HMRC: we need to check you're paying the National Minimum Wage correctly

[wattaj]

Has anyone else received the "we need to check you're paying the National Minimum Wage correctly" letter from HMRC?

If so, the bit that stands out to me is the final check-box: "Record Keeping".

What records are you keeping to fulfill this requirement should this initial letter be followed up with an investigation at a later date?

Thanks.

-- Clarification --

Will probably only affect those with spouses/partners who also do some work for the company.

[hobnob]

I haven't had the letter, but I assume it's related to this:
Requirements to report dividends from close companies (by RTI?) from 2025/2026 - Contractor UK Bulletin Board

[wattaj]

I haven't had the letter, but I assume it's related to this:
Requirements to report dividends from close companies (by RTI?) from 2025/2026 - Contractor UK Bulletin Board

It might be, but I think that it's unlikely.

[Protagoras]

This page mentions the types of records https://www.gov.uk/hmrc-internal-man...nual/nmwm12020

I think that what's needed is to be able to show that hours worked * NMW is not less that employee's gross pay.

Never been asked for records, but think that as a minimum - employment contract, timesheets, payslips.

[wattaj]

This page mentions the types of records https://www.gov.uk/hmrc-internal-man...nual/nmwm12020

I think that what's needed is to be able to show that hours worked * NMW is not less that employee's gross pay.

Never been asked for records, but think that as a minimum - employment contract, timesheets, payslips.

Yeah, I've not insisted on timesheets, which, upon reflection, might not be for the best in the event of an inspection.

[Lance]

as it's about minimum wage surely it's just a proforma sent to all companies?
As a director of a close company you don't have to pay yourself minimum wage so seems an unlikely check for anything to do with PSCs... IMO

[wattaj]

as it's about minimum wage surely it's just a proforma sent to all companies?
As a director of a close company you don't have to pay yourself minimum wage so seems an unlikely check for anything to do with PSCs... IMO

This is true, but some will employ their [ wife | husband | significant other ] to do various bits and bobs in support of the company's activities.

[Protagoras]

This is true, but some will employ their [ wife | husband | significant other ] to do various bits and bobs in support of the company's activities.

In my experience it's very common. And not just 'bits and bobs' but actual fee earning contract work direct with clients.

Also once used a nephew for some data quality work, specifying the start and end dates and number of hours to be worked. Very easy then to show that the gross PAYE exceeded NMW.

[wattaj]

In my experience it's very common. And not just 'bits and bobs' but actual fee earning contract work direct with clients.

Also once used a nephew for some data quality work, specifying the start and end dates and number of hours to be worked. Very easy then to show that the gross PAYE exceeded NMW.

Yes, exactly this. This is something that many many not consider necessary, but that HMRC will take a different view.

[wattaj]

Oh aye, here we go: an email just landed...

We are writing to a selection of employers in Glasgow again, about the National Minimum Wage.
As one of those selected, we would very much like you to complete another short survey...

It's pretty prosaic stuff, but I'll be keeping my eye on this for a while just in case.