Trade Union Congress (TUC) leader Brendan Barber has called on the Government to make the top bonus pool for bankers liable to corporation tax. The TUC's new Bonus Season report revealed that an estimated £1.7 billion a year could be raised from implementing the tax rules on the banking and financial sector. The report uses data from the recent Labour Force Survey.
According to the survey, around 36% of employees earning £250,000 a year in the UK are employed in the banking and finance sector. Using HM Revenue & Customs data, the survey estimates that around 81,000 people earn over £262,000, with 29,000 in banking and finance. The TUC estimates that the total pay on earnings above £262,000, which the TUC believes should be disallowed as deductible expense for corporation tax purposes is £6.8 billion a year.
Ending this corporation tax relief on earnings over £262,000 in the banking and finance sector could raise £1.7 billion a year, a sum that could vastly improve the UK economy. Mr Barber said: "Irresponsible banks played the biggest part in causing the crash. Making the top bonus pool liable for corporation tax means they would pay a little more towards clearing up the mess they made."