New Minimum Wage Rates: Three Payroll Checks To Run Now

Three practical NMW checks employers should run now to make sure you stay compliant.

New Minimum Wage Rates

Here are three practical checks employers should run now to make sure you stay compliant with the new National Minimum Wage (NMW) rates.

New NMW Rates – Don’t Get Caught Out

With the April 2026 National Minimum Wage (NMW) increases now in effect, it’s a good time for employers to check their payroll. Small oversights can accidentally lead to underpayments which may incur penalties from HMRC.

Need Help?

NMW errors are rarely intentional, but they are one of the most common areas that HMRC investigate. A quick review now can prevent a much bigger issue later.

Our Payroll team can carry out a review of your payroll set-up to make sure you’re compliant, or take care of your payroll to give you complete peace of mind.

Call 01603 812131 or email enquire@swintonaccountants.co.uk

Are All Employees Being Paid the New NMW Rates?

The first step is the obvious one: make sure your payroll system has been updated with the new statutory rates.

Here’s a quick comparison of the April 2026 increases:

It’s worth double-checking:

• Employees who have recently had a birthday (and moved into a higher band)
• Apprentices who may no longer qualify for the apprentice rate
• Any manual overrides in your payroll software

Are Deductions Accidentally Taking Pay Below NMW?

This is where many employers get caught out.

Even if an employee’s pay appears to meet the minimum wage, some deductions can bring their pay below the NMW threshold, including:

• Salary sacrifice schemes
• Uniform costs or required clothing
• Tools or equipment paid for by the employee

For example, an employee earning just above the minimum wage could fall below it after a uniform deduction, which could mean you’re in breach without realising it.

Are You Correctly Accounting for Working Time?

NMW compliance isn’t just about hourly rates, but also about what counts as working time.

Common risk areas include:

• Unpaid training time
• Time spent opening/closing premises
• Travel time between job locations (not commuting)
• Staff arriving early to set up

If these hours aren’t being captured, the effective hourly rate may fall below the legal minimum.

Need a hand with your payroll?

Our Payroll team can review your payroll set-up to make sure you’re compliant, or take care of your payroll to give you complete peace of mind.

Get in touch with us for a friendly, no-pressure chat. Call 01603 812131 or email enquire@swintonaccountants.co.uk