Professional December 2019 - January 2020

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 56 December 2019 - January 2020

Managing staff

We need to talk about IR35 Matchup

My first time Catching fire

Working round the clock? Burnout

CIPP update | Policy hub | Career development

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“Winning or losing of the election is less important than strengthening the country.” Indira Gandhi (1917–1984) (http://bit.ly/2D4ttmq)

Writing my comment piece is always the moment I perceive the issue’s content in entirety, a time to reflect on the scope of the articles and their relevance. I think you will all find something of interest and application in this issue. The articles on this issue’s feature topic of managing staff (pp 37–41) are important reads, as are Jason’s comments below on the topic. My intention (and hope) is to establish ‘My first time’ (see pp 9–11) as a regular feature, but this needs your help, please. The concept is that the occasion of being involved for the first time in a software implementation project is highly memorable, defining, and hopefully enjoyable. I would be delighted to receive an offer of an

article on your first time. This is also the annual moment to extend my thanks to all those at the CIPP and beyond, without whose support and input production of the magazine would be impossible. Particularly meriting of my appreciation are the designers Nicole Davis and James Bartlett, the policy team for their continual supply of great articles, and Olivia Parkes (and colleagues) for timely delivery of in- house content. I wish you all a great festive season.

Mike Nicholas MCIPP AMBCS (editor@cipp.org.uk) Editor

Chair’s message

The role of the manager is one many aspire to as they develop their career, with some then moving to leader as a natural evolution. It should not be underestimated just how challenging the role can be, but it can also be incredibly rewarding to see others

detrimental to the performance of the business. Acting in a timely manner, quickly and explaining thoroughly why an action is taking place helps the individual understand how their actions positively or negatively impact the workplace. This hopefully brings about the change required. Unleashing potential in staff is often to do with understanding them and ensuring they understand you more. Someone working for you may have a boundless number of roles outside of work. What can you do to ensure that creativity and extra energy is brought into the workplace, to make that as satisfying an environment as outside? So many systems today provide great data to support performance reviews and to gain insight into predictive behaviours; analysing available data is another source of information to today’s manager. I hope you enjoy all the articles within this period’s publication; and, as always, feel free to get in touch.

flourish and blossom. A manager needs to be a role model and recognise that they will be asked for opinion, direction, thought and input throughout their day. A good manager helps to nurture staff by empowering them and ensuring they seek solutions to problems faced, and so come not just armed with an issue but with potential resolutions. That approach to teaching is one I learned very early in my career and is highlighted in the proverb: ‘Give a man a fish and you feed him for a day, teach a man to fish and you feed him for life’. Being consistent with team members is hugely important and remembering to always be objective to the individual. Handling absence issues, time and attendance must be consistent and fair and be done as close to the issue occurring as possible for the individual to understand why they are being addressed. Just as rewarding good performance and saying thank you should happen regularly throughout work, so should addressing any issue that is

Jason Davenport MCIPP MIoD (jason.davenport3@cipp.org.uk) Chair, CIPP

CEO’s message

Hopefully you’re all preparing for a break over the forthcoming festive period. Just the small matter of ensuring everybody gets paid accurately and especially timely before the holidays. HMRC has given notice that the temporary easement on reporting PAYE information in real time, introduced last year, has now

keeps getting bigger and better. The numerous compliments received by the CIPP include several that the CIPP had “professionalised the profession”. I know personally that the exhibitors, sponsors, members and awards attendees felt we’d certainly done our profession justice. Excellence in our industry was also duly rewarded and Hugh Dennis made an excellent host for the evening. We also celebrated this year the two-year anniversary of Chartered membership for those meeting the necessary criteria. Congratulations to the successful applicants who have made a real step forward for our industry. It’s been a pleasure meeting many of you during the year at specially convened Chartered dinners. Finally, on behalf of all the staff and board here at CIPP, I wish you all a well-deserved break over the Christmas and New Year period. May it be spent with family, friends and loved ones.

been made permanent. This means that if you do pay early over the Christmas period, you should report your normal (or contractual) payday as the payment date in the full payment submission and ensure that it is submitted on or before this date. The CIPP’s Graduation Ceremony was held at the Symphony Hall, Birmingham on 8 November. Every year it’s my personal delight to see payroll and pension professionals – surrounded by friends and family celebrating – recognised for their success as worthy holders of a qualification that represents an industry benchmark. Well done to all. Our award-winning Annual Conference and Exhibition and our Annual Excellence Awards ceremony at the Celtic Manor Resort just

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

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

December 2019 - January 2020

39

Managing staff

Jerome Smail researches

Features

12

18

16

Employers failing to reduce commuting stress Catherine Diamond discusses

Termination payments, etc Duncan Groves outlines

It’s Christmas! Bah, humbug Samantha Mann discusses

20

25

28

National Insurance: history and application LoraMurphy reveals

We need to talk about IR35 Anne O’Donnell reveals

Working round the clock? Jenni Wilson explains

| Professional in Payroll, Pensions and Reward | December 2019 / January 2020 | Issue 56 2

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29

Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Ros Hendren MSc FCIPPdip CMgr FCMIdip FHEA Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP FHEA Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Ian Whyteside MCIPP FMAAT ATT Editor Mike Nicholas 0121 712 1000 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd

HAPPY NEW LEAVE YEAR

Compensation, harassment, discrimination NicolaMullineux outlines

Are you prepared for the new annual leave year? Christina Holloway discusses

36

32

Kicking the pension tax-can down the road Henry Tapper challenges

Pay statements Danny Done provides guidance

37

42

Useful contacts

Performance management – a cautionary tale Jade Linton outlines

Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries info@cipp.org.uk 0121 712 1000

Lost in translation Gareth Stears says

Regulars

01 Editor’s comment, Chair’s andCEO’s messag e

24 Events horizon 25 Reward insight 34 Pensions news 35 Pensions insight TPR update 38 Industry news 39 Feature articles Managing staff 44 Aweek in the life of Georgina Codling Additional online content 26 Recruitment advice 27 Four-day working week

Events, news and developments

04 Membership insight On your behalf, Advisory 08 Career development insight Diary of a student, My first time, CPD 14 Movers and shakers

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 2019. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 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 retreival 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.

15 CIPP update 16 Payroll insight 23 Payroll news

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

MEMBERSHIP INSIGHT

On your behalf On your behalf

Policy team update

The CIPP policy team review 2019, the consultations and the forums, and reminds the profession of the role they play in informing, advising and influencing policy

W hat a year it has been – as a team we are aware we say this every year. But 2019 has seen us respond to a wide range of consultations on subjects that focus primarily on the employee – increasingly referred to as a worker – and associated worker rights. NMW (andNLW) As we approached Christmas 2018, the government launched a number of consultations (Ebenezer Scrooge would have been proud at this approach to the festive break). The one which really caught our eye was the consultation published by the Department for Business, Energy & Industrial Strategy (BEIS). This was on the subject of the national minimum wage (NMW), specifically as it relates to salaried workers and salary sacrifice – which are issues that have resulted in employers being ‘named and shamed’ by BEIS (well, at least prior to its suspension whilst its effectiveness is reviewed). In November, the Low Pay Commission (LPC) published two reports on the future of the NMW (http://bit.ly/36AoLKC). These had been preceded when Bryan Sanderson, chair of the LPC, wrote in September to the BEIS secretary of state with the recommendation that the age at which a worker becomes eligible for the national living wage (NLW) be reduced in stages from 25 to 21. The chancellor of the exchequer confirmed agreement and his intention to deliver “so that it applies to those aged 23 and over from 2021, and to those aged 21 and over within five years.” You may recall that mention was made in the November issue that a meeting was

to be held between BEIS, HM Revenue & Customs (HMRC) and stakeholders to discuss policy and enforcement of the NMW. ...key issues such as salaried workers, unmeasured work and deductions from pay, including for Christmas clubs and uniforms HMRC views the CIPP as a key stakeholder when considering NMW, and regularly consults with us on NMW issues. However, with BEIS responsible for NMW policy but HMRC responsible for its enforcement, the CIPP, along with other stakeholders, has long felt that the most effective form of consultation for NMW would be a meeting which brings key stakeholders together. So, we were very pleased when our calls were recently answered, and a meeting was held between the various parties. Constructive discussions were had around several key issues such as salaried workers, unmeasured work and deductions from pay, including for Christmas clubs and uniforms. At the time of writing we were about to enter ‘purdah’ ahead of the general election and therefore will need to wait until a new government is established before any

decisions can be made on how or whether any of these issues will be addressed. We remain hopeful however that the rules and guidance around these and other issues will be simplified. We continue to remain optimistic that the meeting of BEIS, HMRC and key stakeholders wasn’t just a ‘flash in the pan’ but will form the basis of a regular forum going forward. (Yes, we do believe in Christmas miracles.) Other themes under the spotlight of consultation this year will, if delivered, bring about: ● improved worker rights Other consultations The policy team aren’t able to respond to every consultation, as resources (or Christmas miracles) do not stretch that far. However, we have been able to respond to several during 2019, including: ● ethnicity pay reporting ● extending redundancy protection for women and new parents ● off payroll working rules in the private sector ● Employment Allowance (Excluded Persons) Regulations ● proposals to reduce ill-health related job loss ● neonatal leave and pay ● proposal for a single enforcement body ● measures to address one-sided flexibility. Consultation forums You may be aware that CIPP follows a process to ensure we deliver the views ● greater employer transparency ● improved employer compliance.

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| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56

Policy hub

of our members and, by virtue of our Chartered status, also the views of the wider profession. How we achieve that is through the medium of: ● Surveys – We know it must feel like we bombard you with surveys sometimes, but there really is strength in numbers. When we submit a consultation response, we don’t reflect the opinions of the policy team, we say what our members and the wider payroll profession tell us. The more that you tell us, the more credible our argument is, and the bigger the impact it will have. So, please do spare time if you can to complete as many of our surveys as possible – it is your opportunity to help influence and shape the polices that affect what you do every day in your profession. ● Policy Think Tanks – These roundtable events are a benefit for Full, Fellow and Chartered members. They are meetings limited to around twenty people, which are attended by policy leaders from the relevant government departments, who are interested in exploring issues with those who physically put the policies into practice. The Think Tanks are a chance for HMRC, the Department for Work and

Pensions, BEIS, HM Treasury, the Low Pay Commission, and others, to explore issues and understand the impact various policies or proposed policy changes can, and may have, on those who work in the industry. ...issues that could have a wider impact on the payroll profession as a whole, or on particular sections or segments You can, and do, influence government thinking and there is a real opportunity to affect change going forward through these meetings. A consultation forum is usually held every three months or so and allows attendees to discuss issues arising in a specific arena. For example, HMRC holds a quarterly forum for statutory payments, student loans, issues affecting agents, IR35 and all things off-payroll, and another covering all payroll topics, namely the Employment and Payroll

Group. The forums are attended by key stakeholders such as the CIPP policy team who bring issues to the table to be discussed. Are there any issues you would like us to take up on your behalf? We welcome your discussion points; but just a health warning: individual cases aren't discussed, just those issues that could have a wider impact on the payroll profession as a whole, or on particular sections or segments. Thank you Please keep your questions, comments and issues coming by emailing them to policy@ cipp.org.uk . Thank you for all of the contributions that you have sent our way during 2019, whether in person, as we have had a record number of attendees at Think Tank events this year, but also in the surveys and through email. We know the surveys can occasionally be lengthy and your time is valuable – we appreciate you sharing it with us. Wishing you a very happy, healthy and relaxing festive period and a prosperous 2020 – let us continue to work together to effect change. n

Remember your membership benefits

CIPP's policy hub cipp.org.uk/ph

Devolution: payroll legislation matrix cipp.org.uk/dpl The Devolution: payroll legislation matrix contains relevant payroll legislation as it relates individually to the four nations of the UK. The subjects are categorised where necessary and in alphabetical order. It is intended to be a guide, not a definitive list and is a document that will keep changing as new regulations supersede existing ones and new guidance is produced. CIPP EU exit (Brexit) factsheet cipp.org.uk/bf o Whilst there are still a lot of unknowns, and things change almost daily, there are some known facts relating to the EU exit

and we have summarised them within our CIPP EU exit (Brexit) factsheet .

Within the policy hub you will find details of the consultations that we attend on your behalf and Policy: need to know – basically, everything that you need to keep your payroll legislative knowledge up to date and to provide feedback on proposed changes. The policy hub is maintained by the CIPP's policy and research team who strive to serve the needs of our members, and the wider payroll profession, by acting as a conduit via which concerns can be heard and addressed. The policy and research team offers the payroll profession an opportunity to have a combined voice and shape the future of the payroll profession.

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Issue 56 | December 2019 - January 2020

| Professional in Payroll, Pensions and Reward |

MEMBERSHIP INSIGHT

2, as the rule is to default to Plan 1 in this situation.

Q: We are planning on registering to payroll benefits in kind for the first time ready for April 2020. The benefits we payroll attract class 1A NICs. Are these NICs collected via the payroll? A: Even though the tax is collected via the payroll, the class 1A NICs are not and you will still have to send a P11Db return following the end of the tax year. Your payroll system should be able to produce a report at the end of the tax year to give you a value for your class 1A NICs liability. Q: I have an employee who is due to go on to statutory maternity leave (SML) and has advised us that she has a secondary employment. She qualifies for statutory maternity pay (SMP) with us and also with the other employer. She has asked to curtail her maternity leave with us at week 20 to commence shared parental leave. If she was to do this, how would it affect her SMP with the second employer? A: For statutory shared parental leave and/ or pay (SShPL/SShPP) to be created, the mother must give both employers who are liable to give her SML/SMP notice at the same time. This means that the employee must curtail her SMP/SML in both employments. If the criteria are met in both employments for SShPL/SShPP the employee will be entitled to have two sets of SShPL/SShPP. In both circumstances, the parents have up to 52 weeks from the birth of the baby to take the SShPL/SShPP. Q: Our organisation has their automatic re-enrolment date happening in the next pay period. Several employees do not qualify for re-enrolment when assessing their earnings over a full year because their annual earnings are below the £10,000 earnings threshold. Should I look at the earnings on a monthly basis, or use and annual earnings figures for re-enrolment purposes? A: When assessing an employee for re- enrolment you should use the earnings in the pay period that includes the re- enrolment date. You do not average it out over a longer period, and you do not use the annual earnings over the year. If in the month of re-enrolment, they meet the criteria to be auto-enrolled then you must enrol the employee in a qualifying pension

Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk to live chat.

Advisory

*please see summary at cippmembership.org.uk for details.

Q: We have an employee who relocated in 2018 and was given a hire car for the period February–August 2018. The car was reported via a P11D return, but I have now been advised by his line manager that this was part of his relocation package so should not have been reported to HM Revenue & Customs (HMRC). Can you please advise? A: The cost of a hire car, solely for the use of relocation, could be covered in the statutory £8,000 relocation exemption. However, you would need to be sure that the car is only used as detailed in HMRC’s guidance (http://bit.ly/2WQ1uQs). For the exemption to apply, the following must be met. “If the employee or a member of his or her family or household is not already provided with a car or van available for private use (see EIM23300) and a car or van is then provided solely for travel in respect of: ● eligible travel and subsistence for the employee (see EIM03113) ● eligible travel and subsistence for the employee’s family or household (see EIM03114) ● continuity of education for child (see EIM03115) the benefit charge arising from that provi- sion can be covered by the removals ex- emption if it is within the £8,000 limit. The same applies to the fuel benefit charge in such circumstances. Note that this rule is ‘all or nothing’. If the car or van is available for any private use other than eligible relocation travel in the tax year in which it is provided for the move the benefit charge(s) will apply

in full following the normal rules and no part can be treated as eligible removal benefits.” This would mean that a condition that the car is given must be that no private use is undertaken in the vehicle. It would be advisable that within the terms for the car being given, it is noted that private use is not permitted for the exemption to apply. If this isn’t monitored or can not be proven that it has been solely used inline with the conditions for exemption, you would need to report the full costs of providing the vehicle via a P11D return. Q: I would like some advice on salary sacrifice for buying annual leave and whether this is a taxable benefit in kind? A: HMRC have stated that allowing employees to purchase additional annual leave via a salary exchange/sacrifice is perceived as helping employees to maintain a good work/life balance and that there is nothing to report regarding salary sacrifice or optional remuneration arrangements. The purchasing of additional annual leave is classed as an intangible benefit in kind. Q: A new employee has indicated in their starter declaration that they have a student loan plan 1 and 2. Which plan should we operate, or do I apply both? A: It is possible that an employee could possibly have two types of student loan plans; however, you should process the deductions using the default student loan deduction thresholds as dictated under plan 1. You would not apply two separate deductions on the payroll for plans 1 and

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| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56

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Policy hub

scheme, remembering the employee does have the option to opt out.

the businesses ● each business has its own bank account, and ● each business has its own set of accounts, for example, if one business failed would it directly affect the viability of the others. If the answers to these questions indicate that they are separate businesses, then the owner would need to total the class 1 NICs liability in the qualifying tax year for each business to see if they qualified for small employer relief (SER) at 103%. Alternatively, if the answers indicate that each business is an integral part of the employer’s trade as a whole, then the employer may be less likely to qualify for SER. This is because they would need to calculate the total class 1 NICs liability in the qualifying tax year for all the businesses. Q: An employee left employment in September and was processed as a leaver on the last pay run. A form P45 was sent as standard practice. Unfortunately, we were not advised at the time that the person was due outstanding holiday pay. Can you advise how we would process this payment? A: This would be classed as a payment after leaving. The employee’s tax code should be amended to 0T and class 1 National Insurance contributions (NICs) would be applied on a weekly basis as holiday pay is seen as an irregular payment. Remember that you would not change the employee’s leave date or any other field other than the tax code and a further P45 should not be reissued. n

Q: In our company some of our employees have loans that have been written off, which means they must now be reported in a P11D return. Do these loans attract class 1 or class 1A NICs and will this impact on the apprenticeship levy? A: When these loans are written off, they will attract class 1 NICs and therefore this will have an impact on the apprenticeship levy. For example, a loan of £11,000 is written off in January and the employee earns £1,000 per month. What the employer has to do is add the £11,000 as a nominal amount to the £1,000 (but not physically pay the employee any more money) so that class 1 NICs would be calculated on £12,000 instead of £1,000. The employee would pay class 1 NICs on £12,000 and that would then impact the total pay bill for the apprenticeship levy. Q: Has the format of a National Insurance number (NINo) changed at all? A: The format of the NINo has not changed. It still consists of two letters at the beginning of the NINo, then six numbers and lastly one letter. Letters which will not be used for either of the prefix letters are D, F, I, Q, U and V; and O is not used as the second letter. Prefixes BG, GB, KN, NT, TN, and ZZ will not be used. The suffix letter relates to when contributions were recorded on cards, which were returned annually but with the letter indicating which quarter the return was to be made. Suffix letter ‘A’ cards were sent in March, ‘B’ cards in June, ‘C’ cards in September, and ‘D’ cards were returned in December. Q: We operate six different pay as you earn (PAYE) schemes under the one group. What percentage of SMP can we claim back? Is it calculated per PAYE entity or as a whole group? A: If a sole owner has more than one business, and each operates its own PAYE scheme, you have to look at the individual circumstances and decide if you can treat them as separate businesses. You need to consider whether: ● the staff are recruited by each business ● the staff are interchangeable between

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

*correct at time of publication

Need clarity and confidence on how to process the P11D?

CAREER DEVELOPMENT INSIGHT

P11D, expenses and benefits

Diary of a student…

Course content

Gillian Fox Global payroll manager, Cambridge University Press

Outline of expenses and benefits

Identifying the different returns for expenses and benefits

Summarise the purpose of PAYE Settlement Agreements (PSAs)

Can you give an insight into your career and qualifications background? I did not start out in payroll. I fell into payroll after joining Cambridge University Press back in 2014. I originally worked in pensions running a defined benefit pensioner payroll but moved into employee payroll after a year. After joining the payroll team, I discovered that I really enjoyed working in payroll and have been there ever since. Which course did you study and why did you choose it? I decided to do the Foundation Degree in Payroll Management. I chose this course as it enabled me to progress with my chosen career in payroll. Did the fact that the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP? Though the main driver for choosing the CIPP was my manager who has the same qualification with CIPP, the reputation of the Institute within the industry was also a factor as my current and any future employer would recognise the qualification. How important is this degree in relation to your future career? It has enabled me to move forward with my career from payroll administrator to global payroll manager giving me the tools and knowledge I needed.

How did you cope with work- life balance and study? It was a challenge as I was pregnant while doing year 2 and working full-time; and then had a newborn to look after while doing year 3. Without the support of my manager Olivia Dunham and husband it would have been a lot harder. With their support and by using the resources provided by CIPP and attending all tutorials and module review days I succeeded in graduating. Was the course what you expected? It was what I expected – and more. It didn’t just concentrate on payroll but also managing a team, project management and marketing from a payroll point of view enabling me to move forward in my career with a solid foundation. How did you manage to incorporate studying into your routine? With the help of my manager we created a detailed study plan. Although it required a big commitment, following the plan removed the stress and enabled me to ensure that I was keeping on track with my studies. For someone who is thinking about studying for a CIPP qualification, what would your advice be to them? Do it! It is a big commitment but so worth it. n

Demonstrate form P11D completion

Plus much more...

For more information: Visit: cipp.org.uk/training Email enquiries@cipp.org.uk Call: 0121 712 1000 Live chat with us

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| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56 8

*correct at time of publication

Career development insight

My first time

Ian HodsonMSc ChMCIPPdip, head of reward / deputy director of human resources, University of Lincoln, remembers his participation in a payroll software implementation project – recalling the suffering and the pleasure

E very good payroll manager has had two experiences they have survived. Firstly, that they have managed to retrieve the impossible and get out of the sticky situation of a BACS failure. Secondly, that they have been through a major system implementation and lived to tell the tale. I am fortunate – or unfortunate – to have been through both. I remember the first time we undertook a major system implementation. But let’s not forget what had gone before just to get to this point: twelve months of meetings, moaning, business cases, costing proposals, tenders, presentations, contract negotiations etc. Nobody ever really wants to change the payroll system. It is one of the few times payroll actually gets respected by the senior leadership team who get nervous at the fact that the monthly cycle we live in leaves very little time for change. It is always quite ‘funny’ how at every other event payroll’s operation is sometimes dismissed as not that technical or difficult. The case on this occasion was simple but probably one of the most common

that you see. The in-house payroll system had been developed over time to keep it just about compliant, but this was increasingly difficult as legislation became more and more complex. What was worse was that other systems in the business had moved on to being based on more modern operating systems, which meant that there were only a couple of individuals who still had the knowledge to support the payroll application. In itself this was a risk. ...in-house payroll system had been developed over time to keep it just about compliant... The old system was also struggling to keep pace with the changing ways of delivering payroll. It was a long way from offering any employee self-service and it seemed paper payslips were becoming a dated way for people to access their information. The options were ultimately to

keep tinkering with what we had, or to be bold and brave and face starting all over again but with the promise that it could set the team up for the foreseeable future. The big aspect that you don’t always realise is that when you align yourself to a major new supplier you are actually buying in to a very different relationship. We would move from a system where change occurred only when you decided it was needed, to one where we received constantly information about a new release and mandatory patches that we had to take. You suddenly realise when looking at the impact the change will have on the team, that to get the most out of the system and deal with some of the terms that get thrown up including – server load balancing, sql coding and the formidable codeburst – you really need somebody by your side to offer interpretation skills. One of my abiding memories is our very first meeting with the system. We had assembled a team of eight ‘super users’ from the department who we decided would go on an intensive training programme to get to know the ins and outs of an integrated human resources

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

CAREER DEVELOPMENT INSIGHT

and payroll system and to be the experts. Although we all went into the training room with excitement and enthusiasm, I remember at the very first break everybody sitting in the coffee area in stony silence. It was like we had been hit with a whirlwind of change and the fun had left the room. The modern systems are beasts that offer to do everything from your sickness absence, to leave management, to appraisals, to case management, to international payroll, to equal pay audit… it goes on. It actually felt like receiving a full set of encyclopaedias for Christmas and after only an hour being expected to answer questions on any matter. Not going to happen. In hindsight what you learn is that all of this functionality is possible, but first you have to set it up. A little like before cooking a fine meal allowing for going to the shops to get some ingredients. We sat through day after day of training without it ever really getting easier and with the team having to reassure themselves that it would be ok. Suddenly the looming cloud of being able to set up the system, parallel run and get people paid seemed to be ominously hovering above our heads. As the training continued, back at the office we started to get the data ready for uploading. Who would have thought we had this much data? It was like clearing out the attic or moving home – the challenge as ever is what to leave behind. Your natural instinct is to try to take everything but then you realise that the chances are you don’t really need it and bringing all that past data with you is really complicated as it doesn’t map directly to the data fields in the new system. We fundamentally decided that what

we needed was a clean start and it would be a mistake to have our system build dictated by trying to squeeze in the format of the old one. We also realised how much time it would take that while wanting to focus on exploring the exciting functions of self-serve we could spend too much time on data manipulation. Our option in the end was to archive the old legacy system and to gradually turn it off as the data became no longer needed for enquiries. As we carried on with our system build there seemed to be some enlightening moments when we suddenly realised that much of the super-user training that had made us feel so nervous was actually not needed, and the real skill was to be able to absorb the knowledge and recall the parts that we do need. A little like when you buy a car and they show you what lots of buttons do on the dashboard even though you won’t use the features on a daily basis. We started to build different modules with our rules in the background. On starting the process of testing, particularly the parallel running of payslips, everything feels a little more familiar – or whether there is a right or wrong answer, rather than not knowing if areas were set up correctly. It is surprising how quickly parallel knowledge and recall the parts that you do need ...the real skill was to be able to absorb the

running trains you for using the system. You soon stop having to think which menu an option is on and instead start clicking through the drop-down options and setting up your favourites like it is second nature. It is also often quite enlightening during parallel running when you realise it was actually the old system that was doing the calculations incorrectly or when you have to try to understand exactly how the system had been working to replicate it. The joy of hitting the recalculation button and the net pay matching always gives a sense of hope; there were a few ‘tricky’ employees where it took a little longer while we worked out how to get their pay to match. I am a big believer in trying to time an implementation with the commencement of the new tax year. Bringing over year to date totals and passing the baton mid tax year is never the best idea if it can be avoided – and a month-1 launch means that you start at a zero base. It also gives you a little more time to work on closing the tax year on the old familiar system when time is tight as you know there will also be a big commitment in time with setting up month-1 payroll on the new system. That first month of processing on the new system is always a little bit of an energy rush. Lots of the team asking how to do things, lots of others shouting out their thoughts, and the occasional tears between the hysterical laughter. Being a manager in these situations is never easy. You are expected to be the positive messenger for everyone and calm down the operations to ‘business as normal’; however, inside you are feeling more nervous than the team as to how this is ever going to work out. I always remember the words of one of my earlier managers: “walk slowly and smile” – in other words, there is no panic and we are all having a good time. Sometimes easier said than done. Implementations also seem to come in phases. No sooner do you start celebrating that the payroll data has all been uploaded and input then you move on to the next challenge of processing the first BACS, running the real time information returns and then, worst of all, the nominal ledger interface. The problem with setting up this interface is primarily that you are dependent on some other colleagues to

| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56 10

Career development insight

actually know what they are looking for. It is only a giant journal of debits and credits that have to balance to zero, but because the way it’s set up depends on the finance system and internal operations it all takes a lot of time to agree a way forward. Our first nominal interface from the new payroll involved a number of uploading and reversal operations where transactions would not process or we had historic extra lines written to our old internal process which nobody seemed able to understand or change. The parallel running of the nominal ledger between the old and new systems and revisiting the setup of the pay elements to work out what was happening, was one of the most time-consuming tasks in the implementation process that we really underestimated. By the time we had got it right we were well in to the second month of processing and nominal two was run just a few days after nominal one.

The most important learnings from my first system implementation was about the knowledge building. Don’t be worried about all the information being thrown at you as you won’t need it all; instead, spread the knowledge out amongst many. One of the mistakes from implementation is to create a single point of failure that stops you from being self- sufficient. I also learnt that you need to have technical knowledge in the team and really transition the skills base of the team from data entry to optimisation roles in order to maximise the system. You also have to remember that often the reason you need to upgrade the system is that you haven’t done anything to optimise it so you’re off the pace and out of step. I always make sure that every time we have a new release we are looking at what has changed and which features are available to see how we could use it.

So, I lived to tell the tale of my first system implementation and of course the nature of payroll is that you get very little time to take stock and celebrate before you set off into ‘business as normal’. Looking back I wish we had taken more time to celebrate what we had achieved as it really is a monumental team effort to migrate to a new system. Of course, like all good reward professionals I now find myself actually looking forward to a new system launch as once you have learnt the process they are one of the most exciting pieces of work to get involved in – and experience goes a long way! n implementing a payroll system, that is? It’s a great and career formative experience, one which lingers long in the memory. The editor invites you to supply copy of up to 2,400 words providing an account of your first time so that readers will enjoy and relate to – and learn from – your experience. Please email editor@ cipp.org.uk to confirm. Another example can be found online here at http://bit.ly/2IRR0tU. Your first time Do you recall your first time –

...I wish we had taken more time to celebrate what we had achieved as it really is a monumental team effort...

Hear from the experts at our national forums Exclusive to CIPP members * , the national forums are a perfect opportunity to hear from the policy team, as well as other key speakers on developments in payroll, pension and reward legislation. This event will also provide an excellent chance for you to network with other CIPP members.

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Book online at cipp.org.uk/events , email events @cipp.org.uk or call 0121 712 1013 for more information.

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

CAREER DEVELOPMENT INSIGHT

Employers failing to reduce commuting stress

Catherine Diamond, director of human resources at Moneybarn, discusses research findings and the issues

A n employee’s commute experience has traditionally fallen outside the responsibilities of an employer, but the tide seems to be turning. There’s a growing body of evidence (http://bit.ly/32qsBCN) to show the detrimental effect that long and stressful commutes are having on the health and productivity of the workforce, leading more and more employers to consider what adjustments and options they can offer staff to help ease the strain. Only recently a debate began over whether commuting time should be counted as part of the working day (http:// bit.ly/2NujxbR), given many employees now use their smartphone and better wi-fi connectivity on public transport to complete work tasks on their way into or home from work. So, is it time for more employers to sit up and take note of the commuting experiences of their employees and offer more support? An employee’s commuting experience can vary greatly to the next. To find out more, Moneybarn recently conducted a survey of 2,000 full-time workers in the UK. According to respondents, the average UK ‘working day’ is around eleven hours including time spent commuting, with people leaving home at 07.17 and returning home at 17.48. The amount of time per day spent commuting is 62 minutes, with 15% of workers commuting for 102 minutes or more. 23 miles is the average round trip, with 14% of commuters travelling over 42 miles a day. Workers in London have the UK’s longest and slowest commutes of all, travelling at just 14 miles per hour (mph), despite paying some of the highest prices for fuel and monthly season tickets for public transport. In comparison, commuters in the east of England travel over double the distance per hour (29mph) and workers in Wales and the south west spend the least amount of

time getting to and from work (48 and 49 minutes respectively). When it comes to delays, commuters in the south east and the south west are the most likely to experience travel delays daily; workers in Northern Ireland and Scotland the least likely. Surprisingly, 57% of workers surveyed aren’t offered anything by their employer to make commuting easier. ...average UK ‘working day’ is around eleven hours ... For employers wanting to lead the way in supporting staff to maintain a healthy work-life balance and benefit from having a productive, satisfied and loyal workforce, there are many options available, ranging from small adjustments to larger investments. Flexible working is becoming an increasingly popular offering, allowing employees to stagger their start and finish times to avoid peak commuting hours (usually between the hours of 7–9am and 5–7pm). Every employee has the legal right to request flexible working from their employer; however, only 21% of UK workers surveyed said they have been offered flexible working hours. Employers in the east midlands and the east of England are the least likely to offer flexible working opportunities (15% and 16% respectively), whereas 37% of employers in Northern Ireland are the most likely to allow staff to adapt their working hours, followed by employers in London (32%) and Yorkshire and the Humber (21%). Working from home can also help employees avoid the stress of commuting

altogether. Businesses in the south east are leading the way, but only 16% currently offer this. In comparison, only 6% of employees in Wales are able to work from home. Another important factor in commuting experience and overall work-life satisfaction is the cost of getting to and from work. In fact, according to Moneybarn’s survey results, workers on average pay out 11% of their monthly income on getting to and from work. Sixty people surveyed spend over 40%, and 41 spend over 50% of their salary on commuting. Employers in London are the most likely to give workers financial support to ease the burden of high commuting costs, with 30% offering season ticket loans and 13% subsidised transport. However, it seems despite these efforts, commuting is still unaffordable for many in the capital, with a recent study (http://bit.ly/2WUamVn) revealing 60% of London’s workers have skipped work to save money on their travel costs. When looking at the UK as a whole, only 10.6% of employees are offered season ticket loans and just 5.7% can take advantage of subsidised transport. All in all, the findings of Moneybarn’s new commuting survey highlight that while some employees are being offered support to help reduce the stress of commuting and the negative impact it has on both their personal and job satisfaction, more can certainly be done. As employers it’s important to pay close attention to the impact commuting is having on staff and take action to recognise this as part of health and wellbeing strategies. Offerings such as more flexible working arrangements to avoid rush hour or work from home, car share schemes and subsidised transport costs are becoming increasingly valued by workers and could help businesses attract and retain the best talent. n

| Professional in Payroll, Pensions and Reward | December 2019 - January 2020 | Issue 56 12

Career development insight

Tell uswhat you think Take part in our market insight survey today

Continuing professional development

It is essential that all payroll, pension and reward professionals are kept up to date with the continuous changes in the industry

L ogging your continuing professional development (CPD) allows you to keep track of learning and development that you have completed and to tailor your future developments based on you and your organisation’s goals. CPD works best when it has a purpose and the CIPP logging tool relies on you setting your own learning objectives to log your activities against. You will need to have at least one learning objective set before you can log any CPD. Recording your CPD activities To make the process as easy as possible, we have provided pre-set CPD categories and activities. Virtually all types of CPD will fit into one of the six categories below. ● Writing – To create written material that would involve research and preparation to assess data and identify information. ● Reading – To read material that reviews or offers new information that expands the individual’s understanding or knowledge. ● Speaking – To present information verbally to others, which has required either learning of the material or research to prepare and analyse information in

a manner that will be effective for that presentation. ● Listening – To pay notice to the comments being offered by others on professionally related topics where information is new or developing personal understanding or experience. ● Doing – To undertake a role where there is opportunity to learn new activities or experiences. ● Structured learning (as a student) – To follow a training programme by either attending one or a series of events or to participate by distance learning, studying a specific topic. The experience could be based at the workplace, at a specified location or with online study even at home. It must be a payroll, pensions, rewards or professional course. n If you have any questions regarding logging your CPD then head over to the CIPP website and to find the FAQ’s page or contact us via membership@ cipp.org.uk with any queries you have. To log your CPD, head over to ‘My

CIPP’ through our website at www.cipp.org.uk/mycipp

For more information: Visit: cipp.org.uk/MIS Email info@cipp.org.uk Call: 0121 712 1000 Live chat with us

cipp.org.uk @CIPP_UK

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| Professional in Payroll, Pensions and Reward |

Issue 56 | December 2019 - January 2020

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