Everyone urged to check payslips as HMRC reveals workers owed millions in underpaid wages
Kelly Rose Bradford
Netmums contributorHMRC reveals workers owed over £16 million in underpaid wages – could you be affected?
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You might assume all the figures on your payslip – and the funds that appear in your bank account on payday – are going to be correct. You certainly don't feel the need to whip out your calculator and double check them down to the last penny, right?
Well, not according to HMRC, who is urging employees to take a closer look at their pay packets to make sure their employer is not only paying them the correct hourly rate, but ALSO not making incorrect deductions from their wages.
The warning comes as it was revealed a massive £16 million in owed wages was paid out to UK workers for the last financial year after intervention from HMRC. At the same time, more than £14 million was dished out in penalties to employers for not paying their staff the correct wage.
HMRC also revealed some of the staggering excuses bosses used for underpaying their workers and flouting the strict legal minimum wages rules, including one who claimed a woman did not 'deserve' the National Minimum Wage because 'she only makes the teas and sweeps the floor'.
We are speechless!
Other reasons given to Her Majesty's Revenue and Customs for not adhering to the regulations included claims that it was part of 'UK culture not to pay young workers for the first three months' and that they had to 'prove their worth', while one brazen boss went as far as to assert 'the National Minimum Wage does not apply to my business'.
Another went so far as to pass the buck to the employees themselves, saying they agreed to be underpaid, insisting: 'I have got an agreement with my workers that I will not pay them the National Minimum Wage; they understand, and they even signed a contract to this effect.'
HMRC spokesperson Steve Timewell said that while the majority of UK employers pay their workers at least the National Minimum Wage, the findings highlight how some less scrupulous businesses are breaking the law.
'Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign-away their rights,' he said.
'We are making sure that workers are being paid what they are entitled to and, as the economy reopens, reminding employers of the rules and the help that is available to them.'
HMRC warned employers they would face stiff consequences if they were found to be breaking the Minimum Wage regulations, saying:
'Any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.'
What is the National Minimum Wage?
The National Minimum Wage rates change on April 1 every year, so it's a good idea to familiarise yourself with the latest figures. For 2021, they are:
£8.91 - Age 23 or over (National Living Wage)
£8.36 - Age 21 to 22
£6.56 - Age 18 to 20
£4.62 - Age under 18
£4.30 – Apprentice (apprentices are entitled to the apprentice rate if they are aged under 19 or aged 19 or over and in the first year of their apprenticeship)
It's also worth bearing in mind that the National Minimum Wage applies to all eligible workers, so even if you are not paid by the hour, you still need to work out your equivalent hourly rate to ensure you are being paid at least the minimum wage, so do check your payslip and do your sums.
What to do if you think you are being underpaid
Get in touch with HMRC (www.gov.uk/pay-and-work-rights) if you think you are not getting the right hourly rate for your work – they look into every complaint made about the minimum wage, so they will investigate.
You can also get confidential advice from the Acas Pay and Work Rights Helpline (www.acas.org.uk/pay-and-wages) on 0300 123 1100. They can transfer the call to HMRC if it needs further investigation or action.
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