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
Your 2023 ITIS effective rate notice
The 12% increase to 2023 personal tax allowances means you may see a reduction in the tax you pay each month.
Check you've given your 2023 rate to your employer, or you'll be taxed at the default rate of 22%.
You might not see a decrease in your rate. Mostly this will happen if:
- you pay tax at the standard rate (20% on all your income)
- you have outstanding tax from previous years. In such cases, your rate may stay the same, or go up
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 318||0||0||0|
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 standard rate is calculated
If you're employed the rate you pay is calculated using this formula:
|A||is the rate|
|B||is your estimated tax for the year|
|C||is any unpaid tax and recoverable costs|
|D||is the amount of tax that you have already paid for that year (but not including any amounts paid by your employer or building contractor through ITIS)|
|E||is your estimated taxable income (net of deductions) |
|F||is any estimated taxed at source income|
|G||is any allowable deductions but not payments to private pension plans|
|H||is any allowable deduction to a private pension plans|
Your rate can 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.
Appealing your rate
You have the right of appeal against an effective rate 40 days from the date of the notice.
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.
You can appeal your effective rate on hardship ground by completing the following form:
Personal Tax Enquiry - Request
Unpaid tax from previous years and your effective rate