Notifying the Division of your employees details

Details of employees engaged at the time of commencing as an employer must be sent to the Income Tax Division with the Employer’s Registration Form. Details of employees engaged after commencing as an employer must be submitted within 14 days of the date of their engagement while details of those who are no longer employed must be submitted within 14 days of the date on which their employment ends.

In all cases, details of new employees should be submitted on form T20 Employee Commencing and details of those leaving should be submitted on form T21 Employee’s Leaving Certificate.

By enrolling for Online Tax Services for Employers, these forms can be completed and submitted online. For more information about these services, please see Online Tax Services for Employers.

It is vital that the Division knows when a person begins work for a new employer in order that the correct tax code can be issued to that employer. It is equally important that the Division knows when they leave an employment as otherwise it could believe that a person has two employments and therefore issue a code of reduced allowances to the new employer.

An employer should complete form T20 for each employee on each separate occasion that they employ them as well as completing form T21 each time they leave. An employer must submit forms T20 and T21 for all employees, irrespective of age.

If an employee dies then the employer should complete form T21 and send all three parts of the form to the Division stating the date of death.

If an employee marries, their employer should complete form T21 and send all three parts to the Division stating the date of the marriage. The employer should continue using the existing tax code until they receive a form T6 advising them of the new code to be used.

At the end of the tax year only one T14 Isle of Man ITIP and National Insurance Deduction Card covering the full tax year should be completed and a copy given to the employee in the normal way.

If an employee retires, then unless the employee is going to start receiving an occupational pension, the employer should send all three parts of the form to the Division stating the date of retirement. However, if the employee is going to start receive an occupational pension, the employer should send in Part 1 stating the date of retirement, together with Part 3 giving the employer’s pension reference number. The employer should continue to use the code on Part 2. Employers should note that if the occupational pension is going to be administered by an insurance company, then Parts 2 and 3 should either be given to the employee when they retire or forwarded direct to the insurance company.

Failure to submit fully completed starting and leaving forms within the specified period could result in a penalty of £250.