FINANCE


in financial services organisations the gap is primarily driven by the number of men in senior positions. Matthew Hammond, PwC


Midlands Region Chairman, said: “Our research shows that a company’s gender pay gap is often symptomatic of wider issues within their industry about attracting and promoting women. This is a real challenge for companies to break as high industry-wide gender pay gaps may already be putting


talented women off from joining and prospering within their organisation. “As well as having clear and


robust action plans about what they’re doing in their own organisation, there is a real need for industries to come together and show they are serious about creating the right environment and culture for women to prosper. There are some great examples of this already happening, such as the Women in Finance Charter, Diversity in Hospitality, Travel and Leisure Charter and Tech She Can Charter.” Other interesting trends that


PwC’s research found include 85% of companies which have disclosed have a pay gap in favour of men; around 40% of companies which have disclosed have a mean pay gap above the ONS national average of 17.4% and 75% of


companies which have disclosed have a bonus gap above ten per cent in favour of men. PwC’s analysis found that


gender bonus gaps are generally twice as high as gender pay gaps and more than ten per cent of companies which have disclosed have a bonus gap above 70%. As bonus decisions are often based on more subjective decision making than pay, and linked more closely to performance, this highlights the importance of companies having robust pay infrastructure and governance in place. The more


transparency that companies can put in place around their pay and bonus decision making, the lower the risks of bias creeping into decision making. Matthew added: “Fairness lies


right at the heart of the issue of the gender pay gap. Gender pay gap reporting is far more than just a compliance exercise, this is the chance for companies to reconnect with their people, customers and society and show that they are serious about taking action. Having a clear sense of what fair pay means in your organisation, stating these principles clearly and supporting them with transparent action plans and pay governance could help win back trust and bring about change.”


Trivial benefits won’t be chased by taxman


Employers that want to reward staff with tokens of appreciation, or “trivial benefits”, can do so without fear of additional taxation, providing certain rules are followed, accountants Newby Castleman is reminding firms. The exemption on trivial benefits


put in place by HMRC since April 2016 means that bosses can offer small perks to staff without either themselves or the employee suffering tax or National Insurance, but companies must be aware of the conditions under which this exemption applies. Furthermore, the employer can claim tax relief on the cost of the gift. Annalise Lovett, Partner at


Newby Castleman’s Loughborough Office, said: “Employers need to meet the following requirements for a gift to be tax free. “Firstly, the trivial benefits must


not be a reward for specific services or be in any way contractual – they must be more general. For example, you cannot provide tax-free gifts for staff for doing well on a certain project, but you can give gifts, such as a bunch of flowers or a box of chocolates or


Annalise Lovett


cinema tickets tax-free in response to an external event, like a birthday or a wedding, or simply if the mood takes you. “Secondly, the benefit cannot be


in cash, or cash vouchers. Gift cards that cannot be exchanged for cash (which includes most high street stores) are included in the exemption. And thirdly, the cost of the benefit cannot exceed £50 per member of staff, per occasion. “One final point to bear in mind


is that HMRC’s legislation imposes an annual cap of £300 on exempt trivial benefits provided to a company director or office holder, including members of their family or household.”


business network July/August 2018 69


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