National Minimum Wage & National Living Wage: does it apply to you?
National Minimum Wage Act 1998 & National Minimum Wage Regulations 2015
When this applies
Check that every worker you employ, including part-timers, casual staff and apprentices, is paid at least the National Minimum or National Living Wage rate for their age band. HMRC actively audits payroll, and deductions or unpaid trial shifts are common causes of accidental underpayment.
When it does not apply
This only applies once you employ staff. If you take anyone on, check their pay against the current age-band rates from day one.
What is at stake
HMRC can charge a penalty of 200% of the arrears owed, from a £100 minimum up to £20,000 per underpaid worker (halved if paid within 14 days), on top of repaying the arrears itself. HMRC also names underpaying employers publicly, and deliberate non-payment can lead to criminal prosecution.
What to do
Pay every worker at least the National Minimum or National Living Wage for their age band, current rates (from 1 April 2026) are £12.71 an hour (21 and over), £10.85 (18 to 20), and £8.00 (under 18, and apprentices in their first year or under 19). Check for common accidental breaches: deductions for uniforms or training, unpaid trial shifts, or salary sacrifice schemes that pull effective pay below the minimum. Keep pay records for at least 6 years.
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Check your business →Reviewed: 2026-09-13 · Source: official guidance