The highest paid bankers and traders in the UK and Europe who receive a bonus of £1m this year could end up receiving no money at all after tax in 2011 – and may face a tax bill that is bigger than the upfront cash part of their bonus – under current European proposals to reform remuneration.

Calculations by Financial News based on the latest bonus proposals by the Committee of European Banking Supervisors show that anyone in the UK - or working for a UK bank anywhere in the world - who receives a £1m bonus would receive a maximum of £200,000 in cash upfront.