Information about your Income Tax Instalment Scheme (ITIS) rate
You will get an ITIS rate if you are employed. All ITIS rates expire at the end of each year. We send you a new ITIS rate for next year which is estimated using:
- an average of your earnings
- any other income you had
- any extra allowances you received from your last tax return
We will review your ITIS rate when you send us your tax return, so it's important to file as early as you can, to avoid large changes to your rate.
Reviewing your ITIS rate
When you get a new rate you should check it to make sure the figures are correct. It's very important to make sure the estimated income is as close as possible to your actual income to prevent over or under payments. If it isn't you should tell us so we can update your rate.
Update your ITIS rate
Let us know if you:
- start work for the first time
- get a pay rise
- change jobs with a different salary
- increase or reduce your working hours
- take on additional work (for example part time or start working for yourself)
- were previously unemployed or only working part time and are going into full time employment
The sooner you tell us, the sooner we can update your rate to make sure you don't underpay your tax.
Update your ITIS rate
Requesting a reduction in your ITIS rate
If you have arrears and you can't afford to pay your ITIS rate then you can ask us to look at your financial circumstances and spread the payments over a longer period of time.
Request a reduction in your ITIS rate
Unpaid tax from previous years and your effective rate
My tax rate has gone up
If your rate has gone up it will be for one of the following reasons:
Your income has increased
If your income increases, you will pay more tax so your percentage rate will need to increase to make sure this tax is paid. Look at your notice and it will say how much we estimate your income to be. If you think this is wrong let us know by updating your information using the tax enquiry form.
Your rate was too low earlier in the year
If you get a revised rate later in the year and it's jumped up, it normally means the estimated figures we used to calculate the rate have since changed. This happens when we get your tax return at which time we'll also look at your earnings to date for the year. If you want to stop this from happening let us know about changes of income using the tax enquiry form.
You didn't pay enough last year
Once we get your tax return your actual tax can be calculated, instead of being based on an estimate. This can sometimes mean that you didn't pay enough tax in the previous year and you need to pay an extra percentage to pay it off, as well as keeping up to date with this year's tax. Look at your notice and if it includes an amount to pay from a previous year then your rate will be higher because of this. If you want to stop this from happening to keep us up to date with your circumstances using the tax enquiry form.
You have other sources of income
The Income Tax Instalment Scheme (ITIS) only collects tax from your employment income. If you have income from other sources, like self-employment or pension income, the chances are that this will leave a balance to pay at the end of the year. You can either ask for your rate to be increased to cover this tax or you can just pay the balance as a one off payment.
How much tax you'll pay
The amount of tax you'll pay depends on:
- your income
- the allowances and deductions you can claim
- if you owe any tax from previous years
The following table is for a single person with no other deductions. If your income fluctuates, for example your regularly work extra hours, you'll need to work out your average earnings.
up to 356
| 0
| 0
|
400
| 4
| 16
|
450
| 6
| 27
|
550
| 10
| 55
|
650
| 13
| 84.50
|
750
| 15
| 112.50
|
850
| 17
| 144.50
|
950
| 18
| 171
|
1,050
| 19
| 199.50
|
1,150
| 20
| 230
|
1,500
| 22
| 330
|
Paying tax if you're employed
If you're employed your employer will deduct tax from your salary. These tax deductions are an Income Tax Instalment Scheme (ITIS), it's not PAYE.
The rate is calculated by Revenue Jersey based on your tax registration or most recent tax assessment and deducted from your employment income.
When you first register, you'll give us your income details, which need to be as accurate as possible, to make sure you're paying the right amount.
If you're liable to pay tax, you'll complete a tax return each year and an amended rate will be issued once this return has been assessed.
If you owe any tax at the end of the year you'll need to make a balancing payment or your rate will be increased to try and cover the shortfall.
Whenever you receive an updated effective rate notice, you must hand it to your employer.
How the ITIS rate is calculated
If you're employed the rate you pay is calculated using the following information:
- your estimated tax for the year
- any unpaid tax
- any credits rolled forward from the previous year
- any additional payments
- your estimated income
Amended rates
Your rate can also be amended to take into account the estimated tax that needs to be paid by the end of the year deducted from your estimated remaining earnings.
Long-term care contribution (LTC)
The amount needed to pay your long term care contribution is also added onto your effective rate. This is calculated separately and the contribution is sent by Revenue Jersey to the long-term care fund.
Long-term care scheme: contributions
Maximum combined tax and LTC rate
The combined rate calculated by Revenue Jersey can't exceed the following:
- no arrears of tax, 22%
- arrears of tax for one year of assessment, 27%
- arrears of tax for two years of assessment, 32%
- arrears of tax for three or more years of assessment, 37%
However, you can choose to voluntarily increase your rate above these maximum amounts.
Voluntarily increasing your rate
You may want to increase your rate if you are employed but also have other sources of income from which tax is not deducted for example:
- property income
- pension income
- self-employment or casual work
Contact Revenue Jersey to voluntarily increase your rate. You will be issued with a replacement rate to hand to your employer.
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