The Government Budget
The Chief Minister announced the Budget for the upcoming tax year, this morning in Parliament.
As expected with the current economic climate and forecast, the Government announced a number of increases to tax and fees.
From a payroll perspective these were the main points:
- The minimum wage will increase to £8.10
- For the next two years there will be a 2% increase in tax rates to assist with COVID recovery. This will affect all tax bands, whether ABS or GIBS.
- No changes announced to social insurance.
- Taxation for personal earnings above £105k are to be increased to a flat rate of 25%
- An increase to tax for CAT 2 individuals of £5k per annum.
- A new table of Government Tariffs will be released with an increase in administrative fees in the provision of services by Government departments such as the Income Tax Office.
- There will also be an increase for occupational pensions from the Government which will increase by 2% in line with the provisions of Section 6 (2) and (2A) ofthe Pensions (Increase) Act.
A full transcript of the Budget speech is available at https://www.gibraltar.gov.gi/press-releases/chief-ministers-budget-address-2022-4492022-8048
EasyPay Tax Changes
We will be implementing the announced tax changes in EasyPay as soon as possible.
The new tax changes are intended to take effect from 1st July. However, until the official updated tax tables and calculation rules have been released by the Income Tax Office, Employers are required to continue with the existing rates.
We will therefore be updating EasyPay as soon as we can receive official confirmation of how these changes impact the tax tables. This is expected to be within the next 3 weeks.
Over the next few weeks, we recommend that all EasyPay users check for updates regularly to ensure that they are using the most recent version of EasyPay. You can check for updates automatically by going into the system, up to the Help menu and selecting “Check for updates”
We will also email a newsletter to advise of any software updates for Tax.