Hmrc targets salon owners in national minimum wage crackdown

Hair and beauty employers who pay their staff below the National Minimum Wage are being targeted in  a new campaign by HM Revenue and Customs (HMRC) and the Department for Business, Innovation and Skills (BIS). The first stage of the campaign, supported by the National Hairdressers’ Federation (NHF) and the Hair and Beauty Industry Authority (HABIA) will offer help, advice and penalty-free opportunities for employers who have not been paying the correct wage – provided they report it and put it right. According to BIS, 42% of hair and beauty businesses do not pay Level 2 and Level 3 apprentices the correct National Minimum Wage; the highest underpayment rate of any sector. Those paying under the NMW now have a chance to put things right. If they fail to do so it could result in their business being publicly ‘named and shamed’ and facing a fine of up to £20,000 per employee. NHF chief executive Hilary Hall said: "It’s no secret that the hair and beauty industry has a poor reputation for non-compliance. We have worked hard to ensure salon members know the correct NMW rates, but our experience in handling thousands of calls each year shows that implementation is not as straightforward as it appears at first glance. "In an industry where apprenticeships are the main route into employment, the sheer numbers involved show that apprenticeship rates are the most common cause of unintentional errors.  We have repeatedly called for a single rate for apprentices because under the current system the rates vary for those under 19 and those aged 19 or over, depending on whether or not they have completed the first year of an apprenticeship." The NHF has put together a guide to the national minimum wage for employers in hair and beauty, which includes details of the rates now and new rates in October.