HMRC Review Temporary Worker Expense Schemes in Light of National Minimum Wage 

Adrian Learer FCA, Managing Director, planIT Services Limited

25/2/2010

HMRC have recently issued a consultation in respect of travel and subsistence expense schemes and the arrangements for temporary workers paid at or near National Minimum Wage (NMW).  Please see the following link: http://www.hm-treasury.gov.uk/consult_minimumwage_expenses.htm

HMRC have recently realised that certain salary sacrifice expense payments can technically reduce a workers payment below that of minimum wage, which is clearly not what the legislation intended. HMRC are obviously not happy about this development and hence their wish to change legislation accordingly.

planIT's view is that the national minimum wage was introduced for a good reason and that it would not use such technicalities to avoid these rules. If the consultation results in these arrangements being accepted we may review that position. Until that time our view is that all workers should be paid at least the national minimum wage regardless of the employer.