• Taxation
• Tax for Individuals
• Benefits in Kind
• Completing Your Tax Return
• Employees Tax Instalment Scheme ("ETI")
• How to make a payment
• Income Tax Irregularities Scheme

Employees Tax Instalment Scheme ("ETI")

Summary of the ETI Scheme

To whom does the Scheme apply?
To which types of payment does the ETI Scheme apply?
To which payments does the ETI Scheme not apply?
Labour only contractors, subcontractors, gangs and partnerships

The Employees Tax Instalment ("ETI") Scheme was introduced on 1 January 1980.

The ETI Scheme is an instalment scheme.  Your Coding Notice will be as accurate as possible, using the most recent information available.  This should ensure that the right amount of tax is deducted from your earnings, although this is not always possible.  You may, therefore, find that you have an under or over payment when your assessment is issued.

Should any over payment occur, we would automatically refund the tax to you, usually within a month of issuing your assessment.  You may request the repayment sooner if you wish.

Should any additional tax be due, your assessment will show when the amount outstanding is payable 

To whom does the ETI Scheme apply?

The ETI Scheme applies to everyone receiving wages, salaries, pensions, etc from all employers in Guernsey, and includes company directors, part-timers, casual workers and subcontractor who provide labour only.  It does not apply to employees employed by a private householder.

To which types of payment does the ETI Scheme apply?

They include:

• Wages, salaries, commissions, holiday pay, overtime, benefits in kind, sick pay (but not Social Security sick pay), part-time earnings, casual earnings, bonuses, tips, fees (including directors fees), mortgage subsidy payments, pensions from former employment, redundancy/termination/severance payments.
• Payments to subcontractors, contractors, gangs and partnerships who provide labour only.
• Salaries and/or fees may be received by company directors, and for ETI purposes each is treated as normal pay when the payment is made.
• Annuities from Retirement Annuity Contracts and Retirement Annuity Trust Schemes (personal pensions).

To which payments does the ETI Scheme not apply?

They include:

• Social Security benefits.
• Social Security Old Age Pensions.
• Reimbursements by your employer for expenses actually incurred by you in the performance of the duties of your employment.

Labour only contractors, subcontractors, gangs and partnerships

The ETI Scheme applies to payments made to labour only contractors, subcontractors, gangs and partnerships.

The ETI Scheme does not apply to:

• Payments made by a private householder.
• Payments (including a payment made by a business concern) made to a limited company.
• Where materials are supplied.   However, where only negligible amounts of materials are supplied - for example, a carpenter supplying only his tools, nails and screws - the Scheme will apply.

Labour only contractors and subcontractors

Those individuals who provide only their labour are treated in the same way as all other employees and must give their Coding Notice to their employer.

Labour only gangs

If you are the gang leader, receiving payments on behalf of your gang, you can apply to this office for an ETI Exemption Certificate.  If approved, this will enable you to receive payments without deduction of tax.

You will then become responsible for operating the ETI Scheme on all payments made to individual gang members.  Please refer to the ETI Employers Guide for more information.

If you hold an ETI Exemption Certificate, you must hand this to the employer as failure to do so will result in tax being deducted at 20% from all amounts paid to you.

Labour only partnerships

The same conditions apply to partnerships as gangs.

- Online payments for Income Tax

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Document downloads

Coding Notices Guide CN

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Relevant links & information

Online payments for Income Tax Link to Capita's online payment site for Income Tax

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