HMRC have released data for 2020/2021 tax year confirming they had helped more than 155,000 employees across the UK recover in excess of £16 million in pay. In doing so, HMRC issued their employers (who had failed to follow National Minimum Wage rules) more than £14 million in penalties.

HMRC advised that the vast majority of employers do pay their employees at least the National Minimum Wage. Nevertheless the “explanations” some employers offered have been used by HMRC to compile their latest

list of most “ridiculous reasons”

Top 10 (2020/2021 tax year)

1.“She does not deserve the National Minimum Wage because she only makes the teas and sweeps the floors.”

2.“The employee was not a good worker, so I did not think they deserved to be paid the National Minimum Wage.”

3.“My accountant and I speak a different language – he does not understand me, and that is why he does not pay my workers the correct wages.”

4.“My employee is still learning so they are not entitled to the National Minimum Wage.”

5.“It is part of UK culture not to pay young workers for the first three months as they have to prove their ‘worth’ first.”

6.“The National Minimum Wage does not apply to my business.”

7.“I have got an agreement with my workers that I will not pay them the National Minimum Wage; they understand, and they even signed a contract to this effect.”

8.“I thought it was okay to pay young workers below the National Minimum Wage as they are not British and therefore do not have the right to be paid it.”

9.“My workers like to think of themselves as being self-employed and the National Minimum Wage does not apply to people who work for themselves.”

10.“My workers are often just on standby when there are no customers in the shop; I only pay them for when they are actually serving someone.”

It is possible that some may feel that if an employee has willingly signed and accepted a different pay rate, they are off the hook.

However, there is nothing funny about HMRC finding out that your employees have been short-changed and ordering you to pay any shortfall due to your employees.

Furthermore, if HMRC believes an employer has deliberately or unapologetically been underpaying its employees, the employer could face hefty fines and other enforcement action.

The current National Minimum Wage hourly rates (wef 1 April 2021) are:

·     £8.91 - Age 23 or over (National Living Wage)

·     £8.36 - Age 21 to 22

·     £6.56 - Age 18 to 20

·     £4.62 - Age under 18

·     £4.30 - Apprentice

All details correct at the time of original publication.