National Minimum Wage & Living Wage

An HMRC investigation has discovered that for 2017/18 £15.6 million back pay is owed to over 200,000 UK workers, this was an increase from £10.9 million to 98,000 workers for 2016/17.

Employers who don’t pay their staff the legal requirements are subjected to penalties. If an employer realises that they have underpaid their worker they must pay any arrears immediately, if they fail to do so there can penalties of up to 200% of the amount owed. Non payment can get a fine of up to £20,000 per employee and the employer can get up to 15 year ban from being a company director.

As of 1 April 2018 the National Minimum Wage hourly rate for persons 21 -24 years old is £7.38, 18 – 20 years old is £5.90 and 16 – 17 years old is £4.20. The National Living Wage hourly rate for persons 25 & over is £7.83 and the apprentice rate is £3.70.

Employees can make complaints to HMRC online and all complaints are investigated.

It is important to remember that certain payments made by workers must not be included when the minimum wage is calculated such as items bought for work which aren’t refunded.

Posted by Cassey Nixon on

28th June 2018

Categories

  • Do You Need To Submit A Tax Return?

    There are a number of reasons why you may need to register with HMRC to submit a tax return. This could include: if you are self-employed and earning more than £1,000 per year from the self-employed activity, if you are a company director, if you have an annual income over £100,000 and / or if […]

  • Tax And Lease Premiums

    Where a freeholder (or landlord) of a property grants a new lease to a new tenant there are sometimes upfront payments due, usually known as a lease premium. The payments of these premiums are increasingly popular, and the tax implications can be complicated depending on the length of the lease. For leases of 50 years […]