Work & Pay Guide · 2026/27
National Minimum Wage Underpayment Claims 2026/27: How to Get Arrears Back
Every year, HMRC recovers tens of millions of pounds in minimum wage arrears for hundreds of thousands of underpaid UK workers -- often without them realising they were owed money in the first place. Deductions for uniforms, unpaid travel time, and salary sacrifice arrangements are among the most common causes. Here is how to check if you are affected and how to claim.
Current Minimum Wage Rates (2026/27)
| Age band | Hourly rate |
|---|---|
| National Living Wage (21+) | £12.71 |
| 18–20 year olds | £10.85 |
| 16–17 year olds | £8.00 |
| Apprentice rate | £8.00 |
Worked Example: A Uniform Deduction Underpayment
Ben, aged 24, works 35 hours a week and is paid exactly £12.71 an hour -- £444.85 a week. His employer deducts £15 a week to cover uniform costs, taking his effective cash pay to £429.85. Dividing this by his 35 hours worked gives an effective hourly rate of £12.28 -- below the £12.71 National Living Wage.
Ben is owed arrears of £0.43 an hour x 35 hours = £15.05 a week for every week the deduction applied, calculated at the current minimum wage rate at the time of repayment (which can be higher than when the underpayment occurred).
Key Facts at a Glance
- Report to
- Acas Pay and Work Rights helpline, free & confidential
- HMRC penalty on employers
- Up to 200% of arrears
- Tribunal claim deadline
- 3 months less 1 day from underpayment
- Tribunal arrears cap
- Normally up to 2 years' back pay
- Retaliation for complaining
- Automatically unfair dismissal / unlawful detriment
- Anonymous reporting
- Available via HMRC/Acas
Frequently Asked Questions
Frequently Asked Questions
How do I know if I have been underpaid the minimum wage?
Compare your total pay for a pay period, divided by the total hours worked in that period, against the correct rate for your age band. In 2026/27, the National Living Wage for workers aged 21 and over is £12.71 an hour, the rate for 18-20 year olds is £10.85, and the rate for 16-17 year olds and apprentices is £8.00. Remember to include all hours actually worked, including some unpaid training, travelling between work locations (not home to work), and time spent on call at the workplace, which may count as working time even if not separately paid.
What common employer mistakes cause underpayment?
The most frequent causes flagged by HMRC enforcement are: not paying for travel time between appointments (common in care work), deducting the cost of uniforms or tools from pay so it falls below minimum wage, not paying for mandatory training time, incorrect apprentice rates being applied after the first year of an apprenticeship, salary sacrifice arrangements (like pension or childcare vouchers) that inadvertently take cash pay below minimum wage, and unpaid trial shifts that go beyond a reasonable, genuine trial period.
Does salary sacrifice count towards minimum wage calculations?
No -- any salary sacrificed for pension contributions, cycle to work schemes, childcare vouchers, or other benefits reduces your cash pay for minimum wage purposes. Employers must ensure that after salary sacrifice deductions, your remaining cash pay still meets at least the minimum wage for every hour worked. If sacrificing brings your pay below the minimum, the sacrifice arrangement itself is unlawful for that portion, and you are entitled to arrears.
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How do I claim minimum wage arrears from my employer?
Start by raising the issue informally or formally (a written grievance) with your employer, since many underpayments are genuine payroll errors that get corrected once flagged. If that does not resolve it, you can report the underpayment to HMRC via the free, confidential Acas Pay and Work Rights helpline (0300 123 1100), which passes cases to HMRC's National Minimum Wage enforcement team. You do not need to be a current employee to complain -- former workers can report underpayment too, and reports can be made anonymously.
What can HMRC do if my employer underpaid me?
HMRC can investigate, order the employer to pay back the arrears to affected workers (calculated at current minimum wage rates, not the lower historic rate that applied at the time), issue a financial penalty of up to 200% of the arrears (capped per worker, with a minimum penalty), and in serious or repeated cases, 'name and shame' the employer publicly and even pursue criminal prosecution. HMRC enforcement is separate from and does not require you to go to an employment tribunal.
Can I go to an employment tribunal instead of using HMRC?
Yes. You can bring an unlawful deduction from wages claim to an employment tribunal, which can also order repayment of arrears. This route has a strict time limit -- generally within three months less one day of the underpayment (or the last in a series of underpayments), so acting quickly matters. Many workers use HMRC's free enforcement route first since it does not require tribunal fees or legal representation, but a tribunal claim may be appropriate if you also have other related claims, such as unfair dismissal.
How far back can I claim minimum wage arrears?
Through an employment tribunal, an unlawful deductions claim can normally cover arrears going back up to two years from the date of the claim, due to a statutory cap introduced in 2015. Through HMRC enforcement, there is no fixed statutory limit in the same way, but in practice HMRC typically looks at the more recent pay history unless there is evidence of a long-running, deliberate underpayment.
Will complaining about minimum wage underpayment get me sacked?
It is automatically unfair dismissal, and unlawful detriment, to dismiss or penalise a worker for asserting their statutory right to be paid the minimum wage, or for making a genuine complaint about underpayment -- regardless of length of service. If you believe you have been dismissed or treated badly because you raised a minimum wage issue, this itself can form a separate, additional tribunal claim.
Do interns and apprentices have to be paid minimum wage?
Apprentices must be paid at least the apprentice rate (or the rate for their age if higher and they have completed the first year of their apprenticeship and are 19 or over). Genuine volunteers and those on statutory work experience placements of a limited duration are generally exempt, but 'unpaid internships' that involve real work, set hours, and an expectation of turning up are usually workers entitled to at least the minimum wage -- simply calling someone an 'intern' does not remove this right.
What evidence should I gather before making a claim?
Keep payslips, your contract or offer letter, records of actual hours worked (including a personal diary or timesheet if your employer does not provide accurate records), evidence of any deductions (for uniforms, training, accommodation), and any correspondence about pay. If your employer has not kept adequate records, the burden can shift to them to prove you were paid correctly, so your own contemporaneous notes are valuable.
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