In its latest round of investigations, HM Revenue and Customs (HMRC) have named 518 employers who have failed to pay the National Living or National Minimum Wage correctly to their staff.
A total of £7.4 million will be paid by these employers to almost 60,000 workers. In addition, the employers face financial penalties of up to 200% of the amount they underpaid.
HMRC accepts that not all minimum wage underpayments are intentional, however it is clear that they will take enforcement action wherever they find employers are not paying staff correctly.
The government has provided a resource for workers to check what they are being paid and are encouraging them to use this. Support is also available from Acas.
What does this mean for employers?
Where you employ staff, it’s key that you make sure that all your staff are at least paid the National Living or National Minimum Wage rate that applies to them.
This is not always straightforward as there can be several factors to consider. It’s advisable to check the guidance each time you take on a new employee. Some common errors employers make include:
- Making a wage deduction for items or expenses that relate to the job.
- Making wage deductions that are for the employer’s own use and benefit.
- Failing to pay for additional time added on to an employee’s shift.
- Failing to pay for time spent travelling on business.
- Failing to pay an employee for time they spend training.
- Failing to apply the annual rate increase on 1 April
Rates for 2025/26
Beginning 1 April 2025, the National Living and National Minimum Wage rates are as follows: Rate per hour
- National Living Wage (21 and over) - £12.21
- 18 to 20 - £10.00
- Under 18 - £7.55
- Apprentice - £7.55
If you need any help with paying your staff the correct amount or understanding how the Minimum Wage legislation applies, please get in touch at any time. We would be happy to help you!
See: https://www.gov.uk/government/news/over-74-million-put-back-in-working-peoples-pockets-by-employers
The National Cyber Security Centre (NCSC) has released new guidance on how to properly retire old digital systems and devices – a process known as decommissioning. The guidance is aimed at IT teams, but there are useful takeaways for any small business that uses computers, software or online systems.
The Federation of Small Businesses (FSB) has recently updated its guidance on Employers’ Liability insurance - a useful reminder of the rules and risks around a business insurance that is legally required in the UK.