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Isle of Man: Online Tax Services for Employers – Proposal to make Online Filing compulsory
Wednesday, April 7th, 2010
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Online Tax Services for Employers were first introduced in 2007 as part of the IOM Government’s commitment to increase the provision of services online. By using these services, it is possible for employers to carry out all of their statutory income tax business online. There has been a steady take up of these services, with the employers of more than half of the Island’s employees already registered.
Treasury is now proposing to phase in the compulsory use of Online Tax Services for Employers.
Employers who normally engage an agent to look after their income tax affairs will not be required to access the online services themselves. However, employers will need to ensure that their agent uses Online Tax Services for Employers on their behalf for all employer-related income tax business.
It is proposed that the compulsory use of these services will be introduced over a period of three years, with one year’s notice being given for the introduction of the first phase. Subsequent phases will be introduced at yearly intervals. Larger employers will be the first to be affected, while those with fewer than 10 employees will be the last.
The proposed phases are as follows:
- tax year beginning 6 April 2011 – compulsory for employers with 100 or more employees
- tax year beginning 6 April 2012 – compulsory for employers with 10 or more employees
- tax year beginning 6 April 2013 – compulsory for all employers.
To make employers aware of their online filing obligation, the Income Tax Division will contact employers:
- in January 2011, if they had a total of 100 or more employees (including directors) at any time between 1 January and 31 December 2010, and
- in January 2012, if they where not in the first group but had a total of 10 or more employees at any time between 1 January and 31 December 2011.
The consultation document asks for suggestions as to what might be considered reasonable grounds for exemption from compulsory online filing. The deadline for feedback on all of the proposals is 30 April 2010.
Further information:
Proposed Introduction of a Compulsory Online Income Tax Regime for Isle of Man Employers
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