Business Round-up
HMRC issues £14 million in penalties for minimum wage offences
HMRC issued 580 penalties totalling over £14 million for minimum wage offences during 2020/21, according to a report released by the Department for Business, Energy and Industrial Strategy (BEIS).
The penalties given out for National Minimum Wage (NMW) and National Living Wage (NLW) offences have dropped by £4.5 million from the year before, which saw 992 penalties worth £18.5 million.
Last year, the Low Pay Commission (LPC) – which advises the government on minimum wage rates – released a report that said more needed to be done to build workers' confidence in the enforcement regime and to support employers to comply with the rules.
The BEIS's report says that HMRC has adapted its communications to make it clear to workers that they have the option to remain anonymous if they make a complaint, and that they can report a previous employer for minimum wage breaches.
It also says it will be more transparent about the most common minimum wage breaches it finds, which include deductions from workers' pay and unpaid working time, to help organisations remain compliant.
The report said: 'The BEIS therefore publishes an educational bulletin with each naming round to help raise awareness of minimum wage rules and improve compliance. Bulletins include analysis of the most common breaches in each naming round; examples to ensure understanding of how such breaches can be avoided; and links to the government's 'Calculating Minimum Wage' guidance for further details.'
FSB finds one in three business owners suffered COVID-related mental health decline
Research carried out by the Federation of Small Businesses (FSB) has found that 34% of small business owners had their mental health adversely impacted by the coronavirus (COVID-19) pandemic.
The FSB's survey also found that 24% of respondents currently have a mental health condition such as anxiety, depression or post-traumatic stress. 16% of small business owners report having a mild mental health condition; 6% stated that they have a moderate mental health condition; and 2% said that they have a severe mental health condition.
Commenting on the issue, Tina McKenzie, Policy and Advocacy Chair at the FSB, said: 'Whether it's the migrant entrepreneur suffering post-traumatic stress, the aspiring start-up creator wrestling with depression as they struggle to find work, or the thousands of business owners who feel isolated and hopeless because of late payment, policymakers should reflect on the challenges faced by entrepreneurs during this Mental Health Awareness week.
'By building on, and promoting access to, the support that's already available to business owners and their teams, the government can make a real difference to mental wellbeing.'
