Businesses that fail to keep on top of the National Minimum Wage (NMW) and National Living Wage (NLW) are being reminded that they potentially face hefty fines of up to 200 per cent of the wages owed.
HM Revenue & Customs (HMRC) has been trying to clamp down on non-compliance in this area for some time, including naming and shaming offenders, but recent research suggests that its efforts have somewhat failed to curb the problem.
The Revenue’s latest figures show that UK employers were found to have failed to pay a collective £15.6 million to some 200,000 workers in 2017/18 as a result of NMW and NLW non-compliance. This was up from £10.9 million recorded in the previous financial year.
The spike in the number of businesses falling foul of the rules is thought to be attributed to an increase in the number of individual complaints received from workers who have contacted HMRC directly via its new online complaints service.
First launched in January 2017, this service is thought to have resulted in a 132 per cent year-on-year increase in the number of complaints received – and an increasing number of businesses continue to face penalties as a result of such revelations.
Business Minister Andrew Griffiths, said: “Employers abusing the system and paying under the legal minimum are breaking the law. Short-changing workers is a red line for this Government and employers who cross the line will be identified by HMRC and forced to pay back every penny. They could even be hit with fines of up to 200 per cent of wages owed.”
As you are undoubtedly aware, there are certain legal obligations as an employer.
Failing to comply with your payroll duties – for example not paying National Minimum Wage or National Living Wage – could result in hefty fines, not to mention damage to your business’ reputation.
Our service is not only cost-effective but also releases you from time-consuming administrative tasks and the worry of staying compliant – so that you can get on with running your business. To find out more about our services, please contact us.
