< Go Back National Minimum Wage Disclosure Opportunity - more detail Posted: Sep 3, 2015
HMRC have launched a new disclosure opportunity for employers who may not have complied with the National Minimum Wage (NMW) requirements in the past.
Employers looking to use the opportunity will need to make a
disclosure using the appropriate format, and make good any underpayment to their employees, with the relevant tax and NI being
paid to HMRC as applicable.
Who can use the opportunity? an employer (individual, partnership or company) someone acting on behalf of an employer (if you are a company director or company secretary) someone acting on behalf of someone else (for example, if you are a
personal representative of a deceased person, who was an employer) An agent can make the disclosure on behalf of a client. The opportunity covers years going back to 2009/10.
How to use
There is a step by step approach to using the disclosure:
Check to see if you pay the correct amount of NMW. You can use the
online tools HMRC have on their website. If you discover a shortfall you will need to check the amount of owed to the
employee, and disclose this. Make a notification to HMRC via the online form. This form tells HMRC that you are making a commitment to ensure
you are compliant, and they will not then start an investigation until
after the check is complete. Once you have checked everything you should disclose the results to HMRC using the disclosure form. This needs to be within two
months of sending the notification form. You should send the form even
if you find no errors or underpayments. You also need to pay any arrears
to employees The arrears are calculated at the current rates of NMW,
not the rate they would have been entitled to at the time of the
underpayment. You make a commitment to ensuring compliance with the
correct rates going forward. HMRC will either accept the disclosure or
contact you to discuss it. Finally, make good any underpayment of tax and NI to HMRC via your PAYE system.
HMRCs indicate that if the opportunity is used, no
penalties will be charged. It will not however be a guarantee against
prosecution where the criminal offence of tax fraud has taken place;
however a full disclosure would be a factor in considering appropriate
more information on this opportunity you can visit the HMRC website. If you need any advice or assistance please contact us for a no obligation and confidential discussion.