Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400
In 1988, in accordance with Section 6 of the Income Tax (Instalment Payments) Act 1974 the Assessor issued a direction introducing a tax deduction scheme for sub-contractors engaged in the construction industry.
Except for individuals employed under a contract of employment, the scheme applies to all operatives/workers, including all individuals, partnerships and corporates engaged in the Construction Industry in the Isle of Man.
The scheme operates in a manner equivalent to the ITIP system operated by Employers and the majority of the forms used operate in a similar way. Where the operative holds a valid Manx Exemption Certificate then the payer must treat that certificate as the authority/code to make the payment free of tax. Where no valid certificate has been produced then the payer must deduct tax at the higher rate from the payee.
At the end of each monthly payment period, the tax deducted from each weekly payment to an individual subcontractor is totalled on form C11(a).
The amount of tax deducted on all forms C11(a) is totalled and the figure entered on to the relevant payment period on the C35 - the monthly remttance card.
The C35 is submitted together with the payment of the total tax deducted to the Income Tax Division by the 19th of the following month. If no tax has been deducted the C35 must still be submitted reporting this fact. The C35 will be returned to the Contractor with a reply paid envelope in due course.
Alternatively, this information can be submitted electronically using Online Tax Services.
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In 1988, in accordance with Section 6 of the Income Tax (Instalment Payments) Act 1974 the Assessor issued a direction introducing a tax deduction scheme for sub-contractors engaged in the construction industry.
Except for individuals employed under a contract of employment, the scheme applies to all operatives/workers, including all individuals, partnerships and corporates engaged in the Construction Industry in the Isle of Man.
The scheme operates in a manner equivalent to the ITIP system operated by Employers and the majority of the forms used operate in a similar way. Where the operative holds a valid Manx Exemption Certificate then the payer must treat that certificate as the authority/code to make the payment free of tax. Where no valid certificate has been produced then the payer must deduct tax at the higher rate from the payee.
At the end of each monthly payment period, the tax deducted from each weekly payment to an individual subcontractor is totalled on form C11(a).
The amount of tax deducted on all forms C11(a) is totalled and the figure entered on to the relevant payment period on the C35 - the monthly remttance card.
The C35 is submitted together with the payment of the total tax deducted to the Income Tax Division by the 19th of the following month. If no tax has been deducted the C35 must still be submitted reporting this fact. The C35 will be returned to the Contractor with a reply paid envelope in due course.
Alternatively, this information can be submitted electronically using Online Tax Services.