NL
We’ve told you what we think about the imposition of a windfall tax on bonuses. Now we’d like to know how you feel.
As Alistair Darling pointed out today, more than half of the new revenues raised by the PBR are coming from the top 2% of the population.
It’s not simply a question of the bonus tax. It’s also the withdrawal of pension tax relief for anyone earning over 130k (the ceiling was previously 150k) and the increase in National Insurance.
As PriceWaterhouseCoopers points out,the changes (bonus tax notwithstanding) will leave someone earning 250k with 56% of their income, less than in France (58%), Germany (60%) and the US (59%).
How do you feel about this? Let us know below.
This is par for the course for the UK, politicians and joe public busy eroding a primary competitive advantage for being wealthy/successful and based in the UK.
How long till we have even more taxes to cover the loss in tax earnings from great amounts of individuals and companies relocating out of London?
I feel there is a lack of foresight and much politicking for the upcoming that will have very negative long term effects for the UK.
Thank my stars for the Hong Kong ID card, I can escape
Personally, I don’t feel persecuted in the least. I am serving my country in its time of need, and shall soon desert it for somewhere less needy.
I’m not too bothered, gives me a good reason to leave this god-forsakken country and return to the USA.
Many of my co-workers have the same attitude, so at the end of the day it is the UK government, UK taxpayers, and UK citizens who will suffer the most.
I had an offer from a commodities esk in Singapore. Was just wondering if it is advisable to leave London and move. I guess I have the answer now.
Alistair Darling want’s to spend my hard earned money to support someone living in Liverpool in a council home having 5 kids by the age of 15. Good luck to you. I’m off.
I’m just going to have to go back to fiddling.
Could the last person please turn out the lights…
bit odd when my trader in FFT could make more than his bosses boss who sits in London…
…hopefully this will pacify the masses and the Daily Mail won’t be smart enough to work out the loopholes the banks used to dodge it….
@OfftoSingapore
well, somebody has to supply those chavs with 50 inch plasma TVs and Burberry caps. what do you expect them to do, find a job?
You will rant, you will scream, and then you will accept it. It is something along the lines of denial, anger, resignation and then acceptance. I think now that denial has passed we are at the anger stage. Resignation will follow when all those upping the sticks to Singapore, Shanghai, NYC etc. realize that they are not needed there. Ah well, at least you are not forced yet to wear a clear yellow mark on your chest in the form of a $ denoting bankers (I guess you’ll leave the USD and GBP sign cufflinks in the wardrope in these times and days).
London’s loss will be New York, Singapore, Zurich’s gain. This really is another nail in the UK’s coffin.
Um… did I get something wrong or does the peak tax rate (including state and local taxes) amount to c. 50% in NYC already? Why would anyone move there?
the only difference between the UK and EU continent is the City! that’s the only attraction in fact. if UK is becoming EU, in other words, more “socialism”. good luck then
bankers might not like it – but you did cause this crisis, and you should take some responsibility. A small decrease in your bonus in exchange for some moral responsibilty is the least you should expect to pay.
This is such a joke. This whole “take 2% of my bonus and I’m leaving” culture is ridiculous… This is all from a bunch of European grad school students who were begging to get into a big london investment bank 2 years ago, and now think they are god’s gift to the world, and moving to Singapore is London’s loss! HA! We all know anyone with half a brain can do any of these jobs, so good luck learning Chinese and we will have your place filled next week…
This is only a one of tax right? After April everyone will continue to be paid their bonuses?
So let me understand this right – the banks that were in trouble raised salaries to keep their employees. the banks that were doing good didnt raise salaries so that they could pay it in bonuses from profits, which will not be taxed at 50%. Am I missing something, or does it sound fantastic to work at a badly managed bank ?!
LondonLife – the thing is… there may be no places left to fill in London. Most investment bankers do not have to be based in the UK. I trade emerging markets bonds and CDSs. I can do it pretty much anywhere – in the continent, in Asia or in the US. My desk did very well this year and I was expecting a decent bonus. Mr Darling wants to cut it…… fine, I know how to accept things I cannot change. However I am also pretty good at changing things I can influence. I have worked in 3 countries over 9 years and I have no problem whatsoever moving to the fourth one. My bank is keen on supporting mobility so I know I can always negotiate the intercompany transfer. Really, relocating is very easy. Too bad so few people realize it.
feeling persecuted?
YES
this is no longer ‘tax’, this is theft. seriously.
surely there must be a legal challenge to such discrimination?
If all that matters to you is your marginal tax rate, then please feel free to jet off to ZZZZurich or Sleepy-pore. You won’t be missed. But personally, I’d die of boredom in those cities. I may have a bit less cash in my pocket going forward, but London still has a huge amount to offer (both professionally and culturally). Money really isn’t everything!
As much as I would love to say that all the above rants are right, and that everyone should move to HK/Singapore/NYC, it was actually a relatively smart move. It’s a one year thing, rather than perpetual so despite all the inevitable moaning and screaming, do you actually think many people are going to up sticks to HK? The government had the sense to know that if they made the marginal rate 70% permanently the exodus would actually happen, would actually be permanent, and would actually damage the long term future of the UK. Whereas by making it a one year hit they get some cheap political point scoring but do not damage the image of London long-term. Doesn’t make it right, just makes it logical.
Also, despite the fact that the UK would be a dying nation in any other part of the world (lazy, nationalised work force, very limited national resources, and a structural budget deficit that will have to be plugged one way or another) we are blessed with a couple of key things which just can not be replicated anywhere else – 1) a structurally important time zone, and; 2) being the centre of the english speaking business world. The UK isn’t dead, not yet at least.
@Londonlife
In singapore english is the official language. in 10 years shanghai will beat London and one reason is because talented western people are moving there as tired to give 50% of their salary away for what??
go reading how much tax people pay in Singapore??…then thinking to move is quite reasonable.
@LondonLife
Don’t you realize the UK is totally devoid of native talent? If bankers up stick and leave it will be London’s loss. How do you think the shortfall in tax revenue will be made up? That’s right, from people like you, too stupid to realize that their own spiteful actions will result in greater hardship for themselves down the line.
I applaud the governments move to crack down on substantial undeserving bonuses in light of the global situation these so called professionals have helped to cause. And the audacity that bailed out part nationalised banks what to continue to pay bonuses to the very individuals that caused it downfall is simply outrageous and flies in the face of public opinion. I do not see a danger to this society if 20,000 bankers upped and left for other shores, I think it would be more dangerous if the government did nothing to reign in these parasites. High time this nation moved away from its dependance of providing socially useless services like hedge funds, prop shops, and other casino outfits, to more concentrate on more traditional industries, engineering, pharmaceuticals, medical research, etc.
At least Dick Turpin wore a mask!
Gordon Brown is playing a blinder – guaranteed cushty EU job for this… But what about Ed Balls, no one ever stops to think about him and Yvette Cooper seeing their income drop from 250k to his Mcdonalds trainee manager salary. Stop focusing on yourselves and spare a thought for those less fortunate than yourselves.
@notamadhatter
30 years ago Britain has all those industries you mentioned, engineering, pharam, medical research and a whole lot more. Thing is, they’re gone forever and won’t be coming back. Britain will be the next Iceland, mark my words.
I agree with ‘MadeMyMoneySoIDon’tCare’!
Over time Singapore and the rest will attract talented people not just with jobs but good lifestyles for their families. The Singaporeans have people who unashamedly tempt foreigners to work in the BioChem research sector. One government guy said he wants Singapore to win a Nobel prize but the bottom line for his country was GDP!
Then there’s China, Hong Kong, India…..all hungry to be the new/next world beaters.
3 Rules of Government:
If it moves , tax it.
If it’s still breathing, regulate it.
If it’s dead, subsidise it.
Why should all the profitable banks have to subsidise this government’s failed enterprises. Namely, RBS, HBOS, Car industry, Post Office,State schools and the most useless of them all HMRC?
@ offtosingapore and jol – I’m from Liverpool and have worked from the age of 15. I put myself through College and University and I’m living in London now. Not everyone has children by the age of 15 and lives off other people’s hard earned cash. I am proud to have been brought up in Liverpool and by parents who worked hard to give me the best up bringing (once again, my parents never lived off any benefits!)
I’m married and very successful, stop tarring everyone with the same brush.
This tax was silly and while the financial impact differs by your individual circumstances (current wealth, expectations, role etc) , the biggest impact to me is the fact that bankers are being singled out, being told that society doesn’t value them and their reward will be decided by the govt, not the bank itself.
I wish it was easy to leave and try somewhere different but unfortunately, family ties and general familiarity will keep most here.
Fin de La Ville….
Greed made bankers rich.
Greed is now killing them.
Good thing they have to swallow their godly pride… because everyone knows any half-brain youngster could do their job !
Bankers only feed bankers. Finance finances finance only. Want to go away, bonus kid ? Go away, you are not needed and you do not bring any wealth to our country.
As for me, Finance made my London rent explode and helped my country’s industry relocate itself in union (and democracy)-free countries. They helped us exchange our kids jobs for cheap tshirts and ipods.
God bless Angela, Nicolas and Mr. Brown. Let these greedy idiots fly away to Singapore or any other small or big police state or post stamp sized island.
Then forbid any operation with police states or tax havens. Then tax them to death when they come crawling.
Indeed, let’s pay No taxes. And keep 100% of our huge salaries and Bonuses. It’s not our fault we were lucky enough to largely come from middle class families hence went to schools that provided good education.
But then if we don’t pay taxes who would clean the roads, empty our bins, fight crime. All these all us to function and are leveraged in our everyday lives.
Saying that, i don’t beleve in paying any taxes. (Greed is good)
The UK Government is out of touch with reality. I’m glad I live in Dubai – I have no intention of returning to work in my home country. It is in sad (possibly terminal) decline.
It makes me laugh at most of the people writing here…. leave this country because your losing -what is comparatively – a small sum of money. Come on and grow up!!! We earn a hell of a lot….. fair enough we worked for it, but most of us came from good backgrounds. Most of the UK earn so much less and by paying taxes we are doing our bit for our country.
Plus let’s be fair… London is probably the best city in the world. I mean anyone wanting to leave would be stupid.
Dubai = Good whilst you are working, but one thing goes wrong and you don’t have a leg to stand on.
NYC = Crime, dirt… AMERICAN!!!!
Asia = Nice and tranquil, but let’s be honest….. one hell of a boring place.
Guys please stop bleating on like old women. Yes the Tax is unfair. However, it is for one year. So get over it!!
It’s pathetic of Labour to target the top 2% of the population as it has a huge adverse effect on incentives and effort, discouraging top talent and driving it abroad, while it generates diddly squat in additional revenue. It would make more sense to hit middle incomes and above by a few hundred pounds each year in higher taxes, so making millions of people carry the burden, with a limited financial impact on each one of them. 600 more tax on a 30,000 salary is only a 2% loss, and someone on that salary is unlikely to relocate as a result. Of course, Labour will do nothing to hit its core supporters, so that is unlikely to happen.
Levado wrote : “600 more tax on a 30,000 salary is only a 2% loss, and someone on that salary is unlikely to relocate as a result. ”
Oh my, proofread yourself.
- 600 more tax on a 30 000 salary is money that would have been spent at Tesco for food or to pay the rent. In fact it is 6 weeks of food for a not so fat couple.
- 150 000 more tax on a 300 000 bonus is money that would have been been used to buy Guccis and Patek Philips.
It’s called Engel’s law and taught in Economics first year.
“Guys please stop bleating on like old women.”
When exactly did it become acceptable to use “old woman” as an insult?!
Darling and Brown the two incompetent idiots have blown up the economy and its up to the bankers to come to their rescue. Are they not ashamed of taking their salaries each month and claiming all those expenses at the expense of the hard working tax paying public? They are a disgrace to the country.
As for me tax is being paid by people and it also come around to help people that pay this tax.It is the same tax use in developing and providing social want that is neededin the country or state.So tax goes round to help the payer.