Selective Employment Tax (SET) was a weekly payroll tax in the United Kingdom. It was levied against employers at a flat rate of per man, and 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 The premium was withdrawn outside assisted areas (United Kingdom) in 1967, while a Regional Employment Premium was introduced payable at fixed amounts for employees still eligible for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.
| Short Title: | Selective Employment Payments Act 1966 |
| Type: | Act |
| Parliament: | Parliament of the United Kingdom |
| Long Title: | An Act to provide for payments in certain circumstances in respect of persons in respect of whom selective employment tax has been paid; and for connected purposes. |
| Year: | 1966 |
| Citation: | 1966 c. 32 |
| Royal Assent: | 9 August 1966 |
| Original Text: | https://www.legislation.gov.uk/ukpga/1966/32/contents/enacted |
| Collapsed: | yes |
This tax was introduced during the first Wilson ministry in 1966, by means of the (c. 32). 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dropped in favour of the introduction of VAT by the Heath ministry of 1970–1974.[2] Regional Employment Premiums were withdrawn as part of the response to the 1976 sterling crisis.[3]
| Effective Date | Man over 18 | Woman over 18 | Boy under 18 | Girl under 18 | |
|---|---|---|---|---|---|
| 5 Sept 1966[4] | 25s | 12s 6d | 12s 6d | 8s | |
| 2 Sept 1968[5] | 37s 6d | 18s 9d | 18s 9d | 12s | |
| 7 July 1969[6] | 48s | 24s | 24s | 16s | |
| 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 1973 | 0 | 0 | 0 | 0 |