GLOBAL PAYROLL MAGAZINE
57
Jeni Morris
Jeni is a National Minimum Wage expert with unique insights and knowledge from her many years working within HMRC’s NMW team. She uses that wealth of experience to support businesses in mitigating the financial and reputational impact of ongoing or pending HMRC NMW investigations and to navigate the ever-changing regulatory requirements compliantly. Jeni is a regular speaker on NMW/NLW issues at regional and national conferences.
Question We have a number of flats above our retail premises which we rent out commercially via a letting agent, recently an employee has approached us to ask if he can be considered for a tenancy above his own place of work. Not only would this reduce their commuting time, it would allow them
to keep an eye on the store when it’s closed. Our payroll manager has said that this will impact his pay and lead to a breach of National Minimum Wage, but I am struggling to understand why this will have any bearing on his pay at all.
reduce NMW pay every time a payment is made. However, there is something called the ‘accommodation offset’ which currently stands at £9.99 a day, any payment above the accommodation offset rate will reduce NMW pay in the pay period. With rents being at an all- time high it will be very easy for a breach in NMW pay to occur especially when the accommodations offset only equates to just under £70 per week.
Your payroll manager is correct, there is a risk when an employee pays for living accommodation which is owned by their employer. The accommodation does not have to be linked to the job role either, it can be a totally separate accommodation which is owned by the employer and the employee may voluntarily choose to rent the property. The risk applies to any payment made to the employer, so it doesn’t have to be a payroll deduction, even payments made via bank transfer will
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