Small and medium-sized enterprises (SMEs) have been warned to take proactive steps to ensure compliance with the National Minimum Wage (NMW). HMRC plans to crack down on perceived non-compliance with the NMW and will target SMEs in regions including Belfast, Birmingham, Bradford, Cardiff, Cornwall, Cumbria, east Anglia, Glasgow, Liverpool, the north east, and Watford. Kyle Newton, head of national minimum wage at Azets UK, advises employers to understand the complexities of NMW compliance and have policies in place to govern and control each component. Enterprises found guilty of non-compliance may be instructed to pay NMW arrears, face an increase in National Insurance Contributions (NICs), and risk financial penalties. Azets UK estimates that over 50% of SMEs in the targeted regions could be affected by the enforcement activity, even if they are compliant.
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