Chancellor Philip Hammond confirmed, during his Autumn Statement, that the National Living Wage (NLW) for workers over the age of 21 will be increased from £7.20 an hour to £7.50 as of April 2017.
The news may come as a blow to many small and medium-sized enterprises (SMEs) – who could face hefty fines for non-compliance if they fail to update their payroll prior to the change taking effect.
Under recent changes introduced to NLW legislation, businesses found to be paying their staff lower than the correct wage can potentially face fines of up to 200 per cent of the total underpayment.
Generally, firms could face fines of anywhere between £100 up to a maximum penalty of £20,000 for non-compliance. In the most serious cases a business owner may be criminally prosecuted by HM Revenue & Customs (HMRC), which could come coupled with an unlimited fine – the maximum penalty upon conviction.
At Moore Thompson, we can offer support and advice on all of your payroll obligations, including the National Living Wage. For more information about how we could help you, please contact us.