HMRC Agricultural Compliance Checks

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In the rural sector, employers are being urged to check that they are paying the correct minimum wages rates where both the Agricultural Minimum Wage and the National Living Wage apply.  HMRC has launched a programme of compliance checks to ensure the correct rates are being paid and can ask to see any associated records.   This applies to workers in horticulture, agriculture and could include other areas such as, for example, beaters, housekeepers, temporary staff and casual labour.

The Rules

Wales – Agricultural workers must be paid the higher of the Agricultural Minimum Wage or National Minimum Wage

England – Agricultural workers must be paid at least National Minimum Wage unless they signed a contract before 1 October 2013 which entitles them to Agricultural Minimum Wage.

Agricultural Minimum Wage is dependent upon the employee’s job grade and category. Further information can be found on the HMRC website.

Exemptions

Family members who live at the home of the employer and help out with chores or participate in the running of the family business do not qualify for the minimum wage.

However, if your business is a limited company this is a separate legal entity and cannot be considered to have a family or a family home so the minimum wage rules still apply to all employees.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.