Delays processing 2018 tax assessments
We have moved from our old IT tax system software to a new tax system this year. This will bring many benefits in the future including online filing, but during this transition there is a huge amount of work to be done.
This has resulted in delays sending out assessments and concerns from customers about the length of time their assessment is taking. However, contacting us to ask about the delay only causes further delays as the staff who should be assessing are instead dealing with customers who are querying the status of their assessment.
ITIS effective rates
Each November, effective rates for the year ahead are issued to all ITIS-paying customers. As of 18 November, 10,000 of approximately 50,000 had been issued. All customers should receive their new rate by 10 December 2019, in time to hand it to their employer for payroll updates.
The rate will be valid for 2020 until such time that a 2019 assessment is completed and a revised effective rate issued if needed. For customers who have not yet had their assessment for 2018, the 2020 rate will be based on 2017 tax return figures and will be shown on the effective rate notification.
Some customers have raised concerns that they may be put onto the mandatory 21% effective rate from January 2020 because they have not had their assessment done. We hope this information will give customers reassurance.
Payment on account balance payment deadline 6 December 2019
Customers who are self-employed, retired, or have other non-employment income, will be due to make their second mandatory payment on account, for the balance of their 2018 tax bill by 6 December. Again, some customers have not yet received their 2018 assessment, so do not know what is due. If Revenue Jersey had not issued a customer’s 2018 assessment by 25 October 2019 and they have non-employment income, they can make a payment on account using a best estimate by the end of December 2019, or await their tax assessment and then pay the balance indicated.
Taxpayers choosing to make a payment on account, will be refunded any over-payment or have the amount paid deducted from their balance when their assessment is completed. Those choosing to await their assessment before making a payment, will not be surcharged for late payment of 2018 tax liabilities, provided their 2018 assessment was not issued by 25 October 2019.
Personal tax returns assessing progress
We have processed the majority of complex tax returns (generally the full 8 page return) received up to March and will be starting on April shortly.
With regard to simple returns (generally the short 4 page return) we received a large volume of these returns in the run up to the May filing deadline, therefore we are still processing these cases.
When you shouldn't contact us
Most customers don't need to contact us.
If your tax is generally similar each year, your income hasn't changed much or you haven't had any significant change of circumstances you don't need to worry if your assessment hasn't been done yet.
You'll get your assessment in due course and if you pay through ITIS this should have covered the correct amount due. If you don't pay your tax through ITIS then your December payment should be around the same amount as your April payment on account.
Examples of circumstances that can affect your tax
If you haven't received your 2018 tax assessment yet, there are some circumstances that may cause a significant change to your tax bill. These are:
You had a significant change of salary during 2018 or 2019
If your salary significantly increased or decreased and you haven't already told us using the online effective rate form.
Update your effective rate
You got married or separated during 2018
Due to the way the tax is calculated, if you got married or separated during the year this could have a significant impact on the amount you need to pay.
Marriage or civil partnerships
You had a child born during 2018 or your child has left full time education
If you are making a new claim for child allowance this can reduce the amount of tax you are paying. If your child was in full time education but left before 2018 this can increase the amount of tax you need to pay.
Children and tax relief
New or ceasing claim for child care tax relief during 2018
If you pay a registered child care provider to look after your child, this can reduce the amount of tax you pay. If you were paying for child care but these payments have stopped, or are much lower during 2018 then your tax may be higher.
Child care tax relief
You took out a mortgage during 2018
If you took out a mortgage during the year for your home in Jersey this can reduce the amount of tax you need to pay.
Interest tax relief
A new or ceasing source of income during 2018
If you have a new source of income during the year your tax payments may not be enough to cover the tax you need to pay on that income. If a source of non-employment income has stopped during the year we may also need to review your payments as you might be paying too much.
When you should consider contacting us
Wait until you get your assessment so that you know the amount of tax you need to pay.
We will always try to provide extra help to those who need it most so if you're genuinely worried that you haven't been paying enough or can't pay your tax without an un-manageable impact on your finances you should call us.
For this year we will be taking a flexible approach to late payment fines and to ITIS rate increases if they were created through late assessments.
Understanding your tax assessment
Someone you know sent in their return after you and got their assessment already?
We currently have a team of additional contracted staff, trained to undertake the most simple cases. This means some customers with very simple affairs may be receiving their assessments back very quickly, whilst other customer's cases are waiting for our qualified specialists.
We do appreciate some customers may think it's not 'fair' that some people are waiting less time than others, but our additional team allows us to deal with as many tax returns as quickly as we can.