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NMWM14130 | After Notice of Underpayment issued: employer fails to pay penalty

From HM Revenue & Customs · National Minimum Wage Manual

Relevant legislation

The legislation that applies to this page is as follows:

  • Employment Rights Act 2025, sections 107 and 115

General

The penalty imposed by a Notice of Underpayment must be paid to HM Revenue & Customs within 28 calendar days of the day on which the notice was given (counting the day it was given as day 1).

If the employer fails to pay the penalty by that date, the NMW Officer does not have to take any further action. Collection of any outstanding penalty will be handled by HM Revenue & Customs Debt Management and Banking (DMB) under their debt collection strategy (NMWM14060).

The full penalty will become due if the employer fails to pay all the arrears to all the workers named on the notice and 50% of the penalty within 14 days of the day on which the notice was given (counting the day it was given as day 1) (NMWM14050).