Good luck to HMRC in trying to levy a "bankers' bonus tax", in the event that Darling implements one in his "Pre Budget Report" today.
Disregarding the fact that taxing one specific "class" of worker is contrary to the concept of taxes being non discriminatory, the tax will be unworkable:
1 There will be a wholesale exodus of banks, other financial institutions and individuals from the UK.
2 What is the definition of a "banker"? Those who currently fall into Darling's definition of "banker" will simply have their employment status/title changed, to eg "admin clerk".
3 Pay rises will be backdated to mop up the bonus pool.
The tax will be shot to pieces, and HMRC will be forced to waste valuable time and resources trying to "pin a tail on the donkey" of the bankers.
Tax does have to be taxing.
Professional Cover Against the Threat of Costly TAX and VAT Investigations
What is TAXWISE?
TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.
To find out more, please use this link Taxwise
Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.
Click the link to read about: Tax Investigation for Dummies
HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"
Why has nobody pointed out that the government is receiving 40% of every bonus already? Or have i got that wrong?
ReplyDeleteThe 40% comes out of the employees bonus (if they are higher rate). This tax is on the banks not the employee. I think the idea is to discourage the employer from paying the bonuses by charging them 50% and that has to come out of their profits. But like Ken said I'm sure the banks will find a way around it.
ReplyDeletePerhaps so if taxed under PAYE. But most Directors' bonuses are tax-free under PAYP - Pay As You Please!!!
ReplyDeleteThey're all thieving bastards and have bankrupted me and the rest of the UK. I say lock 'em all up and throw away the key!
ReplyDeleteThe banks don't have to find a way out of this, they just charge the customers more money.
ReplyDeleteThe banks have not nearly bankrupted the UK, the government did so through excessive public spending, crazy policies and poor handling of the banking situation.
Socialism and capitalism don't mix. Free the capitalists to make money and tax them (without damaging the economy and therefore jobs) proportionately to pay for some public services. Easy.
Trevor Scott