I was fined by HMRC

The names of 239 employers found to have underpaid 22,400 UK workers by a total of £1.44m have been published recently by the Government.

The back pay identified by HMRC was for more workers than in any previous single naming list and has generated record fines of £1.97m. The earliest underpayment dated back to 2011, with the most recent happening this year (2018). 

One equestrian establishment was named for a total fine of £568.33 to 2 workers. Cherwell Competition Centre in Oxfordshire thought that they were doing everything by the law, but when a former employee reported them to the HMRC, they discovered that they had fallen through a common loop hole.

Proprietor, Laura Colman explained, “The mistake that was made was that instead of deducting the agreed livery amount from the Net salary, it was being deducted from the Gross (pre tax and NI amount). I was also not invoicing for this, which I now know I should have done.

It was a genuine misunderstanding and unfortunately I was infact advised by the training company mentoring the apprentices that this would be acceptable - my advice would be to always check your own facts. This happened over 2 years ago now, so it is clear that the HMRC are happy to probe into many years ago. 

The whole experience with the HMRC made me realise the importance of getting it right, which clearly I already was doing so as they ultimately met an employer who was paying at least the NMW for every hour that my employees that were working. The HMRC turned up with 2 investigating officers and were thorough. Employers that are not abiding by the NMW rates are really putting themselves at risk of being found out and large fines. I hope that by sharing my experience it will help others to get it right.“

The Equestrian Employers Association (EEA) urges employers to take a good look at their staffs salaries and processes and read the EEA's Guide to the NMW here

Employers who pay workers less than the minimum wage have to pay back arrears of wages to the worker at current minimum wage rates and face financial penalties of up to 200% of arrears, capped at £20,000 per worker.

Executive Director, Lucy Katan, explained, “It has been known for a while now that the HMRC are targeting the equine world with their investigations. For employers, we have a lot of advice on the Equestrian Employers Association website. It is clear, easy to understand and if followed, will enable employers to get it right and protect their business. Employers fall into 3 categories – those who do it right, those who purposefully exploit and pay their staff below the NMW/NLW rate, and most commonly those who genuinely make a mistake whilst navigating the minefield of legislation. We are here to help.”

Groom, Amanda Sharp was underpaid in a role and demonstrated a growing trend in grooms reporting illegal employer , “My advice to others would be to definitely pursue your case. It is your money that you have earned. My new current employer has known about this case from the start and have supported me therefore I feel like I have not been " black listed" or "outcast”. It is daft that so many grooms don’t report the underpayment because of this incorrect assumption. If my case was taken seriously at such a small amount, then higher amounts would be taken seriously too."

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