How do they do it?

steve821

Can any of you tell me the answer to this,
How do the city financiers and others get thoses bonuses paid, they must incur massive tax claims etc.
I am interested to know if they get paid offshore in what currency or some other financially viable way.
The tax man and others must love them.
Steve821

peter999

steve821 wrote:

Can any of you tell me the answer to this,
How do the city financiers and others get thoses bonuses paid, they must incur massive tax claims etc.
I am interested to know if they get paid offshore in what currency or some other financially viable way.
The tax man and others must love them.
Steve821

Lucky them.

RayWolfe

I would hope that people getting a £1,000,000 bonus will not lose too much sleep over only receiving £600,000 of it!
... but I could be wrong. ;-)

zenmaster

They used to be paid in gold bars or other commodities which removed or reduced the tax liability but the treasury got wise to that one.

Cook_County

RayWolfe wrote:

I would hope that people getting a £1,000,000 bonus will not lose too much sleep over only receiving £600,000 of it!
... but I could be wrong. ;-)

You are wrong. They also pay 1% in uncapped National Insurance so they get £590,000 and we (ie the country) gets £410,000 so the rest of us have less tax to pay.

malcindebt

A lot of these bonuses are paid as dividends, so they will only incurr a tax charge of 32.5%.

Cook_County

I have never seen a City investment bank pay a dividend instead of a bonus because it could not get a corporate tax deduction for the payment. It would also have to pay dividends at the same rate to all shareholders whereas bonuses are of discretionary amounts.