Treasury,
Tax & Pensions

 Welcome to the Individuals and Employees Section of the Taxation Website!

If you are unable to find any information in this introduction or would like more information, then please view our various forms and guidance or contact us by clicking this link.

 

Tax Return Issue, Submission, Completion

Personal Tax Returns are issued on 2nd March for the previous tax year and completed returns are due for submission on or by 31st August 2017 or 60 days from the date of issue, whichever is later.

Any liabilities for income tax or MST assessments are due for payment on 1st October or 30 days from the date of assessment, whichever is later. After this date, interest will start to accrue at a rate of 3% above the SCB base rate.

Failure to submit your completed Tax Return by its deadline will incur a penalty of £100 for late filing. If by 1st December, you have still not submitted a completed tax return you may be liable to a further penalty of £200.

 

Residency

Tax Residency differs to residency for immigration purposes. An individual’s immigration status has no effect on their tax residency.

Tax Residency is based on the total days the individual is physically present in FI/FI waters for the relevant tax year. Days of arrival and departure are included as days present.

If an individual is physically present in FI for 183 days or more they are tax resident.

If an individual is physically present in FI for less than 183 days they are non-resident.

An individual who is repeatedly resident except for a temporary nature is classed as ordinarily resident.

 

Main Allowances for Income Tax

Residents

  • Full Personal Allowance of £15,000
  • Retirement Pension Contributions (RPC’s)
  • Other Pension Contributions
  • Charitable Donations
  • Subscriptions

Non-Residents

  • Apportionment of Personal Allowance
  • Compulsory RPC’s
  • Charitable Donations

 

Income Subject to Income Tax

Residents

  • Worldwide income assessment basis

  • For foreign tax credit, proof of tax paid is required and confirmation that tax has not and will not be refunded. Credit is limited to FI tax rates

Non-Residents

  • Subject to tax on income from within FI and/or for duties performed in FI

Taxable FI Income

  • Employment & self-employment income

  • Benefits in kind

  • Pensions

  • Property & land

  • Savings & investments

  • Family allowance

Worldwide Income

  • As above from every country, note interest from ‘tax free’ savings (E.g UK ISA’s) are taxable

  • FI hold one double taxation agreement, with UK, which determines which territory has first taxing rights and certain sources of income which may only be taxable in one territory

 

POAT

POAT (Payment on Account of Tax) is deducted weekly or monthly by employers. Main employers apply the personal allowance before deducting tax for tax resident employees.

Casual or additional employers deduct tax at straight 21% (same rate applied for non-tax resident employees).

There are no PAYE codes here.

 

Medical Services Tax (MST)

Income Subject to MST:

Relevant profits and/or earnings for:

  • Work carried out in FI; or

  • Work wholly/mainly carried out in FI

MST Rates for 2017:

  • Employees            1%

  • Employers             1.5%

  • Self-employed      1.5%

The MST threshold for 2017 is £60,000 (or £5,000 per month), main employers are permitted to take into account the threshold for tax resident employees.

Only residents/ordinarily residents are entitled to the full threshold. Further restriction for under 17 year olds.

 

Gratuities

If you are here on contract and receive a gratuity at the end of your contract, it is worth noting that all gratuities are taxable.

For income tax purposes, gratuities can be split over the previous year’s covering when the gratuity is earned, or it can be taxed only in the year received – whichever is to your advantage. This will be worked out when we review your tax return. For more information, please click here

 

Benefits in Kind (BIK)

The following are prescribed taxable benefits in kind:

  • Furnished & unfurnished house

  • Board & accommodation

  • Heating & electricity

  • Vehicles

  • Loans

  • Travel

Travel BIK:

  • Certain travel costs are not taxable, but only apply to the employee, spouse and any child of the employee under 18 years of age at the beginning of the journey.

  • Reviewed at time of payment and not when travel is taken.

  • There are no concessions for compassionate travel.

  • Contract entitlement does not make it exempt

For more information of BIK, please click here or here