Channel Eye
Thompsons Estates
  • Home
  • Business
    • Appointments
    • Digital & Technology
    • Features
    • Finance
    • Interviews & Profiles
    • Leadership
    • Legal
    • People
    • Property
    • Retail & Hospitality
    • TechWeek
    • Transport
    • Workplace Wellbeing
  • Lifestyle
    • Beauty
    • Charity
    • Fashion
    • Food & Drink
    • Health & Wellbeing
    • Home
    • Music
    • Play
    • Travel
    • Wedding
  • Events
  • Jersey
  • Guernsey
  • Directory
10 °c
11 ° Sat
11 ° Sun
11 ° Mon
11 ° Tue
  • About
  • Contact
No Result
View All Result
Channel Eye
No Result
View All Result
Thompsons Estates
Home Jersey

Changes mean many Jersey tax payer’s 2019 income tax not due until 2025

November 20, 2020
in Jersey, Lifestyle
Guernsey interim tax assessments for 2020
Share on FacebookShare on TwitterShare on LinkedIn

Following Jersey’s States Assembly vote to move all Prior Year Basis (PYB) taxpayers to Current Year Basis (CYB), Revenue Jersey is writing to affected Islanders to update them. The letters, to PYB and pay on account taxpayers, will arrive over the coming days and will confirm the change and set out the next steps.

The vote means that all the payments that PYB and pay on account taxpayers have made in 2020 to pay their 2019 tax bill will instead be used to pay their 2020 tax bill. Their 2019 tax bill will be ‘frozen’ and they will not need to begin paying it until 2025.

In addition, taxpayers who pay their taxes ‘on account’ do not need to make their usual November payment, but they can if they wish to do so.

The letter will make it clear that there are four steps to complete before PYB taxpayers will have certainty about whether they have a credit or balance to pay when they become a CYB taxpayer. These steps are as follows:

  1. Revenue Jersey will complete all 2019 return assessments, which will confirm the amount of tax that will be frozen.
  2. Revenue Jersey will make the ‘switch over’ for PYB taxpayers to become CYB and all payments made to cover their 2019 tax liability will be moved to cover their 2020 tax bill.
  3. From January, taxpayers can file their 2020 tax return. Filing online using the one.gov.je portal.
  4. Revenue Jersey will start assessing the returns for former PYB taxpayers in a ‘date received’ order, from February 2021. They will check the tax paid in 2020 against the tax owed for 2020.  Taxpayers will then receive their assessment and, if they pay by ITIS, a revised ‘CYB’ rate. It is at this point they will know if they have a balance to pay or a credit.

Comptroller of Revenue, Richard Summersgill, said: “Understandably, a lot of customers are calling, wanting to know if they are in credit or owe tax. We have completed months of work in preparation to put us in the best place to make the change to CYB, but, it’s just impossible to confirm anyone’s 2020 CYB tax position until we receive their 2020 tax return.

“I am asking taxpayers to be patient with the process rather than call us on this matter as the calls are diverting staff from completing the 2019 returns. I hope that in explaining our four steps, customers will understand and support our staff as they work to deliver the changes.”

Payment options

Payment terms for paying the frozen 2019 tax liability are still being developed and will be debated by the States Assembly in early 2021. However, it is likely PYB taxpayers will have two options:

  • Pay their 2019 tax bill in instalments over 20 years. The payment plan will start in 2022, but there will be no need to make any payments until 2025, after which regular payments would be expected
  • Pay their 2019 tax bill when they reach States Pension Age, provided they can show they have a financial arrangement in place to do so.

PYB taxpayers will not need to choose which option to use to pay their 2019 tax bill until 2022 at the earliest. Those customers who wish to, will be able to make a lump sum payment to clear their 2019 liability rather than defer the payment, from February 2021 onwards.

Minister for Treasury and Resources, Deputy Susie Pinel, said: “I understand that many PYB taxpayers will want certainty on what all the changes mean for them financially. I want to reassure these Islanders that they do not currently need to take any action because of this change, other than prepare to file their 2020 return promptly and online if possible.

“As we continue to work on the payment terms and bring them to the States Assembly for debate in early 2021, I also want to reassure the public that we have already, and are continuing to take into account Islanders’ concerns and suggestions received from the survey, focus groups, emails to me and the department, tax professionals, and feedback from Assembly Members.“

More information is available on the Government of Jersey website

 

 

 

Tags: Income TaxTax
ShareTweetShare
Tim Bullock

Tim Bullock

Related Posts

Bordeaux France 01
Finance

Does being locked down in France make you a tax resident? BDO advise

October 27, 2020
2019 income tax returns deadline extended until 28th February 2021
Finance

2019 income tax returns deadline extended until 28th February 2021

September 24, 2020
Guernsey signing Reciprocal Social Security Agreement with Latvia
Business

Guernsey signs Social Security Agreement with Latvia

September 23, 2020
Next Post
Barbara McDonald

Seven Channel Islands staff promotions at PraxisIFM

Recent Articles

Oxford university

University fees to reduce for Channel Islands students

January 15, 2021
Competition launched to name a brand-new street in St Helier

Competition launched to name a brand-new street in St Helier

January 15, 2021
Rupert Pleasant

In conversation with Rupert Pleasant: “Guernsey is a quality jurisdiction with a strong reputation”

January 15, 2021
Law student recognised for exceptional exam performance

Law student recognised for exceptional exam performance

January 15, 2021

Subscribe to our newsletter

Get the latest, no-nonsense, essential news and information direct to your inbox.
Wear a mask
  • Home
  • Business
  • Lifestyle
  • Events
  • Jersey
  • Guernsey
  • Directory

© 2020 Channel Eye Limited

No Result
View All Result
  • Home
  • Business
    • All
    • Appointments
    • Charity
    • Digital & Technology
    • Features
    • Finance
    • Interviews & Profiles
    • Legal
    • Property
    • Retail & Hospitality
    • Transport
    • Workplace Wellbeing
  • Lifestyle
    • All
    • Beauty
    • Fashion
    • Food & Drink
    • Play
    • Travel
    • Wedding
  • Events
  • Jersey
  • Guernsey
  • Directory
  • About
  • Contact

© 2020 Channel Eye Limited

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.