If you're employed
Tax is paid in instalments from your wages.
Through the Income Tax Instalment System (ITIS), employers are given a percentage to deduct which is issued by Revenue Jersey in the form of an ITIS rate. This percentage is based on total income, but it's only deducted from employment income.
How it works:
- you register for tax and tell us what your income will be
- we work out your tax percentage, which we send to you to hand to your employer, this is called your effective rate
- the following year you fill out a tax return declaring all your income for the previous year
- we work out your tax and re-calculate the effective 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 effective rate to cover the outstanding tax
If you don't have an effective rate to give to your employer they're legally required to deduct 22%.
The deductions pay instalments towards your tax bill each month and are only as accurate in covering the tax bill as the previous information we have on our records, or the information you tell us.
For example, when you first register if you only declare your salary for core hours, but actually earn an extra £200 per month in overtime, you'll have to pay an extra amount to cover the extra tax.
If your circumstances change during the year it's important that you tell us straight away.
Calculating and updating your ITIS rate
If you work for yourself (self-employed) or you've retired
If all your income is from non-salary sources, (for example self-employment income, pension income or property income) you'll be sent a payment on account request.
How it works:
- you get sent advance notice to pay an instalment which is due by 31 May and is an estimated amount based on 50% of your last tax assessment
- you pay this instalment
- you submit your tax return for the year of assessment
- your tax for the year of assessment is calculated
- we send you the tax assessment, along with a request for the balancing payment (your tax less the instalment you made earlier) which must be paid before the payment deadline.
- your notice of assessment includes advance notice of next year's instalment
If you have a small salary (less than 25% of your total income) you'll still have ITIS payments deducted but this will only account for a small part of your total tax payments. Your instalment is adjusted to 40% of last year's tax.
Instead of paying one instalment by May and the balancing payment by 31 November, you can spread the payment of the whole of your tax over the year with a direct debit.
We'll set up your payments based on last year's tax bill and then review the instalments after we receive your tax return.
If you want to set up a direct debit, print, complete and send us this form. We will then write to you to confirm that the direct debit is set up and how much the instalments are.
Revenue Jersey direct debit instruction
Appealing against your payment on account notice
When we send you a payment on account notice it's based on your tax bill from the previous year. If your taxable income has reduced to the extent that the payment on account request is an unreasonable demand based on what your final tax bill will be, you may appeal.
In order to support your appeal we'll need a letter recommending the amount you think your payment should be and either:
- your completed tax return for the year in question
- a schedule of your income for the relevant year (your tax return will still need to be submitted in due course)
Late payment penalties
How to make payments to the taxes office