Bank Bonus TAX??

[R1Geezer]

it is apparently an "additional 50%" so is that 50% of what's left after the 40% that is already taken or is it 90% of the total?

[ABerrant]

The tax will be paid by banks on discretionary individual bonuses that exceed £25,000. For instance, if a bank pays an individual a bonus of £30,000, it would pay a 50% tax on the £5,000 portion over the threshold. The individual's income tax wouldn't be affected. The new tax applies only to discretionary bonuses. Banks will avoid the charge for payments to any banker whose bonus is guaranteed by contract or by delaying the bonus until after April 5th 2010.

[R1Geezer]

OK so to clarify, the employee will get £30000 taxed in the usual way but the bank will have to pay an additional £2500, ie 50% of £5000

[ABerrant]

Correct

[Ankou]

wouldnt they just make a temporary amendment on their contract of employment to say that its part of their basic salary, thus avoid the additional tax ? employees would go along with this waiver until april 2010 i would have thought.