Bonuses paid out early to beat 50% tax deadline

Some of the largest companies in the UK are to pay annual staff bonuses early, to help them avoid the new 50% tax.

According to the Independent, top managers at Tesco, Land Securities and SABMiller are among those expecting to receive their bonuses ahead of schedule.

They will be taxed at 40%, rather than the new higher rate, applicable to salaries over £150,000. The 50% tax comes into effect on 6 April.

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Marks & Spencer, J Sainsbury and Whitbread are also planning to pay early bonuses, and it is thought that those of their staff earning below the £150,000 threshold will also receive their bonuses this month, rather than the usual April or May.

London Stock Exchange employees is allowing staff to choose whether to be paid before or after the 6 April deadline.