With April 1st quickly approaching, both the National Living Wage and National Minimum Wage (NMW) rates will be increasing – bringing with it a whole host of compliance risks.
The national Living Wage will see an increase from £9.50 to £10.42 per hour, representing a 9.7% jump. HMRC is actively enquiring into compliance with NMW regulation changes, meaning it is important businesses stay on top of the legalities surrounding their payroll.
What should you look out for:
- Identifying worker types and understanding the impact that this has on the NMW calculation
- The definition of working time and capturing and paying all working time at the appropriate time
- Deductions from pay can cause NMW breaches, even where these are requested by an employee
- Salary sacrifice can result in employees falling below NMW unless strong controls are in place to prevent this
- Uniform policy can create risks of breaching the NMW regulations
Failure to manage the risks surrounding NMW regulations will incur substantial penalties of up to 200% for any underpayments as well as the reputational damage of being publicly shamed by HMRC – so it’s a good idea to ensure your business remains compliant!
How can we help?
Our payroll team take the hassle and risk away from your payroll duties, ensuring delivery, accuracy, and compliance with the latest regulatory changes. We can also undertake NMW risk assessments for business owners looking for clarity or comfort.
Our experienced and approachable team are on-hand to assist you, please get in touch below: