Citizens Advice Bureau

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LOCAL INFORMATION

12.2.1.L4
Income Tax

Extent: Jersey
July 2001
Updated 4 August, 2016
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Words you may need to know

 

Default rate – the level at which something is automatically charged unless a different level is agreed or the correct rate is not known

Deadline – last date that you have to do something by

Extended period – a length of time that is lengthy or made longer

ITIS – Income Tax Instalment System. This is a government tax system operated by the States of Jersey by which contributions towards tax liability are collected by government

Liability – responsibility for something

PAYE – this is a tax collection system that is run by the UK government

Refund – when something, usually money, is given back to you

Register – have your name put on a list

Resident – living somewhere

Submit – to give or hand in

 

Liability for UK Tax

People coming to work permanently or for an extended period in Jersey must write to their Inland Revenue (Tax) office stating that they are taking up residence in Jersey and the date from which they will be non-resident for tax purposes.

 

If they are employed in the UK  PAYE will stop when they leave their job. If self-employed, they will need to show proof of leaving the UK when submitting their tax return. Any claims for refunds of back-tax should be made to the Inland Revenue.

 

Liability for Jersey Tax

New residents should register with the Social Security Department when they arrive in the Island. They then register you with other departments, including the Taxes Office. See: http://www.gov.je/LifeEvents/MovingToJersey/Pages/BecomingJerseyResident.aspx

 

For more information about paying income tax see also:

 

http://www.gov.je/TaxesMoney/IncomeTax/Individuals/IncomeTaxCircumstances/Pages/index.asp

 

The default rate for ITIS deductions is 21%.

 

Tax liability after separation

When married couples separate they should contact the Taxes Office for advice. Each will become liable for their own tax from the date of separation.

 

Civil Partnerships

For tax information for civil partners see:

 

http://www.gov.je/TaxesMoney/IncomeTax/Individuals/IncomeTaxCircumstances/Pages/TaxInfoCivilPartners.aspx

 

and

http://www.gov.je/TaxesMoney/IncomeTax/Technical/Guidelines/Pages/CivilPartnershipsSchedule.aspx

 

 

Separate Assessments for married couples and civil partners

For more information see:

http://www.gov.je/taxesmoney/incometax/technical/guidelines/pages/separateassessments.aspx#anchor-3

 

 

Rates of Tax and Personal Reliefs

There are a number of different allowances, reliefs and deductions that a person can claim if they qualify under the rules to get the amount of tax they have to pay reduced. See: www.gov.je/TaxesMoney/IncomeTax/Individuals/AllowancesReliefs/Pages/index.aspx

 

Double taxation on UK income and refunds

Some people living in Jersey may receive income from the UK in the form of dividends, pensions or rents etc.

See: http://www.gov.je/TaxesMoney/IncomeTax/Individuals/Pensions/Pages/PensionLivingAbroad.aspx

 

However, this area can be complex so for further advice contact the Taxes Office.

           

Late filing fee

If you do not return your personal tax return to the Taxes Office by the deadline, you will be fined £250, or the amount equal to your tax if your assessment is less than £250.

 

For more information see:

http://www.gov.je/TaxesMoney/IncomeTax/Individuals/YourTaxReturn/Pages/PersonalLateFilingFee.aspx

 

 

The Late Payment Surcharge

There is a deadline date by which you need to pay the tax you owe.  For more information about what happens if you pay late see:

 

www.gov.je/TaxesMoney/IncomeTax/Individuals/YourTaxAssessment/Pages/LatePaymentSurcharge.aspx

 

Interest and Penalties

If it is discovered that you have not put all your income down on your tax return and as a result you have not paid the right amount of tax you may have to pay a fine.

 

See: www.gov.je/TaxesMoney/IncomeTax/Technical/Guidelines/Pages/InterestPenalties.aspx