The Jersey Government has announced a proposal by Assistant Social Security Minister, Deputy Scott Wickenden for a cut in employees' social security contributions by 2%, which will be debated by the States Assembly in September. If approved, the 2% cut in rates will apply from 1 October 2020 until 30 June 2021.
The Jersey Government has also announced a proposal by Treasury and Resources Minister, Deputy Susie Pinel to accelerate the plan to put all taxpayers onto the Current Year Basis (CYB) for paying income tax. Currently, approximately two-thirds of Jersey taxpayers are paying tax in arrears, known as Prior Year Basis. Under the proposal, these taxpayers would be moved onto the Current Year Basis, meaning they would pay their tax as they earn. All tax payments made during 2020 would be moved at the end of the year to pay off their 2020 tax bill and their 2019 tax bill would be frozen until January 2023, with a range of repayment options being developed. Employed people who started paying tax from 2006 are already on the Current Year Basis tax system and would not be affected by the change.
Both proposals are part of the Government's Fiscal Stimulus Package announced earlier this month in response to the COVID-19 pandemic.
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