Bank payroll tax

The bank payroll tax was a nonrecurring case of specific tax regime that was set to temporarily change the circumstances under which relevant employees of taxable companies (namely banks) obtained their bonuses in United Kingdom. This tax applied to banks which paid bankers bonuses over £25 000 and the tax was charger at the rate of 50%. As stated in Finance Act 2010 schedule 1 part 1 “Bank payroll tax is chargeable on the aggregate of the amounts of chargeable relevant remuneration awarded during the chargeable period or in respect of relevant banking employees of a taxable company by reason of their employment as relevant banking employees.“  It was paid by the bank directly to HM Revenue and Customs (HMRC) and the chargeable period was from 9 December 2009 to 5 April 2010. Bank payroll tax was payable by taxable companies on or before 31 August 2010.