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The government has released a list of the most frequent causes of National Minimum Wage (NMW) underpayment, along with guidance on how to avoid them, to accompany the recently approved increases in the NMW. This checklist outlines the key reasons for non-compliance and provides links to additional resources. 1. Making wage deductions or taking payments from workers, for items or expenses that are connected with the job. See Deductions from pay and payments by workers that reduce minimum wage pay)
2. Making wage deductions or taking payments from workers for the employer’s own use or benefit where the employer is free to use that money in any way they wish. See Deductions or payments for the employer’s own use and benefit) 3. Failure to pay for any additional time added on to a worker’s shift, for example team handovers between shifts or time spent passing through security checks on entry and exit. See Working hours for which the minimum wage must be paid) 4. Failure to pay a worker for any time during their shift when they are at the workplace and required to be available for work, (even if no work is being provided at that time during their shift). See Working hours for which the minimum wage must be paid) 5. Failure to pay a worker for any travelling time. See Time spent travelling on business. 6. Failure to pay a worker for any time spent training. See Working hours for which the minimum wage must be paid) 7. Failure to pay sufficient money for any time worked during a sleep-in shift. See Sleep-in shifts) 8. Incorrectly applying the minimum wage accommodation offset when an employer provides living accommodation to a worker. See Accommodation Offset) 9. Paying the minimum wage apprentice rate when the worker isn’t a genuine apprentice. See Apprentices) 10. Paying the minimum wage apprentice rate before a worker starts their apprenticeship or after it ends See Apprentices
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Compliance is a necessity for every single payroll provider in the UK. If you’ve been looking for a payroll provider online, you might have seen a lot of providers listing ‘compliance’ as one of their selling points on their website. But, compliance isn’t a selling point; it’s a requirement.
While it can be a time-consuming task for many payroll providers, it’s absolutely essential that they comply with the latest laws and regulations set in place by the relevant bodies and organisations in the UK. Ultimately, payroll companies must be fully compliant and transparent in all aspects of their payroll services. In this blog, we take a closer look at the importance of compliance in payroll services, as well as highlight how HMRC is dealing with companies taking part in tax avoidance schemes. Continue reading to learn more and if you’d like to contact us, please reach out via the details below. The Importance of Compliance The importance of compliance for payroll providers cannot be emphasised enough. Put simply, every single payroll provider operating in the UK is responsible for ensuring that accurate information is reported to HMRC and other relevant bodies. All payroll providers need to comply with the relevant laws and guidelines in the UK. As we’ve mentioned above, this is a requirement and shouldn’t be used during a sales pitch, it should be a given. Failure to comply with applicable laws and regulations can have serious consequences for both providers and their clients. As part of being fully compliant, payroll providers must also ensure that they comply with employment laws. This includes understanding the proper way to classify employees and ensure that they are paid in accordance with the applicable laws. Payroll providers must stay abreast of changes in the law and ensure that their payroll processes are compliant with any new applicable laws and regulations. Doing so will help to protect them and their clients from costly fines, penalties and other sanctions. How HMRC is Naming and Shaming Companies Tax avoidance schemes continue to be marketed in the UK in 2023. Now, HMRC is naming and shaming companies that are taking part in these schemes, with information about involved parties being updated on a regular basis. If you head over to the link above, you can see a comprehensive list of tax avoidance schemes currently being marketed, and additional information about all promoters, enablers and suppliers. This is not a complete list, but it is a regularly updated list that’s very useful. HMRC does not approve any tax avoidance schemes for use. Looking for a Trusted Payroll Provider in the UK? Searching for a reputable payroll provider in the UK? Then Clockwork Contracting is the provider to choose. We are a leading company specialising in payroll services, providing a professional, reliable and transparent service to every client, no matter how big or small. Our payroll experts provide cost effective payroll services, effectively taking over management of your payroll and ensuring that compliance and transparency are met from start to finish. If you would like to find out more about our payroll services, then please do not hesitate to contact us today. You can reach us by phone on 0203 004 2262 to speak with a member of our team; we look forward to hearing from you soon. At Clockwork Contracting Ltd, we are delighted to announce that we have become a member of the Umbrella Leaders Association (ULA). This marks an important milestone in our commitment to providing an excellent umbrella employment service to our clients.
The ULA is an independent, professional body that works to protect the interests of the self-employed and the umbrella sector. As a member, we have committed to adhering to their high standards of service and professionalism. This means that our clients can have complete confidence that we are providing a quality service. Being part of the ULA will also allow us to tap into a wealth of resources that help us to stay abreast of the ever-changing landscape of umbrella employment. This includes access to expert advice and support, as well as a network of fellow ULA members who can offer guidance and advice. We are proud to be part of the ULA and are excited about the opportunities this provides for our clients and our business. We look forward to continuing to provide a quality service and being part of the ULA family. |
AuthorJack Chinnery - Head of Payroll Archives
February 2024
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