Professional December 2022 – January 2023

in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 86 December 2022 – January 2023

CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT

cipp.org.uk

Payroll Outsourcing Services Accurate, Compliant and Secure

01276 456902 sales@frontiersoftware.com www.frontiersoftware.com

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You, our members, are at the heart of everything we do at the CIPP, and this issue of Professional is all about celebrating you. Samantha O’Sullivan MCIPPdip, policy lead, the CIPP

Editor’s

comment

Well, I can’t quite believe I’m writing this, but welcome to the final issue of Professional magazine for 2022. What an absolute whirlwind of a year it’s been. Payroll professionals have well and truly been kept on their toes, with an array of changes to National Insurance and the not so mini ‘mini-budget’, which announced huge

changes to policies, many of which were scrapped within just a few weeks. But, as always, the industry has handled the turbulence with aplomb. I’m super excited about this issue, as the theme is ‘ the member takeover ’. I’ve reached out to you guys, our members, to take content directly from you and to shape this entire issue. After all, this magazine is one of your membership benefits, and I want to include your voices as much as possible. Look out for the ‘member takeover’ area of the magazine, to read about the new payroll anthem everyone is singing (page 22), how to keep up with ever-changing legislation (page 32) and the top three soft skills all payroll professionals should possess (page 36). There’s even discussion of a tool you can use to manage change in the payroll department, on page 28. More widely, the policy and research team has tried to become more visible and approachable over recent months. To build on this strategy, our hot topic this month focuses on all the work the policy team carries out on behalf of CIPP members and the wider payroll profession. Be sure to flick to page 54 to read all about it. All that’s left to say is, merry Christmas and a happy new year. I personally can’t wait for another jam-packed year for payroll professionals in 2023 and beyond, and Professional magazine will be here to keep you all up to date.

Lora Murphy ACIPP (editor@cipp.org.uk) Editor

22 - A new payroll anthem By Nick Day

28 - Exploring the DMAIC approach to change By Ellis Rees

32 - Keeping up to date with payroll legislation: challenges and resolutions By Jake Shergold

36 - Top three soft skills for payroll professionals By Kelly Blake

54 - Hot topic – the policy team: here for you By Samantha O’Sullivan

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

Editor Lora Murphy 0121 712 1018 | lora.murphy@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd

Chair’s

message

With Christmas upon us and the new year not far behind, this issue is all about you, our members. Many of you have shared your stories with us to feature and take over the magazine. With the power of this voice, we can continue to raise the profile of our profession, working with partner organisations, networking with likeminded individuals and talking to government bodies to help shape the future. These are just some of the many ways we can help to encourage change. Read about some of the payroll careers of your peers and how they keep up to date with the ever- changing nature of payroll. The articles in this issue will resonate with you and help you in your roles. We’re always looking for additional content from our members, so if you’ve got the writing bug, then get in touch! As Ken announced last month, he is retiring in 2023 after successfully leading the Institute for what will be nearly eight years. Recruitment for a new chief executive officer is now well underway with the closing date for applications being 9 January 2023. Wishing you a very merry Christmas and a happy and prosperous 2023.

Chief executive officer Ken Pullar FCIPP CIPP board of directors Louise Gray ChMCIPPdip

Stuart Hall MCIPPdip Helen Higson ACIPP

Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Katie Sharpe MCIPPdip Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA

Liz Lay MSc FCIPPdip FHEA ACIPD (liz.lay@cipp.org.uk) Chair, CIPP

Useful contacts

Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk

CEO’s

message Well, hopefully you’re all preparing for a break over the forthcoming Christmas and new year period. With all the policy announcements during September and October (what was out, what was back in again!), hopefully the autumn statement (which, due to editorial deadlines has literally just been

delivered) hasn’t introduced more challenges before your break. November saw us host our final physical event of the year, the excellent Graduation Ceremony, which was held at the Symphony Hall in Birmingham on 4 November where, once again, we celebrated payroll and pension success. It’s an event I personally enjoy very much. It’s fantastic seeing payroll and pension professionals being recognised as worthy holders of a qualification that represents an industry benchmark, surrounded by friends and family. A very well done again to all! In addition to celebrating with each of you, the CIPP also celebrated its own successes, being recognised within the Best Companies to Work For. The ceremony took place on 2 November and the CIPP was named within the Top 100 Small Businesses to Work For in the UK, within the Top 75 Best Companies to Work For in the West Midlands and within the Top 5 Best Not-For-Profit Organisations to Work For. I thank all colleagues here at the CIPP for their contribution towards achieving this recognition. As this is a joint issue for December 2022 / January 2023, you may be reflecting on the year gone by and the successes achieved. You may also be considering what you’ll look to develop in the new year. Why not join the class of 2022, and over 15,000 graduates before them, and consider studying towards a professional qualification in payroll or pensions? Or, if you have achieved the Foundation Degree, why not consider progressing to the BA(Hons) or MSc and find out how much value they can add to your career? Finally, on behalf of all the team and board here at the CIPP, I wish you a well-deserved break over the Christmas and new year period. May it be spent with family, friends and loved ones.

0121 712 1013 cipp.org.uk @CIPP_UK

Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2022. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.

Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP

| Professional in Payroll, Pensions and Reward | December 2022 – January 2023 | Issue 86 2

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at cipp.org.uk

Contents December 2022 – January 2023 FEATURES REGULARS

01 Editor’s comment 02 Chair’s and CEO’s message 04 CIPP update Events, news and developments 05 My CIPP On your behalf, Payroll news (autumn statement special), Spotlight on, Advisory Q&As 10 Personal development BePayroll 11 A tribute to David Laking

Top three tips: how to make year-end a great experience By Billy Meyerkorth

The CIPP’s technical panel talks AMAPs, cost-of-living and government changes By the CIPP’s policy and research team

Changes to working practices By Beverley Gibbs

Early PAYE returns met with a late filing penalty By Justine Riccomini

online exclusive content

Did you know…? Christmas deadlines

Automation vs advice: the big payroll battle By Amy Johnson

By the CIPP’s policy and research team

online exclusive content

Let’s celebrate payroll By Lucy Foster

My payroll journey By Debbie Donnelly

Gordon Cresswell pays tribute to one of the great influencers in the development of the payroll industry

13 Compliance

What did the CIPP’s technical panel discuss at its latest meeting?

Life Choices By Rona Betts

My life in payroll By Emma Sumner

21 Member takeover

CIPP members hijack Professional’s pages in this special issue

40 Feature topic

What’s 22 years between friends?

The importance of the global payroll function By Irina Bozhkova

Read all about this issue’s feature topic

By Don Macarthur

44 Reward

Read all about the latest employment law cases

Feature topic – the member takeover By Jerome Smail

Lateness, Covid, political opinions By Nicola Mullineux

48 54 56

Pensions What happened with pensions following September’s ‘mini-budget’?

Hot topic What does the policy team do for you, CIPP members, and the wider payroll profession?

Review, retain, repeal: what will employment law look like by the end of 2023? By Danny Done

Are you asking yourself if your company pension is safe? By Henry Tapper

Payroll pets We say hello to some of your furry friends

| Professional in Payroll, Pensions and Reward | 3

Issue 86 | December 2022 – January 2023

CIPP update

Best Companies Awards 2022 WE’RE DELIGHTED to announce that further to the awards ceremony on 2 November, we have received the following places in the ‘Best Companies to Work For’ league tables: The UK’s Best Small Companies – national award l we came 80 out of 100, a jump up from 89 last quarter l we achieved a 1-star accreditation, which means we have ‘very good’ levels of engagement across our teams. The West Midlands Best Companies – regional award l we came 55 out of 100, again a move up from 58 last quarter. The Not-For-Profit – sector award l we came fifth out of 28 in this category, up from ninth last quarter (quarterly award) l last year, we came seventh out of ten (annual award). A huge thank you to the whole CIPP team – this is a real testament to all their hard work and we’re very proud.

Investors in People (IiP) Awards 2022 AS YOU may have already seen across our social channels, we’re also extremely excited to let you know that we were shortlisted for the 2022

IiP Awards for UK Employer of the Year: Silver. The ceremony took place at Old Billingsgate, London on 15

November. While we did not win the award, we’re still delighted to have been shortlisted. In October, Dr Sue Smith, education director, and Karen Boffey, executive personal assistant, (pictured) also supported a local IiP celebration in Solihull. The event was an opportunity to hear from keynote speakers, sharing their accreditation stories and how they plan to progress to the next level, as well as building new relationships with other professionals in the local area, who have also just achieved accreditation.

Casual workers and holiday pay webinar – ends in January SINCE THE Supreme Court ruled that accrual rates such as 12.07% cannot be used to calculate annual leave, it’s more essential than ever that anyone in charge of administering holiday leave and pay understands these complex rules. In response to this ruling, we created a one-hour online training course, to ensure everyone is confident with the rules. It’s been fantastic to welcome so many of you to this training over the last few months, but it’s running for a limited time only and finishes in January. To book your place, please visit our website: http://ow.ly/lI6P50LvNui

THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test payroll processing and compliance, along with people skills and development opportunities. One of the most crucial elements is ensuring business continuity plans are in place and effective, should they be required. Congratulations to all organisations that have achieved this accreditation and been able to put those plans into action. Special congratulations to our recently accredited organisations: l Livepay l NHS Payroll Service Northumbria NHS Foundation Trust (reaccreditation) Ken Pullar, CIPP chief executive officer, said: “Congratulations to those organisations that have attained PAS accreditation. They’ve clearly demonstrated their sound payroll processes, knowledge and skills. This is imperative in the payroll profession, as reacting quickly to ever- changing legislation and guidance is crucial.” Testimonies We reported how the Independent Parliamentary Standards Authority (IPSA) and Portsmouth City Council recently received PAS accreditation in the November issue of Professional . Speaking about the accreditation, Nicola Mullins ACIPP, head of payroll at IPSA, said: “I was so excited to receive confirmation that we had passed the PAS. For a while, it’s been an ambition of mine to gain this accreditation, and now it’s a reality. Our department is unique within payroll and it’s so important the team get the recognition they deserve. This accreditation reflects the knowledge and expertise within the team and will help reassure our customers of the quality of the service we provide. I’m extremely proud of what we do here at IPSA, and the dedication and commitment the team demonstrates to achieving our goal. Thanks to Don for his careful assessment, he was a real pleasure to have on site.” Payroll and pensions manager at Portsmouth City Council, Monica Howson MCIPPdip, commented: “It’s important to us, as a provider of payroll services to both internal and external clients, that our customers are aware of our dedication and commitment to providing a certain standard of payroll and pension services. Undertaking and achieving the PAS has certainly given the team the confidence that their payroll and pension service is valued. The process was very well organised, and some would say an enjoyable experience. My advice to those considering going for accreditation would be to give as much information as possible – this helps the process go smoothly, with great advice from the assessors. This will be a valuable selling point when tendering for new contracts to external clients but also for current clients to have confidence in our abilities to provide a gold standard service for both payroll and pension services.” l IRIS Fully Managed Payroll ( Stockton ) l The Access Group (reaccreditation) .

To find out how the PAS can benefit your organisation, email compliance@cipp.org.uk

| Professional in Payroll, Pensions and Reward | 4 December 2022 – January 2023 | Issue 86

POLICY HUB

On your behalf

There has been a flurry of events in November for the CIPP’s policy and research team. Read on to find out what they’ve been doing to serve CIPP members and the wider payroll industry Policy team update

Graduation Ceremony 2022 The policy team attended the Graduation Ceremony at the prestigious Symphony Hall, in Birmingham, on 4 November 2022. This is always a lovely event, and it’s amazing to see those individuals who have worked so hard (often around jobs / parenting duties, etc.) celebrating achieving their qualification. The team got to chat to the graduates and to congratulate them on their successes. The Graduation supplement is available to view online.

l long-Covid l statutory sick pay l the Equality Act 2010. Events

l travelling expenses l temporary workplaces l employee expenses related to working from home l which expenses are tax-free and which ones need to be taxed. Net pay action group The policy team sits on 22 government forums and working groups, one of which is the net pay action group. This team of stakeholders discusses the anomaly that occurs when people are placed in a net pay arrangement pension scheme, but earn below the personal allowance for tax, so don’t receive the tax relief they’re entitled to. The government consulted on this issue, and in its response confirmed that HM Revenue and Customs (HMRC) will pay a top-up to resolve this, in respect of tax year 2024/25 onwards. The net pay action group has sent a letter to the financial secretary to the Treasury to raise some concerns about the plans to make top-up payments. Although the group welcomes the action to remove this unfair anomaly, the issues below remain: l if the payments are treated as earnings, recipients of the top-up payments could be left in a better position than those paying into relief at source pensions, so the payments should instead be treated as tax refunds l potential impacts on universal credit l legislation states that HMRC has the responsibility for making the top-up payments, but individuals should also be able to claim where HMRC hasn’t proactively made the payment, and to appeal an HMRC decision not to make a top-up payment l given the current cost-of-living crisis, the implementation of top-up payments should be accelerated, and the payments backdated to before the 2024/25 tax year. n

Face-to-face events restarted following the shut down caused by Covid,

and they haven’t stopped ever since! November was no exception, and the team were up and down the country, imparting payroll knowledge wherever they went. First up was the Payroll Services Summit, held on 10 November 2022. Both Mathew and Samantha O’Sullivan, policy lead, travelled to London to attend this event. This was a unique opportunity for payroll services providers and those interested in the sector to network and watch topical presentations on things such as financial well-being, careers and payroll updates. It was a great event. Our busy bee, Sam, then attended the Zellis User Summit, held in Birmingham on 22 November 2022. Vickie Graham, our business development director, also joined, and delivered a presentation with Sam on ‘Payroll in 2023 and beyond’. This thought-provoking and insightful session explored the findings of the CIPP's most recent Future of Payroll Survey . This involved looking at how the role of payroll has changed post-pandemic and what the latest trends and employee engagement initiatives are, to highlight the strategic role payroll plays within organisations. Next up was the Accounting Web Expo, held in Coventry, on 30 November 2022. Guess who attended?! Yes, it was Sam again and this time, she was discussing the implications of working from home. The workshop was designed to assist attendees in navigating the complexities of expense claims for employees working from home. Topics of discussion included:

BeKnowledgeable series resumes We welcomed back the BeKnowledgeable series with a bang, following a brief hiatus due to National Payroll Week and our Annual Conference and Exhibition in September and October. Mathew Akrigg, policy and research officer, hosted a session on 8 November 2022, which focused on the very topical theme of financial well-being. The panel of experts consisted of employers who have all implemented financial well-being initiatives in their workplace, and included: l Natalie Jutla, DEFRA l Andrew Dunlop, Nestle l Matthew Day, John Lewis Partnership. The session was very well received and there was lively discussion between attendees within the chat. The next instalment of BeKnowledgeable takes place on 7 December 2022, and this time, representatives from the Advisory, Conciliation and Arbitration Service, or ACAS, will be discussing:

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

Payroll news

ON 17 NOVEMBER 2022, chancellor of the Exchequer, Jeremy Hunt, delivered the autumn statement. At the time of writing, the statement had only just been given. The CIPP’s policy and research team will be keeping an eye out for future updates relating to the announcements and publishing further information as and when it’s available. As a starting point, here are the key announcements for payroll professionals to be aware of:

Tax l from April 2023, the threshold at which people pay the additional rate of income tax (charged at 45%) will be lowered from £150,000 to £125,140 l the government will maintain the current freeze on income tax personal allowance and higher-rate tax thresholds until April 2028 (this was originally due to be in place until April 2026, meaning an extension of two years). National Insurance (NI) l the primary threshold, secondary threshold, upper earnings limit, upper secondary threshold, apprentices upper secondary threshold, veteran upper secondary threshold and freeports upper secondary threshold all frozen until April 2028 l the employment allowance will remain at £5,000. National minimum wage (NMW) / national living wage (NLW) l the government is accepting the recommendations of the Low Pay Commission, in terms of increases to the NMW and NLW. The table below shows the new rates for use from pay reference periods beginning on or after 1 April 2023, along with the associated percentage increases.

Rate from April 2023 Current rate (April 2022 to March 2023) Increase

NLW

£10.42 £10.18

£9.50 £9.18 £6.83 £4.81 £4.81 £8.70

9.7%

21-22 Year Old Rate 18-20 Year Old Rate 16-17 Year Old Rate

10.9%

£7.49 £5.28 £5.28 £9.10

9.7% 9.7% 9.7% 4.6%

Apprentice Rate

Accommodation Offset

Pensions l the triple lock will be honoured in 2023, meaning that the state pension will increase in line with inflation, by 10.1%.

HM Revenue and Customs (HMRC) l a further £79 million will be invested over the course of the next five years to allow HMRC to allocate more staff to tackling cases of serious tax fraud and address tax compliance risks among the wealthy.

The policy team’s full autumn statement document can be found here: http://ow.ly/6eiT50LI2Ln.

Diary dates

Last day for submitting a real time information employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

19 December

22 December

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 January 6 January

Last day of tax month 9 First day of tax month 10

Last day for submitting a real time information employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method

19 January

22 January (this is a weekend date)

Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

5 February 6 February

Last day of tax month 10 First day of tax month 11

| Professional in Payroll, Pensions and Reward | December 2022 – January 2023 | Issue 86 6

Y CIPP

Spotlight on...

Daniel Cull ACIPP Business development executive

Tell us a little about your career and background so far. I started my career in B2B sales over a decade ago in the recycling and building services industries. After years of surveying buildings and materials in cold industrial estates around the UK, I decided a warmer working environment was very much needed. I heard the CIPP was looking to expand its sales team and thought I might be a great fit, and fortunately I was! I joined the CIPP in 2019, where I soon discovered this role was unlike my previous sales roles, as we were there to support payroll professionals and CIPP members across the range of training, qualifications and events we offer. In 2021, I was promoted to business development executive, which definitely keeps me on my toes. What are your main priorities as business development executive? My role is to directly deliver sales across the CIPP’s advertising and sponsorship products and services. The most important aspect of my position is to maintain, nurture and develop existing relationships with key accounts, and introduce the CIPP to new and developing companies.

In your role, you attend lots of events and network with professionals throughout the industry; what could sponsoring with the CIPP offer them? Our members and customers are key decision makers within the payroll, pensions and rewards professions, and CIPP sponsorship provides a range of opportunities for businesses to engage with them. The CIPP is renowned for running some of the largest events in the UK payroll industry, such as our flagship Annual Conference and Exhibition, the Annual Excellence Awards and NPW. These events provide an invaluable opportunity for professionals to educate, collaborate and celebrate all things payroll, pensions and reward. We offer sponsorship and bespoke advertising packages based on your objectives and business needs. So, if you’re interested in reaching out to our unique membership base, but don’t know exactly what you need, contact me and we can work together to create a package that works for you. n

If there’s any payroll event, you can also expect to see me close to the CIPP stand or busy networking, as I love nothing more than getting out and meeting people. What does your role mean to you? My role is a great fit for my personality, as I get to interact with members and sponsors daily. This means that no two days are the same and I get the opportunity to work with industry leaders on a variety of topics for our members and the industry as a whole. I work closely with the marketing, sales, membership and events teams at the CIPP to ensure I’m up to speed on everything across the organisation, which allows me to deliver excellent customer service. Coordination of sponsorship packages is also essential to the success of my role and as you can imagine, it’s extremely busy, especially when it comes to our headline events, such as National Payroll Week (NPW) and our amazing Annual Conference and Awards. As the Chartered Institute, we’re always looking for the best ways to support our members and listen to their feedback. In my role, I’m privileged to be able to do this day in, day out.

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

MY CIPP

The CIPP’s Advisory Service team provides answers to popular questions

Spreading backdated payments over several pay periods Q: An employee had a pay award backdated to 1 April 2022. To ensure there’s no adverse impact on the employee’s entitlement to, and amount of, Universal Credit, we’re planning to spread this over four months. Is this acceptable? A: A pay award would be settled and agreed by unions, management and the rest of the workforce, with an agreed date for making the payment of arrears. To subsequently split those arrears over several pay periods may be a breach of the agreement and give a false interpretation of income to the Department for Work and Pensions (DWP). The DWP should be contacted in this scenario to discuss the situation. Apprentice national minimum wage (NMW) Q: If someone is in their first year of employment as an apprentice but their official apprentice course hasn’t started, can they still be paid at the apprentice NMW rate? As an example, we had a new starter from 7 September 2022, but their college course didn’t commence until 7 October 2022. A: To pay the apprentice NMW rate, the worker must be employed under a contract of apprenticeship as specified in the National Minimum Wage Regulations 2015, Regulation 5: http://ow.ly/ CAER50LCokT. The contract should confirm the date the apprenticeship programme begins. It’s from this date (normally in September), that the apprentice rates of NMW would apply. If you’re employing an individual

National Insurance (NI) changes Q: We know that NICs rates reduced by 1.25 percentage points from 6 November 2022. Is this going to be backdated to 6 April 2022, when it was first introduced, or does the reversal only take effect from 6 November 2022? A: The NICs rates reversal is effective from 6 November 2022 and applies to the percentage only. This is not to be backdated. Some employees may not benefit immediately from the in-year reduction in NICs rates if their employer is unable to update payroll software before 6 November 2022 — these employees should receive the benefit retrospectively once updates have been applied. Payslip messages which may have related to the NICs rate increase in April must be removed from payslips for pay periods in which the NICs rate has been decreased. Tax and NI treatment of training courses for employees Q: We wish to reimburse an employee for a training course. Section 250 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 suggests this can be exempt from tax if it doesn’t reward the employee and is required for the role or designed to ‘improve or reinforce any knowledge, skills or personal qualities’ they would use when performing the role. We want to reimburse a percentage. Can we reimburse this sum free from tax and NICs? A: Yes, employer-provided training which is for the benefit and improvement of employee skills that relate to their position in the company could be reimbursed free of tax and NICs.

prior to the beginning of an apprenticeship programme, NMW rates based on age would apply. It would be advisable to liaise with an employment law advisor if the contract isn’t clear with regards to this.

When is the apprentice NMW rate applicable?

Pay as you earn (PAYE) settlement scheme (PSA) computation deadline Q: What’s the PSA computation deadline date?

A: There’s no concrete guidance on the computation deadline date but payment is due by 19th October, or 22nd October, if paying electronically, so the computation must be submitted by then. The PSA1 form stipulates, “You can use this form to tell us the value of the items included in your PAYE Settlement Agreement. Please tell us as early as possible so that we have time to check your figures and agree the amount of tax and National Insurance contributions (NICs) due.” The PSA1 form can be found here: http://ow.ly/2l8v50LqsCn.

| Professional in Payroll, Pensions and Reward | December 2022 – January 2023 | Issue 86 8

ONLINE LEARNING

POLICY HUB

This course gives a high- level overview of the day to day obligations of the payroll function, including the fundamentals of payroll, statutory and voluntary payments, and deductions. The CIPP’s Recognition of Prior Learning (RPL) online assessment uses evaluation of existing skills and knowledge to help you move straight onto year two of the Foundation Degrees. Book your place for £595+VAT at cipp.org.uk/study Payroll for non-payroll professionals Fast track your learning Are you looking to progress faster through our Foundation Degrees in either payroll or pensions? Do you have at least two years’ experience as a payroll or pensions professional? Duration Two consecutive half days

l an employee applies to remain in the UK and the organisations pays for this, would that attract tax? A: HMRC guidance states that an employee who comes to the UK from abroad may be entitled to tax relief, providing they satisfy the conditions stipulated below. If an employee is entitled to tax relief under these rules for the full cost of a journey, the cost of any visas needed for that journey are also eligible for tax relief. Taken from http://ow.ly/bsaC50LCmMz: “People from abroad coming to work in the UK 7.8 An employee is entitled to tax relief under these special rules only if they meet certain conditions. To decide whether an employee is entitled to tax relief under the special rules it’s necessary to find out on what date they came to the UK to work, work out which tax year that date falls into, and ask was the employee: l resident in the UK in either of the 2 tax years which ended before the tax year in which that date falls? l in the UK, for any reason, at any time in the 2 years ending on the day immediately before that date? If the answer to either of these questions is ‘no’, then the employee is entitled to tax relief under the special rules. If the answer to both of these questions is ‘yes’, then the employee is not entitled to tax relief under the special rules. Extra costs of foreign travel 7.10 Where an employee is entitled to tax relief under the special rules on foreign travel for the full cost of a journey, they’re also entitled to tax relief for the cost of any: l inoculations needed for that journey l visas needed for that journey.” n

The exemption in Section 250 of ITEPA 2003 removes any tax charge where an employer, or a third party, incurs expenditure on work-related training for employees. It doesn’t matter whether the employer directly incurs the expenditure or reimburses the employee’s expenditure. The exemption covers amounts that would otherwise be taxable as earnings, as benefits or under the vouchers rules. Please see http://ow.ly/3pJo50LCiuw and http://ow.ly/nc2U50LCiGz for reference. Benefits in kind (BIKs) for employees on maternity leave or sabbatical Q: Do you have any information regarding entitlement to BIKs for employees on maternity leave or sabbatical? A: Employees on maternity leave have protected rights and are entitled to the same terms and conditions as when they were at work. This would mean that entitlement to any BIKs would continue. For employees on sabbatical, this would depend on whether their employment was treated as continuous employment when on sabbatical leave or not. This would be agreed between employer and employee prior to the period of the sabbatical leave. The contractual agreement would need to be reviewed to assess whether the employee would still be entitled to the BIKS they enjoyed prior to their sabbatical leave while they’re away. Tax and NI treatment of visas Q: If we have new starters coming to the UK, who need a visa, which the organisation will pay for, is this subject to tax deductions? Is this different if: l we renew an employee’s visa three or four years down the line? If the organisation pays for that, and the employee is living in the UK, would that attract tax as normal earnings?

Visit cipp.org.uk/training to book your place

Non-members price: £449.00 + VAT Members price: £349.00 + VAT

Scan to book

What are the tax implications for employers who pay for employee visas?

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

PERSONAL DEVELOPMENT

# Be Payroll Cathy Wilson MCIPP, payroll and fleet manager at Flagship Group, shares why she became a member of the CIPP and how it’s helped throughout her career

Why did you choose to become a member of the CIPP? Membership of the CIPP helps me to remain connected to other payroll professionals, and to gain advice or keep up to date with current news. My CIPP membership has helped me promote my experience and enables colleagues and organisations to recognise the value of my expertise. How has your membership helped you in your career? My membership has helped me to remain current with payroll updates and helps me to consider their impacts on the organisation I work for, and in research for my PhD. What membership benefits have you used or enjoyed the most and can you give me some examples? The CIPP’s Payroll Reference Book has been invaluable to me as a point of quick reference, and useful to train other employees. Membership has also helped me to realise the payroll profession is one to be proud of, and as a payroll professional you’re required to have, and maintain, various skills and diverse experiences. This is to help you understand payroll from not only a transactional financial perspective, but also from a personal human resources (HR) ‘people’ perspective. Can you describe your payroll journey to us so far? After completing my MSc Business Management Degree with distinction from The University of East Anglia, I started working in HR in public sector education in October 2017. This is a sector in which HR departments tend to be responsible for payroll. I learned to process monthly payroll there on MHR iTrent, and was promoted to deputy payroll and pensions manager, therefore specialising in payroll, in June 2019. This position is where I gained the necessary skills to process end-to-end payroll, administer pension schemes effectively and improve processes and procedures. This was also the position in which I finished my Level 5 Chartered Institute of Personnel Development HR Diploma. I’ve found this useful in both my HR and payroll experiences, as I consider payroll to be a ‘people process’, that is, a highly personal and important process integral to the lifeblood of any organisation. Throughout the pandemic, I gained further experience with a private sector food manufacturer, processing weekly payroll on Frontier software, and then a different education establishment, back on MHR iTrent. I started working as payroll and fleet manager for a social housing company in April 2022, where I manage three end- to-end monthly payrolls with two administrators, along with a

fleet of 260+ company cars. Alongside my work experience, I’m researching for my PhD at The University of Essex, with my thesis regarding the effects of Covid-19 on the gender pay gap in the UK theatre industry. My part-time job revolves around theatre and performing; therefore, my research combines all my work and highlights my passion for equality for all. What are your hopes for your future career? Once I’ve completed my PhD, I intend to continue researching in the form of a post-doctorate, and then work as a researcher, likely with a focus on gender and equality. I also intend to remain in my current position as payroll and fleet manager and maintain the balance I have between my ‘on the ground’ work and my research. However, I’m excited to see where both paths take me, and what the future holds, to become the best I can within my role. Do you have any plans to study any CIPP qualifications or training course? I don’t have any current plans to study a CIPP qualification, however, I intend on taking a post-doctorate after graduating from my current PhD course. What advice would you give to those new to the payroll profession who are just starting out in their careers? Payroll is an integral part of any organisation, and it’s essential that its importance and highly personal nature is understood. I’ve worked in payroll positions based in both HR departments and finance departments; however, I see payroll as a mix between the two and a sub-department in its own right. Communication is key in payroll, and it’s important to work towards solutions that are right, both morally and ethically, and to consider impacts of decisions, and process changes, before implementing them. School education doesn’t always teach skills in understanding payslips, tax codes and pensions, therefore, ensuring the employees / clients you pay understand their pay and any changes, is of the utmost importance. This will help you create and maintain strong and useful communication channels. My main piece of advice to new payroll professionals would be to have the confidence to speak up and ask why when you’re unsure. In payroll, we don’t normally hold responsibility for any decisions, but we do have to implement changes from others’ decisions, and sometimes explain them to employees. Asking why, holding the critical lens up to those in power, and ensuring choices are moral, legal and ethical is essential. n

| Professional in Payroll, Pensions and Reward | December 2022 – January 2023 | Issue 86 10

David Laking Honorary Fellow CIPP 2 November 1941 – 27 September 2022

Gordon Creswell FCIPP reflects on the career of one of the great influencers in the development of the payroll industry

I n 1984, Trevor Lakin (co-founder of the CIPP), motivated by the public sector body, the Association of Payroll and Superannuation Administrators’ (APSA’s) refusal to admit private sector members, asked his boss, David Laking of Peterborough Software, if the company would set up a private sector payroll association. David declined on the grounds it may be seen as a marketing ploy by Peterborough Software but agreed they would support such a venture. This was a pivotal decision for our organisation. At that time, Peterborough Software was developing into the leading and most successful payroll software house of the 80s and 90s. David provided access to marketing, administration resource, finance and personally gave Trevor guidance on how to become a company secretary, a role David then held for Peterborough Software. Only those of us around at the time can fully appreciate, not only the importance of this, but also the the impetus generated by David’s personal guidance to those of us striving to get the organisation off the ground. Because Peterborough Software provided sponsorship, other software houses began to see the benefits and opportunities of becoming involved with the payroll movement. This led, among other things, to the prestigious industry awards given each year at the CIPP Annual Excellence Awards dinner. Later, when Trevor suggested to me that he and I set up in business, I remember thinking that maybe we could be like David. I worked in local government at the time and Trevor worked in sales

Africa and Paris. In 1996, The Independent newspaper reported that Peterborough Software was the clear market leader, with 73 of the top 100 companies and 20% of the UK working population paid through its systems. Also, in 1996, the company was launched on the stock exchange as part of The Rebus Group. David became the main voice of the company with the press and proved very popular with both the nationals and vertical publications including: ● The Times ● Financial Times ● Telegraph ● Computing ● Computer News ● Computer Weekly ● Personnel Management. The journalists liked David’s open approach and always knew they would get an accurate and honest opinion, which would ultimately result in a decent quote for them. It was during this period that the Rebus Group became the largest software house in Europe, which was certainly no mean feat and probably the pinnacle point for the group. In February 1999, Warburg Pincus and General Atlantic Partners bought the Rebus Group and David remained as managing director of Peterborough Software until he retired. Always a meticulous planner, he called Trevor shortly before his death to ask him to prepare his eulogy, typical of the man to plan to the end … and beyond. We, at the CIPP, wish his wife, Margaret, well for the future and many of us remember a man of distinction with fondness and gratitude.

and training for David’s company. I had undertaken freelance training for David and had met him several times, always impressed by his clarity of thought and conclusive decision making. I happened to be in his office on the day that Peterborough Software featured on the front pages of the national papers because they were held responsible for the non-payment of staff at a London borough. David explained that the truth was his staff had worked round the clock to meet a very unrealistic deadline. But the borough staff had been working to rule on a nine-to-five basis and consequently work hadn’t been signed off, leading to the payroll failure. I asked if he would be issuing a press release to correct the facts. “No,” he said, “that would keep it in the papers and people may not believe it. I am going to throw resources at it and put it right so that when we are pitching for contracts and we are asked about it, I will say just ask the borough and they will have to say that they had problems, but Peterborough Software sorted it.” I remembered these wise words throughout my business career. David always supported the CIPP Graduation Ceremonies financially, but more importantly, by also making inspirational and supportive speeches to the assembled graduates and dignitaries, always praising our efforts but never mentioning his role. David started with Peterborough Software in 1972 as employee number five. Success followed success and David became the managing director, growing it to over 500 employees in the UK with offices in Australia, New Zealand, South

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

NEW TO PAYROLL AND WANT TO STAND OUT FROM THE CROWD?

Payroll Technician Certificate Designed for those new to payroll, or those who wish to improve their working knowledge of payroll processes, this qualification covers the core skills required to administer the payroll function. Payroll Technician Certificate - ADVANCED The Advanced certificate contains the same content as the Payroll Technician Certificate, plus three extra modules covering the following areas: Data protection and audit considerations, automatic enrolment and pension principles and administering salary sacrifice for payroll. Payroll Technician Certificate - TOP UP Designed for those who have already completed the Payroll Technician Certificate. This qualification top up offers a wider scope of working knowledge with the inclusion of the three additional modules from the ADVANCED certificate. The Payroll Technician Certificate meets the industry’s rapidly evolving requirements for knowledgeable payroll administrators.

Delivery

e-learning

Enrol today at cipp.org.uk/study/PTC

| Professional in Payroll, Pensions and Reward | December 2021 – January 2022 | Issue 76 17

COMPLIANCE

Top three tips: how to make year-end a great experience

Billy Meyerkorth CPP, owner and consultant of Billy Meyerkorth Consulting, provides his top three tips for dealing with year-end, to make the process smoother *

I t’s year-end already. If you’re new to payroll, then this will probably be your first experience with year-end. Don’t be afraid of this adventure. Stay calm, organised and focused, but be adaptable to change at any moment. Be ready to learn and make it a great experience. Year-end comes once a year but starts months before year-end and ends weeks to months after. Although you might not know what to expect, try not to worry about the nightmare stories you’ve heard from other payroll professionals. It doesn’t have to be a time to dread. Here are three top tips to avoid any stress and to help make your first year-end go a little smoother. 1) Start early The year-end process should start with a plan and should start early. Each company is different and has specific tasks to include in their year-end plan, so try to think of everything when you’re starting early. Everything may include, but not be limited to:

all information quickly. Other teams to keep open dialogue with, and to include in the process, are the communications department, information technology (IT), mail service and accounting. The communications department is responsible for delivering information to employees, while IT is there to help and provide technical assistance with loading new tax tables, Form W-2 printing or other system updates that may arise. The mail services team would need to be aware of postage and workload if Forms W-2 are printed and mailed internally. Finally, accounting can help with accruals and reconciliation issues or processes. The company’s size may mean there’ll be various other teams and individuals who’ll probably need to be involved at various levels of year-end. Year-end doesn’t have to be a bad thing. Think of it as an adventure and a huge, but amazing, goal to accomplish. Just focus, start early, reconcile, communicate and, above all, don’t be intimidated. You will survive like all the other payroll professionals who’ve done this for many years. Eventually, it’ll be a normal task in your payroll life and will come naturally as you gain more payroll experience. n

● Form W-2 preparation ● reconciliations. Prepare and accomplish tasks on your to-do list so it doesn’t all come at the very last payroll of the year. An example of something to accomplish ahead of time is taxable fringe benefit items. Why wait until the end of the year? Entering them early could eliminate grossing-up items and save time and money for the company. 2) Perform reconciliations The next thing to consider completing early are reconciliations. They should hopefully be completed during the year, but we all know these sometimes lose priority, and the ‘catch-up’ game must be played at year-end. You’ll still need to do your final year-end reconciliations but preparing these pay period / monthly / quarterly reconciliations ahead of time will make the year-end reconciliation a much easier task. 3) Keep open communication Determine who needs to be involved in the year-end process or project. It’s extremely important to keep open communication with human resources and other departments involved with year-end. This will help ensure you receive

● fringe benefits ● manual checks ● company vehicles ● group-term life insurance ● company aircraft ● bonuses

The American Payroll Association (APA), http://ow.ly/bPPQ50LsVZQ, is the nation’s leader in payroll education, publications and training. This nonprofit association conducts more than 300 payroll training conferences and seminars across the country each year and publishes a complete library of resource texts and newsletters. Representing more than 20,000 members, the APA is the industry’s highly respected and collective voice in Washington, D.C. Get more information at http://ow.ly/bPPQ50LsVZQ.

The Global Payroll Management Institute (GPMI), http://ow.ly/Yiv050LsW3t, spearheads the APA’s global initiatives to provide the world with a leading community of payroll leaders, managers, practitioners, researchers and technology experts. Subscribers connect with each other through networking discussions, collaborative opportunities and access to education and publications dedicated to global payroll strategies, knowledge, research, employment and training. GPMI also publishes several global payroll texts and white papers as a benefit to subscribers. Get more information at http://ow.ly/Yiv050LsW3t.

* This article relates to US payroll practices.

| Professional in Payroll, Pensions and Reward |

Issue 86 | December 2022 – January 2023

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