The total amount of income tax paid on the Isle of Man on account (paid in advance for the forthcoming year) has decreased because of the pandemic.

According to figures obtained via a Freedom of Information (FOI) request, over £3.5 million was lost in revenue for the government via income tax between the year 2019/20 and 2020/21.

The FOI request submitted by advocate Ian Kermode also found less interest was paid by island residents on outstanding income tax demands.

The highest year for income tax paid on account in the last six years was 2017/18.

The total income tax paid on account from the 2015/16 tax year onwards was:

2015/16 - £42.26m

2016/17 - £42.34m

2017/18 - £44.09m

2018/19 - £44.08m

2019/20 - £42.29m

2020/21 - £38.75m

The request also reveals that no interest is received by the Isle of Man treasury from income tax payments.

This is due to the fact that income tax payments are made into a cash account in respect of which no interest is payable.

These funds are swept weekly into the main government bank account, alongside other income, and forms part of the government’s overall reserves invested with external investment managers.

In terms of interest paid by residents on outstanding income tax demands for late payment of income tax, the figures were as follows:

2016 - £439, 176.06

2017 - £273, 762.83

2018 - £253, 555.59

2019 - £249, 319.07

2020 - £183, 155.37

Finally, Mr Kermode asked why Isle of Man income tax payments on account have to be paid in one single lump sum by residents, whereas in the UK the payments on account are spread and split between two equal payments.

The government said: ’Section 96B income tax act 1970 requires that non-corporate taxpayers shall make a payment on account of their liability on or before January 6 in the year of assessment.

’The payment on account may be paid later if the notice is served after December 6, in which case the payment on account is due 30 days after the date of the notice.