Jersey and UK Tax Authorities COVID-19 update
27 March, 2020
In light of the Coronavirus (COVID-19) pandemic, we've been issued with updates from both Revenue Jersey and HMRC. We've provided a high-level overview of some of the major updates below. This situation continues to evolve and we'll continue to work closely with both tax authorities to monitor any changes and update you accordingly.
Revenue Jersey updates
Payments on account
Certain individuals, primarily those who don't have at least 70% of their income subject to ITIS payments, are required to make payments on account towards their 2019 tax liability by 31 May 2020.
Individuals who are unable to make this payment due to the current circumstances, may now contact Revenue Jersey to request a deferral of payment. If you would like our assistance with this, please get in touch.
2019 Jersey Income Tax Returns
The filing deadlines will remain the same for Jersey Income Tax Returns. Where possible, Revenue Jersey is urging individuals to make use of the new online filing system. This extends the filing deadline from 31 May to 31 July. If we are preparing your tax return on your behalf, we already file electronically and will continue to work towards the 31 July deadline.
If you are responsible for any other type of return to Revenue Jersey including ITIS, GST or Corporate Tax Returns, there is currently no relaxation to the filing deadlines and late filing penalties may still be applied. Revenue Jersey will exercise their discretion as regards late filing of GST and ITIS returns in grave and exceptional circumstances.
Residency and Day Counting
Revenue Jersey recognises the COVID-19 pandemic may impact your ability to move freely to and from Jersey or require you to remain unexpectedly in the Island. If you have remained in Jersey due to the following reasons:
- Are quarantined or advised by a health professional or public health guidance to self-isolate in Jersey as a result of the virus.
- Are following official Government advice not to travel from Jersey as a result of the virus.
- Are unable to leave Jersey as a result of the closure of international borders.
- Are asked by your employer to return to Jersey temporarily as a result of the virus.
These will be treated as exceptional circumstances. Please note, you will be required to show evidence that demonstrates you were prevented from travelling e.g. details of cancelled flights. This guidance only applies if you are not normally resident or ordinarily resident in Jersey.
HMRC
HMRC are beginning to issue guidance regarding adjustments to certain tax rules in light of the COVID-19 pandemic. We'll continue to monitor and review these changes and update you as appropriate.
Residency - Exceptional Circumstances
HMRC have confirmed that if you:
- are quarantined or advised by a health professional or public health guidance to self-isolate in the UK as a result of the virus
- find yourself advised by official Government advice not to travel from the UK as a result of the virus
- are unable to leave the UK as a result of the closure of international borders, or
- are asked by your employer to return to the UK temporarily as a result of the virus
then you will be considered to have ‘exceptional circumstances’ under the Statutory Residence Test. This means up to 60 days of presence in the UK may be disregarded. There are concerns that this concession does not go far enough as the restrictions in place, due to the pandemic, may last longer than 60 days. This is a point HMRC is considering and the situation continues to evolve. If HMRC decide to make further concessions we'll update you.
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