ISLANDERS are being assured that Income Tax deductions from their wages next year will take into account increased personal allowances if approved by the States next month.

Income Tax Coding Notices for 2009, being sent out to island homes this week, do not carry the correct personal allowances just proposed in the 2009 Budget.

Staff at the Income Tax Office have been receiving concerned calls. But employers will be given the correct information if the States approves the changes proposed in the Budget, which will be debated on 26 November.

The Budget usually sets allowances two years ahead – the 2009 Budget includes a proposal for personal tax allowances for the calendar year 2010 – allowing time for the Income Tax Office to incorporate the figures in its planning. This year the Treasury and Resources Department has made the unusual move of revising tax allowances upwards for next year.

‘We had to print the Coding Notices before the States debates the proposal,’ said Richard Green, Assistant Administrator of Income Tax.

‘The employer copy will be held back until after the debate so every employed person will receive the correct allowances in the calculation of their wage packet.’

Personal copies will not be reprinted.

Mr Green added: ‘These notices have been sent out now to allow people to check the remainder of the information and alert us to any problem or change in circumstances. But there is no need to alert us over personal allowances – they will be revised if the States agree.’

Contact information

James Falla, Director of Communications, Treasury and Resources Department