Selective Employment Tax (SET) was a weekly payroll tax in the United Kingdom. It was levied against employers at a flat rate of 25s per man, and 12s 6d per woman.

SET was intended to subsidise manufacturing industry from the proceeds of the services industries, to help exports. At the end of each accounting period, manufacturing companies would have their SET payments refunded, along with a 7s 6d bounty or premium per employee (SEP). The premium was withdrawn outside assisted areas (United Kingdom) in 1967, while a Regional Employment Premium was introduced payable at fixed amounts for employees still eligible for SEP.[1]

SET was designed to be a tax on those companies that did not boost UK exports. High-street bookmakers used the introduction of this tax as a reason to reduce the payout on some each-way bets (where a horse is placed in the first two or three, depending on the number of runners) from a quarter the odds to a fifth the odds. However, the previous, larger payouts were never restored when the tax ended.

This tax was introduced during the first Wilson ministry in 1966, by means of the Selective Employment Payments Act 1966. It was dropped in favour of the introduction of VAT by the Heath ministry of 1970–1974.[2] Regional Employment Premiums were withdrawn as part of the response to the 1976 sterling crisis.[3]

SET Contribution Rates
Effective DateMan over 18Woman over 18Boy under 18Girl under 18
5 Sept 1966[4]25s12s 6d12s 6d8s
2 Sept 1968[5]37s 6d18s 9d18s 9d12s
7 July 1969[6]48s24s24s16s
15 Feb 1971£2.40£1.20£1.20£0.80
5 July 1971[7]£1.20£0.60£0.60£0.40
2 Apr 19730000

References

  1. ↑ Regional Grants: Are They Worth It?, Colin Wren, University of Newcastle upon Tyne, October 2004
  2. ↑ "Reform and VAT". The Cabinet Papers 1915-1984. The National Archives. Retrieved 25 February 2014.
  3. ↑ The Regional Employment Premiums (Termination of Payment and Consequential Provisions) Order 1976
  4. ↑ "Finance Act 1966".
  5. ↑ "Selective Employment Tax 1968".
  6. ↑ "Selective Employment Tax 1969".
  7. ↑ "Selective Employment Tax 1971".
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.