Most taxpayers manage their finances so that their tax is paid on time and in full. However, we know that in certain circumstances this may not be possible and you need to ask for time to pay.
I won't be able to pay in full or on time
If you are not going to be able to pay the tax in full by the due date, you should look at alternative ways to raise the money. These could include:
- approaching your bank to see if they will help
- checking your outgoings to see if there is any non-essential expenditure you can stop or reduce
- if you have various lending commitments approach the lenders to restructure your monthly payments.
If after doing this you are still unable to pay you need to contact us as soon as possible to discuss payment proposals. You may still incur a late payment surcharge but it may prevent any further action being taken against you if we accept your offer.
Time to pay arrangements
Your payment proposal to defer your outstanding tax needs to be in writing and must include:
- why you are unable to pay
- what you have done to try and pay
- how much you can pay before the final due date
- how you will pay any remaining balance (including any older outstanding balances)
We may also ask for the following:
- a statement of your income and expenditure
- a summary of your assets
- letter from your bank confirming they can't assist
We will then consider your proposals and advise you whether they are acceptable or not.
Time to pay arrangements should not exceed 12 months. Any regular payment not made through ITIS must be paid by direct debit.
Any future tax obligations must also be kept up to date.
My request for late payment has not been accepted
The dates that tax payments are due are set out in law. We only have some discretion and this will depend on the circumstances of how the debt has occurred and what we consider to be a reasonable offer of payment.
There is no right of appeal against a decision to refuse a request for deferred payment.
The Jersey Citizens Advice Bureau can assist by providing free, confidential and independent advice on how to deal with debt problems.
Dealing with debt problems on the Jersey Citizens Advice Bureau website
Don't ignore a taxes demand
As well as the automatic surcharge which can be applied on all cases of outstanding tax you risk having a judgement being taken out against you. This will effect your credit rating as well as incurring extra court charges on top of your existing debt.
In certain circumstances we may have to take judgement in order to secure the debt.