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Pre-Budget Report


Happy Face
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  • National Insurance up by a further 0.5% from April 2011
  • VAT will return to 17.5% on January 1
  • Economy to shrink by worse than expected 4.75% this year
  • New 50% tax on banker bonuses
  • Household boiler scrappage scheme
  • 1p rise in corporation tax for small firms scrapped
  • Tax rebates for electric cars and wind turbines
  • Bingo duty falls from 22% to 20%
  • State pension to rise by 2.5% next year
  • More help for young unemployed

http://news.bbc.co.uk/2/hi/uk_news/politics/8402769.stm

 

Fucker

Edited by Happy Face
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  • ]National Insurance up by a further 0.5% from April 2011
  • Economy to shrink by worse than expected 4.75% this year
  • New 50% tax on banker bonuses
  • Household boiler scrappage scheme
  • 1p rise in corporation tax for small firms scrapped
  • Tax rebates for electric cars and wind turbines
  • Bingo duty falls from 22% to 20%
  • State pension to rise by 2.5% next year
  • More help for young unemployed

 

:lol:

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  • New 50% tax on banker bonuses

 

:lol:

 

Interested to hear more on this one. Gonna be levied against the company giving the bonus rather than the individual.

 

I thought I read the banks had already started rewarding their people with 150% pay hikes instead though. Or did I dream it?

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  • New 50% tax on banker bonuses

 

:lol:

 

Interested to hear more on this one. Gonna be levied against the company giving the bonus rather than the individual.

 

I thought I read the banks had already started rewarding their people with 150% pay hikes instead though. Or did I dream it?

 

We need a much higher top tax rate to handle that n'arl.

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what is the point of making the companies pay tax on the bonus? they will only vote themeselves even bigger bonuses which will be paid for by the customers and shareholders...................

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what is the point of making the companies pay tax on the bonus? they will only vote themeselves even bigger bonuses which will be paid for by the customers and shareholders...................

Well exactly. It's a pre-election budget though, unworkable soundbite-ism is practically guaranteed.

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what is the point of making the companies pay tax on the bonus? they will only vote themeselves even bigger bonuses which will be paid for by the customers and shareholders...................

 

Not necessarily. It makes paying bonuses this year very expensive and hard to justify to shareholders. Companies where employees have a clear view on pay and reward issues would most likely decide against paying large bonuses this year if it means paying away hundreds of millions of pounds in tax when they know employees will stick around. Employees who have in the past been well looked-after would have some faith and hang around until next year. So all the headlines will be of massive bonus cuts. Of course the situation will reverse out next year, but then that is a problem for the next government!

 

For companies who fear the flight of some of their better staff of course, they have a trickier decision to make.

 

Although if you happen to work for a ratings agency, credit insurer, leveraged equity house or hedge fund then you're home free.

Edited by Matt
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