National Minimum Wage increases

National Minimum Wage increases

May 27th 2009 1:01 pm


The adult rate of the National Minimum Wage (NMW) will rise to £5.80 (£5.73) an hour in October 2009. This is payable t ...


five-pounds The adult rate of the National Minimum Wage (NMW) will rise to £5.80 (£5.73) an hour in October 2009. This is payable to those age 22 and over. The hourly youth development rate will increase to £4.83 (£4.77) and for 16 and 17 year olds to £3.57 (£3.53) an hour. Penalties for non compliance HMRC are able to charge penalties to those employers found to be in breach of the NMW rules. From 6 April 2009, automatic penalties are levied on employers where HMRC officers find NMW arrears. The penalties range from £100 to £5,000 with 50% prompt payment discounts for employers who settle within 14 days of notification. The penalty is payable in addition to arrears owed to the workers. The penalty notice will detail the amounts due to workers (calculated according to the formula shown below) and any penalty due on those arrears. The penalty is calculated as half the total underpayment. The underpayments are uprated to take into account the length of time the arrears have been outstanding. For each payment period the formula is: Original underpayment x Current NMW rate = Arrears Original NMW rate In serious cases of non compliance the employer may be tried in a Crown Court and in those cases the fines are unlimited. If you have any queries on the NMW please do get in touch. Source: HMRC guidance on penalties NMW news release

be smart. find an accountant online now. it's easy!

what type of accounting work do you need help with? choose below.


We are a lead generation facility for accountants located across the UK. We provide our visitors with the ability to search for accountants directly or provide details of the work they require and seek out accountants looking for clients with similar circumstances. Users of this website are assured that their personal details are not distributed to more than one accountant and that accountant is then allowed to contact the user to discuss the service the accountant can provide. All data transmission on this website and administration facility is carried out under full 256-bit SSL encryption.

Data Protection Registration Number ZA200013

Please read our full disclaimer.