Early bonuses at Sainsbury's avoid tax hike

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 per cent tax rate that comes into force on 6 April.

Chief executive Justin King, who received a total of 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, a newspaper report claimed.

A Sainsbury's spokesman said 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."