50% tax on bonuses

spicemerchant

hi everyone this is my 1st thread although have browsed the site for a long time.felt the need to post this as like so many of us I was upset by the supreme court{ goverment appointed court } ruling against those people trying to reclaim bank charges. Its funny that one week later the goverment rules to impose a one off tax against the bankers bonuses which makes them look like they are being tough on bankers while making bankers look like they have now been punished.Win win for those two but we the depositors lose yet again. I wonder if the heads of those british banks and the chancellor new in advance the supreme courts ruling ? whats your thoughts .

dmg24

My thoughts - you know absolutely nothing about the English legal system.

dunstonh

....And aliens really did land in Roswell in 1947

pingchris

i heard a rumour from a bank member of staff 3 weeks prior to the test case and he said that the rumour was in the banking world that it would not go in the publics favour,all it took was a nod in a corridor to squash this,maybe im far too cynical but to me it stinks

pingchris

dunstonh wrote: »

....And aliens really did land in Roswell in 1947

now thats one extreme to another,we are talking a group of folk talking dodgy tactics to another bunch of folk,not little green or grey men crashing in spaceships,the world of politics and banking is full of strange goings on,if they can rip off the public so easily and get away with it,it makes you think what else could they do even easier,the world aint covered in roses.

chipbeck

I to am prepared to pay 50% on my bonus this year if it will help the government out. I appreciate that this will be a lot easier for me than the Bankers who get 25k plus, but at least I'm doing my bit.

Oeillade

I think the banks will just have to pay bigger bonuses to make up for the 50% tax. And who is going to have to pay for that in the end?

onlypaddy

Oeillade wrote: »

I think the banks will just have to pay bigger bonuses to make up for the 50% tax. And who is going to have to pay for that in the end?

neh, remember the chancellor has power of veto over bonus amounts

crispy_chris

chipbeck wrote: »

I to am prepared to pay 50% on my bonus this year if it will help the government out. I appreciate that this will be a lot easier for me than the Bankers who get 25k plus, but at least I'm doing my bit.

The 50% bonus tax only applies if the specific bonus is over £25,000. So luckily it won't effect the normal people working for the banks who earn a far smaller bonus

dunstonh

So luckily it won't effect the normal people working for the banks who earn a far smaller bonus

It may do. A lot of the financial advisers at banks have a small salary of which a bonus is added to. For example, £10k basic but on track earnings paid as a bonus of £30-40k. As they get paid as a bonus, it will be included in the tax capture.