Government Incentive questions
1. What relocation incentives might the government have to attract new businesses?
The government offers many financial assistance schemes. Click here for more details
The Government also offers the following relocation incentives in relation to recruitment and attracting employees:
National Insurance Holiday Scheme
Tax and benefit questions
1. Can you confirm the tax rates in the Isle of Man? Corporation tax, income tax, capital gains tax and any other tax benefits to being based on the island?
There is no Corporation Tax but you would still need to submit a Tax return. We would need to know further information regarding your businesses financials to give you an answer , we can facilitate a 30 min free of charge meeting with an advisor if you would find this beneficial?
2. What is the tax free allowance in the IOM compared to the UK?
First £14,000 is tax free, next £6500 is 10% after that its 20%
Click here
3. If I pay mainly dividends to myself would they be subject to national insurance in IOM?
No NI payment but you would pay income Tax
4. Any restrictions on being in the UK if IOM is primary residence?
There will be some, but again, this depends on a number of factors and therefore is not straightforward to answer. Please ask us to supply a flowchart that can be used to help illustrate the position.
5. Does the Chamber of Commerce envisage any difficulties after Brexit? ie loss of tax incentives on island?
At the moment Isle of Man is staying abreast of the latest developments coming from UK, we have been assured by Government that IoM is being considered within all negotiations and our Government continue to plan for a deal or no deal scenario
6. Are you entitled to child benefit from the time you arrive on IoM?
Depending on your income you might be eligible for child benefit after you have lived here for 182 days. Please see here
7. If an employee moves to the Island in April for example, if they intend to stay for the rest of the year do they get taxed at a resident rate straight away? Or are they are taxed at a non-resident rate and after 6 months are retrospectively taxed at a resident rate?
Someone moving to the island, who fills in an R25, that states their intention to remain on the island would be taxed at a resident rate from when they arrived. If they did not fill in an R25 and commenced employment they would be taxed at a non-resident rate of 20%
8. How are bonuses are taxed in the Isle of Man?
Tax charged is based on total income, they don’t tax things differently based on how it was received. So for 19/20 the personal allowance is £14,000 free of tax, upto £6,500 earned after that is charged at 10% and everything earned after that is at 20%.
9. is there a process for companies to register as employers?
Yes, you would need to complete a T30 form
Please see here
10. When registering a company for other company taxes (corporation, VAT etc.), what is the procedure /what taxes need to be registered for?
The taxes a company has to register for would depend on what it does. It will automatically be added for income tax but the others are dependent on its activity
VAT – does it trade, depends on its turnover?
ITIP/NI – does the company have any employees?
11. My UK based employer offers remote working, if I relocated to the island but still worked for the UK company, albeit remotely, would I still have tax and deducted NI at IoM rate?
You would certainly be subject to IoM tax, as a resident. With regards to payroll obligations the Government Tax team would need to discuss the matter with you and your employer. We are happy to facilitate a meeting.
12. I have a client who is thinking about doing some consultancy work in addition to his day job, how much would he have to earn from consultancy work before paying tax?
In that example it very much depends on how much of their tax fee allowance has been used up by their employment (day job) as to what they would be taxed on any other income.
Also if they were working as a consultant on a self-employed basis they would need to be categorised by the Government employment tax team who would discuss their work and the National Insurance implications as they are different from those when you are an employee. We are happy to facilitate a meeting with the Government Tax team.
13. I have a client who is an Indian National but is TRP of Latvia (no visa required for me in Schengen Countries), I assume he will need a Visa for coming to the IoM and can he travel to London and Dublin on the same Visa?
It depends for what purpose his temporary residence permit was issued. If it was for work then I suspect he will need a visa to enter the UK. If it was as the spouse of an EU national then probably not.
If he used the TRP to travel to Dublin first then he would need a UK visa. If he can to the IOM from Dublin he would need to come to this office to regulate his stay.
Work Permit questions
1. We stumbled across a property we liked that has a successful holiday let attached with bookings. If we were to buy that and I was maybe self-employed would that make my partner eligible to work?
It’s a tricky one, yes, your partner would still be eligible for a spousal permit but you would need to prove you were working more than 30 hrs per week and on a self-employed permit this can be tricky. On an employed basis the work permit office can get proof via an employment contract.
2. We are moving to the Isle of Man later this month. My wife is Manx and has a Manx Passport. We have been married for 16 years and bought a property on the island which will be our residence. I am a Website Designer and a Children's Entertainer. I was wondering if I need to have a work permit to do either job?
Because your wife is Manx no work permit is required
Visa questions
1. I have a client who has recently relocated to the island from South Africa, he didn’t require a Visa due to holding a British Passport. He now wants to bring his wife and severely autistic Nephew. His wife will be coming every six weeks from now on for between two weeks to four weeks until we finalise her moving across. There is uncertainty though regarding the Nephew, if he likes it here he will come for 6 weeks, if not it will only be 1 week. What type of Visa should they be applying for they both hold South African Passports?
The wife and nephew both need visit visas. The wife in particular will need to be very careful that she is not setting up a regular pattern of residing in the Isle of Man over a long period by “frequent or successive visits” as she may be refused entry if the border immigration officers suspect she is using a visit visa to live in the UK/IOM on a permanent basis.
You don’t say how old the nephew is but his case may be more problematic and will require specialist legal advice. It will be fine for a 6 week visit but it would be very difficult for him to obtain a longer term dependent visa as he is a nephew rather than a son. If he is over 18 then again an adult dependent relative visa is difficult. They will need to prove parental consent for Adam to visit under her care. If the nephew has medical needs then again they need to be careful that they are not seeking entry for the purpose of/ or with the intention of obtaining medical treatment (there is a specific visa category for that).
2. I have a client who is looking to obtain a Visa to bring her parents over from Dubai for a holiday to visit her here on the island. She has been here for less than 6 months ,is it still ok to send an invitation letter.( She has three years UK visa), Does the invitation letter need to be signed by her employer, in her Visa application she outlined that her parents are supporting themselves and have bank statements, does she still need to send her bank statements?
Yes, your client needs to send an invitation letter but doesn’t need to be signed by the employer as they are not associated with the visa applicants, anything they provide would not be of great relevance. For further information on visitors visas please visit, here
It would be for the applicants themselves to complete the visa application and state their circumstances. If the applicants are reliant upon a 3rd person to pay for their travel & accommodation costs then the 3rd party (in this case your client) would need to submit bank statements showing she could afford that as well as look after herself.
Your client should also provide a copy of her passport and evidence of her relationship to the applicants. A common cause of applications being refused is where the relationship is not established. Other than that, the applicant need to demonstrate they are only visiting the IOM and will return home at the end of their stay so evidence of social and economic circumstances are helpful.
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Contact Jessica Kitchen