Professional November 2024

KEEP YOUR COOL WHEN IT COMES TO COMPLIANCE PROFESSI NAL in Payroll, Pensions & Reward Issue 105 November 2024 Official publication of The Chartered Institute of Payroll Professionals

THE FUTURE OF PAYROLL Industry developments on the horizon

EMPOWERING PROFESSIONALS When and why payroll should refuse requests

GENDER PENSIONS GAP What’s happening in local government?

CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT

cipp.org.uk

“Acting after being asked is compliance. Acting without being asked is kindness” Ron Kaufman

Editor’s comment

Hello, Professional readers, and welcome to November’s issue of your favourite magazine! The end of the year is in sight, and so is the CIPP’s last big

event of 2024 – the graduation ceremony. On 1 November, we’ll be recognising and celebrating

the hard work and dedication of industry professionals who’ve achieved payroll qualifications. Look out for full coverage of the occasion in your next issue. This month’s magazine is all about keeping cool when it comes to compliance, which is by no means an easy task but is one that’s incredibly important to ensure thing are done correctly and efficiently. I recently chaired a roundtable on the future of payroll with a host of seasoned professionals, during which compliance issues were implicit in all the topics discussed, including artificial intelligence and payroll careers, both now and in the future. Read more about it on page 20. Our article on page 30 considers the constant flow of change that demands compliance, while page 32’s feature looks at how to contend with international payments. This month’s feature article on page 33 poses a series of questions to a panel of experts about the challenges of navigating complex rules and legislation. They share their insights into the risks of non-compliance and offer top tips when it comes to best practice for employers. Contending with new legislation is also a regular challenge for payroll professionals and our feature on this year’s Labour party conference on page 60 covers the changes the industry must prepare for under our new government. I hope you enjoy this issue of Professional and find it useful in helping you keep calm and carry on, compliantly of course!

Kavitha Sivasubramaniam (editor@cipp.org.uk) Editor

20 - The future of payroll By Kavitha Sivasubramaniam

30 - Plain sailing: navigating a blockbuster year By Simon Parsons

32 - Understanding compliance in international payments By Paul Unwin

33 - Feature topic – keep your cool when it comes to compliance By Jerome Smail

60 - Hot topic – Labour party conference 2024 By Jason Davenport and Samantha O’Sullivan

Carrier sheet Put in your recycling Outer wrap Put in food waste or composting

Cover Put in your regular rubbish Inner pages Put in your recycling

It takes approximately 70% less energy and water to recycle paper than to create new from trees. Help us reach our sustainability goals by recycling this magazine.

2 0 3 5 CIPP COMMITMENT TO CLIMATE CHANGE

As a sustainable alternative, keep hold of me for future reference.

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

Chair’s message

Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Kavitha Sivasubramaniam editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive

Happy November everyone. We’re really getting into winter now, with festive coffees, dark, cold mornings and evenings and – dare I mention it – even Christmas trees starting to appear. It was great to network with so many of you at our Annual Conference and Exhibition, which was another fantastic two days full of training and updates. Compliance is a huge risk in payroll, from HM Revenue and Customs audits to the pension regulator checks, as well as potential tribunal claims and the financial impacts of getting it wrong giving many chief executive officers sleepless nights. There are, however, some key ways you can mitigate risk of compliance: l develop and educate your payroll team l support formal qualifications l keep the payroll team up to date with the latest changes, including attending webinars and networking sessions l read Professional magazine l make use of all your membership benefits including News Online and our advisory service. There are lots of tips and advice in this issue that can help take the headache away from compliance and embed good practice processes into your payroll teams. Remember to use the benefits of your membership. The CIPP is here to help, so please get in touch.

Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP

Useful contacts

Consultancy consult@ippeducation.co.uk 0121 712 1044 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@ippeducation.co.uk 0121 712 1013 cipp.org.uk @CIPP_UK

CEO’s message

As this issue arrives in your letterbox or email inbox, the celebrations of National Payroll Week and the Annual Conference and Exhibition 2024 will be a memory. However, the drive for compliance, lifelong learning and the promotion of the profession continues at a pace. The CIPP’s collaboration with the Youth Group is moving forward

and the release of “understanding your payslip” collateral is underway. Using this partnership approach is a way of providing greater financial awareness among the broad community that the Youth Group serves. Youth Group supports young people starting work, as well as reaching those who may in future consider payroll as a career choice. I am also due to attend a radio show (Rangoli Radio) for a session that has more than 450,000 listeners across the Leeds area. If you have ideas or thoughts on other ways to promote the profession and drive awareness, please do share them. My contact details are below and I would be delighted to hear on how better I can serve you. Compliance is the theme of this issue, and I am still surprised how many payroll professionals working in industry today don’t know about the benefits that membership of a professional body such as ours provides to them. The importance of compliance is something that I will promote with all industry leaders, especially those in a position of responsibility for their labour force. As I write this comment, I’m reminded that some people look at the journey and the destination separately, whereas I think, regardless of where you are, the importance is on the company you keep and the relationships you build throughout. Best wishes to you all.

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 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000

Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP

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.

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 2

Contents

Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Kavitha, at editor@cipp.org.uk.

NOVEMBER 2024

Reading the magazine gives you one CPD point

REGULARS

FEATURES - KEEP YOUR COOL WHEN IT COMES TO COMPLIANCE

01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments 05 My CIPP

The future of payroll By Kavitha Sivasubramaniam

Real time challenges By Sue Robinson and Elliott Mason

Minimum wage: compliance is critical By Paul Chamberlain

Nudge tactics: The rise of HMRC’s one-to-many

letters By Richard Hattersley

online exclusive content

Event horizon, On your behalf, Spotlight on…, Advisory Q&As, Climate change update, quick learning in payroll, Consult, Payroll news, National Payroll Week

Plain sailing: navigating a blockbuster year By Simon Parsons

Understanding compliance in international

18 Personal development BePayroll 19 Compliance From the future of payroll to real time information challenges around the minimum wage and international payments

payments By Paul Unwin

Considerations for the festive season By Danny Done

Tribunal claims: a closer look By Nicola Mullineux

33 Feature topic

Read all about the theme of the current issue – Keep your cool when it comes to compliance – which outlines practical strategies to streamline the compliance process

Payroll snapshot: a day in the life By Payroll Pal Ltd employees

Paying it forward: why payroll is the perfect career path for young workers Dr Sue Smith and Sarah Smith Empowering payroll professionals to say “no” By Karen Thomson

33 Reward

Find out about the different roles a payroll career can offer and how professionals can be empowered to refuse requests

Paths to the payroll profession By payroll professionals at PwC

37 Reward

online exclusive content

Find out about the different roles a payroll career can offer and how professionals can be empowered to refuse requests

Bringing artificial intelligence (AI) to life The payroll team at PayCaptain

Adaptability in action By Srihari Daivanayagam

50 Technology 52 Pensions 60 Hot topic 62 Payroll pets

Learn more about the use of artificial intelligence in payroll

online exclusive content

A review of automatic enrolment and the gender pensions gap in local government

Pensions parity: striving to shrink the gender gap By Jo Donnelly

Securing better financial futures through pensions By Andy Coles

An insider’s view from the Labour party’s 2024 conference

We say hello to some of your furry friends

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

CIPP UPDATE

update

RIP Patricia West IT IS with great sadness that we announce the passing of one of our members, Patricia West. Described by family members as being full of boundless kindness, Patricia always put her family first, filling her home with love and warmth. Many knew her because of her diligence and skill in her professional life, which was underpinned by her inspirational work ethic. Her passion for eco-friendly work, dedication to the church and talent for knitting were just a few of the many ways she gave back to her community. She loved to travel and always found beauty in the world. She will be dearly missed by her family, friends and all who were fortunate enough to know her.

CIPP attending events OVER THE past few months, we have attended multiple events, including our very own Annual Conference and Exhibition (ACE). It’s been fantastic to speak to so many members who came along to ACE, along with new members who joined the CIPP while at the event. We also attended Accountex 2024 in Manchester and the Midlands Business Network in Birmingham.

Thank you and good luck, Vickie Graham AFTER 20 incredible years with the CIPP, our beloved Vickie Graham DipM FCIM

ACIPP, business development director, is moving on to exciting opportunities. We want to express our deep gratitude to Vickie for her time and dedication to the CIPP and offer our congratulations as she embarks on this new journey. The contributions, experiences and unwavering commitment she has shown to both the profession and the Institute are truly remarkable. From everyone at the CIPP, we thank you and wish you all the success in what’s next for your career.

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 4

ENROL BY 16 JANUARY 2025 FOR THE WINTER INTAKE

Event horizon Your guide to upcoming events and training

Go beyond the basics PAYROLL SPECIALIST CERTIFICATE This online qualication takes individuals beyond the basic knowledge and skills of payroll administration, into the complexities surrounding payroll legislation and contractual obligations.

Full details of all events can be found at cipp.org.uk/events or you can email events@cipp.org.uk for more information.

The CIPPs Annual Conference and Exhibition (ACE) 2024 The CIPP’s ACE and Annual Excellence Awards 2024 have now been and gone, and what a wonderful couple of days we had! Both events grew enormously this year, making them the biggest yet, and we already can’t wait for their return in 2025. There’s a supplement within this issue of Professional , which provides highlights from across the two days. Also, if you want to be first in line to hear about next year’s events, you can register your interest in ACE and the awards here: https://ow.ly/WtQx50PX1Vm. Graduation ceremony 2024 The next major CIPP event in our calendar is the graduation ceremony. Taking place on 1 November, it will once again be held at the Symphony Hall in Birmingham. We welcome students who have completed the following: l Foundation Degree in Payroll Management l Foundation Degree in Pensions Administration and Management l BA (Hons) Business Management l MSc in Strategic Leadership l Apprentices who have completed their level 5 qualification. This event celebrates the fantastic achievements of everyone who has worked incredibly hard to gain a qualification, often while juggling a whole host of other commitments. BeKnowledgeable series Following the success of October’s session on new neonatal care leave and pay, the CIPP’s award-winning BeKnowlegeable series is continuing this month. On 13 November, join us to discuss anti-money laundering compliance and find out why it is a critical aspect of maintaining the integrity and security of financial transactions. Led by the Institute of Accountants and Bookkeepers, the webinar will help you mitigate risks associated with money laundering. To find out more, visit: https://ow.ly/7gw950TJK5K.

Developed, delivered, assessed and awarded by

A subsidiary of the Chartered Institute of Payroll Professionals

Training courses A look at some of our upcoming training courses. Face-to-face courses are highlighted in orange. For a complete list of courses, dates and locations, visit http://ow.ly/iVfT50MU7yr.

COURSE

DATE

LOCATION

22 November

Online

Construction industry scheme

16 December

Online

Foundations of payroll analytics

13 January

Online

Global mobility: key payroll issues

22 November

Online

OFQUAL REGULATED

11 November

Online

Holiday pay and leave

9 December

Online

11 November

Online

Introduction to payroll

2 December

Online

Visit ippe.org.uk/PSC or scan the QR code for details and to book

2 December

Birmingham

25 November

Online

P11D expenses and benefits

16 December

Online

Payroll for educational establishments

4 November

Online

6 November

Online

15 November

London

Scan to book

Payroll update

26 November

Online

11 December

Manchester

12 December

Online

A subsidiary of the Chartered Institute of Payroll Professionals

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

POLICY HUB

On your behalf

Find out what the CIPP’s policy and research team has been up to in the past month on behalf of you, our members, and the wider payroll profession Policy team update

W hen you don’t think it’s possible, it just keeps getting better!

expect to come, including the budget, Labour’s manifesto items, the focus for the policy team over the next 12 months and the new CIPP surveys. Sam attended a roundtable led by the minister for public finance, Ivan McKee MSP. The event was held at the state government office in Edinburgh to discuss the tax strategy and the forthcoming 2025- 26 draft Scottish budget. The latest BeKnowledgeable webinar was delivered by Sarah and Mathew on 17 October. It explored the new statutory neonatal care leave and pay policy, which is a very welcome addition to the existing parental leave policies. The policy team was delighted to be part of the public sector specialist interest group face-to-face events. These events have traditionally been held in London with great success. However, recent feedback suggested this disadvantages delegates from further north. Therefore, two events were held this year, one delivered by Mathew in Leeds on 22 October, and one delivered by Sarah in London on 23 October. This round of events was facilitated by BDO. Both Sarah and Mathew delivered a legislative update, covering the hot topics in the payroll world and updating delegates on possible changes that could arise in payroll, pensions and employment law to help payroll professionals remain compliant. Sam and Sarah delivered a legislative update for the Association of International Accountants and the Bright virtual conference. On 15 October, Mathew joined the pension lump sum workshop facilitated by

the HM Revenue and Customs (HMRC) software developer support team which looked at potential real time information (RTI) changes regarding lump sums and how to report them via RTI from April 2025.

Events This year’s Annual Conference and Exhibition and Annual Excellence Awards was the best and biggest yet. More than 600 delegates attended across the two days, making it the largest independent payroll conference in the UK. The event started on 2 October, with CIPP policy and advisory lead Samantha O’Sullivan and CIPP policy and research officers Mathew Akrigg and Sarah Smith joining the operations team to welcome delegates to the Celtic Manor Resort and start the celebrations. Sam, Mathew and Sarah delivered the policy team update on day one. Sam showed delegates what the policy team has been up to over the past 12 months, including an overview of some of the most notable consultations, how we responded and what the outcome has been since. Sarah discussed the present, with recent legislation changes and an update on the industry relevant bills from the King’s speech. Mathew then stepped into the future with his crystal ball to look at what we can

Forums Sam, Mathew, and Sarah, attended several forums between them during October, including: l Guidance strategy l Employment and payroll group l Accessible Payroll Giving

l Agent support group l HMRC Expert Panel l Construction Forum.

The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups, via Professional and News Online. If you have any issues you would like to raise at any of the professional forums we sit on, please email policy@cipp.org.uk. Of course, at the time of writing, the budget announcement on 30 October had yet to take place. We will be updating you on this in your December / January issue. n

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 6

MY CIPP

How did you begin your career at the CIPP? I joined the Institute of Payroll and Pensions Management (IPPM), now CIPP, as a marketing administrator in 2003. I had no real knowledge of payroll or marketing, but the job advertisement stated, “no experience required” and that “training and qualifications would be provided” and they weren’t kidding! I quickly fell in love with the organisation, my colleagues and the members we were supporting. I was also given many opportunities to learn and develop. As part of my induction, I completed the Introduction to PAYE and NICs, Introduction to Statutory Payments and Essential Additions to Payroll Basics. I learned a lot about payroll in those three days, but the real value was in meeting other course delegates and talking about how payroll worked in practice and the challenges they faced. That was the start of my love for payroll and all of the people who work within it. As well as investing in my payroll education, the CIPP also invested in my professional qualifications with the Chartered Institute of Marketing. This supported my progress through the various roles I have held over the years. Within a year of starting at the CIPP I became marketing co-ordinator, followed by marketing executive. In 2007, at just 23 years old, I was promoted to head of business development, taking on responsibility for sales, and I also introduced a customer service team. I later became an associate director then director of business development in 2018, supporting the CIPP’s ten-year strategic plan and objectives. My areas of responsibility once again grew and I had the pleasure of leading the marketing, sales, events, membership and IT teams, learning a lot in the process.

How have you seen the company evolve? There has been a lot of change over the years. When I started at the CIPP we were the IPPM, having not long rebranded after the merging of the Association of Superannuation and Payroll Administrators (APSA) and the Institute of British Payroll Managers (IBPM). APSA represented the public sector and had been formed in 1980, with IBPM (formally BPMA) forming in 1985 to support the private sector. In 2006, Maurice Cheng became CEO and working with the board at the time, he had the vision of gaining Chartered Status for the payroll profession. We rebranded as the Institute of Payroll Professionals (IPP), then gained Chartered Status 2011, which was monumental for the payroll profession and everyone working in it. The CIPP as we know it today was born, with IPP Education Ltd remaining a subsidiary organisation to deliver our education and training provision. What’s been your biggest achievement at the CIPP? Prior to my leaving, I would have said launching and growing the Annual Excellence Awards or raising the profile of payroll and the CIPP leading to growth in membership. But now, what stands out is the feedback I’ve had from members who have said that I supported them and made them feel included from the early days of their careers. Knowing that I have made a difference to someone’s career and encouraged them to choose payroll as a profession is what I am most proud of. I’m also proud of the team I am leaving CIPP in the care of. They are amazing, have great ideas and are all passionate about what the CIPP is trying to achieve. I look forward to watching them succeed in the future.

How has your time at the CIPP prepared you for your next steps in your career? I have been given many opportunities to grow and develop during my time at the CIPP. The investment in my professional qualifications and personal development has been invaluable to me. My time at the CIPP has given me confidence in my abilities and enabled me to develop key skills such as project management, relationship management and a sound understanding of the challenges faced by payroll professionals. Through the many areas of responsibility I have been entrusted with, I have developed a sound understanding of business operations and problem-solving, which will be invaluable throughout my career. The mentorship and feedback I received have been instrumental in my personal growth and have helped me set clear and realistic goals for my future. Overall, I feel equipped with the skills, experience and mindset necessary to take on new challenges and make a meaningful impact in my career moving forward. What are your next steps in progressing your career? This next phase in my career is about gaining more knowledge and understanding of the industry from a software perspective. I have spent the last few years talking to payroll professionals about how software can support them and enable them to be more strategic within their roles, so I want to experience this from the other side. I will remain a member of the CIPP and continue to support the growth of the Institute in any way I can, and hopefully I will be back at the CIPP in some capacity in the future. o

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

MY CIPP

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

Working time opt outs and maximum number of hours Q: When an employee opts out of the Working Time Directive (WTD) and agrees to work more than 48 hours per week is there still a maximum number of hours they can work, either weekly or as an average, over a period of time? A: If an employee has opted out of the WTD limit, there isn’t any limit to the number of hours that are worked per week. However, if the employee has more than one job, the amount is aggregated, so they would need to opt out of the directive for all of their employments.

will have an apprenticeship agreement that was signed by employer and apprentice. The apprenticeship provider will be able to assist in transferring the apprenticeship over to you as the new employer and provide the start and proposed end dates for the course. They will also be able to assist in transferring the funding liability over to you. An apprentice should have 20% of their time as ‘off the job’ learning, which allows them to study or perform activities that enhance their development. The apprentice continues to be employed during this period, so holiday entitlement would include this time. The apprenticeship provider may be able to give recommendations of a suitable process to follow for study time. Medical benefits and adding dependants Q: An employee has opted to pay medical insurance for his family, with the deduction to be processed through payroll. Can this be deducted from gross pay as a salary sacrifice? A: Private medical insurance (PMI) is not an item that maintains the tax efficiency of salary sacrifice like childcare vouchers (CCVs) or a cycle to work scheme. The employee could have this as a salary sacrifice, but the amount would still be paid by the employer under a salary sacrifice agreement, which will mean there is still a reportable benefit (see: https://ow.ly/em2e50TE6yV). Where the employer provides the PMI cover for the employee and the employee adds dependants to the policy at his own cost, this is known as making good. The amount that the employee makes good is deducted from the value of total benefit

for that employee. The residual amount is the amount that is considered a benefit in kind (BiK) and chargeable to tax only to the employee and Class 1A NI to the employer via the P11D. The amount that is paid by the employee to make good can be deducted from the employee as a net deduction as this element is paid for by the employee so is not considered a BiK.

Can PMI for an employee’s family be deducted through salary sacrifice?

Refund of CCVs Q: How do I refund an employee for CCVs through payroll if they were purchased over several tax years? I understand they can be refunded in exceptional circumstances and our CCV provider has agreed to issue a credit note. A: It is possible to refund CCV amounts to employees, but you shouldn’t refund your employee until the money is returned to you by the provider. Generally, the benefits provider enters into a negotiation with the employee and will agree the balance of the credit on their account. They will then charge an

Apprentice minimum wage and National Insurance (NI) category Q: Does payroll need to keep a record of the start of an apprenticeship, even if it started with a previous employer, in order to manage the correct national minimum wage (NMW) rate and NI category? Also, how is an apprentice’s leave entitlement managed? A: The start of the apprenticeship should be recorded to ensure the correct NMW rate is used. An approved apprenticeship Is there a limit on the number of hours an employee can work if they have opted out of the WTD?

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 8

POLICY HUB

Ready for a managerial role?

FdSc PAYROLL MANAGEMENT (UK PAYROLL) Delivered by the prestigious University of Lincoln, this new university-accredited qualication is entirely online, meaning you don’t have to move from the comfort of your home or oce.

to the workers. Should both tax and NI should be applied to these tips? A: As the tips are distributed by the business owner the payment is subject to both tax and Class 1 NI. See section 7 of this guidance: https://ow.ly/EVR250TE6K9. Following the recent introduction of the Employment (Allocation of Tips) Act 2023, the code of practice can be found here: https://ow.ly/ywHT50TE6Ma. Taxi firm deducting fares from employees Q: We have a taxi company that staff can also use for their own private journeys, the cost of which is then taken from their net pay. Would this be classed

administration fee that the employee agrees to and they reimburse the employer. You will see this has been paid into your business bank account and pay back the employee. This will be classed as earnings and therefore subject to PAYE tax and Class 1 NI. For refunds that go back over previous tax years, HM Revenue and Customs doesn’t require previous year adjustments so the whole amount can be repaid as earnings in the current tax year. Employer funded IVF Q: How should IVF treatment and egg freezing employee benefits be treated for tax purposes? A: If the company is paying for the treatment on behalf of the employee, this would be considered a benefit in kind. How this is reported will depend on the setup of the arrangement, so: l if you arrange and pay for it, report on a P11d for tax and class 1a NIC l if the employee arranges but the company pays, report on a P11d but add the amount as a Class 1 NICable item through the payroll (not for tax) l if you reimburse the employee, this would be earnings and subject to PAYE tax and Class 1 NI. These treatments are confirmed here: https://ow.ly/1HNV50TE6Gb.

as taking them below the NMW? A: The amount would reduce the

employee’s NMW pay because it is for the employer’s own use and benefit since they can choose how the money is used once it is received from the employee. The employer’s own use rules, which can help with categorising the deduction, can be found here: https://ow.ly/ I4MR50TE6T1/.

Delivered and awarded by

Do private taxi fares deducted from salary count towards minimum wage calculations?

Shared parental leave and pay Q: We have a female employee who has requested shared parental leave. The father’s employer is suggesting that our organisation should pay his statutory parental pay. Is this correct? A: The other employer is responsible for their employee’s statutory leave and pay and you are responsible for processing your employee’s leave and pay. The technical guide for employers details the employer’s responsibilities and liabilities on page 48: https://ow.ly/A6HL50TE75p. The employee must complete a declaration confirming they are eligible for shared parental leave. Information on what should be included in the employee’s declaration can be found on page 33 of the guide. n

Is IVF a taxable benefit?

Tax and NI on employer- distributed tips

For more details, scan the QR code or visit ippe.org.uk/FDSC

Q: A restaurant owner pays tips to their employees via the payroll. These tips are mainly paid via card payments with the bill and then split and added to the monthly payroll. The tips are split between all workers and not just front of house staff and the split is decided by the employer. There is no official tronc registered; it’s just the owner of the business who splits and pays these tips

Scan to book

A subsidiary of the Chartered Institute of Payroll Professionals

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

MY CIPP

The power of planting

Laura Bate ACIPP, CIPP quality, environmental, safety and health executive, explains the importance of growing trees as National Tree Week approaches

T his is the start of the UK tree planting season. Last year marked the 50th anniversary of National Tree Week, a government-sponsored national campaign called ‘Plant a Tree in 73’, when National Tree Week and The Tree Council was created. The Tree Council brings everyone together with a shared mission to care for trees and our planet’s future. It inspires and empowers organisations, government, communities and individuals. This year’s National Tree Week is taking place from 23 November until 1 December 2024, so now is a good time to reflect on the essential role of trees today.

2. Check that the hole is deep enough for the roots. 3. Place the tree within the hole. 4. Use the soil you have put aside to refill the hole. 5. Compress the soil by using your heel or toe to fill any air gaps and to stop frost from creeping in. Institute update At the Institute, bee-attracting wildflower seeds have been sown. Once they have bloomed this shall strengthen our ecosystem and benefit wildlife. Without bees we wouldn’t survive, as they are fundamental to our physical health and the health of the environment. Bees pollinate food crops and feed livestock. Without them it would be difficult to produce lots of meat, egg and dairy products. They also prevent our ecosystem from collapsing. They pollinate wild trees and flowers which, in turn, helps to support other insects and organisms within our food chains. When you next see a bee, just remember it’s important in helping keep plants alive. n Links corner Tree Preservation Orders and trees in conservation areas: https://ow.ly/ XxEl50TwmJe National Tree Week: https://ow.ly/ xJ8Z50Twnb9 The Benefits of Trees: https://ow.ly/ nWjc50TwneC How to Plant Trees: https://ow.ly/ SILM50Twnha Why Are Bees Important?: https://ow.ly/ GFz750Twnmg.

be enforced within certain areas. This is done by the local planning authority to protect specific trees, groups of trees or woodlands in the interests of amenity. Unless the local planning authority has provided written consent, an Order prohibits any of the following being done to trees: l cutting down

l topping l lopping l uprooting l wilful damage l wilful destruction.

If consent is given, it can be subject to conditions which have to be followed. For more information, refer to Tree Preservation Orders and trees in conservation areas on the government website: https://ow.ly/XxEl50TwmJe. Tree planting season runs between November and March, although it can be a little longer in Scotland and Northern Ireland. Before planting trees, they need to be stored upright with shelter from frost and wind. The roots also need to be kept moist. You may find it useful to mark out where your tree will be placed, to ensure that your planting area isn’t overgrown. For guidance, trees need to be planted around two metres apart and look more natural planted in a wavy line. There are different methods to planting trees; however, Woodland Trust recommends pit planting. Five steps to pit plant a tree 1. Use a spade to dig a hole within suitable ground, e.g. a field, and keep the soil you have removed to one side.

Five reasons why trees are important

1. Climate change: trees don’t only mitigate carbon but absorb it during photosynthesis, which is kept for centuries. 2. Biodiversity: moths, birds, bats, dormice, butterflies and fungi all depend on woods, trees and hedges to feed and thrive. 3. Health and wellbeing: trees keep our atmosphere rich in oxygen. They also release chemicals called phytoncides which strengthen our immune, hormonal, circulatory and nervous systems when we breathe them in. 4. Food production: trees shelter livestock. This can be by providing them shady areas for respite from heatwaves. 5. Urban green space: trees can reduce the outdoor and indoor pollution by 50%. By incorporating more trees and woods into urban areas this can affect pollution-related sickness and deaths.

Tree preservation In England, a Tree Preservation Order may

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 10

MY CIPP

Staying compliant and the benefits of quick learning

Fiona Smith MCIPPdip, IPP Education payroll training manager, highlights how just-in-time learning (JITL) can be instrumental in supporting payroll compliance

I n the ever-evolving landscape of payroll, staying compliant involves an increasingly broad set of knowledge and skills. This article explores the importance of compliance in payroll and how JITL can be a game-changer for payroll professionals. The importance of compliance Compliance in payroll is non-negotiable. It involves adhering to various laws, regulations, case law and best practice. Companies that are non-compliant risk fines, reputational damage and costly employment tribunal claims. However, to achieve the required compliance, payroll professionals need expertise in an increasingly broad range of areas, including tax law, employment law, pensions regulations, data protection and governance. This breadth of knowledge can be overwhelming, especially for those new to the industry, and yet the skills and knowledge of the person operating the payroll systems is often the only thing standing between an organisation and widespread non-compliance. So how can payroll professionals ensure they gain the required knowledge to be confident in the compliance of their payrolls without risking information overload? The answer may lie in the latest trend in learning and development – JITL. What is JITL? JITL helps learners to avoid information overload, access knowledge when they need it and put what they’re learning into practice immediately. The principle is that information is delivered when and where it is needed, at the point of friction where individuals are likely to make mistakes. Rather than setting aside whole days dedicated to training, learners can identify an issue they have and then access

learning on that topic just in time to put the knowledge into practice.

they can quickly find a microlearning module or a how-to guide that addresses that specific issue. This immediate access to relevant information helps in solving problems in real time, reducing the risk of errors and ensuring compliance. JITL is also flexible. Payroll professionals can learn at their own pace and fit learning into their own schedule. This is particularly beneficial in a field where deadlines are critical and the workload can be unpredictable. By integrating JITL into their routine, payroll professionals can continuously update their knowledge without the need for lengthy training sessions. Studies have shown that learning in smaller, more focused increments can enhance retention. When payroll professionals learn something new and apply it immediately, they are more likely to remember it. This practical application reinforces the learning and makes it more relevant to their daily tasks. How can we implement JITL? To effectively implement JITL in your payroll, consider utilising online platforms, mobile apps, and e-learning tools. These technologies make it easy to access and update learning materials. You could also begin by curating a list of relevant resources and content. The CIPP has made this easy with our Online Resources for Payroll Professionals page (see https://ow.ly/N0pT50TyZ5t), plus our range of eLearning courses available to access quickly when needed. Ultimately, implementing JITL effectively involves fostering a culture of continuous learning within the organisation. By embracing JITL, you can ensure that your payroll team is always equipped with the latest knowledge and skills, which will lead to better compliance and performance. n

JITL can take any form that works for the individual or organisation, from online courses and webinars to microlearning modules, articles, how-to guides and more. The main principle is that it is targeted, bitesize learning that can be accessed when the learner needs it. This supports the learning cycle and allows for greater retention of information. Why is JITL important in payroll? Formal training and education in payroll compliance are, of course, needed to ensure that the fullness of a topic can be covered. However, this type of learning can be time-consuming and by its nature requires dedicated time to be set aside, usually later. In the busy world of payroll this is not always possible, and an answer is needed here and now. This is where JITL shines. JITL allows payroll professionals to access specific information exactly when they need it. For instance, if a team member encounters a unique tax situation, “The skills and knowledge of the person operating the payroll systems is often the only thing standing between an organisation and widespread non-compliance”

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

MY CIPP

Navigating the waves: the crucial role of change management

Natasha Taylor ACIPP, consultancy relationship lead, explains how employers can ensure organisational transitions run smoothly and that their strategic objectives are met in a rapidly changing business world

I n today’s fast-paced business and growth. Whether it’s adopting new technologies, entering new markets or restructuring organisations, change is constant. However, the success of these changes depends on how well they are managed. This is where change management comes into play. If it’s effective, it can ensure transitions are smooth, employees are engaged and organisations achieve their strategic goals. environment, change is not just inevitable; it’s essential for survival

so, organisations can minimise disruptions to operations and maintain productivity. 3. Enhancing employee engagement and morale: when employees are involved in the change process and understand the reasons, they’re more likely to be engaged and supportive. Change management fosters a culture of open communication and collaboration, which can boost employee morale and commitment to the organisation’s goals. 4. Reducing costs and risks: poorly managed changes can lead to costly delays, errors and even project failures. By following a structured change management approach, organisations can identify potential risks early, develop mitigation strategies and ensure changes are implemented on time and within budget. Key elements To ensure change management is effective, there are some central elements that must be considered. 1. Clear vision and objectives: Successful change management starts with a clear vision of what the organisation wants to achieve. This vision should be communicated effectively to all stakeholders to ensure alignment and buy-in. 2. Strong leadership: Leaders play a crucial role in driving change. They need to be visible, supportive and committed to the change process. Effective leaders inspire confidence and motivate employees to embrace change. 3. Comprehensive communication plan: communication is key to success. Organisations should develop a comprehensive communication plan that includes regular updates, feedback mechanisms and opportunities for employees to ask questions and express concerns. 4. Employee involvement and training: involving employees in the change process and providing them with the necessary training and resources is essential. This helps

to build their confidence and competence in adapting to new ways of working.

How Consult can help you Consult offers a range of services that can support your change management initiatives. Some of the main ways in which we can help include: 1. Providing expert guidance and advice: Consult provides expert advice on payroll and pensions, which is crucial during times of change. Our consultants can help you navigate complex regulatory requirements and ensure compliance, reducing the risk of errors and penalties. We provide insights into industry best practices and benchmarking data, helping you understand how your organisation compares to others and identify areas for improvement. 2. Tailored solutions: every organisation is unique, and so are its change management needs. Whether you need help with process redesign, system implementation or employee training, we can develop a tailored plan to support your change initiatives (see https:// ow.ly/3KEH50Tum1G). 3. Communication strategies: effective communication is key to success. Consult can assist in developing communication strategies that keep all stakeholders informed and engaged throughout the change process, minimising resistance and ensuring a smooth transition. 4. Ongoing support: change management doesn’t end once the initial changes are implemented; continuous support is essential to ensure that they are sustainable. Consult offers ongoing support to help monitor progress, address any issues and make necessary adjustments. By leveraging the expertise and resources of Consult, you can enhance your change management efforts, ensuring smoother and more successful transitions for your organisation. For more detailed information or to discuss your specific needs, contact consult@ippeducation.co.uk. n

Understanding change management

Change management is a structured approach to transitioning individuals, teams and organisations from place A to place B. It involves preparing, supporting and helping individuals adopt change, thereby driving organisational success. The process includes planning, implementing and monitoring changes to ensure they’re effective and sustainable. Ensuring the process runs smoothly There are several steps that organisations can take to ensure any changes run smoothly. 1. Minimising resistance to change: one of the biggest hurdles in any change initiative is resistance. People are naturally resistant to change, especially when it disrupts their routines or threatens their job security. Effective change management addresses these concerns by involving employees in the change process, communicating transparently and providing the necessary support and training. 2. Ensuring smooth transitions: change can be disruptive, but with a well structured change management plan, organisations can ensure smoother transitions. This involves detailed planning, clear communication and continuous monitoring to address any issues that arise. By doing

| Professional in Payroll, Pensions and Reward | November 2024 | Issue 105 12

MY CIPP

PAYROLL news

New non-statutory tipping guidance for employers THE DEPARTMENT for Business and Trade has released non-statutory guidance for employers on how to follow the code of practice on the fair and transparent distribution of tips. The Employment (Allocation of Tips) Act 2023, which came into effect on 1 October, aims to protect employees and ensure they receive the full amount of any tips or gratuities they are given by preventing employers from withholding them. The new guidance: l applies to all business and industries where the workers receive tips l intends to help employers understand and apply the code of practice l is not legal advice

l is not an exhaustive record of what is within acceptable limits of the code of practice or the Employment Rights Act 1996. The guidance is planned to support an employer’s assessment of a troncmaster’s decisions, where a troncmaster is used to operate the scheme. It can be found here: https://ow.ly/swCI50TFsGj. Employers that are unsure of their obligations are advised to seek independent legal advice.

Real time information (RTI) data item updates for 2025-26 HM REVENUE and Customs has released the updated RTI data field scheme for the upcoming tax year. The document is designed to provide software developers with the correct information for what each section of the RTI submissions should look like and can be found here: https:// ow.ly/pGMN50TFti1. Within the 2025-26 technical specifications there are a couple of areas worth highlighting. These are:

l the addition of ‘Employee workplace postcode’ which must be entered if the employee’s National Insurance letter is F, I, L, S, N, E, D or K. This is in relation to the new requirements for the postcode to be provided where a worker is on a code indicating they work in a freeport or investment zones site l the addition of statutory neonatal care pay year to date indicators on both the full payment submission and employer payment summary. These items have been added to the full item guide, which can be very useful for troubleshooting and error identification with RTI submissions.

Diary dates

1 November 5 November

The CIPP’s graduation ceremony

Last day of tax month 7

First day of tax month 8

6 November

Last day for submitting a real time information employer payment summary to apply to tax month 7 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method

19 November

22 November 5 December 6 December

Last day of tax month 8 First day of tax month 9

| Professional in Payroll, Pensions and Reward |

Issue 105 | November 2024

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66

Made with FlippingBook - Online magazine maker