IoM Rolls Out Online Tax Filing

by Amanda Banks, Tax-News.com, London

05 April 2010

The Isle of Man Treasury has proposed introducing a mandatory online income tax regime for island employers.

Online tax services for employers were first introduced in 2007 as part of the government’s commitment to increase the provision of services online. Since their introduction, the range of services available has been greatly enhanced. It is now possible for an employer, or their agent, to, among others functions:

• Make payments of ITIP (paid by IOM employers on behalf of employees receiving Manx occupational pensions) and National Insurance, or to record nil remittances;
• Submit their T35 remittance card;
• Submit their T37 annual return for tax years ending on or after April 5, 2010;
• Save and submit T14 details for tax years ending on or after April 5, 2010;
• Save and submit T9 Benefit in Kind details for tax years ending on or after April 5, 2010; and
• Choose to receive form T6L, listing employee codes, in their secure Online Services Message Box.

The service also allows employers, or their agents, greater access to previously entered details on their employees, and to edit their details, as required.

It is proposed that the compulsory use of these services will be introduced over a period of three years, with one year’s notice being given for the introduction of the first phase. Subsequent phases will be introduced at yearly intervals. Larger employers will be the first to be affected, while those with fewer than ten employees will be the last.

The proposed phases are as follows:

• for the tax year beginning April 6, 2011, use of the online system will be compulsory for employers with 100 or more employees;
• for the tax year beginning April 6, 2012, use of the system will be compulsory for employers with 10 or more employees; and
• for the tax year beginning April 6, 2013 it will become compulsory for all employers.

If an employer normally engages an agent to look after their income tax affairs, the employer will not be required to access the online services themselves, although they may find it beneficial to do so. However, the employer will need to ensure that the agent uses the online service on their behalf for all employer-related income tax business.

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