Taxman mulls investigation into low wage claims at Hermes

The taxman is mulling an investigation into claims of low pay among drivers at the delivery firm, Hermes.

News (Other OTC: NWSAL - news) a compliance review had started followed correspondence between the chair of the parliamentary Work and Pensions Committee, Frank Field, and a top HM Revenue and Customs (HMRC) official.

It is understood the MP had received dozens of complaints from drivers registered with the firm as self-employed.

He then raised the issue with the tax authorities.

One courier, from Manchester, told The Guardian newspaper she earned £3.50 per hour after expenses.

The company has denied breaking any laws.

Mr Field, who is also locked in a bitter, separate, row with former BHS owner Sir Philip Green over treatment of staff, said he believed Hermes was "enforcing" a bad deal for drivers.

His office said executive chairman of HMRC, Edward Troup, replied to Mr Field on the issues raised: "Individuals cannot be opted out of employment rights, and protections, simply by calling them 'self-employed'.

"We are committed to tackling false self-employment.

"We have referred (your dossier) to the appropriate compliance teams for consideration.

"It is possible to be self-employed for tax purposes, but still be classed as a worker for the national minimum wage.

"If we find that companies have misclassified individuals as self-employed, we will take all necessary steps to make sure that they pay the appropriate tax, national insurance contributions, interest and penalties."

Uber and Sports Direct are among other high profile firms to be embroiled in similar rows over pay.

The MP said he welcomed the promise of extra Government cash to police these types of employment issues.

"Clearly the Government is girding its loins for a serious fightback against those companies trying to wriggle out of their obligation to pay the minimum wage by enforcing 'self-employment' on their workers," Mr Field said.

"The Prime Minister has set companies the task of delivering a decent minimum for their workers, and companies now know they will be caught out if they jeopardise this effort."

Hermes told Sky News: "Hermes employment practices were reviewed by HMRC in 2011 and we remain confident that our service agreements with couriers are legitimate self-employment.

"We will fully comply with any investigation should there be one," the firm added.