Sainsbury's paying bonuses before 50% rate strikes

Sainsbury's is aiming to buffer the effects of the impending 50% bonus rate by paying its bonuses early.

The supermarket giant is trying out a "new award timetable" to pay its 1,200 senior managers three months earlier than usual, which will see the awards taxed at 40p in the pound instead of 50p for high earners making more than £150,000 from 6 April.

Sainsbury's said it was "fairer to the individual for the proportion of their bonus awards that are based on Sainsbury's financial performance to be paid, and therefore taxed, in accordance with the rates that applied across the financial year in which they were earned," The Independent reported.

Further reading:

Business warned over 50% tax strategies

Hartnett: Taxman will target 50% tax rate avoidance