The UK's tax authority has issued a stark warning to anyone working over the festive period, urging them to check their payslips after revealing that tens of thousands were short-changed last year.
Thousands Left Out of Pocket
HM Revenue and Customs (HMRC) identified wage arrears of £5.8 million owed to 25,200 underpaid workers in the 2024-25 financial year. In response, the department issued around 750 penalties to non-compliant employers, totalling £4.2 million. With the Christmas rush in full swing, officials are now appealing directly to staff in retail, hospitality, warehouses, and other sectors to ensure they receive every penny they are legally owed.
Your Rights and Common Pitfalls
HMRC stresses that all workers, including temporary festive staff, are entitled to at least the National Minimum Wage or National Living Wage. Kevin Hubbard, HMRC Director for Individuals and Small Business Compliance, advised: "We want to make sure that workers are paid correctly this Christmas. People should check their hourly rate and look out for any deductions or unpaid working time, which could take them below the minimum wage."
Common issues that lead to underpayment include:
- Unpaid working time, such as arriving early or staying late to open or close premises.
- Completing mandatory training, cleaning, or other tasks outside of paid hours.
- Not being paid correctly for covering additional shifts.
- Deductions for items like uniforms or equipment that reduce take-home pay below the legal minimum.
The current hourly rates are:
- £12.21 - Age 21 and over (National Living Wage)
- £10.00 - Age 18 to 20
- £7.55 - Age under 18
- £7.55 - Apprentice (aged under 19 or in first year)
How to Report Underpayment
HMRC has reassured workers that they can seek help even if they no longer work for the employer in question. Concerns can be reported confidentially online via GOV.UK by searching 'check your pay', a process that takes around five minutes.
For those preferring to speak to someone, free and confidential advice is available from the Acas Pay and Work Rights Helpline on 0300 123 1100 (Monday to Friday, 8am to 6pm). Support is also available for employers who want to ensure they are paying their staff correctly.
"Always make sure that you check your pay," urged Kevin Hubbard. "If you think you have been short-changed, even if you no longer work for the employer, we are here to help."
