Feeds

Senior IT workers caught in bank bonus tax crossfire

Confusion reigns in the city - so it's business as usual

Providing a secure and efficient Helpdesk

Her Majesty’s Revenue & Customs has warned senior IT staff in British banks to expect to be hit by the government’s bonus tax.

The Times reports today that HMRC officials briefed bankers earlier this week about who would be affected by the government’s contentious - at least for those in the City - one-off 50 per cent levy on employers paying bonuses of more than £25,000.

High-earning IT bank workers will see tax levied on bonuses paid in the same way bankers and finance staff will be hit by the government’s plan.

However, it was less clear whether marketing, legal and accounting staff working in banks could also expect to be saddled with having to pay tax on their bonuses, according to The Times.

HMRC said bank employees doing non-banking work such as fund management and insurance would not be hit by the tax levy.

Many workers in the City have grumbled about “confusing” official guidelines on who would be affected by the government’s bonus tax.

Earlier this month Chancellor of the Exchequer Alistair Darling confirmed in his Pre-Budget report that any institutions which insist on paying substantial bonuses would face a 50 per cent tax on payments of over £25,000, payable by the bank. He expects this to bring in £500m for the government's coffers.

The Confederation of British Industry hit out at Darling's attempt to curtail bankers' bonuses and described the move as a futile headline grabbing gesture which could see financial services companies leave the UK. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.