Almost 240 employers featured on HMRCs ‘name and shame’ listings in the summer of 2018.
The list identified businesses who were underpaying National Minimum Wage to their workers.
Those businesses involved were instructed to pay back £1.44m to 22,400 workers, whilst also incurring fines of £1.97m.*
Businesses were underpaying their workers by:
- Deducting uniform costs from wages
- Underpaying apprentices
- Misusing the accommodation offset
- Using the wrong time period to calculate pay
- Failing to pay travel time*
“HMRC investigated hundreds of businesses in 2018 for failing to pay their workers the National Minimum Wage (NMW),” said Zoe Horswill, payroll manager at Ellis & Co Chartered Accountants and Business Advisers.
“These businesses were given a hefty fine, plus a huge amount of paperwork to complete.
“It is so important to ensure that you are not making any deductions from pay that would take your employee below the National Minimum Wages / National Living Wage (NLW)
“That works the same for any ‘top ups’ that do not count for NMW or NLW such as shift allowances, customer tips or bonuses.”
For further information on this, or any other payroll matter, contact Ellis & Co on 01244 343504.
*Figures From HMRC