in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 84 October 2022
The evolution of payroll
Payroll predictions
The net pay arrangement anomaly What’s being done to address the issues with net pay arrangement pension schemes?
Celebrate good times What did the CIPP get up to for National Payroll Week?
What’s in store for payroll teams in these times of rapid change?
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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Editor’s
comment
I write to you today, still riding the wave of the success of National Payroll Week. What a brilliant celebration it was, with so many payroll professionals coming together to raise the profile of the profession. Now, there’s the Annual Conference to look forward to this month! This issue of Professional focuses on how
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much payroll has changed over the years, and what payroll teams must now deal with, addressing the fresh challenges they face and the new level of responsibility they’ve been given. Read all about just how much the profession has evolved, in our feature article on page 34. Jump into the Tardis, and see how payroll was in the 80’s, on page 52, and read a variety of articles on just how much payroll has changed in our additional online content pages. With an increased number of employment tribunals, the results of which can impact the work of payroll professionals, catch up on some of the latest employment law cases on page 46, and read about the tribunal claims process on page 48. Finally, we’ve seen a period of rapid change recently, which has included the appointment of a new prime minister. What could Liz Truss have in store that could impact the payroll community? Find out on page 62. On a final note, I was hoping to include a follow up article on whether payroll professionals fell into or chose their carer path. As there was so much content this issue, this will be saved for a future issue of Professional , so keep your eyes peeled!
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48
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Lora Murphy ACIPP (editor@cipp.org.uk) Editor
36 - Feature – an evolving profession By Jerome Smail
46 - Part-year workers, protection from discrimination and protected disclosures By Nicola Mullineux 48 - Want to know more about the tribunal claims process? By Danny Done
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52 - If I had a Tardis By Dianne Hoodless
62 - Hot topic – what’s in store for payroll professionals? The CIPP’s policy and research team
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
Chair’s
message
Editor Lora Murphy 0121 712 1018 | lora.murphy@cipp.org.uk Advertising Daniel Cull 0121 712 1021 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd
We’ve seen National Payroll Week (NPW) come and go, and what a fantastic week it was, with so many organisations and payroll professionals celebrating the profession and raising the profile in a multitude of ways. Learning and development was one of the areas of focus, which is of
huge importance. With the ever-changing demands of payroll, from HM Revenue and Customs (HMRC), employers, technology and new initiatives, we need to make sure we’re up to date and also staying in touch with what we see as being the future of payroll. Pay on demand, yieldnodes and bitcoin are different pay methods which are being explored and introduced by some companies but aren’t even on the agenda for others. With monthly pay being the most popular pay reference period, some question if this could change where pay on demand is introduced, paying employees their wages as they earn them. Generally, an employee can only access a certain portion of their pay with a maximum limit each pay period, the remainder being paid as usual on their normal payday. While considering the impact of this option on an employee’s financial well-being, the costs of this service need to be included. Typically, fees for the pay on demand option are included in the costs a payroll provider charges; however, some employers will charge employees for the use of the service. Some consider this no different to payday lending, while others see it as a safety net for employees who may suddenly face unexpected bills. The possibility of increased payroll errors with duplication of pay (although only minor with the right processes and procedures in place) shouldn’t be forgotten.
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 As we enter autumn, I hope you all managed some kind of summer holiday and that you’re now ready for a busy autumn season with the CIPP.
Almost on our doorstep is (at last) our visit to the Celtic Manor Resort in Wales for the Annual Conference, Exhibition and Excellence Awards Ceremony on 5 and 6 October 2022. Hopefully, you’re able to attend these events in person and I look forward to welcoming you in Wales. We celebrated NPW during the first week of September, and adopted the model from 2021, with events running both online and in person, adeptly hosted by our chair, Liz Lay. The highlight was the NPW drinks reception on 5 September, held at the beautiful Sky Garden in London and I’m delighted to say we were able to meet many Chartered and Fellow CIPP members, as well as many distinguished guests in person. As in earlier years, it was a pleasure to support this key week, celebrating the payroll profession with other organisations playing an active part in promoting and educating payroll professionals from the Global Payroll Association, Payroll Centre and Reward Strategy, as well as all of our sponsors: ● AnyDay ● Civica ● Experian We recognise the need for ably taught and educated payroll professionals, and it was great we were able to collaborate and celebrate NPW together. Also coming your way this autumn is one of the most anticipated events of the year – celebrating the success of our students at our Graduation Ceremony on 4 November, for those who have successfully completed our university-approved qualifications. This is always a fantastic event to attend, to see students loyally supported by family and friends. I hope to see you at one, or many, of these coming events. ● Frontier Software ● IRIS ● Moorepay ● Portfolio Payroll ● Sage ● SD Worx.
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 | October 2022 | Issue 84 2
Contents October 2022
Also available online at cipp.org.uk
REGULARS
FEATURES
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, A tribute to the Queen, Advisory Q&As, Spotlight on 11 Personal development BePayroll 12 National Payroll Week Read all about the events that took place in the week that celebrates all things payroll 18 A tribute to Mike Nicholas Gordon Cresswell pays tribute to Professional’s late editor, Mike 20 Compliance From dealing with cyptocurrency to the cost-of-living crisis 34 Feature topic Read all about the theme of the current issue 38 Reward Catch up on the latest employment law cases and read about the tribunals process 54 Pensions Read all about automatic enrolment and the net pay arrangement anomaly
Tax and NI implications for employees relocating from abroad By John Harling
Payroll’s partners By Gretchen Inouye
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Did you know…? PSAs By the CIPP’s policy and research team
A trip down payroll memory lane By Glenn Jones
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online exclusive content
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Celebrating the evolving nature of payroll By Karen Beckett
Payroll – the control room for your business By Maria Mason
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online exclusive content
Considering cryptocurrency to pay employees? By Justine Riccomini
Cost-of-living crisis: how can payroll help to ease the pressure? By Christina Holloway
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The future’s bright, the future’s payroll
The #BePayroll campaign
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By Samantha O’Sullivan
online exclusive content
online exclusive content
By Jake Shergold
Find out more about the Level 3 Payroll
Payroll – how the profession must change
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Administrator apprenticeship By Ian Holloway
in the wake of the cost-of-living crisis By Julie Lock
online exclusive content
How payroll and HR professionals can help make work a more reliable route out of poverty
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By Charles Cotton
What’s happening with the net pay arrangement anomaly?
All about automatic enrolment
56 Technology
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How can technology aid the payroll profession?
By Sophie Chapman
By Henry Tapper
62 Hot topic
What could the future hold for payroll professionals with the appointment of a new prime minister?
How can business ensure their payroll systems are both efficient and effective? By Anton Roe
The evolution of payroll professionals: where are we now and what’s in store?
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64 Payroll pets
By John Pearce
We say hello to some of your furry friends
| Professional in Payroll, Pensions and Reward | 3
Issue 84 | October 2022
CIPP update
CIPP and IAB memberships FROM SEPTEMBER, we’ve agreed a mutually beneficial arrangement with the newly renamed, Institute of Accountants and Bookkeepers (IAB), so that IAB members can make use of some of the amazing benefits our members already have access to. This aligns with the CIPP’s values in community and authoritative knowledge, enabling IAB members to offer professional services to their clients. RIP, David Nowell | 19/11/1943 – 02/02/2022 DAVID NOWELL, who was an honorary Fellow of the CIPP, sadly passed away, in February 2022. David was born in Sutton-in-Ashfield in 1943 and was married to Ann in 1966, until her death in 2013. He had two children – Jane and Steven, and a grandson named Sebastian, who is seven. Sebastian was his world.
AE audit reminder JUST A quick reminder about your automatic enrolment (AE) audits, and that we work alongside Sanctum Software to ensure you’re compliant. The scheme allows Sanctum to calculate what contributions should have been made for each employee, compared to the contributions that were actually made. They then pass the findings on to you / your advisers, to enable you to calculate any lost investment value, caused by errors, and provide guidance on how to prevent future issues. To find out more, either visit the ‘Best Practice’ page on our website, or email mark.ellis@sanctumsoftware.com and quote CIPP. University of Lincoln graduation ceremony ON 7 SEPTEMBER, we were honoured to be invited as VIP guests by our partners at the University of Lincoln, to see our students graduate from the BA (Hons) in Business Management. The ceremony was held in the beautiful Lincoln Cathedral with a drinks reception in the prestigious grounds of Lincoln Castle. Thank you to our host, Amy Mumby, academic lead for work-based learning and huge congratulations to our graduating students, Emma Williams, Amber Durrant and Katie Bevan. Our BA students will also be invited to attend the CIPP graduation ceremony at the Symphony Hall in Birmingham on 4 November 2022.
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. With special congratulations to our recently accredited organisations:
● Fourth ● Greaves West & Ayre ● Liverpool City Council
● MHR International UK Ltd ● North Yorkshire County Council.
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.”
To find out how the PAS can benefit your organisation, email compliance@cipp.org.uk.
| Professional in Payroll, Pensions and Reward | 4 October 2022 | Issue 84
ONLINE LEARNING
POLICY HUB
The overpayment of remuneration to employees can occur for many reasons. The rules governing the right to reclaim overpayments are complex and must be managed with caution. This course clarifies the impact of relevant case law and statutes and identifies the practical considerations for reclaiming overpayments using group discussions and exercises to create an interactive learning environment. Overpayments recovery workshop
On your behalf
The CIPP’s policy and research team are undoubtedly always busy but September felt like it was one of the busiest periods yet! Here’s what the guys got up to, and some of the things coming up soon Policy team update
National Payroll Week (NPW) The policy team were involved in a number of events to celebrate NPW. The turn out figures were great, and there were some really insightful questions and thoughts over the course of the week. Turn to page 12 to find out more about what the CIPP, its sponsors and payroll teams did to celebrate the payroll profession. Annual Conference The Annual Conference returns as a face- to-face event, following a brief hiatus due to Covid-19. We cannot wait to see some of you there. The team will be hosting one of the plenary sessions, to discuss the work the policy team carries out and also to provide an update on all the latest payroll news. Be sure to join us, and come and say hello if you see us around. Consultation responses Samantha O’Sullivan, policy lead, sent an official response to the consultation, Raising standards in tax advice: protecting customers claiming tax repayments , which was published by HM Revenue and Customs (HMRC). This looked at protecting individuals when claiming tax refunds via repayment agents, as there are currently many organisations who offer this service, but aren’t always clear about the associated costs, amongst other things. The full response can be found on the Policy hub section of the website, here: http://ow.ly/8zeE50KRmnQ. Lora Murphy, editor, is currently in the process of putting together a response to another HMRC consultation, Improving the data HMRC collects from its customer s,
which can be found here: http://ow.ly/ uyty50KRmwC. HMRC representatives will be attending a think tank meeting, hosted by the CIPP, to gain the views of members on its proposals to collect more data through real time information. The discussion will form part of the official response, which is due back by 12 October 2022. Mathew Akrigg, policy and research officer, is also looking at the call for evidence released by the Office of Tax Simplification, Review of hybrid and distance working . The call for evidence can be located here: http://rb.gy/j5rm3k, and seeks to explore new trends in relation to increasing numbers of people who are choosing to work in different ways, including across borders. The review will consider whether the current tax and social security rules are fit for purpose and what businesses, advisors and other bodies are experiencing as new ways of working become business as usual. Mini budget At the time of writing, it was confirmed that the new chancellor of the Exchequer, Kwasi Kwarteng, would deliver a ‘mini budget’ on 23 September 2022. This was to detail the plans for coping with the current energy crisis and also to announce measures designed to tackle the ever-increasing costs of living. As always, the policy team provided live updates on the day, to advise of any changes or plans impacting the work of payroll professionals. There will be a variety of publications centred on this news, as more information becomes available, so be sure to keep your eyes peeled to ensure you’re as up to date as possible. n
Visit cipp.org.uk/training to book your place
CPD 3 points
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
PAYROLL NEWS
Payroll news
Liz Truss becomes prime minister ON 5 SEPTEMBER 2022, it was announced that Liz Truss would become the next prime minister, replacing Boris Johnson. While this may not seem like specifically payroll-related news, it is, because this could have a substantial impact on the work payroll professionals carry out. Truss pledged, in the leadership campaign, to reverse the health and social care levy (implemented as an increase to National Insurance (NI) in 2022/23), from day one. At the time of writing, no further detail has been provided, but to reverse the hike this tax year would mean there have been no less than three changes to NI in the current tax year. The CIPP will, of course, provide any updates as and when we have them, so keep your eyes out in our News Online .
The Trade Union Congress calls for a £15 minimum wage THE TRADE Union Congress (TUC) has released a report, which provides a breakdown of the steps required to reach a minimum wage of £15.
The report calls for a ‘macroeconomic approach’ to boost growth, which would bring median wages up to £20 an hour.
This is the underpinning of the £15 minimum wage, which would be 75% of median wages. This is higher than the Low Pay Commission’s (LPC’s) current ambition of reaching two thirds of median pay by 2024. The TUC is also calling for the minimum wage uprating to take place in October (it normally happens in April), and for it to be increased by at least the rate of inflation. The report can be read in full here: http://ow.ly/MTPo50KRmOJ.
Ensure HMRC communications are genuine UNFORTUNATELY, THE number of scams currently in circulation seem to be
higher than ever. HM Revenue and Customs (HMRC) issues communications in a variety of ways, but scammers have been using fake HMRC letters and calls to attempt to commit fraud. To help tackle this problem, HMRC publishes a list of its current communication campaigns, which can be located here: http://
Kwasi Kwarteng becomes chancellor of the Exchequer KWASI KWARTENG has replaced Nadim Zahawi as chancellor of the Exchequer. Zahawi became chancellor in July 2022, after Rishi Sunak resigned. Kwarteng will be responsible for delivering budgets, one of which (at the time of writing), we expect to see soon. This will lay out the government’s plans, including the potential abolition of the health and social care levy.
ow.ly/NOhu50KRmG7. This will help individuals to determine if a suspicious email, letter or call is actually a scam. The list details: l the communication methods used for each campaign l the information you’ll be provided with l what information (if any) is requested from you.
Where communications are received that aren’t listed, which appear to be scams, they should be reported to HMRC for further investigation. This can be done here: http://ow.ly/p5W550KRmL9.
Diary dates
5 October 6 October
Last day of tax month 6 First day of tax month 7
Last day for submitting a real time information employer payment summary to apply to tax month 6 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs under a PAYE Settlement Agreement (PSA) by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs under a PSA by electronic method
19 October
22 October (this is a weekend date)
5 November
Last day of tax month 7
6 November
First day of tax month 8
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 6
1926 – 2022
Tribute to Her Majesty the Queen | 21 April 1926 – 8 September 2022
We, at the CIPP, are deeply saddened, and send our heartfelt condolences to the Royal Family, following the passing of Her Majesty the Queen, on 8 September 2022. United in our mourning and loss – we give thanks for a life of extraordinary service to this country, the Commonwealth and the wider world. Queen Elizabeth II was always a true
inspiration, who devoted her life to our country, and was loved by so many. She will be remembered for many years to come. At the time of writing, we were in a period of mourning, ahead of the funeral, which took place on 19 September 2022. We’d like to pledge our support to the new King – King Charles III. n
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
MY CIPP
The CIPP's Advisory Service team provides answers to popular questions
Court order deductions from payments after leaving Q: I have a query regarding court orders. I’ve always been under the impression that court order deductions are not to be made from payments after leaving, as these are post-employment. Employers are only required to make these deductions while somebody is employed. A client has asked me to deduct an order, in full, from an employee’s holiday pay (payment after leaving), as apparently this is what the council who issued the court advised. Our system doesn’t automatically do this, and we would have to override it. A: Attachment of earnings orders should only be applied during employment. Once the employment has ceased, the employer should notify the governing body accordingly. Please see the following guidance for different types of orders: “What legal responsibilities and duties does a DEA place on an employer? You have a duty to notify the DWP Debt Management in writing or by phone within 10 days of the date of the DEA notice: l when someone we have asked you to implement a DEA for does not work for you l when, and the date from which, an employee ceases to be in your employment If either of the above applies you will need to notify us in writing at the address shown at the top of the DEA notice letter, or by phone.” This is taken from Direct earnings attachment: A guide for employers , which can be found here: http://ow.ly/ poCJ50KRmUT. Guidance from Make debt deductions from an employee’s pay: Change of
circumstances (http://ow.ly/7BOe50KRn7q), states the below: “Change of circumstances Write to the Centralised Attachment of Earning Payments (CAPS) office within 10 days if the employee stops working for you.” Can you have a self-employed apprentice? Q: I wonder if you may be able to help with a query I’ve just received from someone in my office. They’ve asked if you can be a self-employed apprentice. I’m almost certain this isn’t possible and that an employment contract must be in place, to be an apprentice, but wanted to ensure I’m correct before I respond to my colleague. A: You’re correct. To be an apprentice, they must be on a contract for an apprenticeship. This is automatically considered a contract of employment and therefore, they’re classed as an employee. Deadlines for PSAs Q: Do you know if there’s a penalty if you don’t submit the pay as you earn (PAYE) settlement agreement (PSA) calculation to HM Revenue and Customs (HMRC) by 31 July? A: There are PSA deadlines for applications (5 July) and there are PSA deadlines for payment (19 October if non-electronically, 22 October if electronically). There’s no deadline for submitting your PSA1 but you should submit it as soon as you can, and definitely prior to payment becoming due. HMRC requests that the PSA1 is sent as soon as possible, so it can check the calculation before payment is
due, in case there are any errors which need rectifying. How do you treat P11Ds in TUPE scenarios? Q: Are we required to complete P11Ds for a client whose employees transferred under the Transfer of Undertakings (Protection of Employment) (TUPE) regulations to another company in November 2021? Once the employees transferred to the new company, the previous PAYE scheme was ceased. A: The number of P11Ds you need to submit depends on the type of change your business has experienced: Merger If your business has undergone a PAYE scheme merger and your employees receive company benefits, you must submit two P11D forms for each relevant employee: l one under the original PAYE reference for the period up to the merger date l one for the new PAYE reference from that date. A business merger doesn’t always result in a PAYE scheme merger. If your business has undergone a business merger, and the employees are still employed under the original PAYE scheme reference, only one form P11D is required. Succession If you contact HMRC and are told your business has undergone a succession, you must submit one form P11D under the new PAYE reference for each employee in receipt of company benefits. This must contain the
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 8
ONLINE LEARNING
POLICY HUB
Learn how to process a number of common termination packages correctly, from redundancies to contractual breaches, retirement and death-in-service. Termination payments
Treatment of benefits in kind for a deceased staff member Q: A member of staff has recently passed away. That staff member received private medical insurance, a benefit in kind. Do I create a P11D in the usual way for tax year ending 2023, sending it to the ex-employee’s widow, or is there another process I need to undertake, including advising HMRC? A: You would go through the normal process for the P11D, class 1A NICs would still be due and HMRC would need to be notified of the benefit. Send the copy of the P11D to the executors of the estate as notification. Holiday purchase schemes Q: We’re starting a holiday purchase scheme from July 22. However, it’s been called a salary sacrifice scheme. Am I correct in thinking I can process the holidays as a simple monthly deduction which will reduce tax and NI? Will this also impact pension contributions, as it’s salary sacrifice? A: I can confirm you’re correct. If you’re operating this scheme for employees to buy additional holidays as a salary sacrifice scheme then yes, the deductions will reduce employee pay for tax and NICs purposes (and pensions too). Employers should be aware that, where an employee leaves mid-way through a year, they will need to be reimbursed for any holiday they’ve bought but haven’t been able to take. n
total information to be reported for both PAYE scheme references. If you haven’t contacted HMRC to advise of your business succession and your employees continue to receive company benefits, you must submit two forms P11D for each employee: l one under the original PAYE reference for the period up to the succession date l one under the new PAYE reference from that date. Read further guidance in this area here: http://ow.ly/1RBt50KRnbi.
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CPD 3 points
What happens with the completion of P11Ds in TUPE transfer situations?
Tax and NICs liability for costs of obtaining UK citizenship Q: We’re intending to help one of our employees financially in obtaining UK citizenship. Please could you advise what the HMRC rules are in terms of tax and National Insurance contributions (NICs) liability, should we decide to reimburse part, or all, of their incurred costs? A: I’m afraid that such a reimbursement would be wholly subject to PAYE income tax and NICs as these are not classed as allowable business expenses. The reimbursement(s) should be incorporated in the payroll in the pay period(s) in which the reimbursements occurred. If you wish to reimburse the employee for the funds relating to obtaining UK citizenship, you could gross up a bonus to cover the costs plus the associated tax and NICs.
Can a holiday purchase scheme be operated via salary sacrifice?
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
MY CIPP
Spotlight on...
Vickie Graham DipM ACIM ACIPP Business development director
Tell us a little about your career and background.
As for the profession, if there’s one thing true of payroll and pensions it’s that they’re constantly changing. What does the future hold for the CIPP? Although the past 19 years have been exciting, I believe we’re currently in one of the most exciting periods of the CIPP’s journey. During the last 19 years, we’ve grown in terms of brand and membership numbers, which has enabled us to invest in our products and services. The pandemic, though challenging, has put payroll in the spotlight and we’re at a critical point to capitalise on that. For the immediate future, we’ve invested in our learning management solution, embracing a digital-first approach to our training course delivery and in doing so, ensuring we’re accessible to all. We’re in the process of integrating this with our website and customer relationship management system to achieve streamlined processes and improved levels of customer service. We have a new policy team representing our membership and building and developing relationships within government, to maintain and increase our presence as a critical friend. Through this amazing policy team, we’re delivering content in different and engaging ways, and listening to members to ensure our content and events are relevant and topical to support them. The role of payroll is changing – technology is enabling robotic process automation, which means some of the low value, transactional aspects of the role are now automated (or should be), and payroll professionals can play a more strategic and analytic role within their organisations. This will lead to changes in our offering to ensure we’re leading the payroll and pension professionals of the future. n
1. grow membership and brand awareness 2. lead innovation and engage certified solutions 3. provide knowledge and skills to practitioners 4. provide governance and advice to all payroll professionals. To achieve these, I developed and recommended a vision, mission and set of values, based on market research, which have been approved by the board. My immediate priority is to work with the team internally to communicate and instil these in our ways of working, to support the CIPP in achieving our corporate objectives and ensure our members receive a high level of support from their Chartered body. You’ve been at the CIPP for 19 years – how have you seen the CIPP, and the payroll profession itself, change over that time? There have been significant and positive changes to both the CIPP and to payroll and pensions over the course of my career. As I mentioned earlier, when I started at the CIPP, it was known as IPPM. Soon after I joined, we went through a re-brand, and we became the Institute of Payroll Professionals (IPP). This was to make the Institute more inclusive as there had been a misconception that because ‘management’ was in the organisation name, you had to be a manager to join. Another reason for the re-brand was the pursuit of Chartered status. This was something I worked with the board at the time to achieve, initially having Chartered status granted for the Institute in 2011, and the ability to award Chartered membership from 2016. This was such an amazing achievement and has helped to raise the professional standing of our Chartered members within their organisations, putting them on equal footing with their Chartered counterparts in accounting and human resources.
I’ve been working within the industry for nearly 20 years, initially joining the Institute of Payroll and Pensions Management (IPPM), which is now the CIPP, as a marketing administrator in August 2003. Prior to joining the CIPP, I worked as an administrator for Cleanaway. This was my first role after college, and I didn’t know what I wanted to do as a career. The general manager at Cleanaway, David Brown, was very encouraging and wouldn’t let me ‘settle’ for the role I was in. He recognised my potential and guided me towards my career choice, telling me my skills would ‘suit a role in marketing or public relations’. Shortly afterwards, I saw a role advertised for a marketing administrator at the IPPM – no experience required, as training and professional qualifications were provided. I loved the role, which mainly involved organising print campaigns and postal mailings to advertise training courses and qualifications. Since 2003, I have held many roles within the CIPP, always in marketing, sales, membership and events. As business development director, I’m responsible for setting the strategic objectives and direction of the CIPP alongside the chief executive officer, senior leadership team (SLT) and the board. I find the role challenging, but incredibly rewarding as, through our membership, best practice standards and education programmes, we’re supporting payroll and pension professionals through their careers. We give them a voice within government as legislation changes are proposed, and we’re also raising the value of the profession within businesses. What are your main priorities as business development director? I’ve worked with my colleagues in the SLT and board to outline four strategic objectives as part of our ten-year plan:
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 10
PERSONAL DEVELOPMENT
# Be Payroll Emma Barrie MCIPP, payroll executive at Grant Thornton UK LLP, discusses her experiences of studying the Foundation Degree in Payroll Management with the CIPP
How would you describe your experience of studying the Foundation Degree in Payroll Management with the CIPP? Quite different to the usual experience, I’m sure. I was a payroll administrator when I signed my study agreement in December 2019, a week before finding out I was pregnant. I must admit, I thought it would have to be cancelled or deferred, and my career put on hold. However, with the support of management and my team, I decided to plunge myself into my studies. Of course, Covid-19 hit in March 2020 and everything went remote. I was disappointed, thinking once again that would be it, and my studies would be put on hold. Thank goodness for Zoom! I also thought I would miss out on speaking to like-minded individuals in the field of payroll. However, with the help of digital technology, we formed a WhatsApp study group, where we spurred each other on through essay writing and deadlines in a very uncertain world. I gave birth to my son in August 2020 after handing in an essay early just in case, and in January 2021, I completed two exams on very little sleep. Thankfully, I passed and was able to enjoy a bit of a break. I continued to attend tutorials and workshops online while taking care of the little one and praying his naps coincided. Luckily, my tutor was amazing and really broke everything down into achievable chunks. I hope they keep the online option going forward, as I don’t think it would have been possible for me to attend in person. I returned to full time work in September 2021 and found juggling work, studies and motherhood even more exhausting. Going to the office once a week first filled me with anxiety, but after a while it was great to socialise and collaborate again. It was also great to finally put what I had learned during my studies into practice. While on leave, it was sometimes difficult to obtain work- based information needed for the essays, but my keep in touch days came in handy for this. I handed in my final work-based project in March, which was a huge relief. I found out I had passed in April 2022. I celebrated with my first gin and tonic in quite a while. I’m so pleased I stuck at it throughout and did not delay my studies. With the right support, anything is possible, and I even received my promotion to payroll
executive (of which the CIPP qualification was a requirement). Everything ended very differently to how I thought it would upon entering the meeting room two years prior, to tell my manager I was pregnant. I cannot wait to graduate in November 2022 with my little man there to see his Mummy collecting her degree, proving that you can do both. The CIPP experience has been a whirlwind. Why was it important to you that you gained this qualification? The qualification was a requirement to move forward in my payroll career at my current firm and, after completing it, I can see why. I have gained invaluable skills which have made such an impact on the approach I take to my job. It has built my confidence and so many of my colleagues say they have noticed a change in me too. It was also great to prove that being a Mum didn’t mean I had to sacrifice my studies or promotion. Can you describe your payroll career / journey to us so far? I got a 2:1 degree in marketing, decided it wasn’t for me and got a job in filing at my current firm, to keep me afloat while I decided what I wanted to do with my life. I applied for the payroll administrator job, which came up three times before they decided to take a chance on me. Although I had zero payroll experience, I interviewed well. From there, my love for the job flourished and the more I learned about payroll, the more I knew I wanted to stay in the profession. Do you have any plans for further study with us? If so, what are they and why? Currently, I’m focusing on settling into my new role and using my newly learned knowledge, but I’m sure I will be back for more. The more specific training courses have caught my eye, particularly the international ones, which could open all sorts of doors in my payroll career. After university I thought I had concluded my studies, but I have learned to never fully close the door … every day is a school day in payroll. n
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
NATIONAL PAYROLL WEEK
5-9 September
KEEPING THE UK PAID
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 12
NATIONAL PAYROLL WEEK
“As my predecessors have in previous years, I am pleased to support the Chartered Institute of Payroll Professionals’ (CIPP’s) annual National Payroll Week … I recognise the important role played by payroll professionals across the country during the pandemic and I am grateful to CIPP for working with HM Revenue and Customs (HMRC), members and the entire payroll community to support the successful implementation of the coronavirus job retention scheme. National Payroll Week is a great opportunity to celebrate the impact of the payroll industry, raise awareness of payroll issues and educate employers on the benefit of good payroll management. I would actively encourage all interested parties to take advantage of the advice and resources offered by the CIPP.” The financial secretary to the Treasury, The Rt Hon Lucy Frazer QC MP These words of support received from the financial secretary to the Treasury came just days before we kicked off National Payroll Week (NPW) 2022, and set the tone for what was a fantastic week. Monday 5 September Our policy team kicked off NPW 2022 with a payroll update, in which they covered the 2022/23 tax year so far, what’s on the horizon and the member takeover planned for Professional magazine in December. Fiona Smith, payroll trainer at the CIPP, hosted a session which demonstrated to attendees how to calculate National Insurance (NI) contributions manually. Delegates learned about NI contributions and why we have them, how to identify gross pay for NI purposes and how to calculate the correct employee and employer contributions for payment to HMRC. It was well attended, and the delegates were given an exercise to take away and practise their new skills. Samantha O’Sullivan, CIPP’s policy lead, then hosted a lively roundtable discussion on the future of payroll, at our headline sponsor, Portfolio Payroll’s offices, in London. The key themes focused on: l the strategic value of payroll and how payroll can play a part in employee financial well-being l the future of payments, particularly
around pay on demand or access to earned wages, open banking and employee choice of how to be paid l the importance of education (now more than ever), and how employers can offer support through education to support employee recruitment and retention l technology, and how automation can benefit payroll managers and allow more analysis of data. You’ll be able to read more about the future of payroll and the discussion that took place in a future edition of this magazine. Finally on Monday, to kick off NPW in style, we hosted a networking drinks reception at the fabulous London Sky Garden. This was attended by over 170 payroll professionals, and Liz Lay opened the event presenting the letter of support for NPW from HM Treasury.
Lora Murphy, editor at the CIPP, was joined by Simon Parsons, from SD Worx, and Stuart Price, from MHR, to discuss the mid-year change to the primary threshold (PT) for NI in tax year 2022/23. They were joined by individuals who had an interest in discussing what the change meant for them, their payroll teams and their organisations. The main focus was on how the change has been handled by employees, and whether there was a noticeable increase in queries regarding NI this year. Some delegates said no, there were not, while others confirmed there were several queries regarding the changes to NI. At the point the session was held, Liz Truss had just been appointed as prime minister, and one of her pledges was to reverse the health and social care levy. The group discussed the potential impacts of this for both payroll teams and software developers, and the effect this could have on employees, who have already seen two significant changes to NI this tax year. Our very own Fiona Smith hosted another bitesize training session, this time covering overpayments. This session gave an overview into the main reasons for overpayments in an organisation, with suggestions on steps that could be taken to reduce the risks in this area. Delegates also learned what steps to take when an overpayment has been made, including what to report to HMRC, and when. The session was interactive, with the use of polls and, again, an exercise for delegates to take away at the end. Wednesday 7 September Payroll operations manager for UK&I, Kelly Blake and global well-being lead, Gabby Wickes gave a session on employee well-being offerings and the changing landscape of employee well-being. Joined by Mathew Akrigg from the policy team, they detailed the well-being journey at Experian, future plans and how other companies can best implement processes for supporting employee well-being. We’re often told by our members that the Advisory Service is one of the main reasons they join the CIPP. Therefore, we made this available to all payroll professionals during NPW through our Advisory Service session. Questions were asked, and answered, on topics such as (but not limited to):
Tuesday 6 September Nick Day, chief executive officer and founder of JGA Recruitment, hosted the Payroll proficiency hour; expert discussion and live Q&A on the six key drivers that impact payroll performance. This was an interesting discussion with Jan Laurijssen and Simon Parsons from SD Worx, and Ben Myhill from Silver Cloud, covering the six drivers impacting payroll performance based on their research. This included: l how you ensure payroll remains compliant in an ever-changing world l how payroll can support broader human resources success l how you build a business case for payroll transformation.
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| Professional in Payroll, Pensions and Reward |
Issue 84 | October 2022
NATIONAL PAYROLL WEEK
l maternity leave (particularly regarding pensions contributions and salary sacrifice arrangements) l directors’ NI contributions l termination payments l car allowances. Don’t forget that, as a member, you can contact the Advisory team during office hours with any payroll technical query and they’ll be able to support you. As we look towards the role that payroll plays within employee well-being, payroll saving is a topic which is gaining traction. Jo Phillips, director of research and innovation at Nest Insight delivered a session on Workplace savings: how can employers support employee financial well-being through payroll ? This insightful session covered the benefits of offering payroll saving and the saving behaviours associated with employees, as well as taking a look at a case study with Suez and TransaveUK. Thursday 8 September Fran Williams, IRIS Software Group, Duane Jackson, KashFlow and Staffology and Ian Holloway, iRealise came together to discuss The future of payroll in a hyper connected world . During the webinar, they considered the full scope of automating payroll, including: l the pitfalls l how transformation within payroll will change the role of the payroll manager l how to ensure you’re prepared for the future of pay. Mathew Akrigg, policy and research officer, Fiona Smith, payroll trainer and Gary Wedderburn from the Advisory, Conciliation and Arbitration Service, discussed the challenges that payroll professionals face in the wake of the Harpur v Brazel judgment. There were some excellent questions from the audience, and the panel explained the impact of the decision and what payroll professionals now need to think about, and do, to ensure compliance. Our session on payroll apprenticeships was delivered by Gemma Mullis, end point assessment specialist, IPP Education Ltd and Ian Holloway, chair of the payroll apprenticeship Standard Trailblazer. Gemma and Ian covered: l what an apprenticeship is l the levy and the levy allowance l Level three and Level five apprenticeship
Standards available in payroll l where to find a delivery partner. They finished the session by confirming some of the future developments, including updates to the end point assessment plan. Friday 9 September Due to Her Majesty Queen Elizabeth II’s passing on the afternoon of Thursday 8 September, all planned events for Friday 9 September were postponed. If you missed any of the CIPP’s online events, you can access them on demand on the CIPPs website – simply login and access My CIPP.
What our sponsors and supporting partners said…
Portfolio Payroll Sam Johnson ACIPP, marketing manager, Portfolio Payroll
played in the lives of workers, but also the wider UK economy. Payslips underpin every aspect of an individual’s financial livelihood. Therefore, to recognise and celebrate this profession as it’s done each year, is paramount.” IRIS Victoria Marshall, marketing business partner – events, IRIS “IRIS are proud to have taken part in, and sponsored, CIPP’s events during NPW. IRIS believe that those in payroll should be recognised for their hard work as the unsung heroes of the UK workforce. We found there was no better time or partner to do this with than with the CIPP during NPW.” SD Worx Craig Magee, demand and generation marketing manager, SD Worx “NPW is a great opportunity to celebrate the unsung heroes who ensure the UK is paid accurately and on time. As a sponsor, it provides us with a fantastic opportunity to engage with businesses of all sizes across many different industry sectors to understand what payroll challenges they face. This helps us ensure that our solutions and services continue to meet the ever-changing demands of payroll professionals. It also provides SD Worx with an opportunity to network with other thought leaders and industry specialists.”
“As always, NPW was a fantastic week, celebrating payroll professionals and putting the payroll sector into the spotlight. As headline sponsor, it was a pleasure meeting our fellow clients and candidates of the past and the future at the iconic Sky Garden and witnessing the week’s festivities across the UK. It’s encouraging that professionals are embracing and engaging in all the learning and development opportunities too, to improve their payroll knowledge and help shape the future of payroll. Unsurprisingly, the talent, resilience and work ethic evident in every payroll department shone through. It’s promising to see the payroll industry going from strength to strength, as professionals gain recognition and become more established within organisations. Payroll is firmly becoming an enticing career pathway; already full of passionate and dedicated people, and we feel privileged to be supporting the payroll profession. We’re excited to be a part of the journey.” Experian Damon Anderson, chief product officer, CIS Experian “NPW really highlights the importance of payroll, not only for the crucial role
| Professional in Payroll, Pensions and Reward | October 2022 | Issue 84 14
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