Chuka's Unpaid Intern - Don't Tell HMRC!

Chuka Seeking Unpaid Intern For a Year: https://t.co/tOlgYwkiZD pic.twitter.com/dJ1k5Quhoe

— Guido Fawkes (@GuidoFawkes) May 31, 2018

Shhh, don't tell HMRC as it's their role to stop this sort of thing..allegedly!

In February HMRC wrote to more than 500 firms over the last three months reminding them that interns classed as workers must be paid the minimum wage.

The government also says it will ask HMRC to focus minimum wage enforcement work on firms using unpaid interns.

Tax does have to be taxing.

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Ten Worst Excuses For Not Paying The Minimum Wage

HMRC has published the 10 worst excuses, in its eyes, for employers not paying their staff the minimum wage.

I note that the list excludes politicians who use the services of interns for nothing!


One employer claimed that a worker was his wife, but then had to ask her name. Another claimed that their employees didn’t speak English, so were not entitled to the minimum wage. Others simply tried to deny the employee worked there at all.

To coincide with NMW’s 15th anniversary, HMRC is today revealing the 10 worst excuses given in the past 12 months for not paying the minimum wage:

1.  An employer said a woman on the premises was not entitled to NMW as she was his wife. When asked what his wife’s name was, the employer said: “Err, her name? What’s your name, love?”

2.  One employer told HMRC: “My employees don’t speak English, so they’re not entitled to it.”

3.  An employee ran out of the premises when HMRC officers arrived to check for NMW infringements. The same employee then returned – minus the work pinafore – with the employer claiming they were a customer.

4.  Another employer told HMRC: “When the NMW goes up I do increase the amount I pay a little, even if the total pay is still below the NMW. I don’t think it’s right to ignore rises in NMW.”

5.  Upon inspection, an employer told HMRC: “I know I am paying them too little, but they are happy to work for this amount because they are getting experience.”

6.  An employer said his employee was just working for a few days, with a view to buying the business. When HMRC checked food safety records, the employee’s name was found on historic food temperature records.

7.  An employer claimed they realised they were not paying employees NMW and had just this week increased their wages…to an hourly rate which was still below the minimum wage.

8.  An employer told HMRC: “It wasn’t a conscious decision to say ‘I’m not going to pay this’, but I’ve never really considered doing it because I’ve not had people come to me and say, ‘I’m not getting paid enough’ or ‘Is this the minimum wage?’”

9.  One employer claimed an employee was just a friend, and only in the restaurant as they were in the area. HMRC officers returned another day to find the employee in the kitchen preparing food.

10.  A number of employers claimed that accommodation they provided workers made up for their shortfall in wages.

Jennie Granger, HMRC’s Director General of Enforcement and Compliance, said:
“Most employers are honest and pay their staff the correct rate. But this research shows that some still view the National Minimum Wage as a choice, and will even try these crazy excuses to avoid paying workers what they are due.

“Last year, HMRC’s investigations resulted in over 26,000 people getting a share of £4 million in back pay. HMRC investigate all complaints of employers failing to pay the minimum wage. We will take action to recover back pay for employees and fine employers who are not playing by the rules. 

“HMRC officers work hard across the UK to ensure that everyone is paid at least the National Minimum Wage, and anyone who isn’t should call us.”

HMRC’s nationwide network of NMW enforcement teams investigate complaints, as well as educate employers and employees about what happens if they fail to pay their employees what they are owed.
Anyone who believes they are not being paid NMW can call the Pay and Work Rights Helpline, in confidence, for advice – in over 100 languages – on 0800 917 2368.

Currently, calls to the helpline from interns who are working for nothing, or for “expenses only”, are being fast-tracked to HMRC enforcement officers for investigation.
Notes for editors
1.  The National Minimum Wage Act 1998 took effect on 1 April 1999.
2.  The Department for Business Innovation & Skills (BIS) has responsibility for NMW policy. HM Revenue and Customs enforces the policy.
3.  The National Minimum Wage is £6.31 an hour for workers aged 21 and over, increasing to £6.50 in October 2014. Further information about the different minimum wage rates, which depend upon age and apprentice status, can be found at www.gov.uk/national-minimum-wage-rates
4.  HM Revenue and Customs has 16 minimum wage enforcement teams operating around the UK. Their job is to follow up complaints about non-payment of the minimum wage made to the helpline and to investigate employers at risk of not complying with the legislation. Enforcement officers also give presentations and talks to groups of employers to educate them about their NMW obligations.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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No Minister!

The Guardian recently reported that Treasury minister, David Gauke, has been reported to HMRC for advertising an unpaid six-month "training post" at his constituency office.

For why has he been reported?

HMRC is in charge of enforcing the national minimum wage law for workers and interns, and only last month launched a crackdown on employers not paying the minimum wage and promised to investigate all cases referred to them in which firms use long-term unpaid interns.

HMRC has also warned businesses that they could be "publicly named and shamed" and may be liable for a £5,000 fine if they are found to be in breach of national minimum wage laws.

Gauke said:

"This is advertised as a position for a volunteer, enabling the successful applicant to gain experience of political campaigning and office work – working alongside association officers who are also volunteers."

Gus Baker from Intern Aware said:

"Based on David Gauke's previous advertisement for unpaid interns, at Intern Aware we find his latest advert for an unpaid training post to be highly suspicious.

David Gauke should know that if this intern is doing real work under a contract they will be entitled to the national minimum wage. As he is the minister responsible for HMRC, which enforces minimum wage law, he should know better."

An HMRC spokesperson said:

"HMRC cannot discuss individual cases for legal reasons. Anyone who thinks they are not being paid the legal wage can call HMRC's Pay and Workers Rights hotline on 0800 917 2398."

A case of do as we say, not as we do!

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



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Unpaid Interns

Sky News reports that the details of 100 companies accused of breaking the law by using unpaid interns in paid roles have been handed to HM Revenue and Customs by Employment Minister Jo Swinson.

I wonder if David Gauke is on the list (he advertised for an unpaid intern in March 2012)?

Oh, and by happenstance, I see that Paul Burstow MP is advertising for one now.....as does Rory Stewart MP.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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Wee Davie's Hypocrisy

Today, in case you were unaware, is Budget Day.

It is likely to be a damp squib, as most (if not all) of the headline measures/changes etc have already been leaked. This is without doubt the most leaked budget in history. When I was a lad people would have been flogged for leaking budget details, how times change!

Anyhoo, moving on, I see that Treasury minister David Gauke (who has featured on this site on more than one occasion) has caused a wee bit of a controversy over his desire to hire a young person to work for him at zero pay.

Gauke, the nearest thing we have to a minister with responsibility for HMRC, has advertised for someone to fill a six-month unpaid internship.

Duties include "administration, basic correspondence, diary management, fundraising, campaigning and related tasks", as well as "the opportunity to work one day a week in the Westminster office".
 
I personally have no issues with internships. However, some of Gauke's fellow ministers (eg Nick Clegg, who also has form wrt interns and hypocrisy) and HMRC do have issues with it.

In fact HMRC in November 2011 threatened the fashion industry with prosecution if it failed to pay interns the minimum wage. HMRC wrote to fashion houses involved in London fashion week, warning them they must pay the minimum wage to anyone aged aged 21 and over.

Michelle Wyer, from HMRC, said at the time those not complying could face a penalty and prosecution, adding:

"Non-payment of the national minimum wage is not an option."

As I wrote in November:

"Internal documents from Her Majesty's Revenue and Customs show it believes interns across the employment spectrum to be at "high risk" of abuse under national minimum wage laws, and that HMRC has convened a 12-person taskforce to make unannounced inspections of businesses where interns are being used as workers rather than just shadowing staff.

The special "dynamic response" unit will have powers to question managers and sift through accounts until it is satisfied that no abuse is taking place.

It is the first time intern abuse has been targeted by the HMRC, which is responsible for the enforcement of the minimum wage."


Gauke is attempting to weasel his way round charges of hypocrisy by claiming that it is an advert for "volunteers".

To me it is really very simple, either the government/HMRC allow unpaid internships (in which case Gauke has no problem) or the government/HMRC don't allow unpaid internships (in which case Gauke does have a problem).

Which is it?

Tax does have to be taxing.

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To find out more, please use this link Taxwise



Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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Confusion Abounds

I am somewhat confused over the government's and HMRC's attitude to the minimum wage and "internships".

The Guardian reported yesterday that the government is sending unemployed young people on unpaid "work experience":

"Britain's jobless young people are being sent to work for supermarkets and budget stores for up to two months for no pay and no guarantee of a job, the Guardian can reveal.

Under the government's work experience programme young jobseekers are exempted from national minimum wage laws for up to eight weeks and are being offered placements in Tesco, Poundland, Argos, Sainsbury's and a multitude of other big-name businesses.

The Department for Work and Pensions (DWP) says that if jobseekers "express an interest" in an offer of work experience they must continue to work without pay, after a one-week cooling-off period or face having their benefits docked."

However, the Guardian also reported (in a separate and unconnected article) that HMRC is cracking down on unpaid internships in the fashion industry:

"Revenue and Customs is planning to raid fashion companies employing unpaid interns in breach of minimum wage laws, the Guardian has learned.

Internal documents from Her Majesty's Revenue and Customs show it believes interns across the employment spectrum to be at "high risk" of abuse under national minimum wage laws, and that HMRC has convened a 12-person taskforce to make unannounced inspections of businesses where interns are being used as workers rather than just shadowing staff.

The special "dynamic response" unit will have powers to question managers and sift through accounts until it is satisfied that no abuse is taking place.

It is the first time intern abuse has been targeted by the HMRC, which is responsible for the enforcement of the minimum wage."

Why is the fashion industry being targeted, yet "Poundland" etc being encouraged to take on people at zero wages for short term work experience?

Is this a case of the right hand in government not knowing/caring what the left hand is doing?





Tax does have to be taxing.

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To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

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Internships

The Guardian reports that the Low Pay Commission has criticised HMRC for lax enforcement of minimum wage laws and the payment of interns.

The LPC's annual report recommends that HMRC needs to take stronger action on unpaid internships.

The LPC wanted to see "effective [legal] enforcement" from HMRC, who are responsible for ensuring that interns are paid the minimum wage if their placements can be considered to be work.

Fair enough!

May I suggest that HMRC pay a visit to a certain Deputy Prime Minister (Nick Clegg).

For why?

Read this on Nanny Knows Best.

Tax does have to be taxing.

UK EXPATS: Reduce tax on UK Pensions
HMRC QROPS provider. Unlock your UK pension and access a 25% lump sum today.

Quote ID code "ABC" when contacting a QROPS specialist.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

What is TAXWISE?

TAXWISE is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Taxwise

Tax Investigation for Dummies, by Nick Morgan, provides a good and easy to read guide for anyone caught up in an HMRC tax investigation. A must read for any Self Assessment taxpayer.

Click the link to read about: Tax Investigation for Dummies

HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"