Wage Claims

Report Below Minimum Wage to HMRC

Full guide: Complete TaxFight Guide

Your employer is paying you less than the National Minimum Wage (NMW). You have the legal right to report it to HMRC and claim backpay. Learn what the law says, how to calculate underpayment, report it, and claim compensation.

Quick Answer

If you earn less than the National Minimum Wage (£11.44/hour April 2026 for over-21s; less for younger workers), report your employer to HMRC's minimum wage enforcement team. Keep payslips and timesheets as evidence. You can claim backpay for up to 6 years of underpayment. HMRC investigates and can issue enforcement notices. You can also claim through Employment Tribunal if HMRC doesn't act or you prefer a wage claim.

Get Help Now

National Minimum Wage Rates (April 2026)

The NMW varies by age and status. Check which applies to you: Age 21+ c. £11.44/hour; Age 18-20 c. £8.60/hour; Under 18 c. £5.75/hour; Apprentice c. £6.40/hour. These rates increase each April. If your pay is below the rate for your age, you have a legal claim.

Your Legal Rights

National Minimum Wage Act 1998

Sets minimum wage rates. Employers must pay at least the legal rate for hours worked. Failure is a breach and you can claim backpay plus compensation for unauthorised deductions.

Employment Rights Act 1996 s.13

Unauthorised deductions (paying below NMW is a deduction) are unlawful. You can claim the amount owed plus compensation.

Time Limit: 6 Years or 2 Years

6 years backpay via Employment Tribunal or small claims. 3 years via HMRC enforcement (some dispute on exact timeframe). Act quickly if underpaid for years - the longer you wait, the older claims become disputed.

Step-by-Step: How to Report and Claim

  1. Calculate underpayment: Multiply hours worked by the NMW rate for your age, subtract what you actually earned. Document every period underpaid.
  2. Gather evidence: Payslips, bank statements showing pay, timesheets, emails about hours, messages from manager, contracts showing hours. The more evidence, the stronger your claim.
  3. Report to HMRC: Email or call HMRC's minimum wage enforcement team. Provide employer name, your name, dates of underpayment, hourly rate paid, hours worked. HMRC investigates and can issue enforcement notices.
  4. If HMRC doesn't act, claim via tribunal: File an Employment Tribunal claim for unlawful wage deduction (Breach of ERA 1996 s.13). Small claims track if under £1,000.
  5. At tribunal: Present payslips, timesheets, and witness statement about hours. Employer must prove they paid correctly. If you win, you get backpay plus compensation up to 6 years.

What Counts Toward the Minimum Wage

Only wages count - commission, bonuses, tips, and other payments often do not. Check your contract. If your employer claims tips or bonuses offset shortfalls, this is unlawful under minimum wage law - you must receive the minimum wage separately.

HMRC Enforcement vs Employment Tribunal

HMRC Route

Report to HMRC. They investigate. If breach found, issue enforcement notice and employer may pay without court. Free but slower (months). No compensation for distress.

Tribunal Route

File claim at Employment Tribunal. You get backpay plus compensation for "consequential loss" (hardship caused). Faster (weeks to months). Can claim up to 6 years backpay.

Protection From Retaliation

Reporting underpayment to HMRC or making a tribunal claim is protected. Your employer cannot dismiss you, reduce pay, or threaten you for asserting your minimum wage right. If they do, that's unlawful and you can claim additional compensation.

Do You Need Help?

WageReclaim can calculate your underpayment and help you draft evidence summaries for HMRC or tribunal. For tribunal representation, free help is available from Citizens Advice or union representation (if a member).

What the Law Says

Legislation
National Minimum Wage Act 1998
Sets minimum wage rates by age/status. Employers must pay the rate for all hours worked. Breach is unlawful.
Wage Deduction
Employment Rights Act 1996 s.13
Unauthorised deductions (underpayment) are unlawful. Employee can claim the amount owed plus compensation.
Enforcement
HMRC Minimum Wage Team
Investigates complaints, issues enforcement notices, can impose penalties on employers who breach NMW.
Time Limit
6 Years Backpay
Can claim unpaid wages for up to 6 years via Employment Tribunal. Act now if underpaid historically.

Frequently Asked Questions

How do I calculate if I've been underpaid? +
Multiply the correct NMW rate for your age by total hours worked in a pay period. Subtract what you actually earned. The difference is underpayment. Do this for each pay period. Add up all periods underpaid.
Do tips and bonuses count toward minimum wage? +
No. Only base wages count. Tips, bonuses, and commission do not offset a shortfall in base pay. You must receive the minimum wage as wages, separately from tips/bonuses.
Can my employer dismiss me for reporting underpayment? +
No. Reporting minimum wage breach to HMRC or raising a tribunal claim is protected. Dismissal, pay cuts, or threats for asserting your wage right is unlawful and you can claim additional compensation.
How long do I have to claim backpay? +
You can claim for up to 6 years of underpayment via Employment Tribunal or small claims court. HMRC may enforce back around 3 years (dispute on exact length). Claim as soon as possible - older claims are harder to prove.
Should I report to HMRC or go to tribunal? +
Both have advantages. HMRC is free but slower and no compensation for distress. Tribunal is faster, can get compensation, but requires filing a claim. You can report to HMRC and also file tribunal if HMRC doesn't act.
What evidence do I need? +
Payslips, bank statements showing deposits, timesheets, emails about hours, messages from manager, contract stating hours. The more evidence the stronger. Sworn statement about hours worked (if no timesheets) is acceptable evidence.

Claim Your Underpaid Wages Now

Use WageReclaim to calculate underpayment, draft evidence summary, and file HMRC report or tribunal claim.

Start Your Claim