Calculation of your tax bill
The maximum tax you can pay on your total income for each individual year is 20%. However, depending on what allowances and / or reliefs you are entitled to receive, the actual percentage of income tax you pay will range from 0% to 20%.
There are two methods of calculating tax, standard rate and marginal relief. The bill you receive will always be the lower of the two.
| Personal allowances deducted at the 20% standard rate |
|---|
| Additional personal allowance (also known as single parent allowance) (see note 1 below) |
£4,500 |
Child Allowance
Restricted by reference to the excess of child's investment income over £3,000 (see note 3) |
£3,000
£1 for £1 |
Higher Child Allowance (see note 2)
Restricted by reference to the excess of child's investment income over £3,000 (see note 3)
Note: for 2014 and future years a child's earned income will be disregarded. |
£6,000
£3 for £2
|
| Exemption thresholds deducted using the marginal relief 26% calculation of tax |
|---|
| Single |
£14,000 |
| Married / civil partnership |
£22,400 |
| Single (aged 65 or over for the whole of the year) |
£15,600 |
| Married / civil partnership (aged 65 or over for the whole of the year) |
£25,700 |
| Additions to exemption thresholds |
|---|
| Wife / civil partner 'B' working |
£4,500 |
| Child (see note 3) |
£3,000 |
| Child in further education (see notes 2 and 3) |
£9,000 |
| Single parent (see note 1) |
£4,500 |
| Childcare tax relief |
£6,150 (max) |
| Enhanced childcare tax relief (pre-school age children) |
£12,000 (max) |
| Interest tax relief |
Mortgage interest relief for your principal private residence, although no longer available at the standard rate of tax, is still available at the marginal rate. This means that if you are in what is sometimes called the lower to middle income bracket, you may still receive a deduction for the interest you pay on your home.
Marginal relief calculation of personal tax
Loan and mortgage interest tax relief |
Notes
1) Additional personal (single parent) allowance is only due if the claimant:
- is not entitled to the married/civil partnership exemption threshold (i.e. a single parent) or if the claimant's spouse/civil partner is totally incapacitated by physical or mental infirmity and;
- is entitled to child allowance
2) A child who is over 17 years of age receiving full time higher education. 'Higher education' is defined in the Education (Jersey) Law 1999. Generally it means a university degree, however, other tertiary courses are accepted, for example a foundation degree or attending a recognised nurses training college. If you are not sure if the higher allowance is due, contact us with details of the course your child is attending and a prospectus of the college.
From 2014 the allowance of £6,000 will be enhanced by an additional £3,000 for individuals who pay their tax at the marginal rate.
3) If a child has unearned income (from 2014 earned income is not taken into account) in their own right the amount must be included with the claim for child allowance. Once a child receives more than £3,000 unearned income in the year the child allowance will be restricted on a £1 for £1 basis if child allowance is claimed and £3 for every £2 if higher child allowance is claimed. For example, a child at school has investment income of £4,000 child allowance of £3,000 will be reduced to £2,000. The higher allowance for a child at university with the same income will be reduced from £6,000 to £4,500.
| Retirement annuity relief |
|---|
The combined total paid into all pension schemes in the year of assessment whichever is the lower of
1: £50,000
2: an individuals related earnings during the year of assessment.
One pound of this relief is withdrawn for every one pound of income above £150,000 of an individual's total income.
Jersey pension scheme tax guide |
Paying into an approved pension scheme is a deduction from your earnings both at the standard rate and using the marginal relief calculation of tax. Deductions are given for tax approved schemes only.
| Motor expenses |
|---|
| Flat rate per mile: car |
60p |
| Flat rate per mile: motorcycle |
30p |
Motor expenses can only be claimed when you use your own vehicle wholly and exclusively for work purposes. Mileage can not be included for commuting to and from work. To make a claim evidence is required, for example a letter from your employer, and also a written record of your mileage calculation.
gov.je