Tax return simplification

The Budget included an announcement that the completion of the tax return for millions of small businesses would be easier next year.

It is planned to increase the turnover threshold for the three line account from £30,000 to the VAT registration limit which will be £68,000 from 1 May 2009. As a result, businesses will not need to complete an analysis of their expenses, but will be permitted to complete a single expenses box, and thus their accounts will form only three lines.