Newsletter February 2019

Top 10 Employer National Minimum Wage Mistakes

There are lots of reasons why an employer might find themselves not paying the national minimum wage (NMW) correctly. To help employers avoid making mistakes HMRC have drawn together a list of the most com-mon causes of underpayment. 

1. Failure to apply the annual minimum wage rate increase as rates go up each year on 1 April. 
2. Missed birthdays as employees turn 18, 21 or 25 years old and move be-tween NMW rates.
3. Paying the apprentice rate to non-apprentices. Recognised apprentices must have an apprenticeship contract and undergo an element of structured training. 
4. Continuing to pay the apprentice rate for too long. The apprentice rate only applies to apprentices under the age of 19, or if aged 19 or over within the first year of their apprenticeship. 
5. Making wage deductions for items or expenses connected with the job. This could include safety clothing, uniforms, tools etc. 
6. Making wage deductions deemed to be for the employer's 'own use or benefit'. For example a Christmas club saving scheme. It does not matter that the worker can choose to buy into the scheme and the employer does not have to make a profit from it. 
7. Charging a worker more than the stated offset rate for living accommodation, currently £49 a week. 
8. Not paying for all the time worked such as time spent travelling, training or downtime at the employer's disposal. 
9. Not paying for additional time worked such as time spent clearing security checks once a worker's shift has finished. 
10. Including elements of pay that do not count towards minimum wage such as tips and the premium element of pay associated with shift premium.

Source: HMRC Employer Bulletin: December 2018

DATES TO REMEMBER:

1 February 2019 - Due date for Corporation tax for companies with an accounting period ended 30 April 2018.

7 February 2019 - Due date for filing and payment of VAT for the period ended 31 December 2018, unless you submit a paper return then the date is 31 January 2019.

Monthly Dates:

19th of the Month:

Due date for postal payments of PAYE, NIC and CIS deductions and on-line filing deadline for CIS300 monthly return to HMRC.

22nd of the Month:

Due date for electronic payments of PAYE, NIC and CIS deductions to HMRC.

.

.

.