There's types of income you might forget to declare, or aren’t aware you must declare. This isn’t a complete list, but it might help you to decide if you need to make a disclosure.
Some types of income are not taxable.
If your total income is below the tax threshold then you don’t have to pay tax.
Allowances, reliefs and deductions for income tax
All the income you earn from being employed is taxable. This includes extras, like overtime pay, bonuses, and tips.
It can also include redundancy payments, although there is a tax-free element.
Employment income and tax
Different types of pensions are taxable, including the Jersey old age pension. You also have to pay tax on any pension you receive from outside the Island.
Pension income and tax
Any profits that you make by being self-employed are taxable. You should declare all of your income, even if you don’t think you’re making a profit.
Self-employment income and tax
Bank interest and other investment income
Interest earned from holding a bank account, or other types of financial investments. The account or portfolio doesn’t have to be held in Jersey for it to be taxable.
Some investments that are exempt from tax in their own country (eg ISAs in the UK) are taxable in Jersey.
Winnings from UK Premium Bonds are not taxable.
Investment income and tax
Dividend income (from non-Jersey companies)
If you hold shares in a non-Jersey company, then it’s likely that you will receive income from those shareholdings. The most common type of income are dividends, which are taxable in Jersey, even if foreign tax has already been paid.
Rental income and lodgers
Rental income can include income from outside Jersey, or letting out a room in your property, even for a short period of time, such as hosting foreign students. You must declare the income even if you don’t think you’re making a profit.
Property income and tax
Most non-cash benefits that you receive from your employer are taxable. Common examples include free or discounted accommodation, and discounted shares.
About benefits in kind
Intermediary service vehicle (ISV) income
If you charge for your services, but are paid through a company that you’ve set up, you are taxable under the ISV rules.
Tax on intermediary service vehicle income
Other earned income
Some types of income don’t fall under a general heading, but could still be taxable. Here are some examples:
Casual and freelance work
If you do side or odd jobs outside of your normal day job, the income you receive is taxable. This could include electrical, plumbing, painting and decorating work for friends or neighbours, exam marking once a year, or taking photos at a friend’s wedding.
A second income could come from:
- organising parties and events
- providing services like taxi driving or hairdressing
- making and selling craft items
- buying and selling goods, eg at market stalls or car boot sales
Tuition and coaching
Income earned from tuition, such as teaching a language or a musical instrument, or from coaching, such as being a fitness instructor.
Frequently selling items on online marketplaces, like eBay and Amazon.
All tips earned from working in a service industry, such as waiting in a restaurant or café, or from taxi driving.
If you’re receiving maintenance under an agreement that was made before 1997, it is taxable.
Income from non-Jersey trusts or settlements
A distribution made to you from an overseas trust or settlement is taxable.
Trust or settlement distributions
Income from Jersey foundations
Distributions made to you from Jersey foundations are taxable.
Taxation of income distributions received from Jersey foundations
Jersey taxed income
You have to declare income that has already been taxed. The most common examples are interest you’ve received on a loan you’ve made to a person or business, and income distributions from a Jersey trust.
This doesn’t include ITIS you’ve had deducted from your wages.
Distributions from Jersey companies
If you receive a distribution from a Jersey company, the company should provide you with the information you need to make a correct declaration.
You must also declare shareholder loans from Jersey companies.
Tax on Jersey resident shareholder income
Certain types of income aren’t taxable. For some examples, see our page on taxable and non-taxable income.