If you are self-employed with annual turnover of less than £30,000, there has long been the opportunity to not tell HMRC the expenses under separate headings. Instead, on your behalf we have been able to simply tell them 3 things – your income, total expenses and net profit. The same applies to property lettings income.
From 2009/10 that level for 3 line accounts has dramatically increased to £68,000. It must be appreciated that the amount of work we will need to do is not reduced, as of course we still need to determine each expenditure item so as to then decide what 3 figures we tell HMRC. In reality any saving is on HMRC’s side, by way of less time taken in processing your tax return.
We will be pleased to discuss with you the pros and cons of using 3 line accounts in your particular circumstances.