The HMRC is targeting care providers for inspections following its report in November 2013 which exposed significant levels of non-compliance in the sector. The report contained the findings of a two year investigation into 183 residential and domiciliary care providers, with worrying findings:
- 48% of care providers were considered non-compliant
- £338,835 of unpaid notices were issued to providers
- £112,786 of civil penalties were issued to providers
For employers concerned about HMRC’s announcement, there are actions you can take to prepare for a HMRC inspection, thereby minimising the risk of ETR claims.
Review you pay arrangement.
Focus specifically on the high risk non-compliance areas, such as:
- Unpaid travel time
- Failure to pay for all working times (sleepover shifts)
- Misuse of the accommodation offset rules
- Deductions from worker pay (uniforms)
- Overtime and shift allowances
- Incorrect use of apprentice rates
- Unpaid training time
Review record keeping processes
Ensure you have accurate and complete records that verify your compliance with the NMW. Failing to do so is a criminal offence.
HMRC will review your employment documents, including contracts, time sheets, rosters, an pay slips, as well as speaking with staff about their working arrangements and conditions. As such, it is critical that you, as employer, have all the correct documentation available.