PBR: I was out drinking and missed everything

[thunderlizard]

Bankers whose bonuses are paid to them in bingo cards will actually end up paying less tax.


tl, should have worked harder at school and been a tax accountant.

[Mich the Tester]

Why would bankers set up as contractors?

The bonus tax is a one off measure for bonuses paid out by banks between now and April 5th 2010. I haven't read the section of the PBR that details how this will actually work in practice, yet.

Oh now I understand. I can explain precisely how this will work in practise. All bonusses will be paid out on April 6th 2010.

[TheFaQQer]

Oh now I understand. I can explain precisely how this will work in practise. All bonusses will be paid out on April 6th 2010.

Strictly speaking there is something about bonuses being assessed on the period for which they apply rather than when they are actually paid. however, there is nothing in the actual text of the PBR that mentions anything about it - they reckon it will bring in £500m which is a drop in the ocean really.

[Mich the Tester]

Strictly speaking there is something about bonuses being assessed on the period for which they apply rather than when they are actually paid. however, there is nothing in the actual text of the PBR that mentions anything about it - they reckon it will bring in £500m which is a drop in the ocean really.

It won't bring in one penny but will cost several million to administer, so it will be an imaginary drop in a very real ocean.

[TheFaQQer]

It won't bring in one penny but will cost several million to administer, so it will be an imaginary drop in a very real ocean.

Vince Cable said pretty much the same thing - how are they going to administer it?

[RichardCranium]

Cue all bankers setting up as contractors.

That means a bunch of Plans B for those with the nous and the capital:

- company formation;
- banker recruitment agencies;
- specialist accountancies;
- BankerUk forum;
- contracting guides;
- etc.

And a special mention for the first outfit to set up a "98% income guaranteed" overseas investment vehicle ... that results in them being taxed to buggery.

[DimPrawn]

I was under the impression most ****** bankers were non-doms and their bonus payment would be wired to their Cayman Islands bank account.

Can't see much tax to be made taxing bankers.

[norrahe]

I was under the impression most ****** bankers were non-doms and their bonus payment would be wired to their Cayman Islands bank account.

Can't see much tax to be made taxing bankers.

and those aren't already non dom will be in the coming months

[Platypus]

That means a bunch of Plans B for those with the nous and the capital:

- company formation;

Exactly - why not set up a company, have the bonus paid into there as "consultancy fees" and draw the money out over time?

Sorted.

[d000hg]

Exactly - why not set up a company, have the bonus paid into there as "consultancy fees" and draw the money out over time?

Sorted.

Do contractors get bonuses?