HMRC’s minimum wage ‘window’ will end in a matter of days, NHBF warns salons

Salons are being warned they have just days left – until the end of this month – to take advantage of HM Revenue & Custom’s “window” which allows hairdressers to come forward voluntarily and put right any minimum wage errors, without the risk of being fined or “named and shamed”. 

An HMRC campaign specifically targeting hairdressing, barbering and beauty was launched in the autumn following damning government research suggesting the industry was by far the worst in the country for paying staff, especially apprentices, at the correct National Minimum Wage rate. 

The campaign was designed to allow salons to work with HMRC to put right any errors or underpayments that had been identified without the risk of being penalised. 

However, HMRC has said this window will now end on 30 November, after which there will be a tough enforcement regime. 

HMRC has also warned that it has now written to some 400 salons it has identified may have a problem with minimum wage payments. It is now urging these – and any other – salons to “use the campaign window of opportunity if they need to, before HMRC approaches them”.

However, any salon that receives a letter before 30 November - and responds by coming forward to notify HMRC - will still have until the end of January to work with it without sanction to put things right, HMRC has also stressed. 

NHBF president Paul Curry said: “Let this be an urgent wake-up call to any salon that you need to act now to put things right, especially if your salon is one of the 400 that has received a letter from HMRC about potential under-payments.

 “If you’ve had a letter or receive one in the next few days you cannot afford to ignore it. As HMRC has made clear, there will be a small breathing space into next year for salons contacted before the end of this month. But even this window of opportunity is rapidly closing. 

NHBF chief executive Hilary Hall added:

More widely, all salons need to remain constantly on the ball about their National Minimum Wage payments. Even if you pay for your payroll processing to be done by someone else, it’s you as the salon owner who will carry the can if an employee is paid the wrong wage, and the penalties are now very severe.  

Paying the correct National Minimum Wage is the law; it is not optional. The quicker the hair and beauty industry recognises this and puts its house in order, the better.”