Directors and National Minimum Wage Exemptions

3rd March 2012

The National Minimum Wage legislation was introduced with effect from 1st April 1999. Since then employers have been required to pay staff at an hourly rate of at least the national minimum wage. These rules are formulated by the low pay commission and are policed by HMRC.

HMRC published their interpretation of these rules, which recognise that certain directors are exempt:

”If a person is a director, and he/she does not have an explicit employment contract, then he/she is unlikely to be subject to this legislation. He/she is acting for the company in the capacity of office holder, not as a worker”.

This marks a U-turn in previously understood Revenue interpretation, which sought to include directors under these rules, by arguing that an unwritten or implied employment relationship existed, even if not evidenced in writing.



 
Other items in Business Support
 
Ian Piper
15th April 2021 2021 SME Growth: Revenge Spending?

As we pass the Covid-19’s first anniversary of its impact on our area’s economy, accounts of local SME’s are now starting to show part of the damage they have experienced through the lock-downs and associated restrictive measures. Thankfully, through Government financial help and the nimble footwork of businesses adapting to survive, the overall effect upon…

Read More »

Jaimie King
15th April 2021 Life after CBILS: The Recovery Loan Scheme

The government-backed Coronavirus Business Interruption Loan Scheme closed on 31st March to new applicants. Thankfully, the government has put in place further support for businesses, to follow this.   The Recovery Loan Scheme – Government backed loans, 3 months – up to 6 years depending on the product – Up to £10m, no cap on…

Read More »

adam
13th April 2021 test

Read More »

Steven Denton
18th March 2021 Changes to Coronavirus Job Retention Scheme (Furlough) from July 2021

As you will know by now, in the budget speech of 3rd March 2021, the government announced the extension of the current furlough scheme until September 2021. Further guidance has now been issued as to how the scheme will operate.   Firstly, for periods starting after 1st May, you can claim furlough for any employee,…

Read More »

Sue Edwards
18th March 2021 The Benefits of Outsourcing Payroll

As chartered accountants, with over 90 years’ experience in the finance industry, outsourcing the payroll, to us, is something all businesses should consider.  Running a payroll is very time consuming so let someone else take the burden from you, here are the top 5 great reasons for outsourcing your payroll: COST Time is quite literally…

Read More »

Emily Haines
15th March 2021 SEISS for the newly self-employed in 2019/20

HMRC are writing to some individuals who started their sole trade/self-employment in 2019/20 and wish to claim the fourth and fifth self-employment income support scheme grant (SEISS). These individuals will be asked to complete some verification checks to confirm their identity and proof of their self-employment.   These individuals should receive a letter from 8th…

Read More »