It has been reported that the HMR&C are eager to take action against non-compliant means of payroll, after targeting Pay Day by Pay Day tax relief platforms, their focus has also turned to clamping down on Elective Deduction Models (EDM). These non-compliant forms of payroll by-pass the required National Minimum Wage legislations put in place by HMR&C and have been found to be in place within some companies. Elective Deduction Models allow contractors to remain on self-employed contracts for services, whilst still being Taxed on their earnings. As the worker remains as self-employed they lose their entitlement to some employee rights including National Minimum Wage, Pension contributions, Holiday Pay, SSP and Notice Pay, avoiding the Agency Workers Regulations (AWR) and False Self-Employment Legislations. Companies that use this model avoid the National Minimum Wage requirements, to the disadvantage of the worker. Ultimately these workers, are self-employed for employment law purposes but employed for tax purposes. At ePayMe we pride ourselves in offering fully compliant payroll services to all our workers and agencies and have never offered either an Elective Deduction Model or Pay Day by Pay Day Scheme. If you have any further questions please contact a member of the ePayMe Team.