Audit, tax and consulting firm RSM is urging South West businesses to prepare for the new minimum wage rules after the Government launched a major advertising campaign to raise awareness.
From 1 April 2017, the Government’s National Living Wage rate for those aged 25 and over will increase by 30p to £7.50 per hour.
Meanwhile, the National Minimum Wage will increase to £7.05 per hour for 21 to 24 year olds, £5.60 for 18 to 20 year olds and £4.05 for 16 to 17 year olds. The apprentice rate will also increase by 10p to £3.50 per hour.
Failure to comply with the new rules could result in businesses being fined as well as being named and shamed. Earlier this month, the Government named and shamed more than 350 companies for underpaying staff and imposed penalties worth some £800,000.
Thirty-one of those were businesses in the South West, including firms in Bristol, Exeter, Plymouth and Swindon.
According to HMRC, some of the most common excuses given by employers for underpaying workers include using tips to top up pay to the minimum wage, making staff pay for their uniforms out of their salary which takes them below the legal minimum, not paying for shutting up shop or for time waiting for security checks, or the time spent travelling from one appointment to another.
Joanna Webber, Director of Employer Solutions at RSM in Bristol said: “A whole raft of new rules come into force from 1 April which are going to challenge many businesses across the South West, both big and small. It is absolutely imperative that businesses make sure that they are on top of all their payroll obligations. HMRC is getting much tougher when it comes to enforcing the rules, and failure to comply could cause both financial pain and reputational damage.”
RSM in Bristol will be hosting an event on March 22 to help businesses comply with their new payroll and employment tax obligations. Further information is available on the RSM website.
Pictured above: Joanna Webber, Director of Employer Solutions at RSM in Bristol
