|
HMRC are reminding employers that since
the beginning of the current tax year
automatic penalties have been introduced
for those who do not comply with the
National Minimum Wage (NMW) Regulations.
The penalties range from £100 to £5,000
with 50% prompt payment discounts for
employers who settle within 14 days of
notification.
The penalty is payable in addition to
arrears owed to the workers.
The penalty notice will detail the
amounts due to workers (calculated
according to the formula shown below) and
any penalty due on those arrears. The
penalty is calculated as half the total
underpayment. The underpayments are
uprated to take into account the length of
time the arrears have been outstanding.
For each payment period the formula is:
Original underpayment x Current
NMW rate = Arrears
Original NMW rate
In serious cases of non compliance the
employer may be tried in a Crown Court and
in those cases the fines are unlimited.
The current NMW rates are:
- £5.73 (£5.80 from October 2009) an
hour for adults aged 22 and over
- £4.77 (£4.83 from October 2009) an
hour for 18-21 year olds
- £3.53 (£3.57 from October 2009) an
hour for 16-17 year olds.
Internet link:
Employer Bulletin article |
