Press Association
Sunday 12th February 2012
Supermarket chain Sainsbury's is to accelerate bonus payments for all staff in a move that means 1,200 of its high earners will avoid paying the 50% tax rate that comes into force on April 6, it has been reported.
Chief executive Justin King, who received more than £2 million in pay, pension and bonuses last year, would have paid an extra £86,900 to the taxman if the regime had been in force a year ago, the Mail on Sunday said.
A Sainsbury's spokesman told the newspaper that the change was not linked to the new tax rate but was a trial to cut the time staff waited for bonuses after the chain's year-end, which is next Saturday.
"We think it is 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."
Changing the timing of the payments breaches no rules but could anger those in the banking sector who were warned against trying to avoid paying the tax rate, which will increase from 40% on all personal income above £150,000.
