Paul Blomfield – 2016 Parliamentary Question to the Department for Business, Energy and Industrial Strategy

The below Parliamentary question was asked by Paul Blomfield on 2016-10-11.

To ask the Secretary of State for Business, Energy and Industrial Strategy, what verification process is used by HM Revenue and Customs to ensure that the level of arrears paid to workers using the self-correction process by employers found to be non-compliant with the (a) national minimum wage and (b) national living wage is a true reflection of the amount the workforce is owed.

Margot James

Where HM Revenue and Customs instructs employers to self-correct, the employer must declare details of the arrears subsequently paid to workers. HMRC perform checks before accepting that pay has been corrected.

HMRC take the circumstances of individual employers into account when instructing to self-correct. If the value of the arrears repaid does not reflect what HMRC expect based on the facts of the case, they can open an investigation to ensure that workers receive what they are owed. Where employers need assistance determining the value of the arrears owed, HMRC will work with them to ensure they get it right.

HMRC’s assurance process involves performing a sample check that arrears have been paid correctly. Workers are selected and contacted by telephone and correspondence to confirm that they have received the arrears they are owed, in the amount that the employer has reported.