From 1 April 2023, the National Minimum Wage (NMW) is due to increase to £10.42 per hour for workers aged 23 and above.
As an employer, you have already budgeted for this increase for your workforce and believe you are compliant in this area. However, you may be inadvertently not paying the correct amount to employees. HMRC cite the common causes of underpayment breaches:
- Travel time
- Unpaid working time at the start or end of a shift
- Employees paying for certain items of clothing
HMRC is particularly active with NMW checks and have significantly increased their team undertaking their reviews. The NMW enforcement compliance statistics from 20/21 saw 10,000 jobs in Northern Ireland paid below the minimum wage. All employers should analyse their workforce to understand what their NMW obligations are and whether their approach creates any risk of non-compliance.
We have experience in the area of NMW reviews and have assisted employers in managing their employment tax compliance. Contact our Tax team if you have any queries in this area: Geraldine Browne, Renee Dawson.