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Sam
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Category: Tax
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My son is in the process of agreeing a professional sports

Resolved Question:

My son is in the process of agreeing a professional sports contract in Jersey. his salary will be 31,000 which includes 7,000 for accommodation. He is told some players pay 4% tax and some pay more. how do we find out what he is to pay.

Mark
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question

This is a UK tax forum of which we experts deal with UK tax related issues. I can explain why the rate differ, but please do bear in mind I am not a Jersey tax expert - would you like to proceed?

Thanks

Sam
Customer: replied 3 years ago.

Yes please. its only guidance and understanding . it all helps.


 


 


Mark

Expert:  Sam replied 3 years ago.
Hi Mark

Thanks for your response

Jersey have a fair (and unique) way of establishing an individuals tax position, by undertaking two calculations - one with personal allowances known as the marginal relief method, which then also makes a charge of the remainder of 27% - and then one just charging the whole amount at 20% - which is why there is the varied tax deductions - so one individual could pay as little as 2% whereas up to 20% can be suffered. And its always the lesser of the two that determines the tax due.


I have added a link - which explains this position very clearly
http://www.gov.je/TaxesMoney/IncomeTax/Individuals/AllowancesReliefs/Pages/MarginalCalculation.aspx

Thanks

Sam
Customer: replied 3 years ago.

Hi Sam


 


Thanks for this, I have looked on the link, I understand your not a tax specialist in Jersey. however can you tell me based on him having a contract of 31k with 7 of that based on accommodation, using the calculation on the link, what would be a guidance on the amount of tax he would pay, I understand this is only guidance.


 


The reason we ask is he is trying to work out if he can afford to say yes and have enough to live on !!


DADS ALWAYS WORRY


 


 


Mark

Expert:  Sam replied 3 years ago.
Hi Mark

It would seem that the considered calculation is £31,000 less £13,780 = £17220 x 27% = £4649.40 OR £31,000 x 20% = £6200 so the lesser position would leave him £26350.60 a year -

Hope that helps

Thanks

Sam
Customer: replied 3 years ago.

Hi Sam


 


Am i correct In my understanding from the video I looked at on the link you sent me. On my sons calculations he gets relief from all business living costs to undertake his work in Jersey


 


Mark

Expert:  Sam replied 3 years ago.
Hi Mark

I am afraid I would like to comment as I am not an expert in their reliefs and when they are due

Thanks

Sam
Customer: replied 3 years ago.
Hi Sam

Last question :) who would you recommend I go to for local advise ?


Mark
Expert:  Sam replied 3 years ago.
Hi Mark

Thanks for your further question

Either an accountant in jersey OR type into the search engine Accountants familiar with Jersey tax (and then fine tune it down to your own area) or phone Jersey tax department - which would be free and one would hope more accurate.

Treasury and Resources - Taxes Office


Contact name
Taxes Office helpdesk

Phone number
01534 440300

Fax
01534 724315

Email address [email protected]

Opening hours
Monday to Friday 9am - 5pm

Address
Taxes Office helpdesk
PO Box 56
Cyril Le Marquand House
St Helier
Jersey
JE4 8PF


Thanks

Sam
Sam and other Tax Specialists are ready to help you
Expert:  Sam replied 3 years ago.
Hi Mark

I hope you were able to get the further information you asked for - regarding allowable living costs

Thanks

Sam