Income Tax (Earnings and Pensions) Act 2003 section 60E

When other undertakings qualify as small for a tax year

Section 60E sets out the conditions under which an undertaking that is neither a company nor a relevant undertaking (as defined in section 60D) can qualify as small for a particular tax year.

• This section applies to undertakings that are not companies and not "relevant undertakings" as defined elsewhere in the legislation.
• An undertaking qualifies as small if its first financial year is not yet relevant to the tax year in question, meaning it is a newly established entity.
• Alternatively, it qualifies as small if its turnover for its last relevant financial year does not exceed the turnover threshold specified in section 382(3) of the Companies Act 2006 (currently £10.2 million).
• A financial year is only "relevant to" a tax year if it ends at least nine months before the start of that tax year, ensuring that the assessment is based on finalised financial information.