Businesses targeted for NMW Compliance

 

Enforcement will focus on 11 specific regions: Belfast, Birmingham, Bradford, Cardiff, Cornwall, Cumbria, East Anglia, Glasgow, Liverpool, the North East, and Watford.

HMRC’s cracking down on small and medium-sized businesses (SMEs) in 11 UK regions for potential non-compliance with the National Minimum Wage (NMW). Companies found guilty of underpaying will have to reimburse workers for NMW arrears, and face increased National Insurance Contributions (NICs).

Businesses that refuse HMRC’s initial offer of a health check meeting risk financial penalties of up to 200% and public naming and shaming.

Many SMEs might unintentionally breach regulations due to the complexity of NMW rules and common misunderstandings about calculating NMW beyond just an hourly rate.

HMRC’s allocated over £27m to address NMW non-compliance, focusing on regional enforcement. Areas were chosen based on data indicating a higher number of workers potentially earning below the required NMW and intelligence from worker complaints.

Over 50% of SMEs in the targeted regions could be affected, facing significant administrative burdens, even if they’re compliant. Many businesses have already received letters from HMRC as part of a three-stage process.

Targeted businesses will first receive a nudge letter listing common areas of NMW non-compliance. The next step’s a letter offering a free HMRC health check. Ignoring this offer will result in HMRC opening a formal enquiry.

If you have any concerns regarding your business and HMRC enquiries, get in touch today.

GET IN TOUCH

You might be interested in...

  1. how to reduce inheritance tax

    06 Oct 2026

    HOW TO REDUCE YOUR INHERITANCE TAX BILL

    Inheritance tax planning is about more than reducing a future tax bill. The right strategy can help protect your wealth, prevent valuable assets from being sold to meet an IHT liability and ensure your family has the funds and information they need to guarantee peace of mind.

    Learn more

    HOW TO REDUCE YOUR INHERITANCE TAX BILL
  2. Why The Most Innovative SMES Don't Go It Alone

    30 Sep 2026

    Why The Most Innovative SMES Don’t Go It Alone

    When businesses rely solely on internal decision-making, opportunities for innovation can become fragmented and financial planning risks becoming reactive rather than strategic. Here's why external advice matters.

    Learn more

    Why The Most Innovative SMES Don’t Go It Alone
  3. The hidden cost of waiting for month end

    30 Sep 2026

    The hidden cost of waiting for month end

    In an economy that operates at real-time speed, month-end reporting could be costing your business more than you realise.

    Learn more

    The hidden cost of waiting for month end