Government Offices
Buck's Road, Douglas
Isle of Man IM1 3TX
Enquiries:
+44 (0) 1624 685400
You will normally pay tax on all income, including tips, bonuses, part-time work and any earnings from outside of the Island as well as any interest from banks etc. Some Social Security benefits are taxable, others are not. For example sickness benefit is not taxable, but Income Support is.
You do not pay tax on:
No. You can earn or receive a certain amount of income without paying tax. This is called the personal allowance. The amount will depend on your personal circumstances, e.g. whether you are married/civil partners and living with your spouse/civil partner, or a single parent etc. Personal allowances are the amount of income a person can receive before paying tax at the standard rate of 10% and the subsequent higher rate of 20%.
If you live in the Isle of Man and are aged 16 or over you will be sent a return each year. You must fill it in properly and return it to the Income Tax Division.
If you live in the Isle of Man and you are aged under 16, you will not have to complete a return unless ITIP has been deducted or you have other income.
If you do not live in the Isle of Man and all your Manx income is taxed at source, you may not be required to complete a return.
The pay you get during practical training from an employer is taxable.
If you live in the Isle of Man you will be entitled to claim the same personal allowance as any other Manx resident. The amount will depend on your personal circumstances. Personal Allowances are the amount of income a person can receive before paying tax at the standard rate of 10% and the subsequent higher rate of 20%. If you do not live in the Isle of Man, you will have tax deducted at the higher rate of 20% applicable to a non-resident.
Covenants made to students are liable to income tax and must be declared on your return. They are part of your total income and need to be taken into consideration when deciding what code is appropriate to you.
If your total income ( including earnings and interest received etc. ) in the whole tax year is likely to be less than the single person's allowance you should contact the Income Tax Division to request and complete forms T18 and R104. Your employer will then be issued with code NT which will mean that you can then be paid without any deduction of tax. If your taxable income is more than the personal allowances you will have to pay tax on the differences between the two amounts.
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