in Payroll, Pensions & Reward PROFESSI NAL Issue 59 April 2020 Official publication of The Chartered Institute of Payroll Professionals
When we were young It’s a wonderful life
Budget 2020 Desperatemeasures
The future of payroll Things to come
CIPP UPDATE | POLICY HUB | PERSONAL DEVELOPMENT
40 YEARS OF LEADING THE PROFESSION
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“A man who dares to waste one hour of time has not discovered the value of life.” Charles Darwin (1809–1882) (http://bit.ly/2IyK3NZ)
Encountering the virulent coronavirus the world and the UK are responding with severe and exceptional measures to limit the contagion and the impact. Although it would be foolhardy for anyone to predict what the situation might be
challenge than usual. The government continues to bring forward measures to mitigate the impact of the virus; see pages 22, 23. The announcement of postponement of the introduction of IR35 (off-payroll working) in the private sector until 2021 is a welcome measure. I wish you, your family, friends and colleagues, good health.
in the UK and across the world when you receive and read this in April, it seems to me inevitable that there will be extraordinary and extreme pressures on employers and employees. For payroll professionals, paying workers accurately and on time in the weeks and months ahead will become an even greater
Mike Nicholas MCIPP AMBCS (email@example.com) Editor
‘Adding value’ is a fantastic topic to consider both in the workplace and the home. As a father, brother, son, husband, friend, leader and work colleague, I have many hats to wear, as do many of you. Do take a moment when reading this issue, to consider all of the ways
neither side can see the opinion of the other. It is a useful tool to be able to tell stories and illustrate a point, taking the emotion out of the review. The more senior you become in an organisation (or a family, or social club), the more you are looked to for your experience. For all of my earlier life experiences, I would often come home to recount a tale of woe and my father would state “it is character building”. I often wondered when that might stop, and in fairness it never has; with each day presenting new opportunities to learn and add value. I hope you all enjoy the content in the edition; and, as always, I look forward to catching up with as many of you as possible to recount stories and add value wherever possible.
you make an impact, make a difference and add value each day. One of my favourite films is It’s a wonderful life with the lead character, George Bailey, not realising what an influential life he has had until his generosity of spirit is shown to him by Clarence the angel. With such busy lives, it is essential to take time out for yourself and consider the positive impact you can have. Back in the workplace, consider your day and how best placed you are to add value and make a difference. When invited to a meeting, you should challenge whether it is really you who would be best placed to attend – and treat your time with value. The older I get, the more stories I compile. These can often be imparted in many different ways, and often in difficult situations when
Jason Davenport MCIPP MIoD (firstname.lastname@example.org) Chair, CIPP
It’s tax year-end again. I hope there are no glitches or reconciliation issues, and all goes smoothly. Entering a new fiscal year what changes can we expect? As well as changes to eligibility for the employment allowance, there is CEO’s message
in advance to the University, which is reviewed by the panel prior to the PPR. Both the CIPP education director and myself, as CEO, attend the review and answer questions on the details and how the programmes have evolved considering feedback from students, external examiners and other stakeholders. The detailed documentation submitted includes: annual evaluation reports, programme specification, external examiners reports, student feedback, course management meeting minutes, and university tutor reports. Employers and students are also invited to contribute (usually by dialling in) to reflect on the courses’ content and its suitability for their employment, details of experiences, employer support, improvements, career development, investment, progress and so on. This shows the rigours that this qualification goes through in ensuring it is ‘fit for purpose’ for our students.
the introduction of class 1A NICs on termination payments which must be paid in real time rather than once a year. There is also the introduction of statutory parental bereavement leave and pay, along with changes to the rules for calculating National Minimum Wage. And this year’s ‘late’ budget on 11 March introduced measures that have immediate effect. The CIPP takes considerable pride in its portfolio of qualifications, with a lot of work, validation and the like taking place. One of the most important processes the CIPP undertakes with its key education partners, the University of Worcester and Heart of Worcestershire College, is a six-yearly partner periodic review (PPR) in respect of our Foundation Degrees in payroll and pensions. This PPR, which takes place this month, is a stringent exercise with a panel of independent academics. A large amount of documentation is required to be presented
Ken Pullar FCIPP (email@example.com) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
THIS ISSUE’S FEATURE TOPIC IS ADDING VALUE
The future of payroll
by Helen Armstrong
More than a process by Brian Sparling
How to add value by Farzana Sayeed
When we were young by Tim Kelsey
Minimum wage update by Tim Bridgett
Budget report By Lora Murphy
DLME strategy by CIPP policy
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 2
Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Editor Mike Nicholas 0121 712 1000 | firstname.lastname@example.org Advertising Jill Bonehill 0121 712 1033 | email@example.com Design James Bartlett, Nicole Davis and Sam Parkes firstname.lastname@example.org Printing Warwick Printing Company Ltd
Attract and retain talent by Michelle Hobson
Adding value by Jerome Smail
Getting retirement ready by Henry Tapper
Adding value to pensions by Ian Neale
Liz Lay MSc FCIPPdip Katie Sharpe ACIPPdip
Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Clare Warrington MSc FCIPPdip AFHEA
Veganism, equality, disciplinary by Nicola Mullineux
Taxation of pensions by Helen Hargreaves
Membership email@example.com 0121 712 1073 Education firstname.lastname@example.org 0121 712 1023 Training email@example.com 0121 712 1063 Events firstname.lastname@example.org 0121 712 1013 Marketing and sales email@example.com 0121 712 1033 General enquiries firstname.lastname@example.org 0121 712 1000
Jack’s law by Danny Done
A day of OOW by Samantha Mann
01 Editor’s comment, andChair’s andCEO’smessage Events, news and developments 04 CIPPupdate 06 My CIPP On your behalf, Advisory, Being payroll 12 Events horizon 13 Movers and shakers
14 Personal development Diary of a student, newBA in BusinessManagement
20 Payroll news 22 Compliance 26 Reward 38 Industry news 40 Technology
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 2020. 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.
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
Celebrating 40 years of supporting payroll professionals OVER THE last month we have been continuing our journey into the history of the Institute. We have been fortunate to have welcomed some of our founding members to the CIPP’s offices in both London and Solihull. They have been telling their stories and reasons for working so hard to establish a professional body and professional qualifications in payroll. We are still collating interviews and look forward to sharing these with members later in the year. Thank you to those members who have been sending in memorabilia and documentation relating to the early days of the CIPP. The adjacent images show ties and shirts previously available to members. These contributions are very much appreciated and are fundamental in putting together an overview of our history and the history of the profession. Following last month’s brief outline of activities from 1980–85, this month looks at some of the significant changes from 1985–87, specifically: October 1985 Introduction of different bands for National Insurance contributions October 1985 The first payroll manager’s seminar for the private sector was held January 1986 Inaugural meeting of the British Payroll Manager’s Association (BPMA) April 1987 Introduction of payroll giving and statutory maternity pay If you are able to support the CIPP in documenting our history, and a brief history of payroll, please contact email@example.com . A full CIPP timeline and history will be released at the end of 2020.
CIPP named in Top 100 Not for Profit Organisations to work for
THE CIPP has been named within The Sunday Times Top 100 Not for Profit Organisations to Work for in 2020. This is an important achievement and we are delighted to have been named within this list for the fourth time. It’s an accreditation which measures employee engagement and satisfaction, and therefore is incredibly valuable in recruiting and retaining key people within our business.
Jonathan Austin, founder and chief executive officer (CEO) of the Sunday Times Best Companies to Work, said: “I would like to congratulate the CIPP on achieving a One Star Accreditation and being named as one of the UK’s Best Companies to Work for. Best Companies has been acknowledging excellence in the workplace since 2006 when we launched our Michelin-style accreditation standard. We are proud to work with organisations like the CIPP who focus on their people and as such have been rewarded with an engaged workforce who tell us that they’re a best company to work for.” Shirley Harris, CIPP HR and payroll manager, commented: “We are very proud to have been named...not least because it is our employees who respond to the survey to make this happen. Our one-team culture is very important to the CIPP and this accreditation demonstrates our commitment to achieving excellence in this area.”
New vice chair announced for the CIPP THE CHARTERED Institute has
appointment and the future of the CIPP, Liz stated: “I am truly honoured to have been voted by the board to the position of vice chair and look forward to working alongside Jason Davenport and the rest of the board. This is an exciting time for the Institute and the wider payroll profession as we look to what the role of payroll will be in years to come and focus our attention to the future of the profession.” Jason Davenport, CIPP board chair, commented: “Liz brings a wealth of knowledge, skills and expertise to the position of vice chair. As a professional working within the private sector, she understands the daily challenges of payroll professionals, and as a tutor she gains insight into how our students are implementing their learning within their roles. She will be an excellent colleague to work alongside as vice chair, and a fantastic successor when my tenure as chair comes to an end in 2021. I look forward to working closely with Liz over the coming year.”
appointed Liz Lay MSc FCIPPdip FHEA ACIPD as vice chair. Liz, who has been a non-executive director on the CIPP board since 2017, will serve as vice chair until the CIPP’s next AGM, taking place
March 2021, at which point she will succeed Jason Davenport MCIPP MIoD as chair. Liz is the corporate finance and administration manager, UK and Ireland for Aldi Stores Ltd. Being passionate about payroll, payroll education and promoting the profession, Liz believes she is at the stage of her career where she has a wealth of knowledge, experience and skills that she can bring to the CIPP to positively help uphold member trust, ethical standards and the Institute’s mission. Speaking of her
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 4
UPDATED FOR 2020-21 TAX YEAR
Congratulations to newly accredited PAS organisations THE CIPP Payroll Assurance Scheme (PAS) is our flagship payroll audit solution, the gold standard for your processes and people and the prestigious award to covet in the payroll industry. It consists of two distinct elements: one will audit your payroll processes and the other will audit the learning and development of the staff within the payroll function. Congratulations to our most recently accredited organisations: ● Direct Line Group ● EPM Ltd ● St Helens and Knowsley Teaching Hospitals NHS Trust ● University of Lincoln
Get quick access to your useful tax facts and figures from anywhere
Ken Pullar, CIPP CEO, said: “We are thrilled that so many organisations have embarked on the journey to achieve this respected accreditation. It is imperative that organisations comply with government legislation and the Payroll Assurance Scheme is designed to help companies do just that.” Email firstname.lastname@example.org or visit www.cipp.org.uk/pas to find out how the Payroll Assurance Scheme can benefit your organisation. Payroll Technician Certificate gets a revamp
WE ARE delighted to announce our online Payroll Technician Certificate has recently been refurbished to incorporate the latest digital applications and online tools available in the current learning environment. The CIPP has invested significantly into this popular qualification to ensure that it continues to meet the needs and expectations of our students and their employers alike.
Available from April 2020, this revamped product offers the latest in digital learning experiences available to the aspiring payroll professional. This qualification is designed for those new to the payroll profession or those who wish to improve their working knowledge of payroll processes. Those who have successfully enrolled on or completed this course before April 2020 possess a qualification equal in value to the new-look Payroll Technician Certificate. This six-month qualification continues to teach students all the core knowledge and skills required to administer the payroll function independently and with confidence. From calculating gross pay and identifying the differences between taxable and NICable pay, students progress to learning the methodologies for manually calculating PAYE income tax, NICs, student loan deductions and statutory payments. Together with a broad overview of other payroll obligations, such as court orders, real time information, auto-enrolment, end of year reporting and HMRC remittance calculations, students gain a balanced education on the fundamentals of the payroll profession. Each module offers comprehensive learning materials; links to a range of external material; and knowledge tests associated with these topics. Key subject matter is now further enriched with digital online learning tutorials as well as interactive scenario-based exercises, which enable students to apply their new-found knowledge and skills through realistic scenarios. The first cohort of the CIPP’s revamped Payroll Technician Certificate commence studying on 23 April 2020. To find out more about this qualification, please visit cipp.org.uk/study/PTC or contact us on email@example.com or 0121 712 1044.
DOWNLOAD FOR FREE TODAY
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
Policy team update
On your behalf
The CIPP’s policy and research teamprovides an update on developments
Collection of Student Loans Forum The Collection of Student Loans Forum meets to discuss with stakeholders the work of HM Revenue and Customs’ (HMRC’s) student loan team, the Student Loan Company (SLC) and the Department for Education (DfE). CIPP’s Angela Adams and Samantha Mann attended the most recent meeting, and received updates on the progress of the more regular exchange of student loan deduction data between HMRC and the SLC. The aim of which is to help ‘borrowers’ to better monitor their student loan balances. Previously, reconciliation occurred after the tax year end which has, on occasions, caused borrowers to overpay and then to apply for a refund. Historically, to combat this risk borrowers approaching their final year of repayment were encouraged to arrange to make final payments by direct debit rather than having deductions continue through their pay. Post-graduate and masters loan repayments are going well as are preparations for the delivery of Scottish
...not being returned to employers and thus the resulting impact on delaying repayment...
questions for the employee statement: see image. Existing stocks of the previous version can continue to be used. Your experiences of RTI Although real time information (RTI) is now an established process for payroll professionals, at a recent meeting several problem areas were highlighted. The policy and research team would value hearing your views and experiences with the following: ● employee queries with tax codes ● employee queries with universal credit claims and early payments (or other issues relating to pay data) ● former employees’ queries with tax codes ● duplicated payments ● any other recent negative experiences from using RTI.
student loans (i.e. ‘plan 4'). The work involves another update to the starter checklist as well as the transfer of relevant borrowers from their existing plan 1 to plan 4. More about this in future updates.
New starter checklist An interesting item emerging from
discussions about the starter checklist is the high percentage of these not being returned to employers and thus the resulting impact on delaying repayment of student loans. We would value hearing from members as to how they collect the valuable information, by ensuring the starter checklist is completed and returned to them in a timely manner. HMRC’s Software Developer Support Team has recently circulated the new version which seeks to improve the wording of the
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 6
R E V I S E D C O U R S E
The CIPP’s MSc in Strategic Leadership is designed for payroll and pension professionals who wish to add strategic value to their organisations. LOOKING TO MAKE A DIFFERENCE IN YOUR ORGANISATION? MSC IN STRATEGIC LEADERSHIP
AgentStrategyGroup The CIPP’s Helen Hargreaves attended the most recent meeting of the Agent Strategy Group. Over several years the Group has discussed issues ranging from digital advancements to support agents’ work with their clients (which have yet to come to any useful conclusion) to discussing the professional standards expected from tax advisers, to a more recent review of the look and feel of Agent Updates (http://bit. ly/3ce2lBJ). In recognition of the work considered by this forum its name is to be changed to Agent Support Group; and in line with the increasing use of digital processes face to face meetings will be held less often instead using online meetings instead. RevisedHMRCCustomerCharter An update was provided to the Agent Strategy Group about the latest HMRC consultation Text of the revised charter Working with you to get tax right HMRC is here to collect the tax that pays for the UK’s public services. We do this by working in partnership with you. We will help you meet your tax responsibilities and work with anyone you’ve asked to act for you. We will also help make sure you get any benefits, tax credits, refunds or other support you can claim. However, we will take firm action against the small minority who bend or break the law by not paying their tax. What we want our service to be all about ● Making things easy – We aim to ensure our services are as accessible as possible and that it is easy, quick and convenient to deal with us. ● Getting things right – We aim to give you accurate, consistent and clear information. This will help you meet your obligations, understand your rights and what you can claim. When we ask for information, we rely on you to give us full, accurate and timely answers. If you disagree with us, we will inform you about options available to you and work with you to reach an appropriate outcome quickly and simply. If you are not satisfied with the service you have received, we will explain how you can make a complaint. ● Being responsive – When you get in touch with us, we aim to answer
which presents a revised Customer Charter. The consultation, which was launched on 24 February and will run for twelve weeks closing on 15 May, asks the following three questions: ● Do you think the draft charter sets the right standards for HMRC’s service to customers? ● To what extent do you feel the draft charter sets out the areas which are most important to customers when interacting with HMRC? ● How you would like to see HMRC measure and monitor how it is performing against the charter, including how it can best listen to feedback and take action on areas for improvement? n Please share your views on this or indeed any of the subjects in this update, by email to samantha.mann@ cipp.org.uk or to the usual policy@ cipp.org.uk . We look forward to hearing from you. your questions and resolve things first time, or as quickly as we can. We will also explain what happens next and when you can expect a response from us. If we make a mistake, we will put it right as soon as possible. ● Treating you fairly – We work within the law to make sure everyone pays the right amount of tax and gets their benefits and other entitlements. We trust you are telling the truth, unless we have good reason to think you’re not. ● Being aware of your personal situation – We will listen to your worries and answer any questions clearly and concisely. We will be mindful of your wider personal situation, including offering you extra support if you need it. ● Keeping your data secure – We will protect information we hold about you and treat it as private and confidential. And we will always use that information fairly and lawfully. ● A word about respect – We will always treat you in line with our values of respect, professionalism and integrity. Our employees are people too, so please treat them in the same way. We take any threats, intimidation or harassment very seriously and will take appropriate action against any behaviour of this type.
Delivered in conjunction with
For more information or to enrol: Visit: cipp.org.uk/msc Email firstname.lastname@example.org
Call: 0121 712 1023 Live chat with us
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
The CIPP's Advisory Service team provides answers to popular questions
Q: A small part of our business is being sold and the employees are being transferred to the new business. We are making all the employees leavers and sending forms P45 to the new employer. Five employees are currently on statutory maternity pay (SMP). Should we pay out the balance of the 39 weeks of SMP or advise the new employer to pay the SMP? A: When there is a transfer such as this the new pay as you earn (PAYE) employer bears the responsibility for paying the rest of the SMP to the five employees. You must pass over all the paperwork for these employees as well as information about how many weeks of SMP have already been paid. This will enable the new employer to continue paying the SMP to the employees as if nothing had changed. Also, they may need historical data from you for these exiting employees in case there is a future pay increase and the Alabaster ruling is applied. Q: Please can you advise whether I should include salary sacrifice pension figures for ‘ordinary pay’ when calculating the figures for gender pay gap reporting? A: These would be excluded as you always use the pre-salary sacrifice pay. The following items are specifically excluded from the definition of ‘ordinary pay’: overtime pay, redundancy or other termination pay, pay in lieu of leave, remuneration provided otherwise than in money (benefits in kind and the value of salary sacrifice schemes) and expenses. Q: We have an employee who notified us in July 2019 that she wished to take maternity leave from 19 September. We have very recently received a communication that she now wishes to end her maternity leave on 17 May
and her partner (who also works for us) wishes to take statutory shared parental leave and pay (SShPL&P). Can the SShPL be requested at this point, when the mother has already started her maternity leave/pay? A: A mother can notify the employer of her intention to curtail her statutory maternity leave (SML) and pay and enter into a period of SShPL whilst she is already on SML. Notification of this does not have to happen prior to her starting her SML, but she must give at least eight weeks’ notice to end her SMP. ShPL&P can start for the partner while the mother is still on maternity leave if she has given notice to end her leave. ShPL&P must be taken between the baby’s birth and first birthday. Q: In tax year 2019/20 no class 1 National Insurance contributions (NICs) are due on termination payments above £30,000, but is this changing from 6 April 2020? A: Yes, with effect 6 April 2020 there will be employer-only NICs payable on termination payments above £30,000, but the NICs payable will be class 1A NICs. However, unlike class 1A NICs payable on expenses and benefits, which are unaffected by this new rule, the class 1A NICs payable on termination payments will be paid in year and at the same time the payment is made to the employee reported via PAYE full payment submissions. Q: If we give our employees non-cash vouchers and they are for work-related performance, can you advise me on how I would report them? A: You must report the value of the vouchers in the P11D return for income tax, and also include in and report the value of the vouchers via the payroll for class 1 NICs purposes. You
would notionally add the value to the employee’s earnings for the purpose of calculating NICs only. Q: Should the ‘Alabaster ruling’ be applied if there is a pay increase and the employee has been receiving statutory adoption pay (SAP)? A: Although the Alabaster ruling only applies to SMP, if your employee gets a backdated pay-rise which increases the amount of earnings already paid in the relevant period, you must: recalculate the employee’s average weekly earnings (AWE) and pay the extra SAP due. Also, if your employee wasn’t entitled to SAP you must still recalculate their AWE to check if they are now entitled to SAP and pay any SAP that may be due. Q: The earlier year update (EYU) return used to report PAYE in real time was due to be replaced by use of the FPS for updates to 2019/20 onwards. Is this still the case? A: HM Revenue and Customs (HMRC) are allowing employers to use either an EYU or a FPS for amendments to 2019/20 tax year, but you will only be able to use one of these methods so you will not be able to mix them. HMRC decided to extend the pilot use of the use of the FPS so they are able to evaluate the summary of these amendments. Q: Can you confirm whether there is no exception for childcare vouchers (CCVs) when ensuring a salary sacrifice arrangement does not take an employee below the NM/LW? A: The rules are unchanged. A salary sacrifice arrangement – whether for CCVs, cycle to work, pensions or cars for example – that takes the employee’s pay below the national minimum/living wage rate would breach those rules.
The CIPP 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 email@example.com or visit cipp.org.uk to live chat.
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 8
*please see summary at cippmembership.org.uk for details.
GET OFF TO A GREAT START
Q: W e are to make a bonus payment to a director who left us earlier in the year. How are the class 1 NICs calculated on this payment? A: If the earnings for the director are paid in the same tax year as their appointment ends, you would add these additional earnings to the total earnings already paid. Then work out the class 1 NICs on the total earnings using the director’s earnings period; this applies even if the director has become an employee of the company. Guidance can be found here: http://bit.ly/3cijIkQ. Q: Electronic P45 forms are being sent to our new employees by their previous employer but I can’t find anything on the HMRC webpages to confirm these are acceptable. Please advise/confirm. A: Yes, employers can accept electronic P45 forms. HMRC provided guidance in the Employer Bulletin published in June 2016. A short article on page 17 explains that form P45 can be provided electronically but that the employer must ensure it contains the correct information. You can also develop your own version of the P45, for which HMRC approval is not required. Although HMRC approval is not needed, the substitute must contain specific information which matches the wording on HMRC’s current pre-printed stationery. Q: A client is asking whether the NICs for one of their employees can be deferred or reduced if this employee has more than one job? A: If the employee is earning £1,128 or more or £4,886 monthly over the two jobs, the employee can consider applying for deferment by completing form CA72A. If the application is approved HMRC will issue one of the employers with a different class 1 NICs category to operate J or Z. The employee will usually pay a reduced rate of 2% on one of the jobs instead of the standard 12%. Q: From what date are the new rates for NM/LW to be applied, as we always find this confusing for both our weekly and monthly paid staff. A: The NM/LW is calculated using an employee's pay reference period, which is usually the period of time for which an employee is actually paid. For example, if an employee is paid weekly the pay reference period is one week; if paid monthly it is one month. A pay reference period can’t be
longer than 31 days. The new NM/LW rates have effect on 1 April 2020, and you should apply these rates to the pay reference periods beginning on or after this date. For example, if a weekly pay period runs 30/3/2020 to 5/4/2020 for payment on 10 April you would not apply the increase until the following pay reference pay period e.g. 6/4/2020 to 12/4/2020 paid on 17 April. Similarly, if a monthly pay reference period is 1/4/2020 to 30/4/2020 you would apply the increase that month; but if the pay reference period is 15/3/2020 to 14/4/2020 paid April 2020, the employer does not have to increase the rate until the May payday. Q: If an employer wishes to reimburse an employee for their subscription to a professional body or if the employee pays this subscription themselves and the payment is then reimbursed by the employer, are there any reporting requirements or deductions to be made? A: The employer does not have to report anything to HMRC nor deduct tax and pay NICs if all the following apply: ● the employer pays the organisation directly or reimburses the employee for the fee or subscription they paid ● the organisation is on HMRC’s list of approved professional bodies (‘List 3’) ● the employer has an ‘exemption’ – which replaced dispensations – covering fees and subscriptions. If the subscription is not in HMRC’s List 3, and the employer: ● pays the organisation directly, the cost of the fee or subscription is to be notionally added to the employee’s earnings only for the purpose of calculating class 1NICs, and reported in the P11D return for tax purposes, or ● reimburses the employee, the cost of the fee or subscription is to be added to the employee’s earnings for the purpose of calculating both PAYE income tax and class 1 NICs through the payroll. Guidance can be found at this link: http:// bit.ly/2Fcibxv. n Annual subscription for CIPP membership The annual subscription for membership
The Payroll Technician Certificate will equip you with the skills necessary for the timely and compliant administration of payroll in your organisation, and provide a grounding in areas such as statutory payments, court orders and student loans. PAYROLL TECHNICIAN CERTIFICATE
For more information or to book: Visit: cipp.org.uk Email firstname.lastname@example.org
Call: 0121 712 1023 Live chat with us
of the CIPP is recognised by HMRC and shown in List 3 under 'Payroll professionals Chartered Institute of'.
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
*correct at time of publication
John Stonestreet ChCIPPdip, head of payroll and pensions, Essex Police and Kent Police, discusses the benefits of being part of the CIPP
Which benefits of CIPP membership appealed to you the most? The Advisory Service is brilliant. The updates are brilliant. Having the information come to you and not having to search for it. The formal training and the recognition from your peers. You can give to your organisation: they know you know what you are doing and trust you. If you have CIPP membership and potentially the qualifications as well, your organisation can trust you as can prospective employees. Getting regular updates from the CIPP Advisory Service, via News Online and by attending the events, the special interest groups, have all been brilliant for me. It’s allowed me to go back to my organisations with things they may not have been aware of where the potential impact of non-compliance could cost a lot of money and reputational damage. Tell us about a time when you or your department really felt the benefit of CIPP membership A while ago I was working at a recruitment agency which took the decision to implement a salary sacrifice scheme and to make all its agency workers employees which meant that we had to implement holiday pay, sick pay and all of the other employee rights. At the time I was an expert in a very narrow field, and I needed the broader knowledge; the CIPP and the qualification gave me the knowledge to be able to implement those. But if I had doubts, I would contact the Advisory Service who got to know me by name by the end of the project – I feel they were part of the team. I got all the credit, but credit should also go to CIPP.
For someone who is thinking about joining as a member, what would your advice be to them? It’s like having an expanded team behind you. It’s not just membership and the benefits that it gives you, but also the training, the networking and the events that makes being part of the CIPP valuable. It really does give extra tools in your toolbox to deliver a better service. It puts your mind at ease if you’re unsure of anything. The networking opportunities means you can contact people within your network who are in similar positions for support and guidance. Why is it important to you that you became a Chartered member of the CIPP? I have always had this drive to develop and improve professionally. Being a Chartered member has given me recognition, and my organisation more faith in me, that I am a professional. I wouldn’t have been able to that without the CIPP and Chartered membership.
If you would like to be part of the being payroll series, please email email@example.com
Tell us about the day you realised CIPP membership was of real value to you
It was when I was applying for jobs and increasingly noticing that CIPP (or qualified) membership was essential. So, I was pleased that early in my career I took the step to push myself forward because these were really good jobs that I wouldn’t have been able to do without the CIPP behind me.
BE ACCURATE. BE THE UNSUNG HERO. BE RELIABLE. BE VERSATILE. BE PASSIONATE. BE PAYROLL.
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 10
E D U C AT E / C O L L A B O R AT E / C E L E B R AT E
ANNUAL CONFERENCE AND EXHIBITION 2020 14-15 October Celtic Manor Resort, Wales We are well underway with preparations for the 2020 Annual Conference taking place on 14–15 October at the prestigious Celtic Manor Resort, Wales. Have you booked your place yet? In light of this month’s theme ‘Adding value’, we would like to highlight just a few of the reasons attending the the CIPP’s Annual Conference and Exhibition will add value to your existing knowledge and continuous professional development.
E D U C A T E C E L E B R A T E CIPP’S ANNUAL CONFERENCE AND EXHIBITION C O L L A B O R A T E
JUMP INTO THE FUTURE OF PAYROLL WITH US
WHY SHOULD YOU ATTEND? Educate yourself about the forthcoming changes to payroll and pensions legislation Collaborate with like-minded individuals, hear from and ask questions of the industry experts Speak to a wide range of organisations and exhibitors on how they can add value to your team or company through their unique services.
WORKSHOPS TOADD VALUE TOYOURWORK LIFE Delivering ‘wow’ now: digital transformation without capital expenditure – how is that possible? Sharing examples of how you can achieve your digital goals, without lengthy and costly change projects.
The end of the paper payslip – and other things Other than cost and environmental savings, the shift from paper to electronic payslips has given few benefits. Payslips still generate more questions than answers and utilise valuable payroll resource.
RPA and Payroll: Why automation alone is not enough Explore how payroll can really benefit from robotic process automation (RPA) and reap the rewards.
CELEBRATEWITH US As well as the two-day conference, show your value to your clients by being shortlisted or winning an Annual Excellence Award. Winning one of our prestigious awards shows your commitment to excellence in the profession and recognises the true payroll and pension professionals. Just hear from one of our previous winners.
“WINNING THE NEWCOMER OF THE YEAR AWARD HAS GREATLY BOOSTEDMY CONFIDENCE IN THE PAYROLL FIELD AND HAS INSPIREDME TO ENGAGE IN COMPLEX ACTIVITIES. MY DAY TODAY ROLE HAS CHANGED AS I SEEMYSELF AS A SENIORMEMBER OF THE TEAMGAININGMORE KNOWLEDGEWHEREVER POSSIBLE.” Adam Ellison ACIPP, bureau administrator, Cintra HR & Payroll Services
Book your place online at cipp.org.uk/ace or email firstname.lastname@example.org Accommodation sold out in 2019 somake sure that you book early to avoid disappointment.
CIPHR A L L A B O U T P E O P L E
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
Events Horizon Full details of events and training courses can be found at cipp.org.uk or you can email email@example.com for more information.
10 SEPTEMBER | SCOTLAND National Payroll Week Conference and Exhibition 2020 10 September 2020 | Grand Central Hotel, Glasgow
National forumwebinar 26 June
Exclusive to CIPP members * , the national forum webinar is an excellent opportunity to hear from the policy team, as well as other key speakers, on developments in payroll, pension and reward legislation.
Join this online event and keep up to date on key changes to legislation.
Spaces also available on our other national forum dates; 5 May, 13 May, 19 May, 11 June, 24 June; which will all now be held online.
The CIPP National Payroll Week conference is the only payroll conference in Scotland.
Book your place online at www.cipp.org.uk/events .
This invaluable event will provide you with the latest legislative changes and also the perfect opportunity to meet exhibitors to see what they can offer you as well as network with like-minded professionals. With six workshops and four plenary sessions providing an update on a range of topics delivered by industry-expert speakers, this event really is unmissable. Then after an information filled day, join us on the night at the National Payroll Week drinks reception.
*applicable levels of membership only.
Thank you to all our national forum sponsors
To view the programme and book your place please visit www.cipp.org.uk/events or email us at firstname.lastname@example.org.
To enable payroll professionals to continue with their learning and development, all upcoming CIPP training courses will now be delivered via online virtual classroom using Adobe Connect. Contact us for more information or visit www.cipp.org.uk/training to see all available courses.
Online Online Online Online Online Online Online Online Online Online
24 April 28 April 30 April
Off-payroll working and other employment status considerations
Payroll and HR legislation update (50% off for members)
Online Online Online Online
Holiday pay and leave
11 May 22 May 27 May 23 April 14 May 21 May
Payroll for non-payroll professionals
Channel Islands and Isle of Man payroll regulationa
P11D, expenses and benefits
Please note: these dates are subject to change and other dates and locations are available. Please visit www.cipp.org.uk/payroll-training-listing.
Can’t find a date or location to suit your needs? Let us know by visiting cipp.org.uk/trainingreg . New dates and locations may be added if there is enough interest.
| Professional in Payroll, Pensions and Reward | April 2020 | Issue 59 12
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MAZARS APPOINTS KATIE SHARPE INTERNATIONAL ACCOUNTING and advisory firm Mazars has appointed Katie Sharpe ACIPPdip, as national delivery manager for its UK payroll business. As a CIPP board director, regular public speaker, and outspoken advocate for the industry, Katie is a well-known and highly respected member of the payroll sector. With her career experience of contributing to the payroll functions of large and smaller family run-
companies, both in-house and outsourced, Katie will be responsible for managing client service and delivery across the UK, with a team based across Liverpool, Glasgow, Milton Keynes, Birmingham and London. Mazars’ payroll team registered a twentieth consecutive year of revenue and profitability growth in 2019, with average organic revenue growth of 15% per annum since 2018. The growing team, numbering approximately 55 professionals over five locations, works with businesses of all sizes across the UK. Matt Stark, partner at Mazars, said: “I am delighted to have Katie joining our business. Working with our high-quality managers and teams she will ensure that our focus remains on delivering the highest standards as we continue to grow the business.”
HELENHARGREAVESMSCChFCIPPdip LEAVES CIPP HELEN, WHO has been CIPP associate director of policy for four years, has sadly decided to focus on a better work-life balance. Helen, whose last day with the CIPP was 31 March 2020, had been a fundamental figure within the CIPP since joining the Institute from HMRC. She has represented CIPP members at government consultation forums, through speaking at various CIPP and industry events and by writing articles for Professional magazine, as well as other industry press. Ken Pullar FCIPP, CIPP chief executive officer, said: “Helen will be missed within the policy team, which is stronger as a result of her leadership over the past four years. Helen has been a valuable member of the team and strengthened our relationships within government consultation forums during her time with the CIPP.”
PAYROLL VETERAN JOHNSPOONERRETIRES
JOHN, WHO joined Moorepay in 2008, is retiring in April following an impressive fifty years in the industry. Working in both the public and private sector with the last twenty years in outsourcing, John’s roles have included payroll manager, operations team manager and best practice consultant. As Moorepay’s product analyst he had responsibility for ensuring
AMARVISHNU RAMAMOORTHY JOINS THE AICPA AMARVISHNU HAS commenced the role of senior UK payroll consultant with the Association of International Certified Professional Accountants (AICPA) in London, helping the global business services payroll team in charge of the UK payroll. His role is reviewing HR policies, educating the team in Malaysia of the UK legislation, implementing new processes, reviewing and approving the monthly payroll.
both products and people are up to date with the latest payroll legislation. John authored Moorepay’s bi-monthly payroll legislation guide, distributed to 60,000 businesses, updating customers and the wider payroll community on legislative changes that businesses need to be aware of to ensure they remain compliant. In addition, John hosted regular webinars on the latest legislation and trending topics. John commented: “I have thoroughly enjoyed my career in payroll and would like to thank the CIPP community for their ongoing guidance and support over the years. “Over the last fifty years it has been fascinating to be part of the journey payroll has taken. What was considered an administrative ‘back office’ task is now a respected and highly regarded industry. “Working for Moorepay and guiding our customers on the complex payroll world we all work in has been a privilege. “I will miss being part of the payroll community and the Moorepay family but look forward to the opportunities that retirement will bring.”
● Jeanette Hibbert MSc has started a new position as head of customer payroll at Legal & General. ● Brian Sparling ChMCIPPdip has been appointed to the post of senior manager, Global Managed Payroll, at Ceridian Europe. ● Ben Hancock MSc FCIPPdip has joined Accenture as UKI payroll manager.
| Professional in Payroll, Pensions and Reward |
Issue 59 | April 2020
Diary of a student…
better. It takes time to adjust routines, but after a few weeks I’d adapted to make sure that I had the time to study. The old saying ‘no pain, no gain’ is very true. It’s hard to be motivated to study at times, especially when you’re hitting a busy period at work, and you have to find a balance. It’s really rewarding though and the more I progress, the more confidence I have day to day. My team are really supportive too and encourage me when my motivation dips. I always turn to them if I need to talk things through and it really helps to have such a great sounding-board. Did the fact that the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP? And were there any particular modules which were of interest prior to enrolling? The fact that the CIPP is such a well- respected industry body was definitely an influencing factor. The CIPP is the standard that Cintra upholds: as an organisation, we have worked closely with the CIPP across a range of initiatives, so I know that they offer so much more than excellent courses. It’s really the qualification to have and this has definitely been born out by the quality of the course – it’s well-structured and the tutors and support are first rate. For someone who is thinking about studying for a CIPP qualification, what would your advice be to them? Absolute no brainer – ‘go for it’. You need to be very organised and able to manage your time effectively, but the CIPP tutors are great. They’re really helpful and there is a lot of support and great resources available to help you get the best out of your chosen course. It’s hard but very rewarding and worthwhile. n
Nimra Ajmal ACIPP Bureau administrator, Cintra HR & Payroll Services
Can you give us a brief background into your life?
absolutely delighted that, after finishing my apprenticeship, I was given the opportunity to continue my studies on the CIPP Foundation Degree course. Why did you choose to study the Foundation Degree? It appealed to me as it gives the knowledge to develop in my chosen profession. CIPP qualifications are very desirable and a great way to demonstrate knowledge of and commitment to payroll. Cintra insists on all bureau staff being CIPP qualified and have been really supportive in my desire to continue my payroll studies. Many of my colleagues have studied with the CIPP too and are always there for that extra bit of support, help and advice. How important is this degree in relation to your career? To me, this degree is an essential part of progressing my career in payroll. It has given me a better understanding of all different aspects of payroll, which has enhanced the contribution I can make to my team and to the service we offer our clients. I feel so much more confident and know that I can make a really valuable and valued contribution. It’s also great to be able to network with other payroll professionals. How did you cope with the work- life balance and your study? I’m not going to lie…it is very difficult. It’s hard to work full-time and find the time to study too. I have very supportive friends and family who helped to organise my time
Originally from Dubai I moved to the UK aged thirteen. I currently live with my mum and two siblings (younger brother and sister), although I have recently bought a flat with my fiancé and got a new puppy, Ace. I am very passionate about making a difference. Throughout my school years and A-levels, I used to volunteer and raise money for a women’s charity centre that provide support to women and children who were survivors of domestic violence. I regularly donate blood and bone marrow to help those in need who are fighting leukaemia. Can you give us an insight into your career and qualifications background? My initial thoughts, whilst studying A-levels, was that I would like to go on to university to study law, but working part-time during my studies inspired me to look at alternative ways of continuing my education. I have always enjoyed working alongside people and helping others and have always had in interest numbers. After researching different professions, I decided a career in payroll would be a great fit and an apprenticeship at Cintra HR & Payroll Services gave me the best of all worlds: continuing my education whilst working with a great team and a variety of clients. This apprenticeship affirmed that payroll was the right choice for me, and I can honestly say that this has been one of the best decisions I’ve made! I was
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