Advice for taxpayers on tax assessments

25 November 2019

Revenue Jersey is offering reassurance to taxpayers who have recently, or not yet, received their 2018 tax assessment.

ITIS effective rates

Delays to tax return assessments have led some customers to worry that they will be put onto the default 21% effective rate from January 2020 as they have not received their tax assessment (‘tax bill’) and an updated ITIS effective rate.

Effective rates for the year ahead are usually issued to all ITIS-paying customers in November and this is happening as normal. 50,000 notices will be issued to customers by 10 December, in time to hand them to employers for payroll updates. These rates will be valid for 2020 until the next assessment is completed and a revised effective rate issued if needed.

If a customer hasn’t had their 2018 assessment, and make ITIS payments towards their estimated bill for the current year (CYB), their rate will be based on 2019 earnings data that Revenue Jersey holds from employers.

For those without 2018 assessments who make ITIS payments to cover their bill for the previous year (PYB - you would have first registered for tax before 2006) their 2020 rate will be based on 2017 tax return figures.

Payment on account

People who are self-employed, retired, or have other non-employment income, are due to make their second payment on account, for the balance of their 2018 tax bill, by 6 December.

Some customers have not yet received their 2018 assessment, so do not know what amount is due. Anyone with non-employment income who did not receive their 2018 assessment by 25 October can use a best estimate to make a payment on account by the end of December.

Alternatively they can wait for their tax assessment and pay the balance then. People who choose to make a payment can be refunded any over-payment, on request, once they receive their assessment.

Those choosing to wait for their assessment before making a payment will not be surcharged for late payment of 2018 tax, if their 2018 assessment was issued on or after 26 October 2019.

Flexible approach

The Comptroller of Taxes, Richard Summersgill, said “We are doing our best to catch up with the late assessments, and we want to reassure taxpayers that they won’t be penalised for the impact of our modernisation programme.

“We are taking a flexible approach to applying late penalties this year and will spread any significant ITIS underpayments over next year, to avoid un-manageable increases in ITIS rates for our customers.

“I am sorry for the worry this has caused and I hope the approach we are taking will go some way towards reassuring people about their tax arrangements.”

There is more detailed information online.