Guernsey income tax change 'to be applied'

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Guernsey's Income Tax Office has assured islanders increases in personal allowances will be applied although no new paperwork will be sent out.

Last week the States agreed to a 1.7% rise in personal allowances for 2012.

The office said it would not be sending out new coding notices to save costs on printing and postage.

However, it said all employers would be informed to ensure the correct deductions were made from salaries from the start of the year.

Rob Gray, director of Income Tax, said: "In order to give employees time to check their coding notices for 2012, so that any amendments could be made by the Income Tax Office in good time, the coding notices had to be issued based on the allowances as they then stood.

"As the States has agreed to increase personal allowances for 2012, those codings will be incorrect.

"We will be advising all employers, however, of the correct revised codings for their employees so that the correct deductions can be made from salaries and wages from the commencement of 2012.

"We did not think it would be environmentally friendly, nor an appropriate use of public money, however, to issue revised coding notices to all employees."

He said there would be some cases, such as married couples who elect for separate assessment, where revised notices would be issued.

Mr Gray said there was no need for employees to contact the Income Tax Office about the change unless they believed their coding notice was incorrect.

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