Are you up-to-date with the National Living Wage? - Michael Lansdell

For an employee to feel truly valued, they need to know that they are being paid adequately for the job they do and that their employer is committed to their welfare and wants them to stay. As a dental practice owner, you will probably employ part-time staff – are you sure that you are paying them enough, even if they are not working as many hours as others are?

This is essential after the prime minister unveiled changes to the rules around the National Living Wage (NLW) in September 2015. The measures significantly toughened the regulations that were already in place, emphasising a message of ‘zero tolerance’ for employers who fail to comply.

Under the new laws, the NLW for workers over the age of 25 will be £7.20 an hour from April 2016 and by 2020, it will be at least £9. To ensure that employers comply with this, the government also announced a new unit at HMRC created specifically to deal with firms that are not paying the NLW.

Until the measures were announced, if an employer was caught out, they had to repay the amount they had underpaid plus a non-payment penalty. In September, the prime minister confirmed that this penalty would be doubled to a whopping 200% of the underpayment. Moreover, any business owner found guilty may also be disqualified from being a company director for 15 years.

These penalties are harsh and a small-to-medium-sized business, which many dental practices are, would simply not survive them. Whilst some employers are making a genuine mistake, it is still the responsibility of the business owner to make sure the new rules are properly enforced and all criteria met.

Don’t get caught out! Part of running a successful dental practice is looking after every member of staff and making it a great place to work. Get expert advice to keep you up-to-date with the law, so that everyone can focus on delivering the very best in patient care.

Specialist medical and dental accountants Lansdell & Rose can help you understand and apply employment law. The team also has a wealth of knowledge on a range of topics from pensions to tax to help your business grow. Visit www.lansdellrose.co.uk or call 020 7376 9333.