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glossary of terms
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Choose a letter:
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P
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pay in putting money into your account. This could be cash or cheques.
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payments money you pay out, for example, on materials you need for your business, interest on loans, money for services such as gas and electricity.
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payment received a sum of money paid into your account to pay off credit, a loan or for services such as gas and electricity. This will be shown on your statement.
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pay period the year is divided into equal pay periods starting from early April (which is also start of the tax year). If you are paid monthly, there are 12 pay periods; if weekly, 52.
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pension an income paid out after someone retires. The government gives tax relief on money paid into a scheme designed to provide a pension. A pension is a 'locked box' form of savings because you cannot spend any money in the fund until you have reached the minimum age (often 50). You can often take part of the proceeds as a cash lump sum but the rest must be taken as income. There are different types of pension schemes: occupational; Stakeholder; state; personal.
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pension deduction payments into a pension scheme will be taken automatically from your pay, if you pay into a pension scheme which is arranged by your employer. This will show up on your payslip as 'pension deductions'
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per annum each year.
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personal pension a pension plan, not tied to a particular employment, that you can keep going even if you change job. You might have set up the plan yourself direct with a pension provider or it could have been arranged through your workplace. Some personal pensions are Stakeholder schemes.
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PIN Personal Identification Number - a secret number which you use with a cash machine card. You type it in and the cash machine checks the card number and PIN are the same.
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p.m. it means 'post meridiem' which is Latin for 'after noon'.
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premium the amount you have to pay to buy the insurance. You may be able to pay in monthly instalments.
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priority debts these are debts which are more important than others because the law lets the people (you owe the money to) take serious action against you. Priority debts include things like a mortgage because your home could be repossessed if you do not keep up your mortgage repayments and fuel bills because your gas or electricity could be cut off.
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profit and loss in a business, you make a profit if you sell goods or services for more than your costs. You make a loss if the proceeds are less than your costs.
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policy this sets out everything that is agreed between you and the insurer. It will list everything that is covered as well as what is excluded. Read it carefully before buying the insurance.
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