Jersey's government gives 26,000 people more time to repay tax paused during Covid

Jersey's government paused around £330 million of tax payments during the Covid pandemic. Credit: ITV Channel

People in Jersey who paused their prior-year tax payments in 2020 have been given a two-year extension to decide how they will settle their outstanding bills.

During the Covid pandemic, around £330 million of 2019 tax liabilities were frozen for future repayment to help support many workers and those who are self-employed.

Jersey's Treasury Minister, Deputy Elaine Millar, says she will push back the start of the statutory repayment scheme from 2025 to 2027 for those 'Prior Year Basis' taxpayers.

Deputy Millar said: "I am pleased to announce the deferral of the payment scheme to help islanders with the ongoing concerns surrounding the cost of living."

More than 5,000 taxpayers have already settled their outstanding bills since they were frozen, with around 26,000 yet to choose how they will repay.

The three options are to either pay all the money in one go, do yearly instalments , or wait until retirement and then settle the bill within 12 months.

The new deadline for making a decision is 30 September 2026 with any first yearly payments due in 2027, although both these dates are subject to States' approval.

Anyone who does not respond will automatically be placed on a repayment programme.

If someone leaves the island then they have to pay the money back immediately and if a person dies, it will come out of their estate.