Beauty salons targeted in NMW crackdown

Hairdressing and beauty businesses that pay their staff below the national minimum wage (NMW) are being targeted in a new HM Revenue & Customs (HMRC) campaign.

Employers who take the opportunity to come forward and put NMW errors right will not have to pay penalties, nor will they be “named and shamed”.

But where employers choose not to comply with their NMW obligations, HMRC will take action to ensure that employees are paid what they are owed. Employers could also face a fine of up to £20,000 per employee.

Launching the campaign on 29 July, Jennie Granger, HMRC director general of enforcement and compliance, said: “Some employers will need a bit of a reminder to check they are getting it right, and some will need stronger action from us, so we are bringing in more enforcement officers to support this campaign.

“I urge all employers and employees in the sector to check that salary is being paid correctly, as we will use these extra resources to find and investigate where it is not. Check you’re paying NMW correctly – it’s worth it.”

HMRC action to tackle employers who fail to pay the NMW identified £3.2 million in arrears involving over 26,000 workers in 2014-15.

Moore Thompson provides a fast, efficient payroll service that ensures employers stay compliant with NMW, tax and reporting obligations and provides a cost-effective alternative to dealing with payroll in-house, which can place real pressure on limited time and resources. For more information, please contact us.