The Chancellor announced at PBR 2009 a new bank payroll tax that applies, broadly, to banks and building societies on awards of bonuses over £25,000 made to, or in respect of certain of its employees in the period from 9 December 2009 to 5 April 2010.
It will be chargeable at a rate of 50% on the aggregate excess of bonuses of £25,000 or more awarded in the period. There will be no change in the tax treatment of bonuses received by individuals.
HMRC has published a Notice on Bank Payroll Tax (PDF 36K) under Paragraphs 19(1) and 29(1) of Schedule 1 to Finance Act 2010.
The Notice sets out the requirements relating to bank payroll tax returns and the method of payment to be used by taxable companies for paying bank payroll tax.
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