Words explained

Tax words, in plain English

Accounts and tax come with a lot of jargon. Here's what the words in Meter Max actually mean, in alphabetical order.

Accounting basis (cash basis or traditional): The rule for when money counts in your books. With cash basis, money counts when it reaches you and costs count when you pay them. It's the simplest, and most drivers use it. Traditional accounting counts money when you earn it, even if you haven't been paid yet.
Allowable expense: A cost of running your business that HMRC lets you take off your income before tax is worked out, such as fuel, insurance or your badge fee. Fines and parking tickets are never allowable. Meter Max tells you which is which.
App fee (commission): The part of each fare that Uber, Bolt or a delivery app keeps. It's a business cost, so it lowers your tax.
Backup: A copy of all your records saved as a file somewhere safe, like Google Drive or your email. If you lose your phone, you can put the backup onto a new phone.
Business miles: Miles you drive for work: to pick-ups, between jobs and deliveries, and back. Driving to the shops on your day off is not business mileage.
Capital allowances: Tax relief for buying things you keep and use for work for a long time, like a car, van or laptop, if you claim actual costs instead of mileage rates. Meter Max works these out for you.
Class 4 National Insurance: National Insurance that self-employed people pay on their profits, at the same time as their income tax. Meter Max includes it in what to set aside.
Expenses: Money you spend to do your job, such as fuel, repairs, insurance, your phone and cleaning your vehicle.
Final Declaration: If you use Making Tax Digital, this replaces your yearly tax return. After the tax year ends, you confirm your figures are complete and HMRC tells you how much tax you owe. It's due by 31 January.
Government Gateway: The user ID and password you use to sign in to HMRC's online services. Meter Max never sees it. You type it on HMRC's own website.
HMRC: HM Revenue and Customs, the UK government department that collects tax.
Making Tax Digital (MTD): HMRC's rules for sending your income and costs every three months using software, instead of only once a year. It's being brought in for self-employed people in stages from April 2026, starting with those who earn the most.
Mileage rates (simplified expenses): A fixed amount you can claim for each business mile instead of adding up your real fuel, insurance and repair costs. Meter Max compares both ways for you.
National Insurance number: Your personal number for tax and benefits. It looks like QQ 12 34 56 C. You'll find it on payslips, a P60 or letters from HMRC.
Payments on account: Advance payments towards next year's tax that HMRC may ask for, due on 31 January and 31 July. Meter Max tells you when they are likely to apply.
Profit: Your takings minus your allowable expenses. Tax is worked out on your profit, not on everything you earned.
Quarterly update: The short summary of income and costs you send HMRC every three months under Making Tax Digital. It isn't a bill; it just keeps HMRC up to date.
Receipt: Proof of something you paid for. HMRC can ask to see them, so take a photo in Meter Max when you add an expense.
Set aside: Money to put away, for example in a separate savings account, so you're ready when your tax bill arrives. Meter Max shows this figure on its Home screen.
Takings: All the money you earn from driving: fares or delivery pay, tips and bonuses.
Tax year: HMRC's year runs from 6 April to 5 April the next year. For example, the 2026-27 tax year starts on 6 April 2026.
UTR (Unique Taxpayer Reference): A 10-digit number HMRC gives you when you register as self-employed. It's on letters from HMRC and in your HMRC online account.
VAT: Value Added Tax. You must register for VAT if your takings in the last 12 months go over £90,000. If you're registered, you send HMRC a VAT return, usually every three months. Most drivers are not registered.
Void: How Meter Max removes an entry you didn't mean to add. Instead of deleting it for ever, it's crossed out with a reason, so your records stay honest and complete.