|National minimum and living wage factsheet||Payroll|
HMRC’s factsheet entitled Carrying out a self-review of the National Living Wage and the National Minimum Wage has been updated. The factsheet is issued by HMRC as part of their checks to ensure that employees are being paid the correct National Living Wage (NLW) and National Minimum Wage (NMW). The factsheet provides employers with instructions to self-review their records. The NLW and NMW is the minimum legal amount that employers must pay their employees.
The size and scope of a self-review will depend on a number of factors such as:
Once a review has been carried out, HMRC must be provided with a written summary highlighting the pertinent details. There are penalties for employers that are found to have underpaid their workers and in some cases there may be criminal prosecutions. However, HMRC will not issue a penalty to employers who fully identify and pay any NLW or NMW arrears as part of the self-review process.
The current NMW hourly rate is £6.95 for adults 21-24 year old and the National Living Wage is £7.20 for those aged 25 and over. There are lower NMW rates for under 21’s. These rates are all set to increase from 1 April 2017.
February 20th, 2017