Aug 7, 2022

Next faces HMRC probe over incorrect staff payments

Fashion retailer Next is facing an investigation by the UK's tax authority after the botched rollout of a new payroll system led to thousands of employees receiving incorrect salary payments. The payroll errors could have resulted in some staff being paid less than the UK's statutory minimum wage, which is £9.50 an hour for those aged 23 and over at a time when inflation is running at its highest level in forty years. The Sunday Times cited Next employees who said they were unable to afford bus fares to get to work, had to borrow money from relatives to pay bills, or lost benefits after being overpaid. According to one former employee, Next tends to attract managers in the early stages of their careers who often end up staying there for decades. "It would be as unthinkable for us to contract out our core operational systems as it would be to contract out the designing of our clothing ranges," Next added.

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