Changes to payment dates for company income tax came into force from 2020 (for the year of assessment 2019) onwards.
Estimated company income tax assessments will no longer be issued to companies in advance of payment deadlines. All companies are responsible for calculating and paying the correct amount of income tax on time, at the new instalment and balance due dates.
All companies must continue to file their company tax returns by 31 December in the year following the year of assessment.
Companies (other than large remitters)
The table below sets out the changes to company income tax payment dates for the majority of companies (which do not fall within the definition of large remitters).
Companies that are large remitters
For the first time, a separate category of payment dates is set for large remitters.
A large remitter is broadly defined as a company whose tax liability exceeds £500,000 for each of the two years preceding the year of assessments in respect of which the payment is being made.
These payment dates arise earlier than the dates which apply to all other companies liable to pay income tax.
Calculating the instalment payment
As noted above, companies have to calculate and make an instalment payment for the by 31 May. Large remitters will make their first instalment payment by the earlier date of 31 March.
The payment that has to be made by the instalment date is 50% of the company's estimated liability to income tax for the year of assessment.
The final balance of tax that is due will subsequently have to be paid by 30 November following the year of assessment (or 30 September for large remitters)
Company A estimates in early 2021 that its income tax liability for year of assessment 2020 will be £150,000. It must make an instalment payment of £75,000 by 31 May 2021.
It transpires that Company A's final income tax liability for 2020 is £147,000 and therefore it must pay the balance due of £72,000 by 30 November 2021.
Company B (a large remitter) estimates in 2021 that its income tax liability for the year of assessment 2020 will be £500,000. It must make an instalment payment of £250,000 by 31 March 2021.
It transpires that Company B's final income tax liability for 2021 is £620,000 and therefore it must pay the balance due of £370,000 by 30 September 2021.
Applying for a late payment penalty to be waived
If a late payment penalty has been applied to your company assessment you may request for the penalty to be waived.
As per Article 41I (2) of the Income Tax (Jersey) Law 1961, we will only consider waiving the penalty for the following reasons:
(a) if it amounts to £50 or less for any year of assessment;
(b) where failure to pay the tax by the specified day is caused by the action of a person, in accordance with Article 3A, not connected with the person liable to the surcharge and the failure is remedied without unnecessary delay; or
(c) the Comptroller is satisfied that death, serious illness or other grave and exceptional circumstance prevented payment by the specified time.
Article 41I (2) of the Income Tax (Jersey) Law 1961
Information to be included when appealing a penalty
Your application must be in writing to Revenue Jersey within 40 days of the date of the assessment and include:
- your name (or your client's name if you're acting on behalf of someone else)
- your authorised agent name, address and contact details (if acting on behalf of someone else)
- your tax identification number ("TIN")
- full details as to why the Comptroller should consider waiving the penalty
Each case will be considered on its own merits. Revenue Jersey will notify you whether or not the penalty has been waived.
Appealing against Revenue Jersey's decision
If Revenue Jersey refuses to cancel or waive the penalty you can appeal in writing within 40 days of the date of the notice of refusal.
Commissioners of appeal