Income tax assessed in different bands 2003, 2006, 2009 and 2012 (FOI)

​Request

Could you please provide the following information for the years 2003, 2006, 2009 and 2012:

A.

Number of people with a total personal income declared to the Income Tax department of under £50,000.

B.

The total income declared in this band.

C.

The total income tax assessed in this band.
And the same information for income bands:

• 50,000 – 99,999
• 100,000 – 199,000
• 200,000 – 299,000
• 200,000 – 399.000
• 400,000 – 499,000
• 500,000 – 999,999
• 1,000,000 and above.

Response

For the purposes of this answer, the Taxes Office has applied the following interpretations:

For total income declared the figures provided are for total income (assessable for tax). This is because where the income assessed differs from income declared on an individual tax return the actual income declared will not be recorded on the Taxes Office system.
In respect of the total income tax assessed the Taxes Office has provided details of the tax liability.
Definitions of total income (assessable to tax) and tax liability are included in the explanatory notes below.

Year of assessment 2003

Year of assessment 2006

Year of assessment 2009

Year of assessment 2012

Explanatory Notes

The above data is the position as at March 2015.

A Registered Entity (Individuals) is an individual registered with the Taxes Office, irrespective of whether they have a tax liability for the tax year or not.

The data in the above tables excludes those Registered Entities (Individuals) who are registered with the Taxes Office but who are either:

1. not required to complete an income tax return because the Taxes Office is satisfied that their total annual income is consistently below the tax exemption thresholds (e.g. their sole source of income is an old age pension or their sole source of income arises from employment which is consistently below the tax exemption threshold); or

2. Non-residents for income tax purposes

A Registered Entity (Individuals) includes an Individual Taxpayer and an Individual Non- Taxpayer.

An Individual Taxpayer is defined as an individual who has completed an income tax return and calculated to have a positive income tax liability greater than £50 for the tax year, based on the income, allowances and deductions, for the year.

Based on latest Taxes Office figures, there are less than 300 Individual Taxpayers whose liability was less than £50 with a combined total value of less than £8,500. These are counted as Individual Non-Taxpayers. This is consistent with the Taxes Office historical position on gathering tax data.

An Individual Non-Taxpayer is defined as an individual who has completed an income tax return and does not have a positive income tax liability for the tax year, based on the income, allowances, reliefs and deductions for the year.

Both Individual Taxpayers and Individual Non-Taxpayers include:

• Single individuals
• Married couples / civil partnerships that have not opted for separate assessments (counted as one Individual Taxpayer or one Individual Non- Taxpayer)
• Married couples / civil partners that have opted for separate assessments (counted as two Individual Taxpayers or two Individual Non-Taxpayers).

Total income (assessable to tax) is the sum of a taxpayer’s income taken into account in calculating income tax liabilities. Total income is measured before tax allowances and any other deductions have been taken into account.

Tax liability refers to individuals overall tax liability and is before the deduction of any foreign or domestic tax credit.

Further clarification request

Following this response, the applicant requested clarification as follows:

I wonder if you could clarify if the figures provided include income from taxpayers who reside in Jersey under the 1(1)K scheme (and its successor) and if so, do the figures include any income assessed at a tax rate lower than 1% under that scheme?

Response to further request for clarification

The figures provided do include income from taxpayers who reside in Jersey under the 1(1)(k) scheme (and its successor). Regarding the second point there are no tax rates lower than 1% under the scheme – so the answer is no.