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31 March 2020
Tax on a payment to correct discrimination.
My client is a woman who was taken on as an employee of a company in a managerial role about four years ago. A colleague of hers is in a very similar managerial position and their duties are to all intents and purposes virtually identical. In fact the two of them were taken on by the company at the same time.
At the end of last year my client discovered that her colleague is being paid about £15 000 a year more than her. Naturally she was not happy and took this up with the company directors and the human resources department.
It has been agreed that the company will increase her salary and will pay the £60 000 arrears.
My question is how this should be treated...
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