Income Tax returns and penalties

Returns

As an Isle of Man resident tax payer, you will be required to complete an annual income tax return in order to declare your worldwide income.

Income tax returns are issued shortly after the end of the relevant tax year on 5 April. If you do not receive a return you should contact the Income Tax Division to ensure that your address details are correct.

The normal date for submission of income tax returns is 6 October following the end of the relevant tax year. However this date will change in relation to part-year returns issued due to cessation of residence in the Isle of Man or an individual's death.

In a limited number of circumstances you may not be required to complete a return every year. If your income is consistently below the limit of the personal allowance, your requirement to submit an annual return may be suspended.

Penalties

The date for submission of returns is normally six months after the date of issue, for example, for returns issued on 6 April 2016 in respect of the 2015/2016 tax year, the due date is 6 October 2016.

Penalties will be charged for late submission. If you do not submit your return by the due date you will receive a £100 penalty. A second penalty of £200 will be charged if the return is still outstanding 6 months after the due date.

Do I have to complete a return every year?

All taxpayers (with few exceptions) are required to complete and submit a tax return every year. In certain circumstances you may be suspended from the requirement to submit returns, in these cases you will receive a letter from the Division advising you of this.

Can anyone else complete my tax return?

Yes, but only you can sign it. In the case of a jointly assessed couple, both spouses or civil partners must sign the return.

Where can I file my tax return?

Tax returns can be handed into the Income Tax Division ,or posted to the Income Tax Division at Government Offices, Bucks Road, Douglas, Isle of Man. Returns can also be submitted online using Online Tax Services. To register and enrol please visit www.gov.im/onlineservices and select the 'Income Tax' service.

Who can I speak to for advice regarding filling in my tax return?

You can contact General Enquiries on +44 1624 685400 or visit the Division at the address below. Officers also make visits to Citizen Advice Bureaux and care homes to help individuals complete their return forms. In certain circumstances home visits may be made.

Are residents liable to penalties?

Yes, if you do not submit your return within 6 months of the date of issue then a £100 penalty will be charged. A further £200 penalty will be charged if the return is still outstanding six months later. Payment of the penalty does not mean that the return does not need to be submitted.