The additional example centres on when accommodation is regarded as living accommodation, and looks at when a worker provides their own furniture. The example is shown, in full, below:
Example 5
An employer operates a delivery company. The worker has a tenancy agreement for a 1-bedroom, unfurnished flat which is owned by the employer. The flat has an outdated bathroom suite which includes a shower, sink and a toilet for the worker to use, in addition to a central heating system. The worker has decided, in agreement with the employer, to provide their own furniture. The employer is likely to be providing living accommodation. Although the worker has provided their own furniture, the facilities provided by the employer enable the worker to live in the accommodation. The fact the bathroom is dated is not a consideration for living accommodation.
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National Minimum Wage guide given an overhaul 22 March 2021
HMRC has confirmed that an updated version of the ‘Calculating the Minimum Wage’ guide has been made available for employers to use. An associated blog has been published, which states that the new version of the guidance is simpler to navigate.
The amendments to the guidance mean that additional information has been included relating to:
Worker eligibility
• • • •
Payments and deductions
Salaried hours work
Unpaid work
As examples make guidance like this easier to put into practice within operational payroll, further examples have been included to show calculations for errors that are frequently made in relation to the National Minimum Wage (NMW). There are also links to the new rates to operate from 1 April 2021, which, as a reminder are:
23 and over - £8.91 per hour 21 – 22 - £8.36 per hour 18 to 20 - £6.56 per hour Under 18 - £4.62 per hour Apprentice - £4.30 per hour
• • • • •
A welcome inclusion is the new checklist, which lists some of the common causes of underpayment of the NMW. There is then a link to the appropriate area of the guidance.
CIPP comment
The CIPP welcomes the updates to guidance, as NMW is one of the areas where employers end up being non- compliant due to a lack of understanding. Anything that can make the rules easier to understand, particularly through the inclusion of examples, will benefit those processing payrolls and the staff that they pay.
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The Supreme Court rules that sleep-in care workers are not entitled to the minimum wage
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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