Bonus Britain - UK workers set for biggest payout week of the year

This weekend will see the UK benefit from one of the biggest bonus payout weeks of 2007 with one in three high earners set to have received their share of the £19bn annual bonus pot over the next few days.

The survey carried out by Barclays Wealth’s International Personal and Premier Banking division shows that one-third of all bonuses are expected to be paid out in January with this week cited as the most likely for workers to receive their lump sum.

The research also reveals that two-thirds of bonus recipients have already planned how they are going to spend their annual bonus. Contrary to popular belief, city workers are actually choosing to invest their money rather than blow it on champagne dinners and entertainment, with 43 per cent choosing long-term financial investments over splashing the cash on short-term spending. Five per cent of those are intending to seek professional advice from a financial advisor or bank regarding how to get the most out of their bonus payment.

The top five planned uses for bonuses are as follows:

UK property purchases (23 per cent)
Other financial investments (19 per cent)
Clearing debts (15 per cent)
Holidays (12 per cent)
Home Improvements (10 per cent)

Jonathan Williams, spokesperson for Barclays Wealth’s International Personal and Premier Banking business, said: “It is encouraging that our research shows that people are intending to be responsible with spending their bonus this year and that five per cent will be getting professional advice on how to make the most out of their money. With increasing numbers of foreign nationals now living and working in the UK, they might be entitled to the tax status afforded to UK resident non-domiciled individuals, for example.”

The majority of UK-wide workers questioned by Barclays Wealth’s International Personal and Premier Banking are expecting a figure between £5,000 and £25,000, with over 10 per cent expecting to receive even more. The average bonus for City of London workers is £25,085, a rise of 26 per cent on 2005 figures.