HMRC issues £14 million in penalties for minimum wage offences

During 2020/21 HMRC issued 580 penalties totalling over £14 million for minimum wage offences, according to a report published last month by the Department for Business, Energy and Industrial Strategy (BEIS). 

The National Minimum Wage (NMW) was introduced in 1999, with the National Living Wage (NLW) introduced in 2016. The penalties given out for national minimum wage (NMW) and national living wage (NLW) offences dropped by £4.5 million from the previous year before, when 992 penalties worth £18.5 million were issued.  Penalties are utilised to help ensure that workers receive the pay to which they are legally entitled. 

HMRC is reported to have adapted its communications to make it clear to workers that they have the option to remain anonymous if they make a complaint. In addition workers are informed, and that they can also report a previous employer for minimum wage breaches. 

To help organisations remain compliant the report states that it will be more transparent about the most common minimum wage breaches including deductions from workers' pay and unpaid working time. 

The report said: 

'BEIS therefore publishes an educational bulletin with each naming round to help raise awareness of minimum wage rules and improve compliance. Bulletins include analysis of the most common breaches in each naming round, examples to ensure understanding of how such breaches can be avoided, and links to the government's Calculating Minimum Wage guidance for further details.' 

Source: GOV.UK