Checklist call to businesses as more than 6,800 Belfast workers miss out on National Minimum Wage

Employers in the Belfast area are being urged not to risk falling foul of the law, as efforts are made to reduce the almost 7,000 workers who were underpaid the National Minimum Wage (NMW) last year.

HM Revenue and Customs (HMRC) is writing to more than 6,000 employers in the Belfast area to raise awareness about potential pitfalls when it comes to paying staff above the legal threshold - and offer practical support to help them get it right.

Some businesses may find themselves failing to fulfil their obligations through mistakes or oversights, and the highest risk sectors identified by HMRC in Belfast are retail, construction and social care.

The letter will highlight common mistakes made by businesses and signpost them to further support to help with their obligations. It will also contain a checklist for employers to work through, which will help identify any mistakes they are making. HMRC will also offer some employers a free NMW Health Check with one of our experts.

Following compliance work carried out in the 2021 to 2022 financial year, HMRC discovered 6,800 Belfast workers had been underpaid more than £406,000 as some businesses failed to comply with NMW rules. Following the law is important for employers as well as employees, as any business failing to comply could ultimately face penalties of up to 200% of their arrears. Businesses found to have underpaid their workers the NMW may also be publicly named.

Marc Gill, Director of Individuals and Small Business Compliance at HMRC, said:

“We want Belfast workers to get the pay they are due, especially in these difficult times, which is why we are encouraging employers to use our checklist.

“We know the last few years have been difficult for businesses of all sizes, but it is important that employers pay the correct minimum wage to their staff. The checklist will assist them in identifying any possible mistakes and help them to get it right.”

Due to HMRC’s action last year, employers in Belfast were handed penalties of more than £315,000. Businesses, irrespective of their size, are responsible for paying the correct minimum wage to their staff.

Employers can access support at any time to ensure they are paying the NMW correctly:

• view the online employers’ guide on calculating the minimum wage,
• contact the Labour Relations Agency helpline on 03300 555 300 for further advice and support
• view our recorded webinars on various minimum wage topics which can be accessed by clicking this link: https://www.gotostage.com/channel/aec820cc492f4f449f1f319418a346b3

In 2023, HMRC will be writing to workers in Belfast asking them to report any concerns they may have about being underpaid the NMW.

Background

• This is part of HMRC’s regular compliance outreach activity, which sees us focus on areas of the UK by offering support and helping businesses identify risks. We have assisted businesses in Cornwall, Watford and East Anglia in this way over the last 12 months.
• Further information about the National Minimum Wage, including who is eligible, is available on GOV.UK at:
  • https://www.gov.uk/guidance/calculating-the-minimum-wage
  • https://www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage
  • https://checkyourpay.campaign.gov.uk/
• HM Revenue and Customs (HMRC) is responsible for the enforcement of National Minimum Wage legislation. The Department for Business, Energy and Industrial Strategy (BEIS) is responsible for National Minimum Wage (NMW) and National Living Wage (NLW) policy.
• The current National Minimum Wage hourly rates (from 1 April 2022) are:
  • Age 23 or over (National Living Wage): £9.50
  • Age 21 to 22: £9.18
  • Age 18 to 20: £6.83
  • Age under 18: £4.81
  • Apprentice: £4.81
• By law workers must be paid at least the minimum wage for their age for all their time spent working. If somebody thinks they may have been underpaid, they can report this online to HMRC at: https://www.gov.uk/minimum-wage-complaint
• Employers who do not pay the NMW can be publicly ‘named’. The most recent list was published by BEIS on 8 December 2021. Those who blatantly fail to comply can face criminal prosecution, but most employers pay up when they realise mistakes have been made.
• The Labour Relations Agency helpline is 03300 555 300.
• Follow HMRC’s Press Office on Twitter @HMRCpressoffice