Jersey’s government is being urged to cancel or delay tax bills from employers to help “imploding” firms survive and save jobs.
The Jersey Society of Chartered and Certified Accountants have written the letter on behalf of 26 accountancy firms in the island, which was sent to the Comptroller of Taxes and the Treasury Minister, and copied in to the Chief Minister, on Tuesday.
We are deeply concerned that recently announced measures do not go far enough to protect local businesses and employment. Without immediate financial intervention no amount of administrative changes will save the already numerous businesses that are already on the brink of imploding.
The consortium point out none of the government measures, including delays to social security payments and the underwriting of loans, actually put any money into the bank accounts of local businesses.
They add: “Deferrals are not enough. Businesses will go bust in the meantime.”
The accountants recommend the immediate introduction of seven measures:
The deferral or cancellation of onward payment of ITIS (tax) deductions by employers
Let taxpayers delay paying their 2019 account
Allow taxpayers to self estimate their ITIS rate
Offer sweeping filing extensions to allow accounts to manage staff shortages
Extend tax assessment appeals time limits
Allow a home working allowance as a benefit in kind
Increase the capital allowance for items bought during the crisis from 25% to 100%
The government is due to outline its latest package of measures to support the economy later.