Mininimum wage abuse employers named and shamed

Fifteen Scottish firms are among more than 350 UK companies to have been “named and shamed” by the UK government as national minimum and living wage offenders yesterday. Andthat lenghty list could have been even longer – HMRC is currently investigating more than 1,500 open cases. Continue reading Mininimum wage abuse employers named and shamed

Aye, right … ten distinctly dodgy excuses for failing to pay the minimum wage

 

Ten of the most bizarre excuses used by unscrupulous bosses found to have underpaid workers the National Minimum Wage have today been revealed by the government.

Excuses for not paying staff the minimum wage include only wanting to pay staff when there are customers to serve and believing it was acceptable to underpay workers until they had ‘proved’ themselves.

The list has been published today to coincide with a new awareness campaign to encourage workers to check their pay to ensure they are receiving at least the statutory minimum ahead of the national minimum and national living wages rising on 1 April 2017.

The £1.7 million campaign aims to make sure workers are being paid at least the National Minimum Wage, or National Living Wage, depending on their age, and is part of the government’s commitment to making sure the economy works for all.

Investigators from HMRC have revealed some of the worst excuses given to them by employers caught out for underpaying staff, which include:

  1. The employee wasn’t a good worker so I didn’t think they deserved to be paid the National Minimum Wage.
  2. It’s part of UK culture not to pay young workers for the first 3 months as they have to prove their ‘worth’ first.
  3. I thought it was ok to pay foreign workers below the National Minimum Wage as they aren’t British and therefore don’t have the right to be paid it.
  4. She doesn’t deserve the National Minimum Wage because she only makes the teas and sweeps the floors.
  5. I’ve got an agreement with my workers that I won’t pay them the National Minimum Wage; they understand and they even signed a contract to this effect.
  6. My accountant and I speak a different language – he doesn’t understand me and that’s why he doesn’t pay my workers the correct wages.
  7. My workers like to think of themselves as being self-employed and the National Minimum Wage doesn’t apply to people who work for themselves.
  8. My workers are often just on standby when there are no customers in the shop; I only pay them for when they’re actually serving someone.
  9. My employee is still learning so they aren’t entitled to the National Minimum Wage.
  10. The National Minimum Wage doesn’t apply to my business.

By law, all workers must be paid at least £7.20 an hour if they are aged 25 years and over, or the National Minimum Wage rate relevant to their age if they are younger.

Business Minister Margot James said: “There are no excuses for underpaying staff what they are legally entitled to. This campaign will raise awareness among the lowest paid in society about what they must legally receive and I would encourage anyone who thinks they may be paid less to contact Acas as soon as possible. Every call is followed up by HMRC and we are determined to make sure everybody in work receives a fair wage.”

Workers are encouraged to regularly check their pay to ensure they are receiving at least the minimum or living wage, depending on their age.

For more information and to report underpayment, visit www.gov.uk/national-minimum-wage or contact Acas for free and impartial advice.

Taxman reveals top ten excuses

Ten of the most terrible excuses for missing the 31 January tax return deadline have been revealed today by HM Revenue and Customs (HMRC).

s300_hm-revenue-customsMany of the excuses claim it was someone else’s fault – pets, girlfriends, work colleagues and even the President of the United States are named and blamed for taxpayers’ tardiness!

The excuses were all used in unsuccessful appeals against HMRC penalties for late filing and payment. Here’s the full list:

  • My pet dog ate my tax return…and all the reminders.
  • I was up a mountain in Wales, and couldn’t find a postbox or get an internet signal.
  • I fell in with the wrong crowd.
  • I’ve been travelling the world, trying to escape from a foreign intelligence agency.
  • Barack Obama is in charge of my finances.
  • I’ve been busy looking after a flock of escaped parrots and some fox cubs.
  • A work colleague borrowed my tax return, to photocopy it, and didn’t give it back.
  • I live in a camper van in a supermarket car park.
  • My girlfriend’s pregnant.
  • I was in Australia.
OBAMA: it's all his fault!
OBAMA: it’s all his fault!

HMRC Director General of Personal Tax, Ruth Owen, said:

“People can have a genuine excuse for missing a tax deadline, but owning a pet with a taste for HMRC envelopes isn’t one of them.

“You need to file your 2013/14 tax return online, and pay what you owe, by 31 January. But it’s best to do it now, to allow plenty of time to sort out any issues with your return. That way, you’ll avoid the busy period for our phone lines as the deadline approaches”.

All outstanding 2013/14 tax returns must now be submitted online, as the 31 October paper-filing deadline has passed. To send an online tax return, you must be registered for HMRC Online Services. This involves HMRC sending you an Activation Code in the post, and you need to allow 10 days for it to arrive.

Simple, straightforward advice on Self Assessment can be found at HMRC’s new Facebook page.

Help and advice on filing your return – including how to register for online filing – is also available from the GOV.UK website or the Self Assessment helpline on 0300 200 3310 (open 8am to 8pm, Monday to Friday, and 8am to 4pm on Saturday).

What a drag – impersonator jailed for benefits fraud

A female impersonator who worked in clubs and made a YouTube video of his act when claiming disability benefits and failing to pay tax was jailed for six months yesterday.

Mark Hawthorn of Tamworth, Staffordshire – stage name Aunt Tilly – claimed more than £88,000 in disability benefits and failed to pay almost £4,000 in Income Tax and National Insurance.

A joint investigation by HM Revenue and Customs (HMRC) and the Department for Work and Pensions (DWP) found Hawthorn performed under the stage name of “Tilly” in various drag acts in clubs across the West Midlands, Blackpool and Bournemouth whilst claiming disability and housing benefits.

Adrian Farley, Assistant Director of Criminal Investigation, HMRC, said:

“Hawthorn exploited the benefits and tax systems in two ways – by fabricating the effects of a medical condition to get disability benefits, saying he was unfit for work, and then blatantly working in live stage shows and failing to declare his earnings. He even went on to produce a YouTube video of his many female impersonations and featured in a three-page spread in Midlands Zone magazine.

This prosecution will send a strong message that along with our partners in DWP we will bring those stealing from the UK economy and the British taxpayer to justice.”

Senior DWP Fraud Manager Sian Fellowes said:

“Benefit thieves are costing the taxpayer almost £1 billion per year. Disability Living Allowance is intended to help people who have severe difficulties with their care and mobility, and it is clear that in this case no such difficulties existed. We will continue to investigate allegations of benefit fraud very rigorously and bring people who abuse the benefit system to justice.”

Hawthorn claimed disability benefits from the DWP for the past 10 years to which he was not entitled and failed to declare his earnings to HMRC.

Alcohol taskforce targets illegal sales

Almost 5,700 litres of beer, wine and spirits have been seized by HM Revenue and Customs (HMRC) as alcohol taskforce officers targeted illegal sales across Scotland last Thursday (9 May). HMRC officers visited 49 retail sites across Edinburgh, checking the details of alcohol on sale.

The operation, supported by staff from Edinburgh Council Trading Standards and Environmental Health and Police Scotland, is targeting the alcohol supply chain, including producers, storage facilities, wholesalers and retailers.

Chris Brett, HMRC’s Alcohol Taskforce manager in Scotland, said: “Anyone handling or selling smuggled alcohol should be aware that HMRC teams are active across Scotland. We are committed to stopping this criminal activity which costs the taxpayer around £1.2 billion in unpaid revenue each year.

“The Edinburgh operation is not a one-off exercise and is part of ongoing work with our partner agencies to combat this crime. We are also keen to work closely with and support local businesses that have to compete against these illegal sales. If you are aware of someone who is evading their taxes you can call HMRC’s Tax Evasion Hotline on 0800 788 887.”

Community Safety Leader, Councillor Cammy Day, said: “The illegal trade of products like alcohol can be used to fund crime and can have a highly detrimental effect on the city’s honest retailers and on people’s health. I am very pleased that this initiative has been so successful and I think the amount of products seized demonstrates the need to be vigilant. We will continue to work closely with the HMRC to ensure that consumers and legitimate traders are protected from the impact of this illegal activity.”

Taskforces are specialist teams that undertake intensive bursts of activity in specific high risk trade sectors and locations in the UK. The teams visit traders to examine their records and carry out other investigations. The alcohol taskforce in Scotland is expected to bring in around £4 million. HMRC and the other agencies involved will now consider further action against offenders, including full tax and VAT investigations and a review of alcohol and other trading licenses.

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