Hermes in the sights of tax inspectors

The tax man has been asked to look at delivery company Hermes, after self-employed couriers made allegations of low pay when working for the firm.

Business minister Margot James has asked Her Majesty’s Revenue and Customs to consider investigating the privately-held company “proactively”, after the allegations of unfair working practices were made by the company.

The around-10,500 self-employed drivers used by the company are paid per parcel - a common method of remuneration in the industry - and any investigation will be into whether Hermes is in the right in classifying its drivers as self-employed.

Self-employed contractors are not legally entitled to the new National Living Wage, as that only applies to direct employees.

Hermes Group has been in the spotlight in recent months, with couriers telling the Guardian in July that some were earning pay as low as £5.50 an hour - far below the National Living Wage of £7.20 an hour.

The Sun has also reported claims that one couple was threatened with losing their delivery rounds if they did not return to work, even though they were at the bedside of their six-year-old son in hospital.