Sainsbury's paying bonuses before 50% rate strikes
Supermarket giant trying out a "new award timetable" to pay its 1200 senior managers three months earlier than usual
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