Kemp & Company Limited

Introduction

Independent Taxation will be introduced into Guernsey with effect from 01 January 2023. This means that everyone will be taxed as an individual and be responsible for their own tax affairs.

What will happen?

In October 2022 new Tax Reference Numbers will be issued to married individuals who were previously attached to their spouse's Tax Reference Number while the lead taxpayer will retain their existing Tax Reference Number.

You are unable to opt out of Independent Taxation when this comes into effect in 2023 meaning you will no longer be able to be jointly assessed with your spouse.

In November 2022 Coding Notices will be issued using the new Tax Reference Numbers. Customers are encouraged to check these and advise the Revenue Service of any changes.

In December 2022 Part 2 of the Coding Notices will be issued to employers/pension providers, who will need to ensure that the new Tax Reference Numbers are used in 2023 to ensure ETI is reported and credited to the correct customer account.

Interim assessments for 2023 will be issued on an individual basis with payment of tax due to be quarterly rather than half-yearly as in previous years. The payment dates will be aligned to those for social security contributions, so 15 April, 15 July, 15 October and 15 January.

Whilst independent taxation comes into force in 2023, it won't be until 2024 that customers will need to complete and submit their first individual return.

Please refer to the website www.gov.gg/independent-tax for further details on Independent Taxation.