HM Revenue & Customs (HMRC) makes enquiries into National Minimum Wage (NMW) compliance to make sure that all workers are paid at rates equal to, or above, the NMW. This is carried out under a programme of routine visits to businesses and also if HMRC receives a complaint that a business is not paying the NMW.
Enquiry processDuring an enquiry, HMRC will look at your records and ask about who completes wages, salary, payroll and other records. HMRC may also talk to your wages clerk and will contact some or all of your workers.
If you are not complying, you will be told to put this right, including addressing any shortfall in previous wages. If you fail to act you may receive an enforcement notice. If you fail to comply with that notice you may receive a penalty notice of twice the adult hourly rate (currently £5.73) for each named worker on the enforcement notice and for every day of non-compliance with the enforcement notice. This means that the minimum penalty you will receive is currently £252.12. There are separate appeal rights for both notices.
What HMRC expects of youYou are legally required to pay your workers at least the NMW and to keep sufficient records to show that you comply with NMW obligations. However, there are some exemptions to this requirement, for example where you employ an apprentice under the age of 19, or who is aged 19 or over and in their first year of an apprenticeship. See our guide on understanding National Minimum Wage law.What you can expect from HMRCYou may expect courtesy, fair dealings, confidentiality, consideration of your time and costs and to be kept informed of your rights and the reasons for actions taken during the enquiry
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