Important changes to company tax payment dates
Important changes to the deadline dates for the payment of company income tax are due to take effect from 2020 (for the year of assessment 2019).
- company income tax will become payable in two fixed instalments after the year of assessment
- the introduction of fixed calendar deadlines for paying company income tax will create a clearer compliance cycle for companies
- earlier payment dates are being introduced for "large remitters"
- estimated company income tax assessments will no longer be issued to companies in advance of payment deadlines. All companies will be responsible for calculating and paying the correct amount of income tax on time, at the new instalment and balance due dates
- there will be no change to the company tax return filing deadline. All companies must continue to file their company tax returns by 31 December in the year following the year of assessment
Companies (other than large remitters)
The table below sets out the changes to company income tax payment dates for the majority of companies (which do not fall within the definition of large remitters).
| Instalment payment on account | No instalment payment required. However, any tax un-appealed becomes due on receipt of an assessment | 31 May |
| Balance due | First Friday after the first Monday in December | 30 November |
Companies that are large remitters
For the first time, a separate category of payment dates is being set for large remitters.
A large remitter is broadly defined as a company whose tax liability exceeds £500,000 for each of the two years preceding the year of assessments in respect of which the payment is being made.
These payment dates will arise earlier than the dates which apply to all other companies liable to pay income tax.
| Instalment payment on account | No instalment payment required. However, any tax un-appealed becomes due on receipt of an assessment | 31 March |
| Balance due | First Friday after the first Monday in December | 30 September |
Calculating the instalment payment
As noted above, companies will have to calculate and make an instalment payment for the first time by 31 May 2020 (for year of assessment 2019). Large remitters will make their first instalment payment by the earlier date of 31 March 2020 (for 2019).
The payment that has to be made by the instalment date is 50% of the company's estimated liability to income tax for the year of assessment.
The final balance of tax that is due will subsequently have to be paid by 30 November following the year of assessment (or 30 September for large remitters)
Example
Company A estimates in early 2020 that its income tax liability for year of assessment 2019 will be £150,000. It must make an instalment payment of £75,000 by 31 May 2020.
It transpires that Company A's final income tax liability for 2019 is £147,000 and therefore it must pay the balance due of £72,000 by 30 November 2020.
2018 company tax return
There are a number of changes to the 2018 company tax return:
- the global return for foreign incorporated companies (GRFIC) has been amended to capture accounting (not taxable) profits (actual figures will be required) and also information in respect of relevant activities for economic substance.
- the global return for Jersey incorporated companies (GRJIC) is no longer available. Each Jersey incorporated company will need to file a company tax return online.
Company tax return guidance notes: Section 1
2018 assessing process (companies liable to tax at a positive rate)
To facilitate the online functionality of the new Revenue Management System due to come online in 2020, the income tax return submission process has been updated for companies that have an income tax liability.
For the 2018 year of assessment, the company tax return is the key document in the assessing process. Returns are required for the generation of the 2018 amended assessments. A company tax return can only be treated as complete for year of assessment 2018, once we have all of the following:
- the tax return
- the accounts, and
- the Jersey tax computation
Revenue Jersey would like to receive these three documents at the same time.
If the accounts and computation are received separately from the tax return the assessment will not be amended until such time as all three documents are received.
Only actual figures should be returned – estimates are not acceptable.
Further changes to the assessing process are likely for the year of assessment 2019. Details will be published in due course.
2019 company tax return
Additional changes will be made to the company tax return form for 2019. These changes are required for the full implementation of economic substance rules and to collect the additional data needed by the Government of Jersey to maintain and improve levels of tax compliance.
All companies will be required to submit an electronic copy of their accounts alongside their company tax return.
Global tax returns
The global tax return for foreign incorporated companies (GRFIC) will no longer be available from year of assessment 2019 and each foreign incorporated company will be required to separately file a company tax return.
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