Can my employer pay me less than minimum wage - CASH IN HAND

Arsenal2019

Hi guys

I’m 24 years of age and have a part time job which pays in cash, at £7.50P/h. However, the minimum wage for 24 year olds is £7.70P/h. Should I be getting paid £7.70P/h, even though I’m getting paid cash in hand.

I know it’s not a big difference, but pennies make pounds don’t they?!

Also, could I be directed to the necessary website / page to have a look too.

I’m unsure what I should be getting paid as I’ve been told different from many people.

Thanks

Arsenal2019

NOTE - I am not on the books either

ohreally

Richardroberts1 wrote: »

NOTE - I am not on the books either

Why are you accepting the situation?

Arsenal2019

It is just a part time job. Note- I will be starting next week. I just want to know if it’s legal or not. Or should I be getting paid 7.70

freyasmum

If you're not on the books then you won't be getting any NI credits or building up any pension.

HMRC may also get you to pay any tax/NI due.

Barney_Rubble_0403

The minimum wage went up from £7.38 to £7.70 from April for 21-24 year olds and £8.21 for 25 and over.

Use Google Search and type in minimum wage and look at hmrc site.

So yes you are right. Not on their books and receiving cash in hand + does this mean you don't get a wage slip. They can pay in cash but there must be an official record of you which is reported to HMRC. Anything else is illegal.

:eek:

Arsenal2019

Thank for replies.

Sorry, I don’t understand. So with my current situation (24 y/o) receiving £7.50 cash in hand and not on the books, should I be getting at least £7.70.

Or because I’m not on the books, would that mean I’m not entitled to receive £7.70 as I don’t contribute to tax / NI

Dox

Richardroberts1 wrote: »

Thank for replies.

Sorry, I don’t understand. So with my current situation (24 y/o) receiving £7.50 cash in hand and not on the books, should I be getting at least £7.70.

Or because I’m not on the books, would that mean I’m not entitled to receive £7.70 as I don’t contribute to tax / NI

Paying cash isn't illegal. Doing so to avoid all the employer's obligations certainly is.

You can't have it both ways (or more accurately, your employer can't). If you are paid cash in hand and are 'not on the books', it suggests your employer is trying to dodge NI, holiday pay, minimum wage, giving you a payslip, pension contributions...and also suggests you are happy to dodge tax/employee's NI, assuming you will earn enough to pay either.

The most likely explanation is that your employer is simply trying to keep paperwork down - and may not realise they are paying less than minimum wage. That's a conversation you need to have with them. See https://www.gov.uk/national-minimum-wage-rates

Barney_Rubble_0403

.
Speak to your employer and ask why £7.50 and not £7.70. It doesn't matter how they pay you but you must be on their books so ask them if you will get a wage slip.

.I assume you will be working for a proper employer and not a bloke with a van.

Post from Doc below covers it all.

Masomnia

You're still entitled to NMW.

Tax/NI is the employer's responsibility, but I suppose HMRC could ask you for it, not really my area though. Employer may think that as you are not paying tax/NI they can't get away with not paying NMW, or more likely are not aware it went up earlier this month.

If it's a part time job as a bit of cash on the side it's up to you, ie student. Personally if it's going to be your main source of income I wouldn't touch it with a barge pole.

getmore4less

Don't forget the holiday pay you are entitles to 5.6 weeks.

on a PAYG basis many use the 12.07% extra

That makes min wage with holidays @24 £8.63.