Jersey, Channel Islands
The Jersey tax year is the calendar year.
Tax returns are issued in January following the end of the tax year. The filing deadline for these returns is the 31 May for paper filing and 31 July for electronic filing. A penalty of GBP 300 is imposed on returns filed late. Where a return remains outstanding after three months, a penalty of GBP 50 will be imposed every month the return remains outstanding, up to a maximum of nine months.
There is a joint tax return filing for married couples. The income of a married woman, living with her husband, is deemed to be that of her husband. A married woman is treated as living with her husband unless there is a permanent separation.
Payment of tax
Jersey income tax is calculated and collected via an income tax assessment. These are issued by the taxes office following the submission of the tax return form. The tax payment deadline is 30 November. Any tax unpaid at that date is subject to a surcharge of 10%. New legislation introducing late payment interest is expected imminently, and we are awaiting its enactment to confirm what rate this will be at.
A payment on account for the next tax year is due the following 31 May. This is based on the previous year's liability. For a person with no employment earnings, the amount payable is 50% of the previous year's liability. For a person whose earnings comprise 25% or less of their total income, the percentage is 40%.
There is a withholding tax (WHT) scheme in place that applies to employees. This is known as the Income Tax Instalment System (ITIS). Employees who have been on the island since before 2006 have ITIS deducted on a prior-year basis; however, for employees who have arrived on the island from 1 January 2006, ITIS is deducted on a current-year basis. Individuals who pay tax under the ITIS may also be required to make a balancing tax payment in December; however, the payment on account regime will not apply.