FA 2010 analysis – Bank payroll tax

Speed Read: FA 2010 s 22, Sch 1 introduces the new bank payroll tax (BPT). This tax is charged at a rate of 50% on bonuses in excess of £25,000 paid after 12.30pm on 9 December 2009 and before 6 April 2010 to certain employees by certain financial institutions operating in the UK. Even though the chargeable period has now ended, for many the work on BPT will have only just started, as they see what has to be done to meet the 31 August deadline for paying the tax and meeting the deadline for returns.