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Graduate jobs could be affected by bonus clampdown

Published: Tuesday, 16 November 2010   Category: All Graduate job news | Banking and Finance

A bonus clampdown in the City could impact the take-home pay of those fortunate enough to secure graduate jobs in the finance industry.

Recent figures from the Centre for Economic and Business Research (CEBR) show that total city bonuses fell to £7 billion in 2010.

This is down a long way from the £11.6 billion paid out in 2007 and could hit the pay cheques of bankers hard, especially with the 50 per cent tax rate applied to high earners.

However, the biggest loser in the matter will be the Treasury, with the CEBR estimating that it will miss out on approximately £1.8 billion in taxes.

There are concerns that the drop could see the top bankers head abroad to avoid the tax on their bonuses.

"Why go to London and pay 50 per cent tax when you can move to Hong Kong, which is nearer to the action and where the tax rate is 15 per cent?" CEBR asked.

However, it could create room for new graduate jobs if leading bankers do move abroad, which might benefit the students of today.

Meanwhile, those who do secure graduate roles should look to sort out their pension early, with the latest LV= figures showing that some Brits may have to work into their 80s before they can afford to retire.

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