Election comment – View from advisers: Tax proposals regarding employment incentives

There has been little comment from any of the main political parties in respect to the taxation of employment incentives and no specific proposals have been included within any of the manifestos.

Not unexpectedly all three main parties have made reference to bonuses in the banking sector. Both Labour and the Conservatives have made only very general statements in this regard the Liberal Democrats being the only party to commit to detailed proposals with their '5 point plan'. None of the proposals however include any change to the taxation of such bonuses. It is clear however that bonuses in all sectors of the economy are likely to remain firmly under the public and therefore political spotlight.

The introduction of the 50% higher rate of income tax coupled with the proposed rise in National Insurance contributions (NIC)...