BBA preparing for bonus tax showdown with Treasury and HMRC

Banking industry representatives are to grill the Treasury and HMRevenue
&Customs officials about the controversial bankers’ tax at a meeting next
week, Accountancy Age has learned.

The sit-down, taking place next Monday will see the British Bankers
Association call for clarity on how the bonus tax will work and exactly who will
be caught in the net.

Sara-Wulff Cochrane, Director of Financial Policy and Operations at the BBA
said: “We are meeting with officials next week, which will provide another
opportunity to resolve ongoing uncertainty about the scope and application of
the tax.”

Government plans will see bankers’ bonuses over £25,000, paid between 9
December 2009 and 5 April 2010,subject to a 50% tax.

The BBA is also seeking assurances that the payroll tax is a one-off measure
and will not be extended into future years.

“In addition it is vital that ministers confirm straightaway that whichever
pay arrangements are to be taxed, that this measure is only for this year,”
said Wulff-Cochrane.

The BBA has previously warned the government’s sting on bankers had caused
some of its membership to whether to stay in the UK:

“No other country has curbed pay deals in the same way, so overseas banks
operating here tell us that they are now very concerned and considering their
long term commitment to this country.”

Further reading:

Johnson raises fears about City exodus

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