All posts with the topic: Bank Payroll Tax

In the initial Coalition Agreement of 11 May 2010, the final Coalition Programme released on 20 May 2010 and the Queen’s Speech given on 25 May 2010 (as well as the recent speeches given by George Osborne) a number of initiatives and changes have been proposed by the Government in relation to the tax system, … Continue reading The Coalition Programme – Summary Of Taxation Proposals

It has been confirmed that legislation in Finance Bill 2010 will introduce the bank payroll tax (“BPT”). The Chancellor announced that BPT “has raised £2bn, more than twice as much as was forecast” and, although there was speculation that the tax would be extended, BPT will have effect only from 9 December 2009 until 5 … Continue reading Bank Payroll Tax

A few further points.  The 50% levy will not be  deductible for corporation tax purposes. It will be payable on 31 August 2010. Although they are only stated as applying to bonuses awarded or paid before 6 April 2010 one could imagine that date maybe being extended. It is not just banks – UK resident companies … Continue reading Banking bonus – further points

Assuming no exemption is available then it seems to work like this: Bank pays £100,000 bonus. Bank is required to pay £37,500 in “supertax” to HMRC (the first £25,000 of the bonus does not attract the supertax). The bonus of £100,000 is then subject to tax and NICs in the usual way. Employer’s NICs of £12,800 (at 12.8%) and income tax … Continue reading Bank Payroll Tax: Example

Two important points to keep in mind: 1. It is temporary –  The bank payroll tax will have effect from the time of the announcement on 9 December 2009 until 5 April 2010 for all discretionary and contractual bonus awards. 2. There are exemptions – There is an exception for contractual bonus entitlements where the … Continue reading Bank Payroll Tax