National Insurance Holiday Scheme
Those taking up employment in the Isle of Man could be up to £4,400 better off in their first year of work, which further enhances the already compelling reasons to consider relocating to the Isle of Man.
Have you considered starting your career somewhere a little different?
The Isle of Man offers a wonderful new way of life and a diverse range of job opportunities and a chance to progress your career with some of the world’s leading organisation in a broad range of sectors.
But there’s more … The National Insurance Holiday Scheme of the Isle of Man provides significant benefits to both new residents and returning students, potentially allowing you to reclaim up to £4,400 in national insurance contributions.
The Isle of Man National Insurance Holiday Scheme offers financial relief to new residents and returning students. If you are planning to move to the Isle of Man or considering returning after completing your studies, take advantage of this opportunity to make your first year financially rewarding!
This Scheme, launched on 6 April 2019, allows eligible individuals to claim a one-off refund of National Insurance (Class 1) contributions from their first year of employment on the Island, up to £4,400.
New residents:
- Take up residence on the Isle of Man on or after 6 April 2019
- Commence eligible employment within 12 months of arrival
- Maintain continuous permanent employment for 12 months
- Must not have been tax-resident on the Isle of Man at any time within the five years prior to the date you become resident
To be eligible for this Scheme, new residents must have moved to the Isle of Man on or after 6 April 2019 and commence eligible permanent employment in the Isle of Man within 12 months of their arrival. This Scheme is not available to anyone who has already been tax-resident on the Island within the last 5 years prior to relocating.
Qualifying students:
- Complete your studies off-Island, whether it’s a Higher National Diploma (or comparable course), Bachelor Degree or Postgraduate course
- Commence permanent employment on the Island within 5 years of completing your studies
- Graduated after 6 April 2019
- Maintain continuous permanent employment for 12 months
Must not have completed your studies at the University College Isle of Man or via distance or flexible learning
Any student who has completed a full-time education course outside the Isle of Man on or after 6 April 2019, can benefit from this scheme. Students can apply for this scheme if they commence eligible employment on the Island up to five years after graduation. However, this Scheme does not apply to anyone completing distance or flexible learning from the Island or students who have completed their course as a student at the University College Isle of Man.
Qualifying employment:
- Is permanent employment
- Is undertaken on the Island
- Is undertaken over more than 12 consecutive months
- The employer must be an Isle of Man resident for National Insurance purposes
- For new residents, the annual gross salary must be a minimum of £23,000 (or £21,000 if employment commenced before 6 April 2023)
- For returning students, the minimum gross salary requirement does not apply
- For full details and any queries regarding eligibility, please contact the Income Tax and National Insurance Division Team.
How to Apply:
To apply for a refund, form R247 – Application for the National Insurance Holiday Scheme should be completed and submitted to the Income Tax Division.
Eligible applicants can submit their claim after the end of the 12-month period to which their claim applies. You must apply no later than six months from this date. Early submissions will not be accepted.
To streamline the process, please be prepared to provide supporting documentation. This includes copies of your employment contract, and pay slips relating to the claim period. New residents, may also be required to provide proof of their residency commencement on the Isle of Man, such as travel documents or rental agreements. Returning students will be required to provide evidence of completed educational courses.
Only one refund is allowed per person, and the employer must be an Isle of Man resident for National Insurance purposes.
For more detailed information on how to apply see, contact the Income Tax and National Insurance Division Team.
