Payroll in the Isle of Man refers to the process of managing employee compensation, including salary payments, tax deductions, and National Insurance contributions. Payroll is a critical function for businesses as it ensures that employees are paid accurately and in compliance with tax and legal regulations. Our team handles Isle of Man company formation procedures, as well as provides payroll services for your business.
Table of Contents
Payroll in the Isle of Man mustensure accurate calculation and accounting of both Income Tax Instalment Payments (ITIP) and National Insurance deductions. Payroll systems should be capable of recording the following information for each employee:
Payroll systems in the Isle of Man also record and retain personal details for each employee, including full name, address, tax reference number, National Insurance number, date of birth, marital status, and residential status.
Payroll records and supporting documents must be kept for three years, and these records may be subject to inspection by the Income Tax Division.
We can ease the Isle of Man company registration and payroll procedures for you.
National Insurance contributions are taxes made by employees, employers, and self-employed individuals. These contributions are essential in the payroll system in the Isle of Man.
Contributions must be paid by individuals who are over the age of 16 and under the state pension age (66 years old as of 2024). The National Insurance contribution rates for employees and self-employed individuals in the Isle of Man for the tax year commencing on 6 April 2023, are as follows:
1. For employees:
2. For employers:
3. For self-employed individuals:
National Insurance Contributions might seem complex, but our payroll system in the Isle of Man will simplify this process for you. Additionally, we can help you with the entire process of opening a company in the Isle of Man.
National Insurance contributions go toward funding the State Pension, certain state benefits, and the National Health Service (NHS). This is why a good payroll system in the Isle of Man is essential and beneficial for each citizen. According to the Government website, contributions in the fiscal year 2020/2021 were as follows:
If you are interested in learning more about payroll in the Isle of Man, you can contact our team for assistance. We can also recommend you to our partner accountants in the Isle of Man for guidance on other tax-related issues.