Sole traders
If you’re a sole trader, selling goods and services then you are self-employed.
Step 1
When you begin trading, if you complete paper tax returns you will need the long tax return which includes a section for self-employment.
Request another tax return.
The best way to file is online, as there is built in help and automatic calculations in the online tax return. When you submit it, you also get an email confirming receipt and a copy of your return.
File online.
There's no further action required unless you have also become an employer.
Employing staff.
Step 2
You must keep accurate records of your income and expenditure during the year including:
- your sales and takings
- your purchases and expenses
- money taken out of your business for personal use
Record keeping if you’re working for yourself.
Step 3
You should complete the self-employment sections on your next Income Tax return. It’s recommended to file online as the form can automatically calculate parts of the self-employment section saving you time. If you wish to file a paper return a copy will be sent to you providing you notified Revenue Jersey in step 1 (above).
If you're a Jersey resident for tax purposes, you must declare your business income from any sources including out of Island income arising from any trading activities.
Find further information on allowable
business expenditure and
capital allowances.
To estimate your tax bill use the
tax calculator.
Step 4
If your income is mainly from self-employment, you'll be sent a payment on account request. This means you’ll need to pay your annual income tax in 2 instalments in May and November each year and any remaining balance by 30 November.
The 2 instalment payments will be based on your prior year’s tax bill. Unless you think your tax bill will be less than the prior year’s bill. For example, if you're not expecting to make much profit in the first year of trading, in which case you can ask for the instalment payments to be reduced.
If you receive self-employment and employed income, and your self-employed income is less than 3 times greater than your employed income, you should expect to pay tax via ITIS instead of by instalments.
Find out more information on
tax payment on account.
Self-employed people and traders' tax information
File your personal tax return
Partnerships
A partnership is a formal arrangement between 2 or more people or parties to:
- manage and operate a business
- share its profits
You need to register your partnership with Revenue Jersey. Before registering you'll need to nominate a responsible partner who will be responsible for completing the Partnership Combined Notification every year before 30 November.
Registering a partnership for tax
If you're responsible for filing the Partnership Combined Notification and a tax agent isn't doing it on your behalf, then you need to register for tax online services.
Tax online services
Partners must declare and pay their share of the partnership profits on their personal tax return.
For more details visit partnership income and tax.
Limited companies
A limited company:
- is legally separate from the people who run it
- has separate finances from your personal ones
- has shares and shareholders or a ‘guaranteed amount’ and guarantors
As the owner or a shareholder of a limited company, you must declare any income or benefits you receive from the company in your personal income tax return. This could include:
File your personal tax return.
To estimate your tax bill use the tax calculator.
If your company pays you a salary or benefits you must register your company as an employer with Revenue Jersey:
- your company will need to take
monthly ITIS (tax) deductions from your salary and pay these to Revenue Jersey.
- if you receive anything from the company other than your salary, the company must report it as
benefits in kind. Including for example, a vehicle or accommodation.
Your limited company must also file its own annual
corporate tax return.
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