Bank Payroll Tax
- Legislation in Finance Bill 2010 will introduce a new bank payroll
tax. This will be set at 50 per cent.
- It will be payable by a bank, on the amount of a bonus to which a banking
employee is entitled, to the extent that the bonus exceeds £25,000.
- A bank will also be liable to the bank payroll tax where the bonus
entitlement arises in respect of services performed for the bank regardless
of who awards the bonus.
- 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.
- There is an exception for contractual bonus entitlements where the
payer has no discretion as to the amount of the bonus because of a contractual
obligation existing at the time of the Chancellor's announcement.
For more information please see:
The bank payroll tax announced at PBR
2009 - Special announcement
Bank Payroll Tax: Responses
to some questions (PDF 53K)
Bank Payroll Tax: PBRNote 002
Bank Payroll Tax: Technical
Note, Draft legislation and Explanatory Notes 9 December 2009.
Email enquiries: pbr2009.taxteam@hmrc.gsi.gov.uk
Telephone enquiries: 020 7147 0110
