This one is nothing new, but a reminder we felt was important. For those businesses taking on extra staff over the summer, remember you are legally obliged to pay this summer seasonal workers such as students or others at least the National Minimum Wage. Seasonal workers generally work in bars, shops, warehouses and hotels over the summer, and HMRC wants to ensure they are paid what they are entitled to.
The National Minimum Wage hourly rates 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
Businesses who don’t comply with the NMW have to pay back arrears of wages to workers, and face penalties of up to 200% of arrears (capped at £10,000 per worker.) So, it’s worth getting this one right!
HMRC is in charge of the enforcement of the National Minimum Wage Act, and by law workers must be paid the legal minimum, and are encouraged to report employers who don’t comply through their website. Common causes of minimum wage underpayment include deductions and unpaid working time.
If you are unsure of staff wages for this summer, or any other seasons, please get in touch with your local AIMS Accountants who will be able to help you.