Many employers will receive nudge letters from HMRC asking them to check their National Minimum Wage (NMW) compliance ahead of the updates to National Minimum Wage Rates in April 2026. If you are one of the companies or employers that receive these letters, do not be concerned. These are not formal investigations or penalties. They are part of HMRC’s wider strategy to encourage businesses to review their pay practices. This type of letter is known as a nudge letter.
There is no legal obligation to respond or report back to HMRC. However, it does present an opportunity to review your payroll processes and make sure you are meeting all legal requirements, and this is where Elite Payroll Services is here to help.
If you are looking for a way to secure your payroll compliance, Elite Payroll Services is on hand to help you navigate the changing UK employment legislation and HMRC payroll requirements. Dealing with this now? We have a team of experts on hand to help.
Give us a call on 01423 727334, or book a consultation to discuss your payroll compliance needs today.
Common areas in National Minimum Wage compliance
National Minimum Wage compliance is not always as straightforward as paying the advertised hourly rate. Employers also need to consider:
- Deductions for uniforms, equipment or other work-related costs
- Unpaid time spent on training, travel or preparation
- Rounding down employee hours
These factors can easily lead to unintentional underpayments, even when employers believe they are paying correctly. At Elite Payroll Services, we work with businesses of all sizes to ensure their payroll is fully compliant with national minimum wage regulations.
If you have received a National Minimum Wage compliance letter from HMRC or would like an independent review of your pay practices, our team is here to help.
Get in touch today by emailing [email protected] or calling 01423 727334 for advice and support.
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HMRC National Minimum Wage FAQ
What happens if you ignore a HMRC nudge letter?
HMRC has confirmed that employers who choose not to engage with this offer are more likely to be selected for a formal investigation.
To take to guess work and uncertainty out of your compliance management, get in touch with our team to learn how we can streamline your payroll services whilst ensuring year-round compliance.
What are the risks of payroll non-compliance?
If HMRC finds underpayments following a full National Minimum Wage compliance review, you could be required to:
- Repay arrears to current and former employees, uplifted to today’s NMW rates
- Pay penalties of up to 200% of the total arrears
- Face public naming if arrears exceed £500
The financial and reputational risks make it worth taking action now, before issues escalate
What are the current National Minimum Wage rates (From April 2026
- 18 to 20-year-olds – £10.85 per hour
- 16 to 17-year-olds / apprentices – £8 per hour
- 21 and over (National Living Wage) – £12.71 per hour