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The National Minimum Wage (NMW) is a minimum amount per hour that most workers in the UK are entitled to be paid. The government has approved a rise in NMW, with more than one million people set to see their pay rise by as much as £355 a year from 1 October 2014.
The increases are as follows:
HMRC released a briefing providing some of the elaborate excuses employers used for not paying the NMW when challenged by HMRC officers. These ranged from one employer claiming his underpaid employee was his wife, but could not remember her name when probed by the officer to another employer claiming that the NMW was not paid to his employees due to their lack of awareness of the rules because they could not speak English!
Penalties may be levied on employers where HMRC believe underpayments have occurred. The potential penalties have increased from 1 February 2014, with HMRC now having the power to 'name and shame' non-compliant employers.
Anyone who believes they are not being paid the NMW can call the Pay and Work Rights Helpline.
If you have any queries on the NMW please do get in touch.
Why not contact Wilkes Tranter & Co Limited today for more information or a FREE no obligation quote.
HMRC has started to recover overpayments of Self-employment Income Support Scheme (SEISS) grants.
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We will continue to closely monitor government advice on the situation and act accordingly.