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National Minimum Wage - Non-compliance in Social Care

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11 December 2013

We recently discussed the National Minimum Wage with representatives of HM Revenue and Customs at the UKHCA seminar, and learnt about HMRC’s recent experiences on NMW during their audit of social care providers.

They mentioned that they have undertaken over 200 audits in social care settings, of which 80 were domiciliary care agencies, and 40 of those reviews are on-going.  To date, in domiciliary care one in three businesses are non-compliant with the National Minimum Wage.

The key areas of risk of non-compliance they have found are:
  • Travel time
  • Training time
  • Unmeasured hours (live-in care)
  • Sleep-ins

It is not just the contingent liability of wages due to employees that you need to be aware of, but the additional tax and national insurance that would be due to HMRC. They have also been imposing interest and penalties.

We are working with a panel of specialist lawyers, and together we can review your procedures in advance of any potential HMRC visits, as well as reviewing any potential liabilities you may have. 
For more information, please contact Andrew Brookes or John Lucas.


Andrew Brookes - Partner and Head of Healthcare
Andrew Brookes
Partner and Head of Healthcare Contact details