High earners 'to get bonuses early to beat tax'

Some UK employers are to attempt to preserve the private wealth of their executives by paying out bonuses early in a bid to beat the new income tax rate.

From April 6th, those who earn over £150,000 per year will be subjected to a 50 per cent levy on their income, so firms such as SABMiller and Tesco are bringing forward payments so they fall in the current 40 per cent tax bracket, the Independent reports.

Bonuses for many high-level employees are traditionally handed out in either April or May.

The newspaper also suggested employees at some firms who earn below the £150,000 threshold will also get their bonuses early.

Marks & Spencer and Sainsbury’s are two businesses thought to be considering such a move.

Speaking to the Financial Times last month, Chris Page of KPMG said finance directors at many companies have been inundated with queries from high-earners looking for help with ways of beating the tax.ADNFCR-2318-ID-19683882-ADNFCR