The gulf in workers’ pay ‘Worrying gaps’ on tax perks and penalties

THE top 10 per cent of earners in Greater Manchester take home more than six times as much as the lowest-paid 10pc, new analysis has revealed.

The latest figures from the Office for National Statistics have shown that the lowest tenth of earners in our region are paid just £7,534 a year, on average.

That is a gross figure - in other words, before any tax has been taken. CONSUMER champion Which? has uncovered ‘worrying gaps’ in consumers’ knowledge about tax perks and penalties.

More than 4,500 people took a quiz - answering a range of tax-related questions. Just over half were unaware how much money can be earned tax-free.

Asked if a person could earn up

In comparison, the highest earners in Greater Manchester take home £47,014 annually - a difference to £13,850 without paying any tax in the 2017-18 tax year, more than half (51pc) believed this statement to be correct or did not know.

Less than half (49pc) correctly said this statement was false (it was £11,500. When asked if a person is allowed to pay £25,000 into an Isa each year, two-thirds (68pc) said they thought the of £39,480 a year.

The situation in our region reflects a national trend. statement was true or did not know, despite millions owning an Isa account in the UK. Just a third (32pc) correctly identified this statement as false - as the annual tax-free allowance for Isas is £20,000.

The findings were released ahead of the self-assessment tax return deadline, which is January 31.

Across Britain, the lowest-paid 10pc of workers earn £7,740 annually, while the highest-paid 10pc earn £52,801 - nearly seven times as much, and a gulf of £45,061.

Part of the problem is that lowpaid workers are far less likely to be in secure, full-time and permanent work than high paid workers.

A comparison of average annual pay with hourly pay suggests that the highest-paid 10pc of workers in Greater Manchester are working nearly twice as many hours a year than the lowest-paid 10pc.

However, even when you look at average hourly pay, the gap between the highest and lowest earners in the region is still huge.

On average, the lowest-earners in