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HMRC internal manual

Senior Accounting Officer Guidance

From
HM Revenue & Customs
Updated
, see all updates

Glossary of terms

Term Definition
Appropriate tax accounting arrangements Tax accounting arrangements that are appropriate, see SAOG14320
Balance sheet aggregation Aggregation of balance sheet totals from more than one company in the same group, see SAOG11270, in considering whether a company is a qualifying company
Balance sheet condition Total balance sheet value of £2 billion that must be met for a company to be a qualifying company in a financial year, see SAOG11260
Financial year Term as defined in Sections 390 - 392 of the Companies Act 2006, see SAOG10500
Main duty To take reasonable steps to ensure that the company establishes and maintains appropriate tax accounting arrangements, see SAOG14000
Mid-sized Business A business defined and managed by HMRC as set out in SAOG05000 and SAOG05010
Notification of Senior Accounting Officer (SAO) details Formal provision of SAO details to HMRC by a qualifying company, see SAOG13000
Qualifying company A company which meets the UK incorporation and turnover/balance sheet conditions, see SAOG11000
Reasonable steps Steps a person would normally be expected to take to ensure awareness of all taxes and duties for which the company is liable, to ensure that risks to tax are properly managed, and to enable various returns to be prepared with an appropriate degree of confidence. See SAOG14400
Senior Accounting Officer (SAO) Director or officer of a company who, in the company’s reasonable opinion, has overall responsibility for the company’s financial accounting arrangements, see SAOG12000
Senior Accounting Officer (SAO) certificate Certificate that the SAO must provide to HMRC explaining whether or not there were appropriate tax accounting arrangements for qualifying company for a financial year, see SAOG15000
Tax accounting arrangements The framework of responsibilities, policies, appropriate people and procedures in place for managing the tax compliance risk, and the systems and processes which put this framework into practice. See SAOG14300
Turnover aggregation Aggregation of turnover amounts from more than one company in the same group, see SAOG11240, in considering whether a company is a qualifying company
Turnover condition Total turnover value of £200 million that must be met for a company to be a qualifying company in a financial year, see SAOG11231
UK incorporated company A company incorporated in the UK in accordance with the Companies Act 2006, see SAOG11220