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UK Bank Payroll Tax - how will it impact your business?
The new UK Bank Payroll Tax is simple in concept, expensive in application and complex in operation. To assist you in navigating the relevant changes, Alvarez & Marsal Taxand UK, our UK member, has briefly outlined to whom this tax will apply; how it operates; and some of the practical implications and applications.
Businesses essentially two choices:
- Pay "bonuses" as usual; or
- Pay only bonuses of ?25,000 and consider paying additional amounts after 6 April, 2010.
It is only possible to understand the tax if the meaning of each of the key terms is fully analysed, which is why it is difficult
to operate. The main points (outlined in the attached newsletter) may be subject to change, and further guidance is expected in reaction to anticipated responses from stockbrokers, private equity houses and hedge funds who, as we understand, should not be subject to this new legislation.
Your Taxand contact for further queries is:
T. +44 207 663 0445
Download the latest update from Taxand UK: