National Insurance Holiday SchemeThose taking up employment in the Isle of Man could be up to £4,000 better off in their first year of work, which further enhances the already compelling reasons to consider relocating to the Isle of Man.
The National Insurance Holiday scheme came into effect in April 2019, and provides a refund on National Insurance contributions paid in the first 12 months of employment.
The scheme is open to anyone who has not been tax resident in the Island for the immediate last five years, and who moves to the Isle of Man to live and work on any role with a gross salary of £21,000 or more. Eligible employees pay National Insurance contributions during their first 12 months of employment and can then apply for a lump sum refund from the Income Tax division, capped at £4,000 per person.
To qualify, the employee must remain in employment for a continuous period of at least 12 months.
Also eligible for the scheme are Isle of Man students looking to return to the Island, however the support is extended even further in this circumstance, as there is no minimum gross salary required. The National Insurance refund will be available for those who have successfully completed a full time university degree, higher national diploma or postgraduate course outside the Island on or after the 6th April and come back to the Island to live and work.
The scheme helps to promote the excellent quality of life and rewarding structure of living and working in the Isle of Man, which includes accelerated opportunities for career progression and average salaries which are typically higher than the UK.
It was also announced in the 2020 Isle of Man Budget that there is an increase on the tax free personal allowance of £14,250.
The new calculations mean that an individual relocating to the Isle of Man and earning a gross salary of £30,000 will take home £27,500 in their first year of working.
The Isle of Man offers a stunning Island setting, with miles of unspoilt beaches, short commute times and a financially rewarding economy for you and your family. It is one of the safest communities in Europe, but is also home to a well connected global business centre meaning you no longer need to choose between career progression and quality of life.
How does it work? - Who is eligible for the National Insurance holiday?
There are no restrictions on the type of job supported by the scheme.
The scheme applies to anyone who takes up residence in the Isle of Man on, or after, 6th April 2019 and who has not been resident here for tax purposes at any time in the immediate past five tax years.
An individual may benefit from the scheme if they take up permanent employment for a minimum of 35 hours per week in the Isle of Man, with an Isle of Man employer. The employment opportunity must provide a minimums gross salary of £21,000 and the applicant must remain in the employment for a continuous period of more than 12 months.
How do I register for the National Insurance holiday?
Claiming your National Insurance contributions is simple.
There is no need to register to take advantage of the National Insurance holiday scheme ahead of time.
A person who meets the requirements of the scheme will be able to apply for a refund of their Class 1 National Insurance Contributions they pay as an employee during the first 12 months of their permanent employment in the Isle of Man. The application should be made after the end of the 12 months to which the claim applies (but no later than six months after that date) using form R247 which will be made available from this website.
The Income Tax Division will review the application, request supporting documents if necessary and issue the refund directly.
Is there support for Manx educated students?
Returning students are further supported by the National Insurance holiday
The scheme will also apply to any Isle of Man student who, on or after April 6th 2019, successfully completes a full time course of education outside the Island for a university first degree, Higher National Diploma (or comparable course) or a postgraduate course who, after completing their course, returns to the Island to live and work.