If all of your income is from non-salary sources, (for example self-employment income, pension income or property income) you’ll be asked to make 2 payments for each year. Paying your tax if you work for yourself (self-employed) or if you've retired Payment on Account (POA) If you don't have an instalment rate to give to your employer, they are legally required to deduct 22%.Ĭalculating your tax instalments (deduction from earnings) If you’ve underpaid, you’ll need to pay the balance or we’ll increase your rate to cover the outstanding tax If you’ve overpaid, you may be due a repayment or a reduction in your tax rate. Revenue Jersey works out your actual tax and re-calculates the instalment rate. The following year you fill out a tax return declaring all your income for the previous year If your circumstances change you need to tell Revenue Jersey so they can re-calculate your rate This is called your effective rate notice Revenue Jersey works out your tax percentage which we send to you to hand to your employer. When you register you tell us what your income will be If you have income from other sources like pension or property income, you have to pay this separately. This instalment rate is only deducted from employment income. This percentage is deducted from your gross pay every time you’re paid. Jersey uses an Income Tax Instalment Scheme (ITIS) to calculate how much tax you’ll need to pay. You’ll receive an instalment rate which is a percentage. Paying your tax if you're employed Income Tax Instalment System (ITIS) If you have a low income, but it’s more than the exemption threshold, we’ll ask you to pay some tax but it won’t be 20% on all your income. Instead, we use a calculation so that you pay a small amount of tax that gradually gets higher as your income goes up.įind out what deductions and allowances you can claim.Īllowances, reliefs and deductions for income taxįrom 1 January 2022 you will be independently taxed. This exemption threshold is set each year and normally increases with the cost of living. One of government’s measures to protect people on low incomes is to have an exemption threshold, so if your income is below this you don’t pay income tax. Use our tax calculator to get an idea of how much tax you'll pay. The Jersey personal tax system is set up so that the maximum rate of tax you pay is 20%. Jersey’s tax year runs from 1 January to 31 December each year.Įvery January, you’ll be asked to complete a personal tax return form for the previous year.Ĭalculating your personal tax Standard rate 20% Revenue Jersey is the Island's tax department and is responsible for administering and collecting personal income tax, corporate income tax, goods and services tax and other revenues. Any dividend or distribution from the company is taxable in the hands of the shareholder. Company income from property or property development is also taxed at 20%. The standard rate of corporate income tax is 0% with exceptions for financial service companies (10% tax rate), utility companies (20% tax rate) and large corporate retailers (varies depending on the profits, maximum 20%). The rate is 5% with only a few exemptions. Goods and services tax in Jersey is low, broad and simple. The maximum personal tax rate is 20%, and we also have exemption thresholds and a marginal rate of tax to protect people on lower incomes. You’ll pay tax on income, goods and services, but there’s no capital gains or inheritance tax. Jersey is a self-governing Crown Dependency with its own fiscal and legal system.
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