PYB payment option Regulations lodged
The Minister for Treasury and Resources, Deputy Susie Pinel has lodged draft Regulations that set out how former Prior Year Basis (PYB) taxpayers could pay their 2019 tax bill.
In November 2020, the States Assembly agreed to move all PYB taxpayers to a Current Year Basis (CYB). The vote meant that all the payments which PYB (and pay on account taxpayers) made in 2020 to pay their 2019 tax bill was instead used to pay their 2020 tax bill.
Their outstanding 2019 bill has been ‘frozen.’ The proposed Regulations and supporting report lodged today, will determine how former PYB taxpayers can pay this bill.
The Regulations – which will be debated by the States Assembly in March – are based on the responses to an Island-wide survey, the findings of focus groups held last October and feedback from Scrutiny and States Members.
The Regulations offer former PYB taxpayers two options for payment:
1. Taxpayers can pay the 2019 bill in instalments. They will be able to pay from 2022 and must start making payments by 2025. Their bill must be paid by 2042.
2. Taxpayers can commit to pay the 2019 bill within 12 months of reaching States Pension Age, using existing financial arrangements or assets.
Former PYB taxpayers will need to register for one of the two options by 30 September 2024. It is not yet possible to register for options and taxpayers are asked not to contact Revenue Jersey at this time. Further information will be available by early 2022. If they wish, taxpayers could also choose to pay their 2019 bill in full at any point between now and 30 September 2024, and a small number have already done so.
The Regulations also allow taxpayers to apply for a payment holiday of up to a year, in the event they experience a period of difficult financial circumstances.
Minister for Treasury and Resources, Deputy Susie Pinel, said: “We accelerated these changes to help people who may otherwise be facing larger tax bills and salary deductions in 2021.
“But they are also an important step in modernising our tax system and getting ready for the introduction of Independent Taxation where people become responsible for their own tax affairs regardless of their marital status.
“We have worked hard to ensure that the Regulations accommodate the different needs of former PYB taxpayers at different stages in their lives. The options we have developed give maximum flexibility to taxpayers, so that they have the control they clearly asked for over how they manage their finances.”
Comptroller of Revenue, Richard Summersgill, said: “I’d like to reassure all affected taxpayers that they do not need to take any action at this point. The most useful thing they can do is to file their 2020 tax return and to file online if possible. This will enable Revenue Jersey to confirm their 2020 tax bill.”