Includes explanation of what HMRC mean by annual turnover
HMRC’s tax help series now includes information about three line accounts.
Such accounts can be used where a taxpayer’s annual turnover from selfemployment or from UK property is below the VAT registration threshold (£68,000 for 2009/10 and £70,000 for 2010/11).
The guidance explains what the three line account is, who can use it, what the Revenue means by annual turnover (it does not include money received from the sale of a piece of equipment or machinery previously owned by the business, money received from the sale of business premises, or business start-up allowance or enterprise allowance), what records taxpayers need to keep, and where to get help and advice.
Taxpayers are reminded that the three line account cannot be used for:
- income and expenses from land and property abroad;
- employment income and expenses;
- any income shown on the self assessment trust and estate tax return.
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