HMRC texting Tax Credit claimants about National Minimum Wage

Working Tax Credit recipients are known to be twice as likely to be underpaid the National Minimum Wage. Failure by employers to “uprate” workers following a key birthday is a common cause of non-compliance.

HMRC are reminding recipients of Working Tax Credits who recently turned 18, 21 or 25, that they are eligible to a higher minimum wage.

A text message is sent to customers the month immediately following their 18, 21 or 25 birthday, advising the worker that new rates for National Minimum Wage apply and that they should ‘check their pay’ accordingly.


National MinimumWage (NMW) is complex and little understood. it is not solely about an employees hourly rate of pay, but about the average amount of pay received for what is determined as worked time (whether paid time or not). Deductions for the benefit of the employer and salary sacrifice arrangements lower the average pay rate and are also considerations for employers breaching the law and committing a crime against the law and their employees.

Penalties and reputations damage can be considerable.


PAYadvice Ltd has expertise in NMW law and employer obligations. For affordable rates we can assist employers in assessing and reducing their NMW risks, enabling eradication of inadvertent criminal activity.

If you would like assurance and support with your a NMW compliance, contact PAYadvice for help.

PAYadvice Ltd is a registered agent and fully complies with agent conduct requirements, data protection and anti-money laundering requirements. Registration is held with the relevant regulatory bodies. We are experts in salary sacrifice flexible benefit arrangements and implication for NMW compliance.

Our assistance is undertake in confidence and with discretion.

Services available

  • Mock audit to identify risk areas
  • Data Analytics services to aid calculation of historic records to confirm NMW compliance or identify underpayment concerns
  • Propose risk reduction and N!W breach eradication strategies

PAYadvice.UK 5/8/2020

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