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Self Employed
The Tax Year Runs From 01 July To 30 June In Any Year.
- Self Employed Guidance Notes
- Guide to Employment or Self - Employment
- Form SE1 - Application for Registration as a Self-Employed Person
- Form SE1(b) - Application for Registration of Individuals not subjecy to PAYE Regulations
- Form SE2 - Claim to reduce Payments on Account
- Form SE3 - Taxi driver/rental application form self employed
- Form SE4 - Rental income application form self employed
- Form SE5 - Cessation Form self employed
- Application for £4,000 tax credit for persons over 60
- Application for Relief on Loan Interest in Respect of Garage/Car Space
- Application for Income Tax Relief on Mortgage/Loan Interest/Home Purchase Allowance
- Application for Nursery Allowance
Self Employed Social Insurance Contribution Rates
Self Employed Social Insurance Contribution Schedules
- Self-Employed Contribution Schedule 24/25
- Self-Employed Contribution Schedule 23/24
- Self-Employed Contribution Schedule 22/23
- Self-Employed Contribution Schedule 21/22
- Self-Employed Contribution Schedule 20/21
- Self-Employed Contribution Schedule 19/20
- Self-Employed Contribution Schedule 18/19
- Self-Employed Contribution Schedule 17/18
- Self-Employed Contribution Schedule 16/17
Self Employed Social Insurance Contribution Guides
- Self-Employed Guide to Social Insurance pre 1st April 2017
- Self-Employed Guide to Social Insurance post 1st April 2017
- Self-Employed Guide to Social Insurance post 1st July 2018
- Self-Employed Guide to Social Insurance post 1st July 2021
- Self-Employed Guide to Social Insurance post 1st Aug 2022
- Self-Employed Guide to Social Insurance post 1st July 2023
Questions & Answers
Q. How do I know if I should register as a self-employed individual or as an employee under the Pay As You Earn (PAYE) system?
A. You should register as:
- - A self-employed individual if you are in receipt of trade income or own a business and you bear the responsibility for it.
- - An Employee under PAYE if you work under the control of someone else's terms and conditions.
Q. How do I register as self-employed?
A. To register as a self-employed individual you are required to register with the Department of Employment. You can contact their offices directly at business.registrations@gibraltar.gov.gi
Once registered with them, you will be issued with a Cerificate of Registration. To complete your registration at the Income Tax Office, you are then required to submit the specified forms with the required documentation.
- - Self Employed Registration - Form SE1
- - Taxi Operator/Rental Registration - Form SE3
Q. I am in receipt of rental income from a property in Gibraltar - what are my tax obligations?
A. Rental income from a property that you are renting out in Gibraltar is chargeable to tax. You must register at the Income Tax Office using the Rental Income Registration Form and thereafter, at the end of every tax year, you must submit a completed tax return together with an income and expenditure account in respect of your property(ies).
Rental Income - Registration Form - SE4
Q. What allowances am I eligible for? How do I claim them?
Q. As a self-employed individual, what are the important dates?
Please refer to our helpful guide by just clicking on the following link:
Q. How do I know what I have to pay?
A. Your tax liability for a particular year will depend on: - Your net profit for the year, and;- the system of taxation you select (ABS or GIBS). You can use our Online Tax Calculator to work out how much tax you are required to pay in a particular tax year. Please note certain restrictions may apply for married couples/civil partnerships who elect to be taxed under different tax systems.
Individuals who have opted to be taxed under the Gross Income Based System will pay tax on their assessable income at the following rates:
Individuals with gross assessable income not exceeding £25,000:
the first £10,000 of assessable income @ 6%
the next £7,000 @ 20%
balance @ 28%
Individuals with gross assessable income exceeding £25,000:
the first £17,000 of assessable income @ 16%
the next £8,000 @ 19%
the next £15,000 @ 25%
the next £65,000 @ 28%
balance @ 25%
Individuals who have opted to be taxed under the Allowances Based System will pay tax on their taxable income (assessable income less allowances) at the following rates:
the first £4,000 of taxable income @ 14%
the next £12,000 of taxable income @ 17%
balance @ 39%
Q. What are Payments on Account?
A. These are advance payments of your tax liability, based on your liability in the previous accounting period. They are payable in two equal instalments by no later than the 31st January and 30th June every calendar year.
Q. I have made both Payments on Account, do I need to make any further payment?
A. On submission of your Complete Tax Return, you may be liable for an additional tax payment if your profits for that year exceed those of the prior year (on which your Payments on Account were based). If this is the case, you are required to pay the additional tax liability when you submit your Return by no later than 30 November.
Q. What will happen if I miss a filing or payment deadline?
A.
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SURCHARGES FOR LATE PAYMENT
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Length of delay
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Penalty
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1 day late
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10% of tax due.
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90 days late
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An additional 20% on the balance (ie tax plus surcharge) due.
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PENALTIES FOR LATE SUBMISSION OF TAX RETURN
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Length of delay
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Penalty
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1 day late
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£50.
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3 months late
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An additional £300.
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| 6 months late | An additional £500. |
You should note that legal action may be initiated at any point after initial default. Please note that penalties on late or non-submission of complete tax returns will be incurred even if your resulting tax liability is nil, or you have already paid the tax due.
Q. Can I reduce my payments on account?
A. If you are reasonably confident that your tax liability this year is going to be less than that of the previous year because your business has been less profitable this year, you are able to claim to reduce your Payments on Account. Please note that surcharges will be incurred if, after having submitted such a claim, your accounts reflect that your actual tax liability exceeds the sum of the payments on account already made. Claim to Reduce Payments on Account. - Form SE2
Q. What records should I keep?
A. You are required to keep records of all your business transactions, including the following: - Documentation in respect of any assets (stock, equipment, etc) purchased for your trade/business. You should also keep a detailed record of any plant, machinery or equipment for trade/business use which you buy or sell. These are capital items for tax purposes and you may be able to claim Capital Allowances as a deduction against your profit, thereby reducing your tax liability; - Sales invoices; - Stock inventories, value of stock (stock-take) and work-in-progress at the end of your accounting period; - Details of payments to employees (e.g. wages, expenses, benefits); - Business vehicle and travel costs and mileage records; - All other income e.g. money you invest in your trade/business; - Purchase receipts; - Electronic records of sales or till rolls; - Details of items not rung through the till; - Cash book; - Petty cash book; - Sales and purchase ledgers; - Bank statements; - Cheque book stubs; - Bank paying-in slips. Profit and loss account template
Q. Why do I need to keep records?
A. Keeping up-to-date and accurate records from the date you start your trade is essential because the Income Tax Office may request to have sight of them if any queries are raised upon the examination of your accounts.
Q. What expenses can I claim as deductions?
A. Most items of expenditure are generally allowed as deductions against your profit, as long as these expenses are incurred wholly and exclusively in the production of the income from your trade/business. For example:
- The cost of materials e.g. wood bought by a carpenter.
- Employee wages, salaries and other staff costs.
- Rent, rates, electricity and water costs of business premises.
- Repairs to and maintenance of business premises.
- Bank charges and interest on business loans and overdrafts.
Q. What expenses are not allowed as deductions.
A. Certain expenses are not allowed as deductions. For example:
- Private expenditure - Your own wages/salary and social insurance contributions.
- Donations to charities or sponsorships.
- Fines for breaking the law.
- Travel expenses between your home and place of business.
For any enquiries please contact us on Tel 200 74874 or email us at selfemployed@gibraltar.gov.gi