Treasury,
Tax & Pensions

Employer Tax Requirements

Payment On Account of Tax (POAT) should be applied by employers to their employees' remuneration

POAT is not tax in itself, but merely a payment on account.  When an individual submits their tax return, any excess POAT over their actual liability will be refunded.  If there is further tax to pay over and above the POAT, the individual will be issued with a demand

Non-resident employers and employees are also within the scope of POAT

Employees working in connection with oil exploration and exploitation activities in a designated area are also within the scope of POAT

Non-resident Employees

A flat rate POAT deduction should be made from this category's remuneration.  The employee can either accept this as their final liability to Falklands Tax or alternatively submit a tax return to receive an assessment.

Tax Free Salaries

Where an employer pays the POAT on behalf of the employee the amounts paid to the employee need to be grossed up for tax purposes so that the actual amount received by the employee is net of tax.

For examples of grossing up scenarios you can download 2013_Grossing_up_all_scenarios.pdf

Payment and Returns

The employer must submit a POAT return for each calendar month by the 14th of the following month together with payment for that month's POAT.

Failure to submit the form within the time period incurs an automatic £50 penalty for each return that is late.

Failure to pay the POAT due within the deadline can render the employer liable to a penalty equal to the amount of the POAT due and interest charges.

An annual return of POAT is also required and this in addition requires details of taxable benefits-in-kind to be entered onto a separate sheet. The annual returns have to be submitted by the 2nd of February in the following year to which the income relates.

The following guides and forms can be downloaded which provide further details on employer's requirements:

2015 Employers Guide

2015 Employer Workbook Electronic Completion

2015 Employers Guide OIL

2015 Employer Workbook Electronic Completion OIL

RPC Rates 2014-2015

BIK Guide 2013 onwards

 

For further information on Employer Tax Requirements please go to 'Employers'

If you have any enquiries concerning the rules and administration of Retirement Pension Contributions (RPCs) please contact :

Pensions Office

FIG Treasury

Thatcher Drive

Stanley

Falkland Islands

FIQQ 1ZZ

Tel       + 500 28415

Fax      + 500 27144

To get in touch by email, please click on this link