Tax advice on National Minimum Wage 
Added : 3rd January 2008
Following the first criminal prosecution for breaking the National Minimum Wage rules, Herminder Sandhu, Employment Tax Specialist from Cooper Parry, reminds the regions businesses of the rules and the recent increase in rates.
The prosecution was heard before a magistrates court and resulted in the company being fined £2,500 plus £500 in costs. Local businesses need to ensure that their employees are being paid correctly to avoid prosecution themselves.
Herminder Sandhu warned: ‘The HMRC have a network of 16 NMW Compliance Officer teams who enforce the law. Companies who are caught paying their staff under the NMW will suffer not only monetary penalties but also a tainted reputation”
‘Since the beginning of October 2007 the NMW rates were increased to £5.32 per hour for anyone working over the age of 22. There is also a development rate of £4.60 which applies to those aged between 18 and 21, with a lower rate of £3.40 for those under 18.’
Sign up to our RSS