or loss. |
|
|
|
| Comprehensive motor insurance |
|
| Motor insurance that covers a person for damage to their car, resulting from accidents, theft and fire. |
|
|
| Consumer |
|
| A person who buys goods or services. |
|
|
|
| Contract |
|
| An agreement between two or more parties, which is usually written and is binding on everyone concerned. |
|
|
| Contract of service |
|
| A contract usually agreed between an employee and their employer. |
|
|
|
| Contract for service |
|
| A contract usually agreed between an organisation and another organisation or self-employed person, such as a consultant or a contractor. |
|
|
| Contributory payment |
|
| Known as social insurance, a social welfare payment that depends on the number of pay-related social insurance (PRSI) contributions a person has made in a certain period; examples include Unemployment Benefit and Maternity Benefit. |
|
|
| Conversion rate |
|
| Also known as the exchange rate – a changing rate at which a person can change one currency for another. |
|
|
| Cooling-off period |
|
| A period after a person signs a contract, but before the contract becomes binding, in which the person can change their mind about the contract without any penalty. |
|
|
| Cover |
|
| The protection offered by an insurance policy. |
|
|
|
| Credit |
|
| Money that a bank has lent a person to buy goods or services. |
|
|
|
| Credit agreement |
|
| A document that records the conditions on which a person receives credit. |
|
|
|
| Credit limit |
|
| The highest amount a credit card company will lend a person at any time. |
|
|
|
| Creditor |
|
| A person or company that lends money. |
|
|
|
| Current account |
|
| A bank account that lets a person keep their money secure, but still write cheques and use an ATM card to get money. |
|
|
| Current assets |
|
| Short-term assets, such as bank balances and stocks. |
|
|
|
| Current liabilities |
|
| Short-term debts that a business must pay within a year, such as bank overdrafts, money owed to suppliers and employees’ income tax. |
|
|
| Data Protection Act |
|
| A law that protects a person’s personal information and prevents companies from sharing it with other companies without the person’s knowledge. |
|
|
| Debit |
|
| A payment from an account of the cost of buying goods or services. |
|
|
|
| Debit card |
|
| A card that lets a person pay for goods and services and get money straight from their bank. |
|
|
| Debt |
|
| Money owed to another person or to a company. |
|
|
|
| Debt consolidation |
|
| Taken out a single loan to pay off a number of smaller, individual loans. |
|
|
|
| Debtor |
|
| A person who owes us money. |
|
|
|
| Deeds |
|
| Documents that confirm that a person owns a particular property, usually given as security for mortgages. |
|
|
| Default |
|
| A failure to pay a debt on time. |
|
|
|
| Delete as applicable |
|
| Cross out anything that does not apply. |
|
|
|
| Dependant |
|
| Somebody who depends on another person for financial support, such as a child or an elderly relative. |
|
|
| Deposit |
|
| Initial amount of money that a person pays to get something, for example a house or an electrical appliance bought through hire purchase. |
|
|
| Deposit account |
|
| A savings account without an ATM card or a cheque book, which pays interest. |
|
|
| Deposit Interest Retention Tax (DIRT) |
|
| A tax paid by a bank or building society on the interest a person gets from saving. The bank deducts it on behalf of the customer. |
|
|
| Depreciation |
|
| The drop in value of an asset due to wear and tear, age and whether it is going out of date, as recorded in an organisation’s financial records. |
|
|
| Direct debit |
|
| A method of paying bills regularly, by giving permission to a company to take money straight from a bank account on a date specified by the company. |
|
|
| Discount |
|
| Money that is taken off the price of something. |
|
|
|
| Disposable income |
|
| Income available after a person pays tax, loans and buys basic goods and services. |
|
|
| Dividend |
|
| Money that a company pays to its shareholders from its profits. |
|
|
|
| Dormant account |
|
| An account that is no longer used. |
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|
|
| Duty |
|
| A tax charged by the Government |
|
|
|
| Equity |
|
| The difference between the value of a person’s property and the amount of mortgage they still have to pay. |
|
|
| Estate |
|
| A person’s assets, including money, when they die. |
|
|
|
| Estimate |
|
| A guide to the cost of a good or service, such as electricity. |
|
|
|
| Excess |
|
| A sum of money, usually advertised by an insurance company, that an insured person must pay for any loss, damage or injury before an insurance company will make any payments. |
|
|
| Exclusion |
|
| Some event or health condition, for example, that is not covered by an insurance policy. |
|
|
| Executor |
|
| A person who carries out the instructions in a will. |
|
|
|
| Exempt |
|
| Free from a duty or condition. |
|
|
|
| Expenditure |
|
| Money that a person spends. |
|
|
|
| Expiry date |
|
| The last date a person can use something, such as a credit card. |
|
|
|
| Fee |
|
| A sum of money a person pays for a service, such as getting a loan or taking out an insurance policy. |
|
|
| Final demand |
|
| The last demand for payment before a company cuts off a service or begins legal action. |
|
|
| Final dividend |
|
| The amount of payment to shareholders declared by directors of a company when the company has drafted its annual accounts. |
|
|
| Financial statement |
|
| A company’s statement that includes the annual accounts, directors’ report and so on. |
|
|
| Financial year |
|
| The year covered by a set of annual financial statements. |
|
|
|
| Fiscal |
|
| Term to describe finances controlled by the Government. |
|
|
|
| Fixed asset |
|
| An asset that a business intends to use for several years, such as buildings and equipment. |
|
|
| Fixed interest rate |
|
| An interest rate that stays the same for a fixed time, no matter how other interest rates may go up or down. |
|
|
| Gross pay |
|
| Total pay before taxes (income tax, PRSI or pension payments) are taken off. |
|
|
| Gross profit |
|
| Total profit made from selling goods or services reduced by cost of producing them. |
|
|
| Hire purchase |
|
| A way to buy goods (car, TV, fridge etc.). You get the goods straight away but you need to make regular payments for them over a fixed period of time (period is usually from 1 to 3 years). |
|
|
| Increase for a Qualified Adult |
|
| An additional amount paid to a person receiving certain social welfare payments to cover the cost of supporting a qualified adult. |
|
|
| Indemnity |
|
| A promise to compensate someone else for loss or damage from legal responsibility from a person’s actions. |
|
|
| In credit |
|
| A situation where money is available in an account. |
|
|
|
| Income |
|
| Money coming in, such as wages/salaries and social welfare payments. |
|
|
|
| Income (Corporation) tax |
|
| A Government tax on personal (business) income. |
|
|
|
| Indexation |
|
| A way of changing the value of savings (or the cost of goods and services) to reflect inflation. |
|
|
| Inflation |
|
| An increase in prices, which decreases the value of money. |
|
|
|
| Insolvent |
|
| A person’s or organisation’s financial position when they cannot pay for their debts and liabilities. |
|
|
| Instalment |
|
| A regular repayment (usually monthly) for goods/services bought on credit or for paying back a loan or a mortgage. |
|
|
| Insurance cover |
|
| Protection against certain events as outlined in an insurance contract. |
|
|
|
| Insurance policy |
|
| A document of the contract made by an insurance company with a person whose property or health is insured. |
|
|
| Insurance premium |
|
| Money a person pays regularly to an insurance company to make sure they are covered. |
|
|
| Insurance quotation |
|
| The price given by an insurance company for protecting against particular loss or damage. |
|
|
| Intangible assets |
|
| Assets that cannot be touched, such as goodwill and patent rights. |
|
|
|
| Interest |
|
| A fee a person receives if they save money, or pay if they borrow money, usually expressed as a percentage per year. |
|
|
| Interest rate |
|
| The percentage that a person receives on their savings or pays on their loan. |
|
|
|
| Interest-free credit |
|
| A loan, whether from a lending agency or a credit card company, on which a person pays no interest for a fixed period. |
|
|
| Interest-only mortgage |
|
| A mortgage where a person only pays back the interest to the bank for a period of time. |
|
|
| Interim dividend |
|
| A dividend that is paid to shareholders during the financial year, depending on the company’s profits. |
|
|
| Investment portfolio |
|
| A collection of a person’s savings, such as shares, bonds, property and cash. |
|
|
|
| Issued share capital |
|
| Shares that a company has given to its shareholders, which equal some of the value of the company. |
|
|
| Joint account |
|
| A bank account held by more than one person, usually by a married couple or by partners who live at the same address. |
| |
|
| Land Registry |
|
| A central register of the owners of land and buildings. |
|
|
|
| Laser card |
|
| A type of debit card, issued by several Irish financial institutions. |
|
|
|
| Legacy |
|
| Money or property left in a will. |
|
|
|
| Liabilities |
|
| Debts that a person or organisation owes. |
|
|
|
| Limited company |
|
| A company that limits how much its shareholders will have to pay if the company is wound up. |
|
|
| Lodgement slip |
|
| A form that a person must fill in when they pay money into their account, whether by cash or cheque. |
|
|
| Loyalty card |
|
| A card offered by supermarkets, shops and cafes to encourage people to shop there, by offering ‘points’ with each purchase or free goods after spending a certain amount of money. |
|
|
| Lump sum |
|
| A once-off payment that a person may receive from an investment, such as a pension, or from an insurance policy. |
|
|
| Mandate |
|
| An instruction by a customer to a bank to operate the customer’s account a certain way. Most common is Direct Debit Mandate. Customer instructs the bank that company indicated on Direct Debit Mandate can debit an amount from the bank account. |
|
|
| Market capitalisation |
|
| The value of a company when the number of its issued ordinary shares is multiplied by their market price. |
|
|
| Maturity |
|
| A situation that arises when an investment, such as a term deposit, or a life insurance policy comes to an end. |
|
|
| Maximum withdrawal |
|
| A limit on the amount of money a person can withdraw from an ATM machine each day, depending on the amount of money in their account. |
| |
|
| Means |
|
| Any income or property (besides a family home) or other asset that could bring in money or provide an income. |
|
|
| Means test |
|
| A way of working out the value of a person’s means by reference to the value of their investments and property and to any money in a savings account or current account and any cash-in-hand. |
|
|
| Memorandum |
|
| A document containing details of a company’s name, purposes, share capital and how much the shareholders would need to pay if the company is wound up. |
|
|
| Mortgage |
|
| A loan to buy a property; if it is not paid back, the lending agency can take over the property. |
|
|
| Mortgage arrears |
|
| Mortgage payments that a person owes after they are due. |
|
|
|
| Negative equity |
|
| A situation where the amount that a person owes on their mortgage is higher than the current value of their property. |
|
|
| Net |
|
| An amount that is left after other amounts have been deducted. |
|
|
|
| Net book value |
|
| The value of an asset, after depreciation for wear and tear. |
|
|
|
| Net income |
|
| A person’s income each week, month or year after tax, PRSI, union subscriptions or pensions have been deducted. |
|
|
| Net interest |
|
| Interest from which tax has already been deducted. |
|
|
|
| Net of tax |
|
| An amount left after tax has been deducted. |
|
|
|
| Net profit |
|
| The amount of money belonging to a company after deducting operating costs such as salaries, rent and electricity bills. |
|
|
| No claims bonus |
|
| A reduction in an insurance premium, usually expressed as a percentage of the total premium, that occurs if a person doesn’t claim on their insurance policy over a period of time. |
|
|
| Non-profit making body |
|
| An organisation, usually a charity or public sector agency, that does not set out to make a profit. |
|
|
| Notice |
|
| A period of time between a person telling a bank that they would like to take out money and being able to take it out. |
|
|
| Occupation |
|
| A person’s job, work or profession, such as a bricklayer, checkout operator or teacher. |
|
|
| Official use only |
|
| Parts of a form that a person applying for something need not fill in. |
|
|
|
| Ombudsman |
|
| A person who provides a free and independent service for resolving disputes with financial services companies. |
|
|
| ‘Open driving’ |
|
| Motor insurance that allows anybody over a certain age to drive a person’s car. |
|
|
| Operating profit |
|
| The profit from a company’s main trading activity. |
|
|
|
| Overdraft |
|
| A facility from a bank that lets a person access more money than they have in their account, for a charge (short time loan). |
|
|
| Overdue |
|
| Something that a person does not pay when it is due or something that should have occurred earlier but has not. |
|
|
| Overheads |
|
| The costs of running a business, such as rent, heat and light, advertising and salaries. |
|
|
| P45 |
|
| A document that an employee receives when they leave a job, showing their total pay up to the date they leave as well as the tax and PRSI that their employer has deducted for current year. |
|
|
| P60 |
|
| A document that an employee receives at the end of every year, which shows their salary for the past year and the tax and PRSI that their employer has deducted. It is needed if a person wants to apply for certain social welfare payments. |
|
|
| Paid-up share capital |
|
| The money that shareholders have paid for the shares a company has given them. |
|
|
| PAYE |
|
| Pay As You Earn – tax paid when an employer deducts tax from their employee every time they pay them. |
|
|
| Payee |
|
| The person who receives a payment. |
|
|
|
| Payment countermanded |
|
| A statement written by a bank on a cheque before it returns it if the bank’s customer asks the bank not to pay the cheque. |
|
|
| Payment protection plan (policy) |
|
| A plan that makes a loan repayments if a person’s income drops because of unemployment of sickness. |
|
|
| Penalty |
|
| A punishment for not obeying a law or rule or not sticking to the terms of a contract; might involve extra charges or interest. |
|
|
| Pension |
|
| An income a person receives from the State or a private company, or both, after they retire; if a person has their own private pension, they cannot use any of their pension fund until they reach a minimum age, usually 50-65. |
|
|
| Pension contribution |
|
| A payment, usually every month or every three months, into a pension scheme. |
|
|
| Pensionable age |
|
| The age a person must reach to be entitled to claim their state pension. |
|
|
|
| Pension deduction |
|
| An amount that an employer takes straight from an employee’s pay and uses to pay into a pension plan, shown on an employee’s payslip. |
|
|
| Pension mortgage |
|
| A mortgage that will be repaid out of the lump sum from a pension. |
|
|
|
| Personal allowance |
|
| The amount of income on which a person does not pay tax, depending on their age and whether they are married or have children. |
|
|
| Personal loan |
|
| A loan take out by a person to pay for anything they want. |
|
|
|
| PIN |
|
| Personal Identification Number – a four-digit number that a person must keep secret and use to get money with an ATM card at an ATM machine. |
|
|
| Post-dated cheque |
|
| A cheque on which a future date is written; the cheque can only be cashed on or after this date. |
|
|
| PPS Number |
|
| Personal Public Service Number – a unique reference number for each person in the State that identifies the person for all matters related to tax, social insurance and social welfare benefits. |
|
|
| Profit and loss account |
|
| An account that shows the money a business has earned from selling goods and services after it has paid its own expenses. |
|
|
| Prospectus |
|
| A document from a public company that wishes to sell shares to the public, giving details of the company’s past performance and its plans for the future. |
|
|
| PRSA |
|
| Personal Retirement Savings Account – a savings account that a person pays into each month straight from their salary to build up their pension; if an employer does not already offer an occupational pension, they must allow their employees set up their own PRSA. |
|
|
| PRSI |
|
| Pay Related Social Insurance – a payment from employers and most employees, depending on their earnings and type of work, that pays for certain social welfare payments and benefits. |
|
|
| Public liability |
|
| A type of insurance cover to protect people and businesses from claims made by members of the public. |
|
|
| Public limited company (plc) |
|
| A company, quoted on the stock market, whose shareholders only have to pay a certain amount if the company is wound up. |
|
|
| Qualified adult |
|
| A person’s spouse or partner, whom the person wholly or mainly maintains, or if the person is single, widowed or separated and has children, a person aged 16 or over who minds the children, lives with the person and is being maintained by them. |
|
|
| Receipt |
|
| A document to confirm that money has been received, usually for goods and services. |
|
|
| Redemption |
|
| Paying off all the money borrowed under an agreement. |
|
|
|
| Refund |
|
| A repayment of part of an amount that a person has paid. |
|
|
|
| Remittance |
|
| A payment for something. |
|
|
|
| Repayment |
|
| An amount due to be paid on money borrowed. |
|
|
|
| Repossess |
|
| Take back ownership of something, for example when a mortgage provider takes over a person’s home because they have failed to pay back the mortgage on time. |
|
|
| Reserves |
|
| Amounts that a company sets aside in one year’s accounts that it can spend in later years. |
|
|
| Retained profits |
|
| Profits earned by a business that have not yet been spent. |
|
|
|
| Return |
|
| An amount, expressed as interest, that a person gets back when they invest or save money. |
|
|
| Rights issue |
|
| An issue of extra shares to a company’s shareholders at a discount, based on the number of shares they already hold; shareholders can sell the rights if they do not wish to use them. |
|
|
| Risk |
|
| Chance or uncertainty associated with offering loans and with certain investments. |
|
|
| Savings account |
|
| A bank account that pays interest and that a person does not access everyday. |
|
|
| Securities |
|
| Stocks, shares, debentures and so on that involve a right to receive interest or dividends from the investment. |
|
|
| Secured loan |
|
| A loan that is borrowed against a particular asset, known as security; if a person cannot make the repayments when they are due, the lender can take ownership of the asset. |
|
|
| Self-assessment |
|
| A system for taxpayers to work out themselves the tax they owe to the Government each year. |
|
|
| Share |
|
| An investment that makes a person part-owner of a public company, along with all other people who have shares. |
|
|
| Share capital |
|
| Money invested directly in a company by its shareholders. |
|
|
|
| Share certificate |
|
| A document that certifies who owns shares in a company by listing the type, amount and serial numbers of shares owned by the shareholder. |
|
|
| Shareholder |
|
| A person who owns shares in a company. |
|
|
|
| Short term |
|
| A period of time of up to five years in terms of savings and loans. |
|
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| Signatory |
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| A person who signs a document, such as an application form or cheque. |
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| Social insurance |
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| A Government insurance plan that compensates people for loss of income due to old age, unemployment, disability, illness or maternity, for example, and that is funded through PRSI contributions. |
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| Sort code |
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| A six-figure code that identifies a person’s bank branch and is printed on bank statements. |
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| Stamp duty |
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| Tax that a person pays when they buy a second-hand property over a certain value. |
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| Standard Variable Rate (SVR) mortgage |
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| A mortgage in which the interest rate rises and falls in line with the interest rate set by the European Central Bank. |
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| Standing order |
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| A method of paying fixed amounts on a regular basis, for example into a pension fund, by allowing a company or other organisation to take money straight from a person’s bank or building society account, depending on how much the person has in their account. |
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| State retirement pension |
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| A pension a person gets from the State when they retire. |
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| Statement |
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| A document from a bank that shows recent payments into and from a person’s account. |
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| Statutory accounts |
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| Company accounts that must be filed with the Companies Registration Office by law. |
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| Statutory audit |
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| An audit, required by law, of a company’s accounts by certain qualified accountants. |
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| Store card |
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| A card available from a particular shop that lets a person buy goods from that shop on credit; like a credit card, payments are due each month. |
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| Subscribers |
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| People who pay in advance to receive something regularly. |
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| Subsidiary |
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| A company that is controlled by another company. |
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| Superannuation |
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| A regular contribution to a pension scheme by an employee. |
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| Surcharge |
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| An extra charge by a bank if a customer does not keep to their agreement. |
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| Tangible assets |
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| Assets that can be touched, such as equipment and furniture. |
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| Tax allowance |
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| Some tax relief is given by means of tax allowance instead of tax credit. A tax allowance is an amount that reduces your taxable income every year. It differs from a credit, which is subtracted from your tax bill, as it is deducted from your taxable income. Tax reliefs given by way of allowance currently include pension contributions and investments in film relief. |
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| Tax avoidance |
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| A legal way of reducing the amount of tax a person owes. |
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| Tax credit |
| A tax credit is an amount of money that is taken off your final “tax bill” every year. For example, an employee in the Pay As You Earn (PAYE) system is entitled to the PAYE tax credit of €1,650 (2011). |
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| Tax evasion |
| An illegal way of reducing the amount of tax a person owes, for example by concealing income. |
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| Tax marginal rate |
| The marginal rate is the higher rate of income tax and is currently 41%. The marginal rate applies to income earned over the standard rate band. |
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| Tax return |
| A form that a self-employed person must fill in to record their income and any allowances for the year and send in to the Revenue Commissioners on time to avoid penalties and fines. |
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| Tax standard rate |
| This is the standard rate of income tax, which is currently 20%. |
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| Tax standard rate band |
| A rate band is an amount of money on which you pay tax at a particular tax rate. For example, in 2011 a single person has a standard rate band of €32,800, which means that they pay tax of 20% on the first €32,800 of their income. For amounts over €36,400 they pay tax at the marginal rate, which is 41%. |
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| Tax standard rate cut-off point |
| This is the amount above which a taxpayer pays tax at the higher rate of 41%. If a person is entitled to certain reliefs, these can be granted by increasing the amount at which they pay 20%. |
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| Tenant |
| A person who pays rent where they live. |
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| Term deposit |
| A type of account in which a person agrees to leave their savings for a fixed time (the term) or face penalties. |
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| Term loan |
| A loan that a person or organisation must repay within a certain period, for example three or five years. |
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| Third party, fire and theft insurance |
| Motor insurance that pays out if a person accidentally causes damage to another person’s car or if their own car is damaged by fire or stolen. |
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| Total deductions |
| A combination of all amounts, such as tax, pension payments, PRSI and union subscriptions, taken from a person’s gross pay. |
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| Tracker variable rate |
| A rate of interest that tracks the European Central Bank rate whether it goes up or down; the lender is obliged to pass on any changes to its customers. |
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| Trading profit |
| Similar to gross profit, the profit from selling goods and services before accounting for expenses. |
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| Transaction |
| Any payment into or out of a person’s or company’s account. |
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| Turnover |
| The total value of a business’ sales over a particular period. |
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| Unauthorised overdraft charges |
| Fees that a person must pay if they take out more money than they have in their account without the permission of their bank. |
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| Uncleared cheque |
| A cheque that has been paid into an account, but for which money has not yet been collected from the bank that will pay the cheque. |
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| Underwriter |
| An organisation, usually an insurance company, that agrees to pay a claim on an insurance policy. |
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| Universal payment |
| A social welfare payment or benefit that a person receives no matter how many PRSI contributions they have made or the level of their means; examples include Child Benefit and Free Travel. |
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| Unlimited company |
| A company that does not limit what its shareholders need to pay towards the company’s debts if the company is wound up. |
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| Unsecured loan |
| A loan that is not borrowed against a particular asset; if a person does not pay back the loan, the lender cannot take any asset in return, but may still take the person to court. |
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| Unpresented cheque |
| A cheque that a person has given to another person, but has not yet appeared on the bank account that will pay it. |
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| Upfront fee |
| A fee that a person owes or must pay in advance. |
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| Utility bill |
| A bill for a utility, such as gas, electricity or the telephone. |
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| Variable interest rate |
| An interest rate that is likely to go up or down over time. |
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| VAT |
| Value added tax – a tax paid to the Government for most goods and services. |
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| VISA |
| An international card payments organisation owned by banks worldwide, which provides credit cards. |
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| Voluntary excess |
| A sum of money that an insured person agrees to pay for any loss, damage or injury before an insurance company will make any payments. |
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| Will |
| A legal document containing instructions on how a person wishes their estate to be distributed after they die. |
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| Withdraw |
| Taking money out of an bank account. |