Senior IT workers caught in bank bonus tax crossfire
Confusion reigns in the city - so it's business as usual
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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. ®
COMMENTS
Doesn't matter...
.....what job they do - if they work for a bank they have, in the past, profited from the near-crimninal practices that caused this mess in the first place.
They profit from it = they pay for it.
Simples.
And forgive me if I don't shed a tear for people whose bonuses exceed my entire annual wage. They should count themselves lucky. The money-grabbing twats.
Urmmm, let me see.
Financial organisations in the UK can jolly well clear off straight away if they wish.
Truth be told the only reason they are located in the UK is for its -ahem- "beneficial" Nelsonian approach of turning a blind eye.
To put it bluntly: be jolly good organisations and sod off quietly as soon as you've paid your debts?
As if.
I run the entire IT setup for my employer (by myself, since the last round of redundancies) and I don't get 25,000 salary, let alone a bonus. My bonus this year will be to still have a job come Jan the first.
If any of those Bank IT staff want to resign in protest, I'll be happy to do their job...
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