Companies who pay staff less than minimum wage have been told to stop or face prosecution. The government recently warned it intends to take aggressive action against employers paying workers below the minimum legal requirement.

HMRC has set up a team of dedicated specialists to tackle the growing problem and ensure staff members around the country are paid in accordance with their job type and responsibilities. The Department for Business, Innovation and Skills reports that approximately 1 million individuals in the UK benefit from minimum wage payments. As of October 2009, the rate for an adult aged 22 or over stands at £5.80. It was £3.60 when first introduced in 1998.

The move may be seen as evidence of HMRC’s increasingly aggressive stance towards businesses that do not comply with the law. In recent months they have been seen as less lenient with businesses failing to comply with taxation regulations in an effort to increase tax take in the economic downturn.

TaxAssist Accountants are pleased to see the government ensuring businesses are paying workers what they are owed. Many staff receiving below minimum wage are vulnerable and unable to redress the situation, making government involvement essential.

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Payroll Accounting Advice from TaxAssist Accountants