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Calculating your tax instalments (deduction from earnings)

Paying tax if you're employed

If you're employed your employer will deduct tax from your salary. These tax deductions are an instalment scheme (it's not PAYE).

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 of tax.

If you're liable to pay tax, you'll complete a tax return each year and we will review and revise your rate once this return is processed.

If you owe any tax at the end of the year you'll need to make a balancing payment or we'll increase your rate to try and cover the shortfall.

Whenever you receive an updated effective rate notice, you must hand it to your employer.

If you have more than one employer, they will all need a copy of your effective rate notice. 

If your income changes you'll need to tell us to update your effective rate.

Click here to update or get a copy of your tax effective rate

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.  
​Weekly income (£)
​Weekly tax deduction (£)
​Tax %
​up to 286
​0
​0
​350
​16.50
​4.7
​450
​42.50
​9.4
​550
​68.50
​12.4
​650
​94.5
​14.5
​750
​120.5
​16
​850
​146.50
​17.2
​950
​172.50
​18.1
​1,050
​198.50
​18.9
​1,150
​224.50
​19.5
​1,250
​250
​20
​Figures based on 2018 allowances. If you owe tax or if you don't pay enough at the start of the year, your tax deductions will be higher.
This calculation doesn't include the long-term care contribution (max 1%).
The ITIS rate we give you is rounded up to the nearest whole number.


How the instalment is calculated if you're employed

There are 3 ways of calculating your tax instalment:

  • standard calculation
  • provisional calculation
  • new taxpayers calculation

All the calculations are based on the following formula:

calculation of rate formula.PNG

Standard calculation

L is the sum of:

  • your tax bill for the year of assessment
  • arrears of tax for any earlier years
  • any costs recoverable in respect of the arrears

Less

  • any amount of tax already paid for the year of assessment (disregarding any amount paid from deductions by your employer or building contractor)

I is the sum of:

  • all your taxable income for the year of assessment

Less:

  • your allowable employment expenses and pension contributions for the year of assessment

The result of the calculation is rounded up to the nearest whole number.

Provisional calculation

This calculation is used towards the end of the calendar year to issue your effective rate that will be valid for the start of the next year. It's provisional because at the time the rate is sent out we haven't calculated your tax for the year of assessment.

The instalment is therefore based on the last calculated tax bill.   

L is the sum of:

  • your tax bill for the previous year of assessment
  • arrears of tax for any earlier years
  • any costs recoverable in respect of the arrears

Less:

  • any amount of tax already paid for the year of assessment (disregarding any amount paid from deductions by your employer or building contractor)

I is the sum of:

  • all your taxable income for the previous year of assessment

Less:

  • your allowable employment expenses and pension contributions for the previous year of assessment

The result of the calculation is rounded up to the nearest whole number.

New taxpayers calculation

This calculation is used if you become resident in Jersey for the first time, become liable to tax for the first time or if you return to Jersey after being absent for at least one year of assessment. Your instalment will then always be calculated using this method.

L is the sum of:

  • your estimated tax bill for the payment year
  • arrears of tax for any earlier years
  • any costs recoverable in respect of the arrears

Less:

  • any amount of tax already paid for the payment year (disregarding any amount paid from deductions by your employer or building contractor)

I is the sum of:

  • all your estimated taxable income for the payment year

Less

  • your estimated allowable employment expenses and pension contributions for the payment year

Revised effective rate

When we are aware of a change of information that affects your rate, you will receive a revised effective rate.

The rate is calculated to pay, from the date it's issued to the end of the year, the revised amount of your tax and any arrears.

The calculated rate can't exceed the maximum combined rate.

Long-term care contribution

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 the taxes office to the long-term care fund.

Long-term care scheme: contributions 

Maximum combined rate

The combined rate calculated by the taxes office can't exceed the following:

  • no arrears of tax, 21%
  • arrears of tax for one year of assessment, 25%
  • arrears of tax for two years of assessment, 30%
  • arrears of tax for three or more years of assessment, 35%

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 have other sources of income from which tax is not deducted (eg property income)
  • you're planning for retirement
  • you want to have your rate calculated on the payment year instead of the year of assessment

Contact the taxes office to voluntarily increase your rate. You will be issued with a replacement rate to hand to your employer. 

Planning income tax payments around your retirement

Switching to paying tax on a current year basis

My tax rate is wrong

If you have any concerns about your percentage, you should contact us as soon as possible. The earlier we can correct an incorrect rate, the better.

Appealing your rate

You have the right of appeal against an effective rate 40 days from the date of the notice. 

If you just need to tell us your income has changed, you can do this online.

Tax effective rate notice request

If you have arrears and are appealing your rate on hardship grounds, then you need to give us a detailed income and expenditure statement with your written appeal.

Unpaid tax from previous years and your effective rate

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