Now is the time to review your staff salaries. From 1 April 2021 the National Minimum Wage is increasing:
Aged 23 and over increasing to £8.91
21-22 year olds increasing to £8.36
18-20 year olds increasing to £6.56
Under 18s increasing to £4.62
Apprentices increasing to £4.30
A review of young employees’ salaries should also be undertaken at the time of their birthday – do they require an increase?
If HMRC finds that an employer has not paid at least the minimum wage, they can send a notice of arrears plus issue a penalty for not paying the correct rate of pay.
HMRC can also take employers to civil court. The maximum fine for non-payment is £20,000 per worker. Employers who fail to pay can be named publicly and banned from being a company director for up to 15 years.