Students & School Leavers

The pay you get during practical training from an employer is taxable.

Personal Allowances are the amount of income a person can receive before paying tax at the standard rate of 10% and the subsequent prescribed higher rate of tax.

If you do not live in the Isle of Man, you will have tax deducted at the prescribed higher rate of tax applicable to a non-resident on your Manx source income.

This page provides details of the Rates and Allowances.

Contact the Income Tax Division to complete form 'T18 – Student / School Leaver'. A copy of the form can be obtained from the Personal Tax Forms section of the website.

If your income in the whole tax year is likely to be less than the single person's allowance, your employer may not deduct income tax from your earning, but this may depend if your weekly or monthly salary changes.

If your income in the whole tax year is likely to be more than the single person’s allowance, your employer may deduct income tax from your earnings. The amount can vary depending on the difference between the single person’s allowances and your total salary.

You will start to pay tax when you get your first job. If you go straight to a job when you leave school, you should contact this office as soon as possible and ask for form T18 - Student / School Leaver. A copy of the form can be obtained from the Personal Tax Forms section of the website.

A notice of coding will be issued to you and your employer. If you do not complete this form the amount of income tax deducted from your salary may be incorrect.

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.