Money Terms in Plain English.

T

Tail risk

The small chance of a very big loss, far worse than normal.

In plain English:Most years are fairly ordinary, but now and then something very bad happens. Tail risk is about those rare, painful years.

MoreLess about Tail risk

Forecasts built on averages often play it down. Holding a mix of investments, keeping cash for emergencies and not borrowing to invest all make it hurt less.

For example: In October 1987, the US stock market fell by over a fifth in a single day, something the models of the time said should almost never happen.

See also: Black swan

Takeover

One company buying control of another.

In plain English:When one company buys enough shares in another to take control of it. Shareholders are often offered more than the current share price.

MoreLess about Takeover

Shareholders vote on whether to accept. A takeover premium can lift the share price.

For example: A company offers £5 a share for a rival trading at £4, and shareholders agree.

Takeover premium

How much more than the market price a buyer offers in a takeover.

In plain English:To buy a whole company, a buyer usually has to offer more than the shares are worth on the market. That extra is the premium.

MoreLess about Takeover premium

Under the UK Takeover Code, a buyer that announces it's thinking about a bid usually has a set time to make a firm offer or walk away.

If the deal falls through, the share price often drops back.

For example: A company's shares are at £4 and a buyer offers £5.20 each. That's a takeover premium of 30%.

Taper relief (Inheritance Tax)UK

A cut in Inheritance Tax on gifts made several years before death.

In plain English:If you die between three and seven years after making a big gift, the Inheritance Tax on it is reduced the longer you lived.

MoreLess about Taper relief (Inheritance Tax)

It applies to gifts made between 3 and 7 years before death, growing with each year.

Gifts below the nil-rate band don't get taper relief, as no tax is due on them anyway.

For example: Someone gives away a large sum and dies five years later. The tax on the part above the nil-rate band is cut by taper relief.

Article inside Foliopeak: The Seven-Year Rule and Gifting to Children

Tapered annual allowanceUK

A smaller pension allowance for the highest earners.

In plain English:If you earn a lot, the amount you can pay into pensions each year with tax relief gets smaller.

MoreLess about Tapered annual allowance

It shrinks by £1 for every £2 of adjusted income over £260,000, down to £10,000, as long as threshold income is also over £200,000.

It mostly affects very high earners. Carry forward can help.

For example: A consultant with very high pay finds their pension annual allowance cut down towards £10,000, so they check before making a big payment in.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: The Pension Annual Allowance Taper

Targeted supportUK

Suggestions from pension and investment firms for people in situations like yours.

In plain English:Pension and investment firms can now suggest options to groups of customers in a similar situation, without it being full personal advice.

MoreLess about Targeted support

It started on 6 April 2026.

It's meant to help people who can't afford advice. Firms must follow FCA rules.

For example: A pension provider suggests a lower withdrawal rate to customers of a similar age and pot size, without full advice.

Tariffs

A tax a country charges on goods brought in from abroad.

In plain English:A tax a country puts on goods coming in from abroad. It makes them pricier, which can push up prices in shops.

MoreLess about Tariffs

They can lead to trade wars. They raise prices for shoppers.

For example: The US adds tariffs on imported steel, making it more expensive for US car makers.

Tax avoidance and evasion

Bending tax rules in ways they weren't meant for, or illegally not paying tax.

In plain English:Tax avoidance is using rules in ways they weren't meant for, which can still be challenged. Tax evasion is hiding income or lying, which is a crime.

MoreLess about Tax avoidance and evasion

Schemes promising big tax savings are often avoidance. HMRC publishes lists of them.

For example: Someone joins a scheme promising to cut their tax to almost nothing. HMRC challenges it and they owe the tax plus interest.

Tax codeUK

The code your employer uses to work out how much tax to take from your pay.

In plain English:A short code of numbers and a letter that tells your employer how much tax-free pay you get. If it's wrong, you could pay too much or too little tax.

MoreLess about Tax code

The usual one, 1257L, means a Personal Allowance of £12,570.

Codes with letters like BR or D0 mean all pay is taxed. Check yours each year.

For example: The standard code 1257L means £12,570 of tax-free pay over the year.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Your Tax Code and Your Payslip

Tax creditsUK

Older benefits for families and workers, now replaced by Universal Credit.

In plain English:Older benefits that topped up the income of families and low-paid workers. They've now been replaced by Universal Credit.

MoreLess about Tax credits

They ended in April 2025.

People who had them were moved to Universal Credit. Overpayments may still be recovered.

For example: A family that used to get Child Tax Credit was moved onto Universal Credit before tax credits ended.

Tax haven

A place with very low tax that often keeps company owners private.

In plain English:A country or place with very low or no taxes, often with secrecy rules that let company owners stay hidden.

MoreLess about Tax haven

Many have signed deals to share information with HMRC. Using one doesn't hide income legally.

For example: A UK resident with a bank account in a tax haven must still declare the interest to HMRC.

See also: Tax avoidance and evasion

Tax refund

Money HMRC pays back when you've paid too much tax.

In plain English:If you've paid too much tax, HMRC pays you back. You might get a letter, or you may need to claim.

MoreLess about Tax refund

Check with HMRC first. Be careful of scam texts offering refunds.

For example: Someone on the wrong tax code gets a refund from HMRC after it's corrected.

Article inside Foliopeak: Your Tax Code and Your Payslip

Tax relief

A reduction in the tax you pay.

In plain English:Something that lowers the tax you pay, like on money you put into a pension or give to charity.

MoreLess about Tax relief

Relief can be at your highest tax rate. Some must be claimed.

For example: Someone pays £100 into a pension, and with tax relief at the basic rate it costs them £80.

Tax residenceUK

Whether the UK counts you as living here for tax.

In plain English:Whether the UK treats you as living here for tax, based on how many days you spend here and your ties to the UK.

MoreLess about Tax residence

You can be resident in more than one country. Treaties decide which taxes what.

For example: Someone spends most of the year in Spain but keeps a home and job in the UK, so they may still be UK resident.

Article inside Foliopeak: Tax Residence, Not Citizenship

Tax wrapper

An account, such as an ISA or pension, that changes how the money inside it is taxed.

In plain English:An account, like an ISA or pension, that protects the money inside it from some or all tax.

MoreLess about Tax wrapper

The same fund can be held in different wrappers. Choosing the right one can save tax.

For example: Someone holds the same global fund in an ISA and a pension, both free of tax on growth.

Article inside Foliopeak: ISA, GIA, or Pension - Which Wrapper for Which Goal

Tax yearUK

The year tax is worked out over, which runs from April to April.

In plain English:The UK tax year runs from the sixth of April to the fifth of April the next year. Allowances reset each April.

MoreLess about Tax year

It started on Lady Day, 25 March, in the old calendar. It moved to 6 April in 1800.

For example: Someone puts money in their ISA on 5 April to use that year's allowance before it resets the next day.

This tax year's figures

Tax-Free ChildcareUK

A government top-up on what you pay for childcare.

In plain English:For every eight pounds you pay into a childcare account, the government adds two, up to a limit each year.

MoreLess about Tax-Free Childcare

It's up to £2,000 a year per child (£4,000 for a disabled child). It stops if either parent's adjusted net income is over £100,000.

You open an online account and pay in. Both parents usually need to work.

For example: Pay £8,000 into the account in a year and the government adds £2,000, the most for one child.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: Tax-Free Childcare and the Free Hours: How They Meet the £100k Cliff

Tax-free lump sumUK

The part of your pension you can usually take without paying tax.

In plain English:You can usually take up to a quarter of your pension pot without paying tax. The rest is taxed as income when you take it.

MoreLess about Tax-free lump sum

Taking it all at once isn't always best. Some schemes offer it in parts.

For example: From a £100,000 pension pot you can usually take £25,000 tax-free.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: The 25% Tax-Free Lump Sum, and the Allowances That Replaced the Lifetime Allowance

Tax-loss harvesting

Selling an investment at a loss to cut the Capital Gains Tax on other gains.

In plain English:Selling an investment that has fallen in value so the loss can cut the tax on gains elsewhere. Wait thirty days before buying it back.

MoreLess about Tax-loss harvesting

It can lower your tax bill. You can buy a similar fund instead.

For example: Someone sells a fund at a £3,000 loss and buys a similar but different fund the same day, using the loss against gains elsewhere.

See also: Thirty-day rule

Taxable income

The part of your income that tax is charged on.

In plain English:Your income after your tax-free amount and any reliefs are taken off. It's the part you actually pay tax on.

MoreLess about Taxable income

It's what's left after allowances. Tax bands apply to it.

For example: Someone earns £30,000 and pays £2,000 into a pension under net pay, so their taxable income is lower.

Technical and fundamental analysis

Picking investments by studying the business itself, or by studying charts of past prices.

In plain English:Fundamental analysis looks at how good a business is, like its profits. Technical analysis looks at patterns in past price charts.

MoreLess about Technical and fundamental analysis

Many investors use fundamentals. Technical analysis is common among traders.

For example: A fundamental investor buys a company with growing profits, while a technical trader buys because its chart shows a rising pattern.

Tell Us OnceApplies in England, Scotland, WalesEnglandScotlandWales

A service that tells most government departments about a death in one go.

In plain English:When someone dies, this free service lets you tell most government departments, like HMRC and the DWP, in one go.

MoreLess about Tell Us Once

It saves contacting each department separately. You can use it online or by phone.

For example: After their father's death, someone uses Tell Us Once to inform HMRC, the DWP and the DVLA in one go.

Temporary workplaceUK

A place you work for a limited time, where travel costs can get tax relief.

In plain English:If you work somewhere for a limited time, usually less than two years, you can get tax relief on your travel costs to get there.

MoreLess about Temporary workplace

It stops being temporary if you spend 40% or more of your time there on a job that lasts, or is expected to last, more than 24 months.

Keep records of journeys. Rules are complex.

For example: Sent to a client's office 30 miles away for 6 months, and paid nothing for the travel? You can claim tax relief on 55p a mile.

Figures checked 8 November 2026. Source: gov.uk (opens in a new tab)

Tenancy deposit protectionApplies in England, WalesEnglandWales

The rule that a landlord must keep a tenant's deposit in an approved scheme.

In plain English:In England and Wales, your landlord must put your deposit in a government-approved scheme within a set time and tell you which one.

MoreLess about Tenancy deposit protection

The deadline is 30 days from getting the deposit.

Landlords who don't protect deposits can be fined. Scotland and Northern Ireland have their own rules.

For example: A landlord doesn't protect a deposit, and the tenant takes them to court and gets compensation.

TER (total expense ratio)

An older name for a fund's yearly running cost.

In plain English:An older name for a fund's yearly running costs. Most funds now show the ongoing charge instead.

MoreLess about TER (total expense ratio)

TER stands for total expense ratio. It doesn't include trading costs.

For example: An older factsheet shows a fund's TER as 0.25%, much the same as its ongoing charges figure.

See also: OCF (ongoing charges figure)

Thematic investing

Investing in a trend, such as clean energy, usually through a fund.

In plain English:Investing in a big idea or trend, like robots or clean energy, usually through a fund. Popular themes can be overpriced.

MoreLess about Thematic investing

Themes can fade. Funds can be concentrated in a few stocks.

For example: A clean energy fund soared in 2020, then fell sharply over the next few years.

See also: Concentration risk

Thin credit file

A credit file with little history, which can make borrowing harder.

In plain English:If you've hardly borrowed before, lenders have little to go on, so they may turn you down. Using a credit card carefully can help.

MoreLess about Thin credit file

Lenders can't judge risk. Paying bills on time helps.

For example: Someone new to the UK struggles to get a phone contract, so uses a credit builder card for a year.

See also: Credit builder card

Thirty-day ruleUK

A tax rule for shares sold and bought back within a month.

In plain English:If you sell shares and buy the same ones back within thirty days, your gain or loss is worked out using the new price, not your original cost.

MoreLess about Thirty-day rule

It's also called the bed and breakfast rule. Buying within an ISA is allowed.

For example: Someone sells shares to use a loss and buys them back in their ISA the same day, which the rule doesn't block.

Article inside Foliopeak: How Section 104 Pooling Actually WorksGame: 30-Day Rule

Ticker

A short code for a share or fund on a stock exchange.

In plain English:A short code for a share or fund, like VOD for Vodafone, used to find it quickly on a stock exchange.

MoreLess about Ticker

UK tickers are often letters. They can differ between exchanges.

For example: Someone types a company's ticker into their platform to find its share price.

Time horizon

How long your money can stay invested before you need it.

In plain English:How long you can leave your money invested before you need it. The longer it is, the more ups and downs you can usually ride out.

MoreLess about Time horizon

Different goals have different horizons. Long horizons suit more risk.

For example: Someone saving for a house in two years keeps the money in cash, while their pension, 30 years away, is invested in shares.

Time to Pay arrangementUK

A plan agreed with HMRC to pay a tax bill in monthly parts.

In plain English:If you can't pay your tax bill on time, you can ask HMRC to let you pay it in monthly parts. Interest is still added.

MoreLess about Time to Pay arrangement

It's for people who can't pay, not who won't. Contact HMRC early.

For example: Someone can't pay their £3,000 tax bill in January and sets up a plan online to pay it over 12 months.

See also: Self Assessment

Time value of money

The idea that money now is worth more than the same amount later.

In plain English:A pound today is worth more than a pound in the future, because you could save or invest it now and earn more.

MoreLess about Time value of money

It's the reason lenders charge interest and why a lottery jackpot paid over 20 years is worth less than the same sum now.

It's behind ideas like discounted cash flow and net present value.

For example: Given the choice of £1,000 today or £1,000 in five years, £1,000 today is worth more, because it could earn interest in the meantime.

See also: Compound interest

Time-weighted and money-weighted returns

Two ways to measure returns: how the investments did, or how your money did.

In plain English:One measures how well your investments did, ignoring when you paid in. The other measures how your own money did, counting when you added or took out cash.

MoreLess about Time-weighted and money-weighted returns

Fund managers usually report time-weighted returns, because they don't control when you pay in. Your own account may show the money-weighted one.

The two can differ a lot if you paid in just before a rise or a fall.

For example: A fund rises 10% in a year, but someone who put most of their money in just before a fall sees their own return come out lower.

Article inside Foliopeak: Investment Returns: Total, Time-Weighted, Money-Weighted and Real

Tokenisation

Recording ownership of things like funds or buildings as digital tokens.

In plain English:Turning ownership of something real, like a fund or a building, into digital tokens on a blockchain, so it's easier to trade.

MoreLess about Tokenisation

The government's first digital gilt, DIGIT, is expected as a trial by early 2027.

It could make buying and selling things like property or bonds faster and cheaper, and let people own smaller slices.

It's early days, and the rules are still being worked out.

For example: A trial digital gilt would be bought, held and repaid using a blockchain record instead of the usual systems.

Too big to fail

A bank so big that a government feels it must rescue it.

In plain English:A bank so large that if it collapsed, it would harm the whole economy, so governments feel they have to rescue it.

MoreLess about Too big to fail

Being rescued can encourage risky behaviour, which is called moral hazard. Big banks now must hold more capital and have plans for winding down.

For example: In 2008 the UK government put billions of pounds into RBS and Lloyds to stop them collapsing.

Article inside Foliopeak: Systemic RiskSee also: Bailout and bail-in

Top-slicing reliefUK

A tax relief that spreads an investment bond gain over the years you held it.

In plain English:When you cash in an investment bond, the gain is spread over the years you held it, which can stop it pushing you into a higher tax band.

MoreLess about Top-slicing relief

It only helps if the gain would push you into a higher band. HMRC has a set way to work it out.

For example: Someone cashes in an investment bond held for ten years. Top slicing works out the tax as if a tenth of the gain was made each year, keeping most of it in the basic rate band.

Top-up fee (care homes)UK

An extra amount a relative pays when a care home costs more than the council will pay.

In plain English:If you choose a care home that costs more than the council will pay, a relative or friend can pay the extra. This is a top-up fee.

MoreLess about Top-up fee (care homes)

The council should offer at least one home that costs no more than it will pay. Top-ups can rise each year.

For example: A daughter agrees to pay £100 a week so her mother can live in a care home closer to the family.

Article inside Foliopeak: Paying for Care: The Means Test, the Home and What the NHS Pays

Total cost of credit

All the interest and fees you'd pay on a loan, on top of what you borrow.

In plain English:The total extra you'll pay on top of what you borrow, including all interest and fees. It shows what the loan really costs.

MoreLess about Total cost of credit

It's shown in pounds, which is easier to understand than a percentage. A longer loan can have a lower APR but cost more overall.

For example: A £5,000 loan over three years has a total cost of credit of £600, so £5,600 is repaid in all.

See also: APR (annual percentage rate)

Total return

Everything an investment earned: its price change plus any income.

In plain English:An investment's price change plus any dividends or interest it paid. It's the full picture of how it did.

MoreLess about Total return

It's the fairest way to compare investments that pay different amounts of income. Fund factsheets usually show it.

For example: A share bought at £10 rises to £10.50 and pays 30p in dividends, a total return of 8%.

Article inside Foliopeak: Investment Returns: Total, Time-Weighted, Money-Weighted and Real

Tracker mortgage

A mortgage whose rate follows the Bank of England's rate.

In plain English:A mortgage whose interest rate follows the Bank of England's rate plus a set amount. When the Bank's rate changes, your payments change too.

MoreLess about Tracker mortgage

Some have a floor, a rate they won't fall below. Many have no early repayment charge.

For example: A tracker at Bank Rate plus 1% charges 5% when Bank Rate is 4%, and 4.5% if Bank Rate falls to 3.5%.

Article inside Foliopeak: Fixes, Trackers, and What Overpaying Really Does

Tracking error and tracking difference

How closely an index fund follows the index it copies.

In plain English:Tracking difference is how far an index fund's return falls short of the index over time. Tracking error is how much that gap jumps around.

MoreLess about Tracking error and tracking difference

A fund with lower charges usually has a smaller tracking difference. Some funds earn a little from lending shares, which can narrow the gap.

For example: An index rises 10% in a year, and a fund tracking it rises 9.8%. Its tracking difference is 0.2%.

Article inside Foliopeak: Funds: ETFs, Index Trackers, and OEICs

Trade deficit and surplus

Whether a country buys more from abroad than it sells, or the other way round.

In plain English:A trade deficit means a country buys more from abroad than it sells. A surplus means it sells more than it buys.

MoreLess about Trade deficit and surplus

A deficit isn't always bad, but a large one for a long time can weaken a currency. Tariffs are sometimes used to try to shrink it.

For example: The UK buys more cars and food from abroad than it sells, but sells more financial services, which partly balances it.

Trading allowanceUK

A small amount of side-business income you don't need to report.

In plain English:If you earn only a small amount from a side business, like selling crafts, you don't need to tell HMRC or pay tax on it.

MoreLess about Trading allowance

It's £1,000 a year, rising to £3,000 from 6 April 2027.

It can't be used for income from your own company or partnership. It also covers small amounts from casual work.

For example: Earn £800 a year selling crafts and you don't need to tell HMRC, as it's under £1,000.

Figures checked 11 November 2026. Source: gov.uk (opens in a new tab)

Article inside Foliopeak: The £1,000 Trading and Property AllowancesCalculator: Sole Trader Tax Calculator

Trading volume

How many shares were bought and sold in a set time.

In plain English:Volume counts how much buying and selling went on. Lots of trading means it's easy to get in and out.

MoreLess about Trading volume

A big price move on high volume shows lots of people acting on it. The same move on low volume can be just a handful of trades.

Very low volume often goes with a wider spread and more slippage.

For example: A large FTSE 100 company may see millions of its shares traded in a day, while a tiny AIM company may see only a few thousand.

Trailing stop

A stop-loss that rises with the price but never falls.

In plain English:You tell your platform to sell if the price drops a set way from its best level. As the price climbs, the sell point climbs with it.

MoreLess about Trailing stop

Like any stop-loss, in a sudden fall it sells at the next price available, which may be lower than the level you set.

Not every UK platform offers it, and a short dip can set it off before the price recovers.

For example: Someone sets a 10% trailing stop on a share at £10. It rises to £12, so the sell point moves up from £9 to £10.80.

Article inside Foliopeak: How Buying and Selling Shares Works

Transaction costs (funds)

What a fund spends buying and selling its investments.

In plain English:When a fund buys and sells investments, it pays costs that come out of the fund's value. They're on top of the yearly fee.

MoreLess about Transaction costs (funds)

They can be higher for actively managed funds that trade a lot. They're part of what reduces your return.

For example: A fund's ongoing charge is 0.8% a year, and its transaction costs add another 0.3%.

Transfer value

The cash a final salary pension offers if you give up its promised income.

In plain English:What a final salary pension will pay you in cash if you give up its guaranteed income and move the money to another pension. Get advice first.

MoreLess about Transfer value

Transfer values can look large, but you give up a guaranteed income for life. Most people are advised not to transfer.

For example: A defined benefit scheme offers £400,000 to give up a pension of £16,000 a year. The member takes advice before deciding.

Article inside Foliopeak: Consolidating Old Pensions

Travel insurance

Cover for medical bills, cancellations and lost bags when you travel.

In plain English:Insurance for trips that pays for medical bills abroad, cancelled holidays and lost luggage. Buy it as soon as you book.

MoreLess about Travel insurance

Buy it when you book, so cancellation is covered. Check the medical cover limit and any activities left out.

For example: Someone breaks a leg skiing abroad, and their travel insurance pays the hospital bill and the flight home.

Treasury bills, notes and bonds

Loans to the US government of different lengths.

In plain English:Loans to the US government. Bills last up to a year, notes up to ten years, and bonds longer.

MoreLess about Treasury bills, notes and bonds

US Treasuries are seen as one of the safest investments in the world. Their yields affect borrowing costs worldwide.

For example: A US investor buys a 10-year Treasury note paying a fixed rate of interest every six months.

Treasury shares

Shares a company has bought back and kept, which get no dividends or votes.

In plain English:Shares a company has bought back but kept instead of cancelling. They get no dividends or votes while the company holds them.

MoreLess about Treasury shares

Companies use them to have shares ready without issuing new ones. They're not counted in earnings per share.

For example: A company buys back a million shares and holds them as treasury shares to give to staff in its share scheme.

See also: Share buyback

Triple lockUK

The promise to raise the State Pension each year by at least a set amount.

In plain English:Each year, the State Pension goes up by whichever is highest: price rises, wage rises or a set minimum.

MoreLess about Triple lock

It's been paused once, in 2022, when earnings figures were distorted by the pandemic. It costs more each year as the population ages.

It's due to change from April 2030. Budget 2026 said the yearly rise would then be the highest of 2.5%, price rises, or enough to keep up with wages since April 2029.

For example: Earnings grow 4%, prices 2%, and the minimum is lower, so the State Pension rises by 4% in April.

Article inside Foliopeak: The State Pension, and Your National Insurance Record

Trivial benefitsUK

Small gifts from your employer that are free of tax.

In plain English:Small gifts your employer gives you, like a birthday present, aren't taxed if they're cheap and not a reward for work.

MoreLess about Trivial benefits

The gift must not be in your contract. Many employers use it for things like a meal out or flowers.

For example: An employer gives each member of staff a box of chocolates at Christmas, which isn't taxed.

Trust

An arrangement where some people look after money or property for others.

In plain English:A legal way of handing money or property to people you trust, the trustees, to look after for others, like your children.

MoreLess about Trust

There are different types, such as bare, discretionary and life interest trusts, each taxed differently. Many must be registered with HMRC.

For example: Grandparents put money into a trust for their grandchildren's university costs, with their parents as trustees.

Article inside Foliopeak: Trusts in Plain English

Trustee

A person who looks after money or property in a trust.

In plain English:Someone who looks after money or property in a trust for the people it's meant for, and must follow the trust's rules.

MoreLess about Trustee

Trustees can be family members, friends or professionals. They may need to keep accounts and file tax returns.

For example: Two aunts act as trustees of a trust for their nephew, investing the money until he turns 25.

Article inside Foliopeak: Trusts in Plain English

Tuition fee loanUK

A student loan that pays your course fees straight to the university.

In plain English:A student loan that pays your university fees straight to the university. You pay it back through your pay later.

MoreLess about Tuition fee loan

It's paid directly, so you never see the money. Repayments depend on earnings, not on how much you owe.

For example: A student's tuition fees are paid by a loan straight to their university each year, and added to what they owe.

Article inside Foliopeak: Student Finance in England: What a New Student Borrows, and What They Repay

Turnover and profit

All the money a business takes in, and what's left after its costs.

In plain English:Turnover is all the money a business takes in from sales. Profit is what's left after paying all its costs.

MoreLess about Turnover and profit

A business can have high turnover and little profit. Banks look at both.

For example: A café takes £150,000 in sales, its turnover, and after costs makes £25,000 profit.

Article inside Foliopeak: Being a Sole Trader, in Plain English

TV LicenceUK

A yearly fee to watch live TV or use BBC iPlayer.

In plain English:You need one to watch live TV on any channel or service, or to use BBC iPlayer. Some older people on Pension Credit get one free.

MoreLess about TV Licence

It's free for people aged 75 or over who get Pension Credit, and half price for people who are registered blind.

Watching only on-demand services other than iPlayer doesn't need one. Students may need their own licence.

For example: Someone who only watches streaming services and never iPlayer or live TV tells TV Licensing they don't need one.

Two-child limitUK

A past rule that limited some benefits to the first two children.

In plain English:A rule that meant most families couldn't get extra Universal Credit or tax credits for a third or later child. It has been scrapped.

MoreLess about Two-child limit

It applied to children born from 6 April 2017, and was removed from 6 April 2026.

It had exceptions, such as for twins or adopted children. Families affected can now get more.

For example: A family with three children on Universal Credit now gets the child part for all three after the limit was removed.