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Here is my definition (not official): someone whose tax affairs are simple enough to do themselves, without specialist knowledge: the benefit of paying an accountant would outweigh the fees paid.
Often:
- someone who works from home
- doesn't employ anyone
- acts as a sole trader
- turnover not large enough for VAT registration (sales tax). Therefore in UK, turnover typically below £73,000
- no tangible business assets worth more than £100,000
- typically, annual business profits below £50,000
None of these items should be taken above as decisive, but taking a "balance-of-probabilities" approach would be sensible.
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