Prior Year Basis taxpayers in Jersey have deadline extended

Deputy Elaine Millar said the decision offers islanders "more breathing room"

Taxpayers in Jersey have a year longer until they have to pay tax owing from 2019.

Ministers have deferred the start date of the payment scheme for former Prior Year Basis (PYB) taxpayers from 2025 to 2027.

In 2020, the States Assembly abolished the PYB of paying taxes to help working people during the Covid-19 lockdown.

Deputy Elaine Millar said extending the deadline gave islanders "more breathing room".

The States passed regulations in 2021 creating a payment scheme which would begin in 2025.

Taxpayers would have started paying one seventeenth of their 2019 frozen liability annually, starting from 31 December 2025 until 31 December 2041.

For most taxpayers, this would equate to less than £35 monthly.

Frozen tax liabilities

Subject to States approval, the first instalment will now become due by 31 December 2027 and the last by 31 December 2043.

Taxpayers can choose to pay the entire sum within 12 months of reaching pensionable age. The new deadline for making this decision is 30 September 2026, subject to States' approval.

Citing "ongoing concerns" about the cost of living, Deputy Millar said: "By extending the deadline until 2027, this decision provides affected islanders with more breathing room to navigate their financial commitments effectively."

Former PYB taxpayers can pay the whole amount or make part payments at any time.

About £330m in 2019 tax liabilities were frozen for future repayment, affecting approximately 31,300 taxpayers.

Since then, more than 5,000 taxpayers have settled an outstanding bill.