Is Your Club Ready for the National Minimum Wage Increase?

From 1st April 2025, the National Minimum Wage (NMW) and National Living Wage (NLW) rates will increase. For sports clubs that employ staff, it’s essential to ensure compliance with these changes to avoid accidental underpayments and potential penalties.

To help employers prepare, HMRC is offering live webinars that provide guidance on how to implement the new wage rates correctly and avoid common payroll mistakes.

What Clubs Need to Do Now

If your club employs coaches, ground staff, administrators, or hospitality workers, you should take the following steps:

1. Check the New Rates

The NMW and NLW rates vary depending on the age of the employee. The updated rates will be available on GOV.UK, so ensure you check them in advance.

• 🔗 National Minimum Wage & National Living Wage rates

2. Identify Affected Staff

Not all employees will be impacted, but you must review your payroll records to identify which staff members will require an increase.

3. Update Payroll Systems

Make sure your payroll provider or in-house payroll team has made the necessary adjustments before 1st April 2025 to avoid underpayments.

4. Understand Payroll Deductions & Salary Sacrifice

Many clubs make deductions through payroll (e.g., for uniforms or training) or offer salary sacrifice schemes (e.g., cycle-to-work programs). These deductions could result in staff being paid below the minimum wage if not handled correctly.

5. Get Expert Advice from ACAS

ACAS provides impartial and confidential advice on how to correctly pay workers while remaining compliant with employment laws.

• 🔗 ACAS Helpline

6. Learn How to Calculate the Minimum Wage

NMW compliance is more than just ensuring a correct hourly rate—it involves considering overtime, deductions, and benefits. HMRC has detailed guidance on how to calculate NMW correctly.

• 🔗 Calculating the Minimum Wage

Sign Up for HMRC’s Free Webinar

HMRC is hosting live webinars to guide employers through the upcoming changes. The sessions cover common mistakes such as failing to account for training time, incorrect deductions, or misclassifying employees.

• Sign up for a free webinar to ensure your club is fully prepared.

Don’t Get Caught Out – Prepare Your Club Now

Failing to comply with the new National Minimum Wage rates could lead to costly penalties and reputational damage. Taking proactive steps now ensures your club remains compliant and pays staff fairly.

Need help with payroll, governance, or employment compliance? Club Development Solutions can support your club in navigating these changes. Get in touch today!