Are you paying national minimum wage correctly?

Miscalculation of national minimum wage and national living wage payments can have consequences for a business as well as an individual. To ensure you get it right, tax specialist John Davison examines the basis for calculations and potential pitfalls

It is essential to ensure that employees are not paid below the national minimum wage (NMW) and HMRC undertakes a number of checks to ensure employees receive the NMW.

Checking process

HMRC is permitted to ask any business for information and records which shows whether employees are being paid the NMW or the NLW.

Information used by HMRC will include internet data which is publicly available, so it is important to ensure that the information provided on the internet where accessible is accurate.

HMRC will also use news reports, blogs, social networking sites, Companies House and Land Registry records.

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Checking process

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