Minimum wage change

From 1 January next year, the law will change to stop payments made into travel and subsistence tax relief schemes from counting towards the national minimum wage. The move has been welcomed by unions.

An earlier consultation uncovered abuse of these schemes by unscrupulous employers who have used these arrangements to avoid liability to pay National Insurance contributions.

TUC general secretary Brendan Barber, welcoming the news, said: “The minimum wage must provide a robust pay floor that supports vulnerable workers.

“In far too many cases travel and subsistence plans have been mis-sold to workers. Rogue employers have exploited these schemes to avoid paying National Insurance and workers have ended up losing out on pension and sick pay entitlements, maternity pay and tax credits.”

www.hm-treasury.gov.uk/d/consult_minimumwage_expenses_responses.pdf

www.tuc.org.uk/newsroom/tuc-18260-f0.cfm