Two 2019 Tax Repayment Options Suggested

Two possible payment options have been suggested for prior year taxpayers to pay off their 2019 bill, if plans are approved to move them over to current-year basis.

One is a structured 20-year plan from 2022 with no obligation to start paying until 2025 - and the other is to pay it off when reaching States pension age.

One of the most popular suggestions in a survey for paying the 2019 bill off was doing it monthly over ten years.

An in-committee debate was also held last week for politicians to give their suggestions - which the Treasury Minister says has led to the decision to give PYB taxpayers greater flexibility and control over when they pay that liability.

The 20-year payment plan would require regular minimum payments on at least a yearly basis from 2025, but they can more. Payment holidays of up to a year would be offered if someone's financial situation changed suddenly, without needing an affordability test.

People who could choose to pay within 12 months of reaching the States Pension Age, would have to arrange a private pension plan and show the evidence of that to the government.

Arrangements are also being made to help prior-year taxpayers who may have earned considerably more this year than last, to make sure they are not materially disadvantaged by these changes.

The government says taxpayers whose incomes have reduced this year are more likely to have a lower ITIS rate in 2021 if it's approved - and a higher one if it's rejected.

"Reforming the tax system in this way is an ambitious proposal, and one which Islanders care deeply about: they have taken the time to sign a petition, respond to our survey, and get in contact with me personally to share their views.  

"I’ve listened to all of the feedback, including the views expressed in last week’s in-committee debate and the top-level findings of the focus groups we commissioned, and have looked to address the concerns raised with our outline payment options.

"We’re now looking to provide PYB taxpayers with greater flexibility and control over when they pay their 2019 tax bill. By providing this information ahead of next week’s debate, I hope it will enable both the States Assembly and the public, to have a greater understanding of the options before any changes are made." - Deputy Susie Pinel, Treasury Minister.

If the States Assembly votes through the amendment law, the regulations on paying the bill will be published by the end of 2020, and debated in 'early 2021'.

If approved next week, PYB taxpayers 'on account' could defer their November 2020 payment. Revenue Jersey will get in touch to tell them of any changes that impact them. Other PYB taxpayers will also be written to, to explain how this will impact them and when.

The draft law amendment is being debated in the States Assembly next week.