So, this week we’ve had more news about employers deferring bonus payments until after 6 April so that staff earning more than £150k a year can pay income tax at 45% instead of 50% as currently applies.
The general population might squeal at the idea of ‘fatcats’ apparently avoiding higher-rate tax. But let’s be honest, this is good reward management: allowing your staff to make informed decisions about their pay and its tax implications.
But the lawyers are now popping up and pointing out problems about employers not changing employment contracts with regards to bonuses dates and potentially falling foul of HM Revenue and Customs. Our reporters are investigating as to whether this is legal scaremongering, or a genuine issue for reward managers to beware of before deferring bonuses.
Watch this website for developments.
Debi O’Donovan, Editor, Employee Benefits