As a UK employer, you must pay your employees at least the National Minimum Wage (NMW) or National Living Wage (NLW), whatever is appropriate for their age.
With changes expected to be announced about the UK’s current NMW and NLW rates in the near future, HM Revenue and Customs (HMRC) has updated its checking process.
As part of this checking process, as an employer you are required to complete a self-review of your company’s records.
How does the self-review work?
This review will depend on several factors, including the size of your workforce and the work that is carried out.
You will need to consider the changing NMW rates and whether the contracts of your workers have changed.
You also need to look at each pay reference period separately and work out if there are any underpayments.
Once the self-review is complete, you must submit the information to HMRC, including confirming employee details and the period in which any workers were underpaid.
As failing to do so is against the law, HMRC might run a NMW check on your company. If so, an appointed HMRC case officer will tell you which information and records HMRC wants to look at to ensure compliance.
You are also required to keep all details of your self-review for future reference, in case HMRC decides to run another NMW check on your company.
Support available for businesses
Analysing your payroll records will take time, but it is important that you meet the current NMW and NLW requirements.
Our expert team can help you meet your obligations and submit the correct information.
For support with your NMW self-review, please contact our team.
