Claiming Back Underpaid National Minimum Wage 2026/27
Underpayment of the National Minimum or Living Wage is more common than many workers realise, often arising from unpaid travel time, uniform costs, or unpaid trial shifts rather than a simple hourly rate error. This guide explains how to check and claim back what you are owed in 2026/27.
How "Hidden" Underpayment Happens
Underpayment often has nothing to do with the hourly rate shown on a payslip — common causes include employees having to buy their own uniform or tools out of otherwise minimum-wage pay (effectively reducing pay below the minimum once the deduction is factored in), unpaid time spent travelling between appointments for care or delivery workers, unpaid trial shifts, and rounding down time actually worked.
Because these situations do not always look like an obvious rate error, many affected workers do not realise their effective hourly pay has fallen below the legal minimum once these deductions or unpaid time are properly accounted for.
How Enforcement Works
HMRC enforces minimum wage law and can investigate on its own initiative or following a worker complaint, and has the power to order employers to pay arrears going back, in serious cases, several years, plus a financial penalty payable to the government on top of the arrears owed to the worker.
HMRC also periodically names employers found to have underpaid staff, as a deterrent, though a worker does not need to wait for or rely on this naming process to get their own arrears paid — a specific complaint can trigger an individual investigation regardless.
Making a Claim
You can raise the issue informally with your employer first, submit a confidential complaint to HMRC via the Acas-run helpline or online service, or bring an Employment Tribunal claim for unlawful deductions from wages, or a combination of these depending on the circumstances and how quickly you need resolution.
Keep records of hours actually worked, any deductions made, and relevant payslips, since detailed evidence significantly strengthens a claim, whether pursued through HMRC enforcement or an Employment Tribunal.
Frequently Asked Questions
Can I be underpaid even if my hourly rate looks correct on my payslip?
Yes — deductions for uniform or tools, unpaid travel time between jobs for care or delivery workers, and unpaid trial shifts can all effectively reduce your real hourly pay below the legal minimum, even though the stated rate on your payslip looks correct.
How do I report suspected minimum wage underpayment?
You can raise it informally with your employer, or make a confidential complaint to HMRC through the Acas-run helpline or online complaint service, which can trigger a formal HMRC investigation without necessarily naming you to your employer.
How far back can I claim underpaid minimum wage?
HMRC enforcement action can require an employer to pay arrears covering a significant historic period in serious cases, while a claim through an Employment Tribunal for unlawful deductions is generally subject to its own separate time limits, so it is best to act as soon as you suspect underpayment rather than delaying.
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Does HMRC charge my employer a penalty as well as ordering arrears?
Yes — where HMRC finds underpayment, it can require the employer to pay arrears to affected workers and can also impose a separate financial penalty payable to the government, reflecting the seriousness with which minimum wage compliance is treated.
Will my employer know if I complain to HMRC?
HMRC complaints made through the Acas-run service are generally treated confidentially, and HMRC can investigate an employer more broadly without necessarily revealing which individual worker raised the specific complaint that triggered it.
Can I claim underpaid minimum wage through an Employment Tribunal instead of HMRC?
Yes — as an alternative or in addition to an HMRC complaint, you can bring an Employment Tribunal claim, commonly for unlawful deductions from wages, though tribunal claims are subject to their own specific time limits, so check these before delaying.
How do I know what minimum wage rate I should have been paid?
The rate you are entitled to depends on your age and whether you are an apprentice, and the applicable rates change every April, so check the current National Minimum and National Living Wage rates for the relevant pay period using our minimum wage calculator rather than assuming last year’s figures still apply.
Are apprentices entitled to the same minimum wage as other workers?
No — apprentices are entitled to a separate, lower apprentice rate for the first year of their apprenticeship or while they are under 19, after which they move onto the standard age-related rate, so it is worth checking which rate applies at each stage.
What if my employer refuses to pay the arrears HMRC finds are owed?
HMRC can issue a Notice of Underpayment requiring the employer to pay arrears and can pursue enforcement action, including civil penalties and, in serious or repeated cases, criminal prosecution, if an employer refuses to comply.
What if my employer has gone out of business before paying what I am owed?
If your employer becomes insolvent before paying arrears you are owed, you may be able to claim certain unpaid wages from the government’s Insolvency Service redundancy payments service, so it is worth checking your options rather than assuming the debt is simply lost.
Disclaimer: This guide reflects UK rules as they generally apply in 2026/27. This guide is for general information only and is not professional advice. Consult a qualified adviser and refer to gov.uk for current official guidance before relying on any treatment.
