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Isle of Man: Budget 2010 – Taxation changes from April 2010
Wednesday, March 10th, 2010
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The following taxation measures for the 201/11 tax year were announced by the Minister for the Treasury in his Budget speech on 16 February.
The following rates and allowances will apply from 6 April 2010:
| Personal allowances | 2009/10 | 2010/11 |
| Single person | £9,200 | £9,300 |
| Married couple (combined) | £18,400 | £18,600 |
| Additional Personal Allowance | £6,300 | £6,400 |
| Blind person | £2,850 | £2,900 |
| Disabled person | £2,850 | £2,900 |
| Co-habiting couple’s maximum addition | £6,300 | £6,400 |
| Age | £2,000 | £2,020 |
| Income tax rates | 2009/10 | 2010/11 |
| Resident rates:
Single: Standard rate on first £10,500 Married couple, jointly assessed: Standard rate on first £21,000 Higher rate on balance |
10% 10% 18% |
10%
10% 20% |
| Non-resident rate on all income |
18% |
20% |
Employer compliance
To improve employer compliance, legislative changes have been made that introduce three new penalties for employers:.
- Any late monthly remittance will be subject to a penalty. Any payment or part payment of ITIP made later than the 19th day of each month will be liable to a 5% penalty. Any amount which remains outstanding after a further 6 months will then be liable to a 5% additional penalty.
- An employer’s annual return which is submitted late will be subject to a civil penalty. Any return submitted later than 30 days from the end of the tax year or 30 days from the date of cessation as an employer will be liable to a £250 penalty, together with a penalty of £50 per day that the return continues to remain outstanding. A criminal offence occurs if the return remains outstanding for more than six months.
- The third penalty will apply to any failure to comply with the Income Tax (Instalment Payments) Act 1974 or the Income Tax (Modified ITIP) Regulations 1987 where another penalty does not apply. Any instance of non-compliance with the above legislation will be liable to a £250 penalty. This includes the failure to notify the Division that an employer has commenced or ceased to act as an employer.
Further information:
Budget 2010 – Income Tax Proposals
Sponsored by Learn Payroll – Isle of Man Payroll
