HMRC Reveals Absurd Excuses for Not Paying National Minimum Wage

While the vast majority of employers pay their employees at least the National Minimum Wage, HM Revenue and Customs (HMRC) has today released some of the most absurd excuses used for not paying the legal minimum.

Last year (2020 to 2021) HMRC helped more than 155,000 workers across the UK recover more than £16 million in pay which was due to them, and also issued more than £14 million in penalties.

Some of the most ridiculous excuses for flouting the law included:

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

Steve Timewell, Director Individuals and Small Business Compliance, HMRC, said:

“The majority of UK employers pay their workers at least the National Minimum Wage, but this list shows some of the excuses provided to our enforcement officers by less scrupulous businesses. Being underpaid is no joke for workers, so we always apply the law and take action. Workers cannot be asked or told to sign-away their rights.

“We are making sure that workers are being paid what they are entitled to and, as the economy reopens, reminding employers of the rules and the help that is available to them.

“HMRC reviews every complaint made about the minimum wage, so if you think you are being short-changed, or are a business that is unsure of the rules or needs help to get things right, get in touch and we will help you. But any employer deliberately or unapologetically underpaying their staff will face hefty fines and other enforcement action.”

The National Minimum Wage hourly rates are currently:

• £8.91 - Age 23 or over (National Living Wage)
• £8.36 - Age 21 to 22
• £6.56 - Age 18 to 20
• £4.62 - Age under 18
• £4.30 - Apprentice.

HMRC is reminding workers to check the hourly rate of pay they are actually getting, and to also check any deductions or unpaid working time, as part of the Government’s commitment to build back fairer from the pandemic.

Anyone not being paid what they are entitled to can complain online at https://www.gov.uk/minimum-wage-complaint. If they want to speak with someone, in confidence, they should phone the Acas Pay and Work Rights Helpline on 0300 123 1100, who can transfer the call to HMRC.

Employers can also contact the Acas Helpline for free help and advice or visit https://www.gov.uk/guidance/calculating-the-minimum-wage to find out more.

Ironically these excuses look rather similar to the ones in the 2017 HMRC Press Release!

These excuses appear similar to a press release from Jan 2017!! https://t.co/rw0JNR4u2C

— Minimum Wage Specialist (UK) - Jeni Morris (@NMWspecialist) August 17, 2021

Tax does have to be taxing.

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AA's To Get 4%+ Pay Rise?

As per a loyal reader:

"Intranet reply from Jon Thompson in his blog :..."We are upping the AA pay by at least 4% this coming year"

Why you may ask ??

Because the pay is so low in HMRC that the department is forced to pay an in-year increase to AA grade staff just to meet the same national minimum wage it is the department’s job to enforce."

Is this for real?

I can't find an outside source?

Tax does have to be taxing.

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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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Football Is Flavour of The Month at HMRC

The Telegraph reports that the investigation into the tax affairs of professional football clubs by HMRC is scrutinising the basic salaries paid to academy scholars to decide whether they meet minimum wage regulations.

HMRC is understood to be investigating whether the number of hours a week that scholars spend training and playing games equates pro rata to the government minimum wage, set at £3.50 an hour for an apprentice.

Clearly football is flavour of the month at HMRC.

I assume HMRC "away days" to football clubs/games etc are now off the menu?

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.

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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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