Bankers Delay Bonuses for Tax Benefit
It has been revealed that some banking professionals had their bonuses for the 2012/2013 tax year delayed until after April. They were therefore paid in the new tax year, which saw the top rate of income tax reduced to 45%.
The top rate affects income above £150,000.These bonuses fell into that category, and so the deferral meant that less tax was deducted in accordance with the new, lower rate.
“Bankers Bonuses” Sees Less Money Paid As Tax
This move is likely to be unpopular among many members of the public, a “bankers’ bonuses” has been a hot topic in the news for some time. Specifically, bankers have come under fire for taking home large sums in the face of a worsening economy during the lead-up to the credit crunch. In light of this, the general public may not support a move that sees less of this money paid as tax.
An Increase In Tax-Free Personal Allowance From April
Other changes to tax were also introduced in April, notably an increase in the tax-free personal allowance to £9,440.