A new team of compliance officers in HMRC will investigate the most serious cases of employers not paying the National Minimum Wage and National Living Wage when it is introduced in April 2016. Anyone found guilty will be considered for disqualification from being a company director for up to 15 years.
The National Living wage will be paid to over 25’s and will start at £7.20 and rise to £9 an hour by 2020.
Penalties for non-compliance will be doubled from 100% of arrears to 200%. This will be halved if employers pay within 14 days. The overall maximum penalty of £20,000 per worker remains unchanged.