PART 8Other exemptions
Income exemptionI121
1
The digital requirements do not apply to a person for a tax year to which the exemption in this regulation applies.
2
The exemption does not apply if the person has elected not to be exempt.
3
The exemption applies to a tax year if—
a
the digital requirements did not apply to the person in respect of the previous tax year; and
b
the amount of the person’s qualifying income for the most recent tax year in relation to which the filing deadline fell before the start of the tax year in question is not more than £10,000.
4
The filing deadline in relation to a tax year is the date on or before which the person is required to comply with a notice to file under section 8 of TMA 1970.
5
A person’s qualifying income for a tax year is the sum of the amounts of income, before any deductions, which, for each business carried on by the person in that tax year, are included in that person’s return under section 8 of TMA 1970 for that tax year15.
6
If a person’s qualifying income for a tax year is in respect of a period of other than 12 months, the qualifying income must be adjusted proportionately on a time basis, or, if it appears that that method would work unreasonably or unjustly, on a just and reasonable basis.
7
If a person is not carrying on a business in a tax year the qualifying income is treated as nil.