NFDA has become aware of increased interest by HMRC in the Sector and NMW compliance and members should be aware of HMRCs interpretation in 2 key areas, being:

  1. The definition of salaried hours workers for NMW purposes, and
  2. The treatment of Commission payments in assessing NMW compliance

Nigel Morris, Employment Tax Director in the MHA MacIntyre Hudson Motor Team has been assisting members in the Sector and said “HMRC are taking their own interpretation of the NMW regulations and suggesting that there is non-compliance in the above areas that could lead to potentially significant liabilities and increased administrative burdens on the Sector. We are vigorously challenging HMRC on these areas to ensure that proper interpretations are applied and that a robust methodology is applied by HMRC to the Sector to avoid unnecessary record keeping or changes to working practices”.

NFDA welcomes comment from members who have encountered interest from HMRC to ensure that there is consistency and fairness of treatment across the Sector and for our members.

If you require more information or support, please contact NFDA in the first instance at