50% tax has failed
Government officials reported accepting that 50% tax will fail to stop big bonuses
The government’s 50% tax had failed to curb bonuses but ministers are
consoling themselves with the boost to Treasury coffers the pay outs will bring.
An unnamed source is quoted in the
Times saying that the government understands employers will pay the tax for
those receiving the bonuses.
Treasury insiders, according to the FT, also estimate that the 50% band will
bring a boost to HMRC of around £1bn – much needed revenue at the moment.
Unidentified City figures are reported as saying the figure is wide of the
mark and the true revenues are likely to be as high as £4bn, or more.