Employers have a legal obligation to pay employees a wage that is at least equal to the National Minimum Wage (NMW). From 1 October 2015, the NMW for employees aged 21 and over is £6.70 an hour.
Employers have a legal obligation to pay employees a wage that is at least equal to the National Minimum Wage (NMW). From 1 October 2015, the NMW for employees aged 21 and over is £6.70 an hour.
HMRC are getting tough on employers who do not pay employees the NMW. However, the National Minimum Wage campaign gives employers an opportunity to get their house in order and to pay any arrears to employees without incurring a penalty.
What is the NMW campaign?
The NMW campaign is a voluntary disclosure opportunity, which offers employers the chance to pay any NMW arrears owed to employees without incurring a penalty.
How does the campaign work?
There are four steps to the NMW campaign:
Need to know: HMRC are always more lenient with those who make the effort to sort out their affairs, so it is always better to go to them and own up rather than wait to be found out. HMRC have the power to charge a penalty of up to 100% of the NMW arrears (subject to a maximum penalty of £20,000) and are planning to increase this to 200%. The NMW campaign provides a chance to pay arrears without incurring a penalty.
If you need more information about National Minimum wage arrears or any tax related matters please get in touch with us at Inform.