Accrued interest on overpaid tax (FOI)
Accrued interest on overpaid tax (FOI)Produced by the Freedom of Information office
Authored by Government of Jersey and published on 13 February 2020.
Prepared internally, no external costs.
How much interest has been accrued per year for the last 10 years by holding overcharged islanders’ tax and social security contributions?
The tax and social security systems do recognise that in the normal course of business there will be occasions when tax will have been underpaid or overpaid. However, interest is accrued centrally or through investment funds on all monies held by the Government of Jersey. There is no information available to identify interest on separate elements of government income and expenditure.”
The Tax help information contains the following guidance;
1. Revenue Jersey works out your actual tax and re-calculates the instalment rate. If you’ve overpaid, you may be due a repayment or a reduction in your tax rate. If you’ve underpaid, you’ll need to pay the balance or we’ll increase your rate to cover the outstanding tax
The Social Security (Contributions) (Jersey) Order (1975) contains the following information;
18 Return of amount paid in error
(1) This Article applies to an amount paid to the Minister in the erroneous belief that it was a contribution payable under the Law.
(2) The Minister shall, subject to paragraphs (3), return the amount to the person who paid it to the Minister.
(3) The Minister shall deduct from the amount paid to it –
(a) any amount it has treated under Article 17 as paid on account of other contributions; and
(b) any amount it has paid by way of benefit in the belief that the amount paid under this Article was a contribution.
19 Return of contributions in excess of required amount
(1) Subject to paragraph (2), where the primary Class 1 contributions paid to the Minister in respect of the monthly earnings of a Class 1 insured person exceed the amount required by Schedule 1A to the Law, the Minister shall repay the excess to that insured person.
(2) The Minister may treat any excess of contributions as paid on account, or in satisfaction, of unpaid contributions, and shall not be required to make any repayment under paragraph (1) where the excess is less than one pound.