Wednesday, 21 April 2010

HMRC Introduces New Self Assessment Three Line Account Limit (TLA)

For those of you who complete your own Self Assessment Tax Returns, there has, for a number of years, been a concession in place for smaller businesses, below the qualifying threshold.

Under this concession, full accounting information was not required to be shown on the Return. Instead, the financial position could be summarised in just 3 lines; Turnover, Total Expenses and Profit or Loss, thereby keeping the whole process much simpler.

For the tax year to 5 April 2010 onwards, the limit for providing details of just these three items has been increased from £30,000 for self employed, and £15,000 for those with property income, to permanently bring them in line with the VAT registration threshold (currently £68,000).

This means that, if your turnover is less than the limit, you no longer need to provide a detailed breakdown of your business or property expenses. Instead, all you need to provide is;
  • Business Details
  • Turnover
  • Total Allowable Business Expenses
  • Net Profit or Loss
  • Details of Any Adjustments, Allowances And Losses

The TLA facility is optional. You are, however, still required to maintain adequate business records. Details of how to do this can be found on one of our earlier posts, at;

Wednesday, 7 April 2010

New PAYE Late Payment Penalties

Employers and contractors may be liable to penalties if they do not pay PAYE, National Insurance contibutions, Construction Industry Scheme deductions and student loan deductions on time and in full for periods starting on or after yesterday, 6 April 2010.

HMRC have produced a guide to these new penalties, Which apply to all employers and contractors, from May 2010.

These penalties are in addition to any interest charged. Full details can be found on the HMRC website: