In this week’s Enews, we look at action taken against employers who fail to comply with the National Living Wage (NLW). There is also news on measures to make small firms more energy efficient and advisory fuel rates for company cars to update you on.

• HMRC names and shames over 500 employers for failing to pay NLW
• HMRC Small firms held back from energy efficiency by upfront costs
• Advisory fuel rates for company cars

HMRC has named and shamed over 500 UK employers for failing to pay the National Living Wage (NLW) or the National Minimum Wage (NMW).

The employers will now be forced to repay over £7.4 million to nearly 60,000 workers who had been left out of pocket.

Employers who left nearly 60,000 workers over £7.4 million out of pocket must now repay their employees.

The rates for NLW increased to £12.21 an hour on 1 April and the government says this put £1,400 into the pockets of full-time workers on NLW.

Justin Madders, Minister for Employment Rights, said:

‘There is no excuse for employers to undercut their workers, and we will continue to name companies who break the law and don’t pay their employees what they are owed.

‘Ensuring workers have the support they need and making sure they receive a fair day’s pay for a fair day’s work is a key commitment in our Plan for Change. This will put more money in working people’s pockets, helping to boost productivity and ending low pay.’

Internet link: GOV.UK

Small firms are keen to become more energy efficient, but they are being held back by the high upfront cost of green investment, according to the Federation of Small Businesses (FSB).

The FSB has outlined a path to help cut carbon emissions and costs for small firms in a report.

The FSB’s report found that small businesses are keen to make investments in sustainability and to become more energy efficient through reducing their carbon footprints.

The business group says small firms across the country should be given access to the Business Energy Advice Service, which offers tailored support including free energy assessments and match-funded grants for improvements.

It also says that future solar panel grant support offered by the government should be available to commercial properties as well as domestic properties.

The current VAT zero rate for installing energy-saving materials should include commercial premises, the FSB adds.

Tina McKenzie, Policy Chair at the FSB, said:

‘The incredible inventiveness and entrepreneurialism among the small business community will be a powerful tool when it comes to cutting carbon, growing the green economy, and hitting the country’s net zero targets – if small businesses are given the tools and support they need to thrive.

‘The sustainable economy has absolutely enormous potential for growth in coming years. This is growth that we as a country need, and small firms must be given the chance to benefit from the opportunities on offer.’

Internet link: FSB website

New company car advisory fuel rates have been published and took effect from 1 June 2025.

The guidance states: ‘you can use the previous rates for up to one month from the date the new rates apply’. The rates only apply to employees using a company car.

The advisory fuel rates for journeys undertaken on or after 1 June 2025 are:

Engine size	Petrol
1400cc or less	12p
1401cc - 2000cc	14p
Over 2000cc	22p

Engine size	Diesel
1600cc or less	11p
1601cc - 2000cc	13p
Over 2000cc	17p

Engine size	LPG
1400cc or less	11p
1401cc - 2000cc	13p
Over 2000cc	21p

HMRC guidance states that the rates only apply when you either:

• reimburse employees for business travel in their company cars
• require employees to repay the cost of fuel used for private travel.

You must not use these rates in any other circumstances.

The Advisory Electricity Rate for fully electric cars is 7p per mile.

If you would like to discuss your company car policy, please contact us.

Internet link: GOV.UK AFR