HMRC asks Belfast businesses to ensure paying minimum wage

The HM Revenue and Customs (HMRC) has written to more than 6,000 employers in the Belfast area to raise awareness about paying staff the minimum wage rates, while offering practical support to help them get it right.

The tax agency said the communication is part of its efforts to reduce the almost 7,000 workers who were underpaid the National Minimum Wage (NMW) last year in the area.

The HMRC added that some businesses may find themselves failing to fulfil their obligations through mistakes or oversights, and the highest risk sectors identified by the agency in Belfast are retail, construction and social care.

The letter highlights common mistakes made by businesses and signpost them to further support to help with their obligations. It alsos contain a checklist for employers to work through, which will help identify any mistakes they are making. The HMRC will also offer some employers a free NMW Health Check with one of its experts.

“We want Belfast workers to get the pay they are due, especially in these difficult times, which is why we are encouraging employers to use our checklist,” Marc Gill, director of individuals and small business compliance at HMRC, said.

“We know the last few years have been difficult for businesses of all sizes, but it is important that employers pay the correct minimum wage to their staff. The checklist will assist them in identifying any possible mistakes and help them to get it right.”

Following compliance work carried out in the 2021 to 2022 financial year, the HMRC discovered 6,800 Belfast workers had been underpaid more than £406,000 as some businesses failed to comply with NMW rules.

The work resulted in Belfast businesses being fined more than £315,000 last year.

Any business failing to comply could face penalties of up to 200 per cent of their arrears and may also be publicly named.

As part of the HMRC’s regular compliance outreach activity, the agency focuses on areas of the UK by offering support and helping businesses identify risks. The HMRC has assisted businesses in Cornwall, Watford and East Anglia in this way over the last 12 months.