Bonus Deferral: Pitfalls for the Unwary
10 January 2013
Mayer Brown Legal Update
The additional rate of tax is decreasing from 50% to 45% from 6 April 2013. As a result, some clients are considering whether to defer bonuses until on or after 6 April 2013, given the tax savings that may arise for their senior level employees. However, in an era where the line between acceptable tax planning and unacceptable tax avoidance becomes ever more blurred, there are a number of points to consider before deciding to do so, including issues from both an employment law and a tax perspective.