Jersey – Budget Statement 2011 tax proposalsFriday, January 21st, 2011
The following increases in the income tax exemption limits are proposed for 2011, reflecting the 1.1% increase in average earnings during 2010.
The historically generous tax thresholds in Jersey mean that many Islanders still pay less tax than in most neighbouring territories.
The income tax payable by a married couple in 2010 with a joint income of £40,000, without children or a mortgage, is as follows:
- Isle of Man – £2208
- Jersey – £4109
- Guernsey – £4380
- United Kingdom – £5805
The income tax payable by a married pensioner in 2010 (aged 63+) with an income of £25,000, without a mortgage, is as follows:
- Isle of Man – £260
- Jersey – £480
- Guernsey – £720
- United Kingdom - £3312
A specific proposal is made with regard to the calculation of the Income Tax Instalment System (ITIS) effective rate to statutorily factor in any significant shortfall in the collection of tax due on employment income.
This tends to happen when an individual’s earnings increase significantly and the change will ensure that the tax is collected earlier, prevent the individual from falling into arrears and potentially reduce the level of tax written off when an individual leaves the Island with tax outstanding.