Class 3 Income Allowance

From 2010 the Department has introduced an allowance for non-employed people which will be subtracted from their annual income figure with liability being calculated on the balance.  People whose income, before the deduction of the allowance, falls below the annual lower income limit will continue to be exempt from paying contributions.

Increase in Pension Age

In July 2009, the States of Guernsey agreed that from 2020, the pension age shall gradually be increased to 67 through increases of 2 months per year until 2032.  Further information can be found in Billet d'Etat XXI, 29 July 2009, on the States of Guernsey website www.gov.gg

Upper earnings/income limits for 2010

These limits are the highest levels of earnings/income on which contributions are payable.

Employed persons

In 2010, the upper weekly earnings limit, the upper monthly earnings limit and the upper annual earnings limit for employed persons will be £1,536, £6,656 and £79,872 respectively.

Employers

In 2010, the upper weekly earnings limit, the upper monthly earnings limit and the upper annual earnings limit for employers will be £2,259, £9,789 and £117,468 respectively.

Self-employed and non-employed persons

In 2010, the upper earnings and upper income limits will be £79,872 per year. In the absence of actual figures from Income Tax, self-employed and non-employed contributions will be calculated by increasing the previous year's figures by 10%. When actual figures are subsequently received, the contributor will receive an account or a refund as appropriate.

Lower earnings/income limits for 2010

These limits are the lowest levels of earnings/income on which contributions are payable.

Employed persons and employers

In 2010, the lower weekly earnings limit and the lower monthly earnings limit for employed persons and employers will be £114 and £494 respectively.

Self-employed persons

In 2010, the lower annual earnings limit for self-employed persons will be £5,928 per year.
 
Non-employed persons

In 2010, the lower annual income limit for non-employed persons will be £14,820 per year.

Benefits in Kind

From 1 January 2009, employers must include the value of all benefits in kind in their submissions of Social Security and Income Tax returns for employees.

Benefits in kind which must be declared on the schedules include, as previously, accommodation and health insurance, but now also provision of a motor vehicle,  provision of goods and assets, payment of an employee's bills and other such benefits.

Version 4 of Returns Creator

Version 4 of Returns Creator is now available and must be used for Social Security Returns for the first quarter of 2009 onwards.

Simultaneous Employment and Self-Employment

From 1 January 2008, people who are both employed and self-employed must pay contributions on both sources of earnings.  This only applies if a person’s self-employed earnings are more than the annual lower earnings limit, which, in 2010, is £5,928.  A person’s total liability is capped at the upper earnings limit, which, in 2010, is £79,872.

Social Security Agreement with the Republic of Ireland

On 1 October 2007, a new Social Security Agreement with the Republic of Ireland came into force.  Under this new Agreement, people who live in Guernsey who have also lived and worked in the Republic of Ireland may be able to get a small, part pension from Ireland when they reach the age of 65 by taking account of social security contributions paid in the past.

If you are over 65 and have worked and paid social security contributions in the Republic of Ireland as well as Guernsey, please contact the Pensions and Allowances Section on 732506.

Social Security Agreement with the Netherlands

On 1 June 2007, a new Social Security Agreement with the Netherlands came into force.  Under this new Agreement, people who live in Guernsey who have also lived and worked in the Netherlands may be able to get a small, part pension from the Netherlands when they reach the age of 65 by taking account of social security contributions paid in the past.

If you are over 65 and have worked and paid social security contributions in the Netherlands as well as Guernsey, please contact the Pensions and Allowances Section on 732506.