Payroll and HR in the Isle of Man

Payroll and HR in the Isle of Man

Local Information

Local Time (LIVE):4:18 PM
Local Currency:$1 = £0.75
Business Language(s):English
Tax Year Dates:6th April – 5th April

 

Located in the Irish Sea, between England and Northern Island, the Isle of Man is a self-governing dependency of the British Crown. It has a rich Celtic and Viking history, but today, the economy of the Isle of Man thrives on tourism, finance, and online gambling. It’s also attracted attention, and consequently income, from the film industry in recent years, due to its rugged coastlines and open countryside.

Businesses might be attracted to the Isle of Man as a potential destination for expansion because of its position between England and Northern Ireland. The Isle of Man Airport offers direct flights to destinations throughout the UK, including Gatwick, Luton and London City. From these airports it’s possible to connect to destinations all over the world. Within the island itself, there is a reliable network of public buses, as well as several picturesque Victorian train services.

Any company owner looking to expand their business over to the Isle of Man must be familiar with the local laws relating to HR and payroll. Compliance with such legislation is vital in order to achieve a successful expansion. The team here at IRIS FMP are adept at navigating the world of foreign employment law, payroll, and HR, and are well-equipped to provide the assistance you need to set up shop in the Isle of Man.

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Details correct at time of publication. You should not rely on these details without first seeking professional international advice.

Employer Must-Dos

In the Isle of Man, employers must submit the following:

  • Corporate Income Tax Returns must be filed online, one year and one day after the relevant accounting period.
  • Corporate Income Tax must be paid within one year and one day after the accounting period, and any late payments will incur interest charges.

Payroll in the Isle of Man

What tax considerations are there?

Personal Income Tax

Residents are taxed on income derived from worldwide sources, whereas non-residents are taxed only on income derived from within the Isle of Man – excluding bank and building society interest and dividends.

For residents, the standard personal income tax rate is 10%. This is charged on income up to £6,500 (or IMP) for single individuals, and up to £13,000 (or IMP) for couples. Those earning more than this are charged 20%.

Non-residents are taxed at 20% of their total income.

Corporate Income Tax (CIT)

As with personal taxes, corporate tax is charged to resident companies on their worldwide income, and non-resident companies on that which derived from within the Isle of Man.

The tax rate for companies is either 0%, 10%, or 20%. 20% is charged on income derived from real estate, 10% on banking and retail businesses, and 0% on all other income. Businesses might be charged a combination of these rates.

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HR in the Isle of Man

What are the regular working hours in the Isle of Man?

Office hours in the Isle of Man are generally between the hours of 8am and 6pm, and employees are asked to work 40 hours over a five-day week. Hours are generally worked between Monday and Friday.

Opening hours of supermarkets are usually between 8am and 10pm, and other shops are open between 9am and 5.30pm.

Vacation, maternity and sickness

All workers in the Isle of Man are entitled to four weeks of annual leave. This works out to 20 days for those who work full time. Part time employees are entitled to four weeks’ worth of their normal hours over a year, for example, those working ten hours per week are entitled to 30 hours of leave. If a worker leaves their employment without taking all the vacation time they are entitled to, any leftover leave should be paid to them. In their first year of employment only, workers accrue this leave at a rate of 1/12th (1.6 days) per month.

Pregnant women must give notice of their pregnancy and impending maternity leave, to their employer, at least 15 weeks before the expected due date. As long as this notice period is met, all pregnant women are entitled to 26 weeks of maternity leave. Those who have given at least 26 weeks of service to their employer, prior to the 14th week before the expected due date, are entitled to an additional 26 weeks of maternity leave. There is no obligation for an employer to pay their employee maternity leave pay. Instead, the Isle of Man Treasury will pay maternity benefits in the amount of £179.85 per week for up to 39 weeks.

Workers who become sick and unable to work may be entitled to incapacity benefit from the state. This will not be paid for the first three days of sickness, and any time off sick over seven days must be supported by a medical note. Short-term incapacity benefit can be paid for up to 52 weeks, and long-term incapacity benefit will be paid for further time off work after this.

IRIS FMP’s Isle of Man Payroll and HR Services

Anyone looking to expand their business into Douglas, Ramsey, or another of the Isle of Man’s main towns, need to ensure they can comply with the island’s unique employment laws. This aspect of doing business can cause undue stress at an already demanding time –  during an expansion venture. Rest in the knowledge that your HR and payroll administration is well-taken care of, with the help of the experts at IRIS FMP. Our services include, but are not limited to:

  • HR consultancy
  • Payroll processing
  • Emailed payslips
  • Multi-currency salaries
  • Overseas money transfers
  • Payroll auditing
  • Statutory payments
  • Pension and social security payments
  • Holiday and sick leave
  • Employment contracts
  • Translation services
  • Local law consultation
  • End-of-tear tax administration

Stay Compliant - Payroll and HR Services in the Isle of Man

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