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Tax Efficiency and the Gender Pay Gap

by Harry 10 days ago in personal finance
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The Gender Pay Gap

the Gender Pay Gap

In these days the gender pay gap is a widespread problem that is at the centre of numerous government measures to level the playing field for all employees.

Companies must submit a yearly report on their gender pay gap statistics in the UK. On that, however, later. Let’s start with the fundamentals.

The gender pay gap: What is it?

The average wage discrepancy between men and women is known as the gender pay gap.

The House of Commons Library in the UK reports that in 2021, women received median income that was 14.5% less than that of men.

More than three out of four UK companies pay their male employees more than their female counterparts, according to the Financial Times.

Even more astonishing is the fact that nine of the economy’s 17 industries pay males 10% more than women.

Although we still have work to do, we are moving in the right path.

Does the UK have a gender pay gap?

There is a gender wage disparity in the UK, just like there is everywhere else in the world.

However, the UK government is attempting to address the problem head-on. Reporting on gender pay disparities is now required by law. Small steps.

The Equal Pay Act of 1970 is what.

the pioneer who opened the way.

The Equal Pay Act of 1970 is a law requiring equal pay for equal work done at the same employer for men and women.

It is now covered by the Equality Act of 2010.

When did it become necessary to reveal the gender pay gap?

A law requiring organisations to report on their gender pay gap data annually was passed in 2017. The government’s gender pay gap service must receive the company’s gender pay gap data as a requirement. Nothing could be simpler!

Every company with more than 250 employees is required to provide its gender pay gap data.

The information of equity partners has been shared in detail by several larger organisations, such Deloitte. This makes it easier to assess wages at higher pay/job scales. Of the five magic circle legal firms, only one has adopted the strategy. This can be due to the fact that partners have typically been well-paid men.

What is it related to taxes?

Come on, everything we discuss has to do with taxes.

There is discussion on how taxes differ for men and women, particularly when there is a pay disparity. You would assume that since women are generally paid less than men, they would pay less tax. That is not true. In actuality, women’s take-home pay is lower than men’s due of taxes.

There is no reason, though, why you shouldn’t concentrate on becoming more tax-efficient.

How does inheritance tax work?

Additionally, there is the Inheritance Tax Allowance, which enables you to transfer assets worth less than £325,000 without having to pay Inheritance Tax (IHT).

Hint: If you leave assets to your spouse, there is no tax due, regardless of their value.

Additionally, you can transfer your primary residence to any immediate family member and claim the main residence allowance of £175,000, which further lowers the amount of tax, if any.

Do you require further assistance?

The best course of action is to consult an expert to ensure that you are aware of your tax position. In response, we are here. To help you be as tax-efficient as possible, our accredited accountants offer a one-time, one-on-one tax consultation. Additionally, they’ll email you a written summary following the meeting. You can learn more about accounting and tax issues from official website.

personal finance

About the author

Harry

Professional Charted accountant in UK

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