7:00 am, September 4, 2026
An independent garage has hit out at the government’s decision to name and shame it over a National Minimum Wage breach.
KIC Garage Services was one of several automotive firms to be included on a government list of employers found to have failed to pay staff the legal minimum.
Car Dealer reported yesterday that the Wirral-based business owed more than £600 to an employee, whose wages were said to have fallen below legal requirements.
However, a senior executive at the firm has now told Car Dealer that the underpayment was caused by an external accountant and was corrected within hours of it being raised.
The executive says that the issue related to a 17-year-old apprentice who was actually being paid 10% above the minimum wage.
The problem only arose when the youngster turned 18 in March and his pay was not upgraded as it should have been by the accountant.
The insider said KIC only became aware of the issue after receiving a letter from HMRC asking whether it was complying with National Minimum Wage rules.
‘We contacted the accountant and asked him to do some due diligence,’ he said. ‘He came back within a couple of hours and apologised that he hadn’t realised his age had changed.
‘We were informed that we had not underpaid him every month but we did owe the apprentice £620.
‘We transferred it the same day and the accountant altered the apprentice’s rate to above minimum wage again before the end of month.’
With the issue rectified, and the apprentice now on the correct pay, KIC had hoped that would be the end of the issue, but things did not finish there.
Around two weeks later the business received another letter informing it that HMRC would visit because officials believed someone had been underpaid.
The insider said HMRC questioned employees about a range of issues during the investigation, including time off, contracts and toilet breaks.
The company was then fined, £620 for the minimum wage error.
‘They really interrogated staff about all sorts – time off, contracts, toilet breaks etc etc,’ the insider said.
‘Employees were furious and one even told them to mind their own business. We look after our employees, we do things together. Everyone has a good salary.
‘We were fined £1,140 which was dropped to £620 if paid quickly. We did not owe nor were we underpaying the apprentice at that point.
‘We were fined as a business although the error was with an external accountant. We have since changed accountant.’
‘All an income for HMRC’
The firm has now hit out at how HMRC handled the case, saying they did not take into account the accidental nature of the offence.
The executive, who did not wish to be named, said KIC accepted that an error had been made, but felt the subsequent enforcement action failed to recognise that the employee had been paid back immediately.
‘The most annoying thing about all of this is that they weren’t really interested in us having made a mistake or that we had repaid him,’ he said.
‘They were more interested in us paying the fine immediately. It was all an income for HMRC in our case.’
Ministers yesterday defended the government’s decision to name and shame employers found to have breached National Minimum Wage rules, saying around £4m in wages had been repaid to more than 27,000 workers following enforcement action.
The government has also dished out penalties totalling £7m handed to employers including DIY giant, B&Q.
Business secretary Jonathan Reynolds said: ‘The best businesses know that looking after your workers isn’t just the right thing to do, it’s the smart thing to do, building the stronger, more successful businesses that drive growth in every postcode.
‘Most employers already understand this, and I want to work with them to ensure they have every piece of guidance and support available to help them follow the rules.
‘Short-changing your staff isn’t a shortcut to success and we are determined to stamp it out.’