Locums - What you need to know

A locum is a person who temporarily carries out duties for someone else in the same profession, for example a doctor, nurse, social worker etc.

If you are a locum and you come to work in Guernsey, you will need to complete registration forms when you first get here, no matter how long you are staying for. Whether your locum income is taxable in Guernsey or not depends on how long you are in Guernsey for, who is paying you and where you normally live.

If you are working in Guernsey and are being paid by a Guernsey employer, this income will always be taxable in Guernsey. If you are still being paid by your employer in your home country, that income may not be taxable in Guernsey; it all depends on whether Guernsey has a Double Tax Agreement (DTA) with your home country and what that DTA says.

A DTA interacts with domestic tax legislation to help determine the taxing rights between two jurisdictions where a person has ties with both. It will apply if a person is resident in Guernsey and/or the other jurisdiction and has income in either territory that could be taxable in the other. The DTA will determine who taxes what income and, where it can be taxed in both, the relief that can be given to counter the "double" taxation.  

Guernsey currently has 14 full DTAs and 12 partial ones and they can be found on the Double Taxation Agreement webpage. 

You will be regarded as resident for Guernsey tax purposes if you spend 91 midnights or more, in a calendar year, in Guernsey (the midnight being at the end of the day, so if you leave the Island at 7am, that day will NOT count towards the number of days in the Island for tax purposes).

If you are resident for tax purposes, you may have to pay tax in Guernsey on any income you have in Guernsey, (excluding the locum income if you are here for 183 days or less - see UK locums below).

• UK Locums

  • If you are normally a UK resident and you come to work in Guernsey as a locum, so long as you are here for a total of 183 days or less in any 12 month period (starting from your arrival date or looking back from your departure date), and you are paid by a UK agency (in effect you are working for a UK person), then you don't need to pay tax on the locum income to the Revenue Service in Guernsey, (although you will still have to pay tax on any other Guernsey income that you have - see  introduction above). This is because of the DTA that Guernsey and the UK have.
  • For the purposes of the DTA, a day is classed as being somewhere if time is spent in that place on that day, so even if you leave Guernsey on the first flight at 7am, you will be treated as being in Guernsey on that day.
  • If you are in Guernsey for a total of 184 days or more, in any 12 month period, then you will need to pay tax on your locum income to the Revenue Service from the day of your arrival in the Island.
  • If you are working as a locum in Guernsey and are paid by a Guernsey employer, that income will always be taxable in Guernsey. It may also be taxed in the UK and Her Majesty's Revenue and Customs (HMRC) will give you a credit to cover the tax on income which has already been taxed, but you will need to provide them with evidence of the Guernsey tax paid.
  • Once the Revenue Service believe that you are going to be in Guernsey for a total of 184 days or more, they may issue an interim (estimated) assessment to collect the tax due on the estimated earnings, which were shown on your new arrival form. As the work is being carried out in Guernsey, the Revenue Service has primary taxing rights on this income.
  • Where an assessment is issued, the statement attached to it will show the date payments are needed. If the assessment is for the current calendar year, this would normally be in two halves, but it will depend on when in the year the assessment is issued.
    • If the assessment for the current year is issued at any time up to 31 May, the tax will be due one half on 30 June, and one half on 31 December.
    • If the assessment for the current year is issued on or after 1 June, the first half would be due within 30 days and the second half at the end of the year, so if it was issued on 5 August, the tax would be due one half on 4 September, and one half on 31 December.
    • If an assessment is issued for a year after 1 December of that year, the tax would all be due within 30 days, so if an assessment for 2021 is issued on 28 May 2022, all of the tax will be due on 27 June 2022.
  • If you think the tax charged on an interim (estimated) assessment is too high, you can ask for the collection of some or all of the tax to be suspended.
  • Even if tax is due in Guernsey, for the time that you are working here, you may also need to pay tax in the UK. If you are asked to pay UK tax, you need to inform HMRC that you have paid tax on your Guernsey income. You may be able to claim relief from double taxation by sending your final Guernsey Income Tax assessment to them.
  • You need to tell us when you leave Guernsey, by completing a Leaving Guernsey form. If you are not coming back then this may be all that you need to do, however depending on what income you have, you may need to complete a Guernsey tax return at the beginning of the following year. More information is provided on the "Leaving Guernsey" form.
  • As locums are treated as employed individuals, you are able to claim some deductions when completing your tax return although this is generally limited to deductions for subscriptions paid to learned societies (approved by the Director of the Revenue Service) or, for example, £100 shoe allowance for nurses under E3 of the Statement of Practice booklet.
  • Once you have provided the details of your actual salary for the calendar year, you will be sent a final assessment showing the tax or credit due.
  • If your departure from Guernsey is not permanent, when you come back, please remember to let us know, by completing a Returning to Guernsey form.
  • If you need to complete a tax return for 2019 or earlier, they can be completed online. Forms for 2020 onwards can be completed at my.gov.gg

• Examples

  • Ms A is a locum, she arrives in Guernsey on 8 March and leaves on 20 May, she continues to be paid by her UK employer, and she has no other income. She has been in Guernsey for 74 days (73 midnights), so under the DTA her locum income is only taxable in the UK (as she has been in Guernsey for less than 184 days). As she has only been in Guernsey for 73 midnights, she is not considered to be resident for Guernsey tax purposes and so she has no liability to Guernsey tax for the period she was working here.
  • Mr B arrives in Guernsey on 7 July 2020 and doesn't leave until 10 Feb 2021. He continues to be paid by his UK employer. He would have been in Guernsey for 178 days in 2020 and 41 in 2021, so more than 184 days in total in a 12 month period (from either end of his stay) and his wages would be taxable in Guernsey for both years of charge. The UK would give credit for the Guernsey tax paid against the UK tax payable on the same income, under the DTA.
  • Mrs C is a locum and is paid by her UK employer. She arrives in Guernsey on 7 July 2020 and leaves on 30 November 2020.  This is 147 days in Guernsey. She then returns to Guernsey the following year from 1 - 31 August 2021, which is a day count of 31 days.
  • If, however, she then returns to Guernsey in 2022, from 1 - 31 January (31 days), and again from 1 March - 30 June (122 days), then in the 12 month period from 1 August 2021, when she came back to Guernsey, to 31 July 2022, she would have been in Guernsey for 184 days. As such, the employment income for the periods in 2021 and 2022, when she was working in Guernsey, would be taxable in Guernsey. The UK would give a credit for the tax paid in Guernsey under the DTA.
     

• Locums from outside the UK

  • If you normally live somewhere other than the UK, then you may have to pay Guernsey tax on your income from the date you arrive in the Island. However, it all depends on whether Guernsey has a Double Tax Agreement (DTA) with the country where you normally live and the terms of that Agreement. You can find the content of all the DTAs Guernsey has signed on the Double Taxation Agreement webpage.
  • If there is no DTA in place you will need to pay tax from your date of arrival and it is likely that an interim (estimated) assessment, based on the estimated earnings shown on your new arrival form, will be sent to you.
  • Where an assessment is issued, the statement attached to it will show the date payments are needed. If the assessment is for the current calendar year, this would normally be in two halves, but it will depend on when in the year the assessment is issued.
  • If the assessment for the current year is issued at any time up to 31 May, the tax will be due one half on 30 June, and one half on 31 December.
  • If the assessment for the current year is issued on or after 1 June, the first half would be due within 30 days and the second half at the end of the year, so if it was issued on 5 August, the tax would be due one half on 4 September, and one half on 31 December.
  • If an assessment is issued for a year after 1 December of that year, the tax would all be due within 30 days, so if an assessment for 2021 is issued on 28 May 2022, all of the tax will be due on 27 June 2022.
  • If you think the tax charged on an interim (estimated) assessment is too high, you can ask for the collection of some or all of the tax to be suspended.
  • You need to tell us when you leave Guernsey, by completing a Leaving Guernsey form. If you are not coming back then this may be all that you need to do, however depending on what income you have, you may need to complete a tax return at the beginning of the following year. More information is provided on the "Leaving Guernsey" form.
  • As locums are treated as employed individuals, you are able to claim some deductions when completing your tax return although this is generally limited to deductions for subscriptions paid to learned societies (approved by the Director of the Revenue Service) or, for example,  £100 shoe allowance for nurses under E3 of the Statement of Practice booklet.
  • Once you have provided the details of your actual salary for the calendar year, you will be sent a final assessment showing the tax or credit due.
  • If your departure is not permanent, when you come back, please remember to let us know, by completing a Returning to Guernsey form.
  • If you need to complete a tax return for 2019 or earlier, they can be completed online. Forms for 2020 onwards can be completed at my.gov.gg

Frequently Asked Questions
 

• I am a locum working in Guernsey but paid by a UK agency/my own company, where do I pay my income tax?

  • If you are normally a UK resident and you are working as a locum in Guernsey, so long as you are here for a total of 183 days or less in a twelve month period and you are paid by a UK agency (in effect you are working for a UK person), you don't need to pay tax on the locum income to the Revenue Service in Guernsey, but you will pay tax on ALL of your income to Her Majesty's Revenue and Customs (HMRC).
  • If you spend 91 midnights or more, in a calendar year, in Guernsey, you will be regarded as resident for Guernsey tax purposes and you may have to pay tax in Guernsey on any other income you have in Guernsey (excluding the locum income if you are here for 183 days or less).
  • You must register with us by completing a the registration forms, no matter how long you intend to be here.
  • If you are staying in Guernsey for a total of 184 days or more, in a 12 month period, you will need to pay income tax to us, on your locum income, from the date of your arrival. You may also have to pay tax to HMRC, on the same income. However, HMRC will give you a credit for the tax paid in Guernsey, so long as you provide them with evidence of the tax paid here.
  • If you do not normally live in the UK, it is likely that you will have to pay tax to us, from the date you arrive. However, this does depend on whether Guernsey has a Double Tax Agreement with the country where you normally live and what the Agreement says. Details of the Agreements Guernsey has can be found on the Double Taxation Agreement webpage.

• If I come from the UK and spend more than 183 days in a 12 month period in Guernsey, are the first 183 days of my locum income free of Guernsey income tax?

  • No, if you normally live in the UK, are paid from there and you spend a total of 184 days or more in a 12 month period in Guernsey, you need to pay tax on your locum income from the date of your arrival, not the 184th day.
  • If you are here less than 184 days in a 12 month period, but spend 91 midnights or more, in a calendar year, in Guernsey, you will be regarded as resident for Guernsey tax purposes and you may have to pay tax in Guernsey on any other income you have in Guernsey (excluding the locum income if you are here for 183 days or less in a 12 month period).
  • If you are directly employed by a Guernsey employer, and are paid by them, you will also pay tax from day one.

• If I stay in Guernsey for 91 midnights or more, will I pay tax in Guernsey and in the UK?

  • If you are in Guernsey for 91 midnights or more in the calendar year, you will be regarded as resident for Guernsey tax purposes. If you are from the UK  you may be liable to tax in Guernsey on any Guernsey income you may have, (excluding the locum income if you are here for a total of 183 days or less in a 12 month period).
  • For the avoidance of doubt, if you are employed directly by a Guernsey company, rather than paid through a UK company, you will need to pay tax to the Revenue Service in Guernsey from day 1. You may still be liable to tax in the UK on this income. However, HMRC will give you a credit for the tax paid in Guernsey, so long as you provide them with evidence of the tax paid here.

• How do I pay my tax in Guernsey?

  • You need to register with us when you arrive, no matter how long you intend to stay.  If, having completed the registration forms, it appears that you will have a liability to tax in Guernsey, an interim (estimated) assessment will be issued, based on the estimates of income provided on this form.
  • The assessment will give details of the tax due and the dates for payment. If you think the tax charged is too high, you can ask for the collection of some or all of the tax to be suspended.
  • If you think the estimate is accurate, you can either pay the tax on or before the due dates, or you can contact our debt management department to arrange weekly or monthly payments.
  • A revised assessment will be issued once you have finished working in Guernsey, and you complete a leaving Guernsey form, or you complete a tax return detailing your actual income for the calendar year.
  • If you can't pay the tax by the due dates shown, contact our debt management team on 01481 225700 to make arrangements to pay. Alternatively details on how to pay can be found on our How to pay the Revenue Service page.

• What should I do if I disagree with the amount in the assessment?

  • If you disagree with the interim (estimated) assessment, you have a right to ask for the collection of some or all of the tax to be suspended. This must be done, in writing, within 30 days of the date of the assessment.
  • If the assessment is a final assessment, you have the right to appeal against it, again within 30 days of the date of the assessment; the form to use is the Appeal form.

• How can I claim relief in the UK on the tax paid in Guernsey?

  • Guernsey has a Double Tax Agreement with the UK. If you need to pay tax in both Guernsey and the UK on your income, you may be able to claim double tax relief from Her Majesty's Revenue and Customs (HMRC). All you need to do is send your final Guernsey tax assessment to them, and they will grant any relief due to you.

• Am I able to claim expense against my income?

  • Locums are treated as employed individuals, and deductions are generally limited to claims for subscriptions paid to learned societies (approved by the Director of the Revenue Service), or, for example, £100 shoe allowance for   nurses under E3 of the Statement of Practice booklet.

• My income is paid to me though my company,why do you charge me for work carried out in Guernsey, rather than just the monies I take from my UK company ?

  • A company set up between the Guernsey employer (Agency) and the individual is known as a service company.  Under Section 81C of the Income Tax (Guernsey), Law 1975, as amended, monies paid to the UK company are deemed to be employment income.  This means the taxable figure is the amount the agency pays to your company for the work that you do, it's not the amount you draw from your company. For example, the agency pays your company £1,000 per week, but you only draw £500 per week for living expenses, it's the £1,000 per week that's taxable in Guernsey, as the company is "looked through" and the amounts are taxable on you as the employee. Any expenses of the company would be allowed against the income paid to you.

• When I leave Guernsey, do I need to inform the Guernsey Revenue Service?

  • If you leave Guernsey for a holiday, or at the end of the working week but you return at the start of the following week, you don't need to tell us, but you must keep a record of the dates spent in Guernsey. This is so we can work out your resident for tax purposes and determine your taxable income.
  • If you leave Guernsey permanently, you must tell us and you need to complete a Leaving Guernsey form.
  • Once we get this form, we will issue your final notice of assessment, confirming the tax you need to pay to Guernsey. This assessment may then be used to claim double tax relief from Her Majesty's Revenue and Customs (HMRC), if you normally reside in the UK, and you need to pay tax to HMRC on the same income.

• What happens if I am taken on by the Guernsey employer?

  • If you have been working as a locum, but are then taken on as an employee, you need to contact us to get a coding notice. From the date you are employed, you will pay income tax under the Employees Tax Instalment ("ETI") scheme (which is similar to the UK's PAYE). If you don't have a coding notice, your employer will deduct tax at 20% from your salary.
  • It is important you check your coding notice, if it's not correct, you won't pay the right amount of tax and could end up underpaying or overpaying your tax. Please see our "Guide to Coding Notices" for further information.
  • Your employer will deduct income tax at source and send it to us quarterly.
  • You will need to complete an income tax return the following year and this can be done (for years up to and including 2019) online. For 2020 onwards you need to go to my.gov.gg. You must declare both the wages received from your employer AND any agency income for the calendar year, together with income from all other sources.

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