PROFESSI NAL in Payroll, Pensions & Reward Issue 102 July – August 2024 Official publication of The Chartered Institute of Payroll Professionals
The impacts of artificial
intelligence (AI) The role of AI now and in the future
What does the general election mean for payroll? How the outlook for payroll may change from 4 July Cycle to Work Day A look at the benefits of cycle to work schemes, as Cycle to Work day approaches
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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“Everyone sees the glory moments, but they don’t see what happens behind the scenes.” Allyson Felix
Editor’s comment
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Hello, payroll, pensions and reward professionals, and welcome to the July / August issue of the
magazine. I’ve now officially taken over the reins – albeit temporarily – from Professional editor, Lora Murphy, and I’m thrilled to be here to bring you all the latest happenings in the
wonderful world of payroll for the foreseeable. And can I just mention what an exciting time it is too! As I write this, I know there’s a chance we may have a new Prime Minister – and indeed government – by the time you read this column. Rest assured that while the announcement of the general election date sadly didn’t factor in this issue’s print deadline, we will be bringing you all the latest developments following the election as and when parliamentary announcements are made. Keep a close eye on News Online for breaking news. In the meantime, you can read our general election preview article on page 20. This issue explores the hard work of payroll professionals that gets carried out behind the scenes and often goes unnoticed. From representing the industry at government level to improving efficiencies and processes for businesses both in- house and externally, there are so many important tasks that are undertaken for the benefit of everyone working in payroll. Our feature article, on page 34, highlights the views of industry experts on this pertinent subject. It considers what actions payroll professionals could take to get a seat on the board, as well as how they can help shape and influence government legislation. There are also a variety of articles (see pages 46 and 60) which will give you further insights into what goes on behind closed doors, particularly within our policy team, and what you can do to ensure your voice is heard. Finally, I’d be very interested to hear your thoughts on what you’ve read, or what you’d like to read, in Professional magazine. Please do reach out to me by emailing editor@cipp.org.uk .
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60
Kavitha Sivasubramaniam (editor@cipp.org.uk) Editor
The CIPP’s policy team a backstage view
20 - What does a general election mean for payroll? By Mathew Akrigg 34 - Feature topic – behind the scenes By Jerome Smail 46 - Use your voice By Karen Thomson 60 - The CIPP’s policy team: a backstage view By the CIPP’s policy and research team
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
Chair’s message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Kavitha Sivasubramaniam editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd
So much happens behind closed doors in the payroll industry; from government consultations which impact payroll policy, to software development to ensure payroll can be run smoothly and efficiently. It’s therefore important to look at all the unseen work carried out by the payroll department.
The summer has finally arrived and it’s a real treat being able to sit in the garden on an evening and watch the world go by after a busy day of payroll. Hopefully you are getting the chance to take some time out of work to recharge the batteries before the kids go back to school and the autumn nights start to draw in. So much happens in payroll that appears seamless to the outside world. When we see changes to legislation there has often been prior engagement with payroll professionals, analysing the change and raising comments and concerns on consultations instigated by government. They are regularly providing their payroll expertise on the impact to the payslip and other payments and deductions, or the clash of regulations. This is a critical part of any change as it ensures our payroll systems and payroll teams can process the outputs of a change to regulations. This also applies to changes or upgrades to payroll systems. The first thing an employee normally sees is a change to the way they access their payslip, which is the end result of a system change. And all of this on top of the day job. You really are superheroes working in the shadows! Remember, your membership gives you access to lots of tools, from advisory to consultancy and qualifications. The CIPP team is here to help so just get in touch.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s message
Consult compliance@cipp.org.uk 0121 712 1023 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk
Welcome to this issue of the magazine. With the theme being ‘ Behind the scenes’ , I thought I would touch upon some key actions that you all have to consider, especially as we’re moving into the holiday season. Succession planning is a key element of ensuring team members are skilled enough to be able to cover for each other throughout the
holiday period. This means training and ensuring individuals have an opportunity to take on additional tasks, empowering them during times of full attendance. By doing so they can be prepared to take the reins and stand in when asked, with processes and procedures in place to support them. The mention of procedures also challenges you to ensure the policies in place are understood by all using them, and if updates are necessary, steps are taken to ensure everyone is familiar with the change. Being prepared within such a fast-paced environment as payroll also necessitates horizon scanning all the time – to know what’s coming up and anticipate how that might impact you and your team. If you’re an in-house team, then very likely your internal stakeholders will be aware of holidays. For those providing payroll services via a bureau then client communications should also include any additional information about changing contact points for the period of cover, should that be needed. Doing that in good time enables the opportunity for clients to be familiarised with the change and to get to know new team members, should that be the case. Here at the CIPP and IPP Education Ltd, we continually look at individuals’ career plans and aspirations as we recognise that to be an employer of choice it’s important to present new opportunities which create challenge and growth, while also ensuring all key deliverables of the company are met. I do hope you all get to enjoy your planned leave and that actions are in place to ensure you can relax, recharge and focus on friends, family or just yourself during your downtime.
0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@cipp.org.uk 0121 712 1013 cipp.org.uk @CIPP_UK
Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000
Copyright This magazine is published by The Chartered Institute of Payroll
Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 2
Contents
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Kavitha, at editor@cipp.org.uk.
JULY - AUGUST 2024
Reading the magazine gives you one CPD point
REGULARS
FEATURES - BEHIND THE SCENES
01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments 05 My CIPP
HMRC wins latest IR35 battle: the
NMW: getting classification right By Jeni Morris
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22
McCann case By Justine Riccomini
How to award pay rises during maternity leave By Samantha O’Sullivan
How does legislation come into effect? By Paul Chamberlain Flexible and remote working for overseas Can you really change the government’s mind? By Susan Ball
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23
Events horizon, On your behalf, Spotlight on…, Advisory Q&As, the CIPP’s Annual Conference and Exhibition, Payroll news, Market Insights Survey 2024, FdSc Payroll Management
Pay as you earn settlement agreements or ‘PSAs’ By Sudeep Ganguli
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online exclusive content
online exclusive content
18 Personal development BePayroll 19 Compliance Find out about the impact of the general election on
The challenges of the basis period reform By Richard Hattersley
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online exclusive content
online exclusive content
employees By Olena Chilton
payroll and discover how the Alabaster ruling affects payroll calculations for women on maternity leave
Dismissal decisions By Nicola Mullineux
Top payroll queries so far in 2024 By Danny Done
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40
34 Feature topic
Read all about the theme of the current issue
39 Reward
On your bike: the benefits of workplace cycle schemes By Adrian Warren Let’s embrace AI with caution By Lora Murphy
Gateway to gold: joining the dots (Part 3) By Polly Sinclair
A look at the top payroll queries, cycle to work schemes and neurodiversity considerations in job adverts
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50 Technology
We examine the impact of artificial intelligence and and the role of payroll software developers
Ensuring neurodiversity at all stages of the employee life cycle (Part one: job adverts) By Cybill Watkins Payroll software: a closer look By Simon Parsons
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50
60 Hot topic
This issue, we focus on the CIPP’s policy and research team and its many roles and responsibilities
From consultation to implementation: the evolution of payroll legislation By Jaspal Randhawa
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62 Payroll pets
We say hello to some of your furry friends
online exclusive content
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
CIPP UPDATE
Ben May ChMCIPPdip, senior manager - payroll, ADP UK
CIPP update
Accountex 2024
IN MAY, we exhibited at Accountex 2024 which took place at ExCeL London. Over the two days, hundreds of delegates came over to the stand to learn more about what the CIPP can do for them, including hearing all about IPPE’s new qualifications. Also at this event, Mathew Akrigg, one of our policy and research officers, hosted one of the most attended sessions. His payroll legislation update grabbed the attention of a huge crowd on the second day as professionals were eager to stay informed in this ever-changing industry.
IPASS Annual Conference and Exhibition
WE ALSO attended the IPASS Annual Conference and Exhibition, which took place in Dublin on 24 May. Luke Butters, our sales executive, Fiona Smith, payroll training manager and Jason Davenport, chief executive officer (CEO), were in attendance, where they conversed with delegates on hot payroll topics and expressed how the CIPP can support them. Payroll Assurance Scheme Assessors’ Day ON 5 JUNE, we hosted our annual Payroll Assurance Scheme (PAS) assessors’ meeting to ensure our wonderful PAS assessors are kept up to date with all the latest news from the CIPP. Assessors joined online and presentations included: ● a strategy update from Jason Davenport, CEO ● operations feedback provided by Tiffany Bailey, customer services coordinator ● an update on consultancy from Natasha Taylor, consultancy relationship lead ● an in-depth review of feedback received, and how the accreditation process has been updated from Julie Northover, payroll compliance advisor ● marketing news from Sarah Winnett, marketing manager. The participants also had the opportunity to network with one another and learn more about other PAS accredited companies. If you’d like to learn more about the PAS accreditation, visit our dedicated page: https://ow.ly/TTET50S6QHw.
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 4
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Event horizon Your guide to upcoming events and training
Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to- face are highlighted in orange. Please note, there are additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr. with likeminded professionals and celebrate the achievements of the industry. The action-packed two-day event, which takes place on 2 and 3 October at Celtic Manor Resort in Wales, is attended by hundreds of delegates annually. Book your tickets here: https://ow.ly/tlUg50Rtoyn. During the week, many activities will be held to boost understanding and awareness of the payroll function, which will include a host of workshops and educational sessions. CIPP members and non-members will have the chance to attend our NPW webinars, free of charge. To book your place, visit: https://ow.ly/3uhm50RtowS. Annual Conference and Exhibition (ACE) tickets are on sale now This October, don’t miss your chance to attend the UK’s biggest payroll conference and exhibition. ACE provides a fantastic opportunity for payroll professionals to learn, network National Payroll Week (NPW) 2024 is just a few weeks away! NPW is fast approaching! Taking place from 2 to 6 September this year, the week-long celebration should be in every payroll professional’s calendar. Launched by the CIPP in 1998, the long-running annual event aims to highlight the hard work and dedication of payroll professionals across the country, as well as the opportunities presented by the industry. Over the years, it has become increasingly popular and is helping to raise the profile of the profession and its processes. Are you ready to celebrate this important occasion with your peers?
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16 July
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29 July
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Holiday pay and leave
21 August
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12 August
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Introduction to payroll
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
POLICY HUB
On your behalf
Find out what the CIPP's policy and research team has been doing on behalf of you, our members, and the wider payroll profession over the course of the past month Policy team update
Events and webinars
Consultation and calls for evidence (CfE) updates
team has recently responded to: l Improving the data HMRC collects from its customers (draft legislation) l Freeport and investment zone employer National Insurance contribution reliefs l Raising standards in the tax advice market: strengthening the regulatory framework and improving registration l Low Pay Commission consultation 2024 l Improving the effectiveness of the Money Laundering Regulations. If you’d like to see the team's responses, you can do so by visiting the policy hub pages on the website, here: https://ow.ly/ KOjB50SbKNH.
BeKnowledgeable webinars are back for 2024! The second event in this year’s series was delivered by Samantha O’Sullivan, policy and advisory lead, on 19 June. It explored the complex topic of overpayments and recovery. The webinar topic was amended following the results from one of our Quick Polls in April, in which we asked what topic you would like to see covered in our BeKnowledgeables. You asked, and we listened. Sam was invited to attend a cycle to work roundtable discussion in London hosted by the Cycle to Work Alliance. This year marks the 25th anniversary of the cycle to work scheme, which has enabled over two million employees to reap the benefits of entering the scheme. Sam provided insight into some of the barriers still affecting prospective cyclists, which will contribute to the development of a manifesto paper that will be launched at a parliamentary drop-in this year. Sam also joined the Chartered Tax Advisers’ Address on the impact of artificial intelligence on tax, hosted by the Chartered Institute of Taxation. Mathew then joined SD Worx on its monthly interactive webinar, ‘Payroll question time’, to break down all the latest changes for payroll to be aware of and to answer live questions from delegates.
The government has published a ' Fit note reform ' CfE, https://ow.ly/AC7i50RY2FA, aiming to explore reforming the process to support those with long-term health conditions to access work and health support. The Department for Work and Pensions and Department of Health and Social Care welcome all views, particularly from: l employers l healthcare professionals l patients, carers and those who access fit notes l representatives of local systems or local system partners (for example, local authority, integrated care board and voluntary community social enterprise) l interested academics and stakeholder organisations. The policy team is responding to this CfE. However, if you wish to respond personally and have your say, all the information and response details are available at: https:// ow.ly/L47O50RY2Am. The CfE closes on 8 July 2024. The team have been particularly busy responding to recent consultations and calls for evidence, all of which have now closed. This is the main way the team pushes for change with government departments, whilst they’re asking for thoughts on change. The
Forums and the general election
The policy team is privileged to sit on a number of HM Revenue and Customs forums. Sam, Mathew and Sarah usually attend several forums between them each month. These forums are temporarily suspended during the time between an election being called and the election itself, when there are restrictions on the activity of civil servants. The team sits on these forums to ensure our members' feedback is provided at government level. We look forward to their return when we can continue to represent our members. n
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 6
MY CIPP
Angela Adams MCIPPdip , payroll advisory officer
Sam Jones MCIPPdip, payroll advisory team leader
Jessica Wearing ACIPP , payroll advisory officer
Lisa Sheldon MCIPPdip , payroll advisory officer
Chevonne Wild MCIPPdip , payroll advisory officer
Can you tell us about the Advisory Service team members? The Advisory Service team currently has five members, with 110 years of payroll experience between us. The longest service member is Angela, who’s been with the CIPP for more than ten years. Chevonne has been with the CIPP for two years. She has worked in various payroll environments, including in bureau and in- house departments. Chevonne has in-depth understanding of Irish payroll. Lisa started her role in 2023 and joined from a finance and manufacturing background, also completing tutoring for bookkeeping. Jessica joined the team in 2023 and has experience in accounting and bureau payrolls. Sam is the newest member of the team, and he comes from a training and payroll background, having been exposed to end point assessments, training and apprenticeships. With a wealth of knowledge in the team, we can answer queries effectively and efficiently. What are the team’s priorities and how do their roles fit together? Our key priority is to provide a high- quality service to our members by telephone and email. To achieve this, we have a team Charter to define how we strive for excellence and use the skills and experience within the team to help members feel supported. Our Charter aligns with the CIPP’s values: l teamwork l striving for excellence l communication
l professionalism l trust and honesty. We strive to be at the forefront of the industry by supporting and developing the knowledge of our members. What skills does an Advisory Service team member need? A team member must have effective communication skills, coupled with patience and an ability to gain understanding of complex queries. Continuous learning is a large part of the role, so a learner’s mindset is a must. Collaboration and knowledge-sharing is essential for delivering an impactful service to our members. Each team member brings their own strengths and opportunities. Having a thirst for knowledge allows us to stay up to date, using all the channels available. How do you ensure the information you’re providing to members is correct? The team has a variety of channels at its disposal to stay up to date. This includes News Online and the Employer Bulletins published by HM Revenue and Customs, as well as Professional magazine. Team members have regular continuing professional development in the form of research and scheduled training, both internal and external. Each year, the team attends the annual updates along with any sessions covering any ad-hoc changes to legislation. We work closely with the policy and materials teams to keep our fingers on the pulse of the industry. We also network
at our Annual Conference and Exhibition to better understand the topics impacting payroll departments at the current time. What do your roles mean to you? The team gets great satisfaction from knowing members have felt supported by the help we’ve provided. Whether it's a quick confirmation of understanding or a more thorough explanation of the treatment of an item, we love to investigate and provide detailed guidance for members, aligning with their company's policies and procedures. Angela says: “I get job satisfaction from supporting and sharing knowledge with our lovely members.” Chevonne says: “I feel a sense of achievement which gives great job satisfaction and I’m proud to work for the CIPP.” Lisa says: “Staying up to date with knowledge is crucial for any role, especially in a field as dynamic as payroll. It’s not just about ensuring you’re personally informed, but also about being able to effectively support your team and the members you serve. By staying informed, you're better equipped to provide accurate advice, anticipate changes and contribute meaningfully to the team's collective expertise.” Jessica says: “I get satisfaction from interpreting legislation and embracing the ever-changing landscape of our industry.” Sam says: “I get a massive sense of well-being knowing that our members feel supported by our team. My role provides such a diverse range of tasks that no two days are the same. I see my role at the CIPP as a life / career goal being met, for which I’m incredibly grateful.” o
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Long-term sick leave and statutory sick pay (SSP) Q: We have an employee on long-term sick leave and sadly her circumstances mean she may never be fit to return to work. We’re on a rolling 12-month sickness calendar, although contractual sick pay (CSP) is on a three-year rolling schedule. The employee exhausted CSP in March and SSP ended in December. She has been issued a SSP1 to apply for universal credit / employment and support allowance (ESA). Is there a point when the Department for Work and Pensions (DWP) stops payments and we take up SSP again? A: The employee would only qualify for SSP if another period for incapacity to work was formed after eight weeks, otherwise it would be classed as a linked absence. If the employee has been receiving ESA, then returns to work and is absent within 12 weeks, they wouldn’t qualify for SSP. The office that paid the benefit should give the employee a ‘linking letter’ which they can pass to the employer on their return to work or when they’re off sick. This can be used to check the eligibility for SSP. Here’s a link to the guidance: https:// ow.ly/68kr50RA6jq.
A to category C in the middle of a tax year, would the correct procedure be to calculate the earnings before the birthday at the original category, applying the full year’s thresholds and then the earnings after the birthday at the new category? Or are we supposed to apply category C to the whole year’s earnings and refund all employee National Insurance contributions (NICs)? A: Where a director reaches state pension age midway through the tax year, they will be liable for class 1 NICs on any earnings prior to their birthday. You would apply the full year bandings, giving priority in your calculation to the category A earnings within the reconciliation. Section 60 of CA44 has a useful example of how this would be calculated and confirms the treatment of the earnings. Please see here for further guidance: https:// ow.ly/oRho50RY3so. Temporary workplaces Q: We have asked an employee who runs one of our branches in the Southwest to take over the temporary running of another workshop in Manchester while we recruit a new manager. This would mean her being away from home for at least three days a week. We will pay for her accommodation, but would like to know if this is classed as a benefit in kind (BiK)? A: Travel and mileage claims will all be based on contracts of employment. If your staff member has a fixed work address, i.e. the branch in the Southwest, as opposed to variable locations, the Manchester branch could be deemed a temporary workplace. Travel and accommodation costs would be allowable, and no BiK would arise. I stress could, as frequent travel to the same office
could be deemed a second permanent workplace. A temporary workplace is one where the employee is completing a task of limited duration or temporary purpose not expected to exceed 24 months. To apply this rule you should treat duties as performed to a significant extent at any workplace if the employee spends 40% or more of his or her working time at that place. Here’s a link to the guidance for further reading, please see subheading 3.11 and 3.13 onwards: https://ow.ly/ ZT6y50RAt5Q. The HM Revenue and Customs (HMRC) guidance is thorough in this area, so look at the 490 guidance: https://ow.ly/ bykG50RAtaz.
Is the provision of accommodation for temporary work classed as a BiK?
Late P11D returns Q: What are the penalties for late P11Ds? A: The penalties for failure to complete or late return of P11D forms is £300 per form. After this, a continuing penalty of up to £60 per day per form can be issued. See https:// ow.ly/9xc850RAtvr. The penalty for late submission of the P11D(b) is £100 for each month (including part-months) per 50 forms that class 1A National Insurance (NI) is due on. Additional penalties will be issued depending on how late the P11D(b) submission is, for example, at 12 months. See https:// ow.ly/2CeT50RAtVB.
Do we take up SSP again if the DWP stops payments to someone on long-term sick leave?
Directors reaching state pension age Q: If a director changes from category
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 8
POLICY HUB
How to treat gift vouchers for performance Q: We’re looking to implement a new reward / recognition scheme and are thinking about awarding gift vouchers. Is there any exemption here if the amount is £50 or lower? Could we put the value of the voucher on the employees’ P11Ds, so they incur the additional costs, and report it this way? Or should we do it through payroll as gross once P11Ds are gone? Or do we report the value on our pay as you earn (PAYE) settlement agreement (PSA) and incur the costs for this? A: This won’t meet the trivial benefit criteria as it’s a reward or recognition scheme. Here is a link for further information about trivial benefits and the criteria: https:// ow.ly/5Ooy50RAzkE. If the vouchers are exchangeable for cash, they will count as additional earnings and the value will need to be processed through the payroll subject to tax and class 1 NI. If the vouchers are exchangeable for goods and services, the value will need to be reported on the P11D and then added to the payroll for class 1 NI only. Here’s a link which covers the reporting requirements when providing gift vouchers to employees: https://ow.ly/hIeS50RAyZH. You could possibly settle the liabilities due on a PSA. This must be agreed with HMRC. See: https://ow.ly/LrTC50RAz9R.
payroll records to reflect the expected recovery in real time. It states in the CWG2 guidance that an unintentional overpayment of wages isn’t deemed as earnings income and therefore not subject to PAYE or NI contributions. The company would then need to decide what to do regarding recovery depending on the amount. This could be escalated to a small claims court, if needed. Pay rises while on maternity leave Q: How should employees on maternity receive an increase in pay when appraisals are made for the company? Specifically, how should the new statutory maternity pay (SMP) rate for an employee on an hourly rate be calculated? A: Where a pay award occurs while someone is on maternity, an employer must recalculate the average weekly earnings (AWE) as if the new salary rate is in place. Any difference in SMP generated by the recalculation is to be paid to the employee. This is due to a piece of case law – Michelle Alabaster vs Barclays Bank PLC. In most cases, this will impact the first six weeks of SMP. However, for some low earners, this could impact the full 39-week payment period. See page 24 for an article by the CIPP’s policy and advisory lead which provides more information on Alabaster around the steps that need to be taken and the relevant timeframes.
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How do we report the value of gift vouchers?
How should pay rises be calculated for those on maternity leave?
Overpayments Q: An employee has left and has been overpaid. How do go about recovering this overpayment? A: Firstly, you will need to work out the gross and net overpayment and contact the employee for them to make a net repayment. If there’s no intention to recover the amount from the employee, you should leave all the records as they reflect what the employee has been paid. If you do have an intention to recover the money and can show that you have followed a course of action to recover the amount, then you can still adjust the
Adoption leave payments Q: I have an employee who is adopting a second child while on adoption leave with their first. Are they able to have two lots of statutory adoption pay (SAP)? A: An employee can have two SAP instances running in tandem, providing the adoptions are not part of the same agreement and have separate matching certificates. In this scenario, the employee could have two amounts. This position is detailed in the statutory payment manual: SPM130600, here: https://ow.ly/WWin50RRh9a. n
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
Watch the video
2-3 October 2024 | Celtic Manor Resort, Wales
The CIPP’s Annual Conference and Exhibition is the largest independent payroll conference in the UK, and brings together top payroll professionals, thought leaders and solution providers from across the UK.
Whether you’re a seasoned payroll expert or just starting your journey, the Annual Conference is designed to empower and elevate your payroll skills and knowledge.
REASONS TO ATTEND
Enlightening keynote sessions Gain insights from leading payroll practitioners, industry experts and HM Revenue and Customs (HMRC) officials who will share their knowledge and experiences. Dive deep into the latest payroll trends, legislation updates, compliance strategies and best practices. Interactive workshop sessions Participate in a wide range of interactive workshops and thought- provoking discussion groups led by industry experts.
Personal and professional development Develop new skills and explore new perspectives, and gain valuable updates to boost your professional development and career prospects. Celebrate excellence Attendance at the full conference includes a ticket to attend the CIPP’s Annual Excellence Awards 2024; the largest UK payroll awards ceremony celebrating excellence in the profession. Networking Engage with professionals sharing similar interests and expand your network for personal growth and professional connections.
Discover new solutions Discover the latest payroll technologies, services and products from our diverse range of exhibitors. Engage with providers from across the industry to find solutions that will transform the way you manage your payroll.
Visit cipp.org.uk/ACE for full details and to book your place
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 10
FEATURED SESSIONS
Strategies for selecting the optimal benefits for your organisation Ana Laiu MSc FCIPPdip Director of pay and reward, PPHE Hotel Group With the cost of living still a challenge, employers are having to be creative in providing adequate employee support which is cost-effective and enhances the employee experience.
Don’t miss this year’s awards host
This session will discuss various strategies for selecting the optimal benefits package for your organisation, evaluating multiple considerations to enable stakeholder buy-in and secure employee engagement and retention.
Mitigating risks Maria Mason MCIPPdip National payroll partner, BDO LLP Payroll can be seen as a high-risk activity for a firm. How can you
GABBY LOGAN
appropriately control the risk elements, whilst ensuring both the team and payroll operations aren’t constrained, to enable you to deliver and grow a successful and valued service which drives your business forward and continues to elevate the profile of the payroll team?
A shepherdess without sheep: can you lead without a team? Polly Sinclair MSc FCIPPdip MSET Programme tutor, West Suffolk College
Do you aspire to be a leader but see it as unobtainable in your current role? Or do you want to take that next step into a leadership role but feel like you don’t have the experience to sell yourself in an interview? This session will explore how you can recognise and develop the essential qualities for effective leadership without being in a traditional leadership position.
THANK YOU TO OUR SPONSORS AND EXHIBITORS
Workshop stream sponsors
Exhibitors
LET’S COMMUTE
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
MY CIPP
The CIPP Annual Conference and Exhibition 2024
Jason Davenport MCIPP MioD, the CIPP chief executive officer (CEO), highlights just a few of the reasons every payroll professional should ensure they attend this year’s Annual Conference and Exhibition (ACE)
T he CIPP’s ACE is for everyone. Whether new to the career or a seasoned professional, it provides something for all individuals who attend. Here are just some of the reasons why you should go – and why it’s important for your employer that you’re there too. Enhanced learning Education is at the heart of ACE. Continuous professional development is essential to keep up to date with the latest trends, ideas and ways of working. This investment in yourself is essential, as to stay still means you fall behind. In today’s fast-paced world, artificial intelligence (AI) and generative AI are being deployed increasingly faster across a range of services. Make sure you invest in yourself and know how to manage and handle such technological changes. There are a range of workshops to choose from to support everyone in their career journey and fantastic plenary sessions open to all for greater understanding and enhanced learning. New developments The exhibition is also a chance to find out about the latest developments from those delivering software and solutions to meet your needs. Do you need to explore what might be on the horizon, even if you’re already in a long-term contract with your provider? I suggest this is essential research. It’s also a great way to ask questions outside of a sales setting, so the teams on the stands
often get as much out of the interaction as you do. Don’t forget, we will also have a CIPP stand for all your membership needs and an IPP Education stand to help you understand all the qualifications and training available, as well as offering support with your apprenticeship needs. As an end point assessor and an awarding organisation, the team has a great view of how the market is developing and of the apprentice landscape. A shared experience Networking is also a key driver for attending ACE. Although it’s not an aspect everyone is comfortable with, networking with your peers in industry is hugely important. As humans we thrive on storytelling and understanding. Meeting industry experts and sharing stories is just as important for development as formal learning. The conference is designed to allow space for formal learning as well as plenty of refreshment breaks to allow you to consider what you want to focus on next. There’s plenty of time built into the day’s activities, as well as social events in the evening, to find the key person with whom you wanted to speak. The conference app is also designed to help you with connecting with other attendees. For those new to conference, either thinking about signing up or having signed up for the first time, I also recognise you may be cautious and concerned about how you get the most from the event. Please do seek me out as I would be
delighted to meet you, hear your story and help you in any way I can. This may be by providing introductions to others, guidance on session choices or exhibitors to speak to. Many international delegates also join conference each year from our sister organisations. If you have any questions for those from overseas or would just like to share thoughts and insights from other parts of the world and how they handle operations, I would be delighted to facilitate introductions. I know others attending would be just as pleased to share their stories. Commitment All of the team is also hugely committed to making the conference an all-round success. The events team wants you to have the best time possible and those delivering workshops or plenary sessions are keen to impart knowledge for your benefit. The exhibitors are also very eager to meet and hear from as many of you as possible, as every day is a school day. Finally, if you’re shortlisted for an award, very well done. That is a fantastic achievement! My commitment to you is that you will have learnt and developed during the time away. Prior to conference make a note of the questions you may want answered, the individuals with whom you want to catch up and the queries you have for the exhibitors. ACE passes in a flash of the eye and before you know it, we will be planning 2025. n
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 12
MY CIPP
PAYROLL news
More employee rights granted under new Paternity Leave (Bereavement) Act 2024 THE PATERNITY Leave (Bereavement) Bill achieved Royal Assent on 24 May, meaning the Paternity Leave (Bereavement) Act 2024 became law in the week leading up to Parliament being dissolved.
The Bill makes provision about paternity leave in cases where a mother, or a person with whom a child is placed or expected to be placed for adoption, dies. It will grant partners automatic rights to paternity leave in these circumstances. While this represents a slight increase in administrative burden for payroll and human resources professionals, it is a positive step forward in ensuring fairness for employees during difficult times. The exact implementation date and plans may change as government news develops after the election. However, due to the nature of the Bill, it has strong cross-party support and is expected to be introduced at the earliest convenience. This Act will cover England, Scotland and Wales, but not currently Northern Ireland, where employment law is devolved. Read more here: https://ow.ly/obBY50S6r8a.
HMRC releases new advisory fuel rates HM REVENUE and Customs (HMRC) has released the advisory fuel rates to be used from 1 June 2024. You can use the previous rates for up to one month after the new rates apply. The fully electric car advisory rate is 8 pence per mile. This will also now be reviewed quarterly along with the other advisory fuel rates. Hybrid cars should be treated as petrol or diesel for the purposes of these rates.
Engine size
Petrol — rate per mile
LPG — rate per mile
14p
11p 13p 21p
1400cc or less
1401cc to 2000cc
16p
26p
Over 2000cc
Engine size
Diesel — rate per mile
13p
1600cc or less
1601cc to 2000cc
15p
20p
Over 2000cc
For more, see https://ow.ly/yyIu50S6rfX.
Diary dates
5 July 6 July
Last day of tax month 3
First day of tax month 4
P11D submission date (to both HMRC and employees) P11D(b) submission date
6 July
Last day for submitting a real time information employer payment summary to apply to tax month 3 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 July
22 July
5 August 6 August
Last day of tax month 4 Last day of tax month 5
Last day for submitting a real time information employer payment summary to apply to tax month 4 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 August
22 August
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
MY CIPP
Market Insight Survey 2024 results: how are we performing against your expectations?
Sarah Winnett MCIM ACIPP, the CIPP marketing manager, explores the results of the 2024 survey and your feedback on our products and services
A s a membership organisation, and like any business, it’s critical that the CIPP continually monitors the level of service, as well as the relevance of the products and services we provide to industry and our members. The four main objectives of this year’s survey were: 1. To measure and evaluate customer satisfaction and experience with our members, stakeholders and industry professionals. 2. To review existing products, services and business areas, to establish what you value most, and where we can improve. 3. To ensure we’re aware of issues facing industry, to communicate and position the products and services effectively. 4. To assist the CIPP board and senior management team in producing the 2024/25 strategy and business plans.
Customer satisfaction and experience
over the last 12 months, and if so, to rate their experience. We received a total score of 8.7 out of 10 which corresponds with the overall NPS score as ‘excellent’. As a key membership benefit, we also asked respondents about contact with the Advisory Service, to examine customer satisfaction levels. 80% of respondents had been in touch with our advisory team and rated the service 8.7 out of 10. This mirrors our overall service level score, and when reviewing last year’s score, shows consistent levels of excellent customer service from the team. Due to growth across digital marketing channels, particularly for a younger target audience, this continues to be at the heart of our marketing strategy moving forward. These channels have seen continuous growth in the last 12 months, so it’s important we continue to analyse and improve our online engagement.
A net promoter score (NPS) measures customer loyalty and satisfaction. Looking at industry averages, scores of 0-20 are considered ‘fair’, between 20-50 ‘good’, 50-70 ‘excellent’ and anything over 70 ‘exceptional’. We asked respondents if they would recommend the CIPP and reassuringly, the NPS for 2024, based on those who completed this survey, was 57. We started the NPS in 2020, and back then, scored 48, averaging ‘good’, so we’re delighted that by 2024, we’re now reaching ‘excellent’ and are continuing to improve our level of service. The questions throughout the Market Insight Survey (MIS) then sought to gain further insight into this score and identify the areas in which we excel, as well as areas for improvement. As one of our main objectives was to measure customer satisfaction and evaluate your experiences of interacting with us, we also asked respondents to confirm whether they had been in contact with us
Our digital strategy Our website attracts thousands of visitors
Our net promoter score for 2024 was 57.
Survey respondents rated the level of customer service provided by the CIPP as ‘excellent’.
| Professional in Payroll, Pensions and Reward | July - August 2024 | Issue 102 14
MY CIPP
various topics including umbrella payroll, global payroll news, poll results from our website, free webinars and automatic enrolment. These will all be discussed as part of the content plan moving forward and we always encourage you to contribute any topics you wish to see via the various feedback mechanisms in place as part of your membership. Diving further into our main channel of LinkedIn, 76% told us that they weren’t part of our LinkedIn closed group. While this has grown to an international audience of 13,000+ individuals, further content on holiday pay, pensions, payroll cycles and compliance was requested, as well as more free webinars and facilitation of networking in the group. These ideas will be shared for further development, as we recognise the need to reward loyalty and encourage group participation. Existing products, services and business areas review 81% of those responding regarding membership grade were aware of their membership benefits. We asked members how they would therefore rate each of the 18 benefits based on their membership grade.195 responded and the top five benefits rated were: 1. The Advisory Service 2. Annual Tax Pack 3. BeConnected national forums 4. BeKnowledgeable webinar series 5. Benchmarking Report. When comparing data with our 2023 and 2022 surveys, the trend shows that the reliance on each member benefit changes slightly year on year. However,
Survey respondents indicated how often they use the CIPP website.
each month and so it’s important to continue to gauge the user experience. We started by asking how often respondents used our website and the majority (69%) use it weekly and monthly, which is consistent with the 2023 results. The majority felt the site was user- friendly, with 60% rating it ‘good’ and 32% rating it as ‘excellent – easy to use’. 87% felt the content was good and they didn’t feel anything vital was missing, 11% said it was ‘okay, but needed improvement’ and 2% felt it was ‘difficult to navigate’. When asked what content you would find useful, 15% fed back ideas as shown overleaf and this has been shared internally for consideration moving forward. We want all our products, services and news updates to be easily accessible via our website and for the member area to be engaging and offer value. A website
project is currently underway to improve the website user journey and experience, so this feedback will be incorporated into the audit. Our social channels have seen a 12.5% increase in followers since the 2023 MIS report, with our following currently at 30,000+ across LinkedIn, Facebook, Instagram and X (formerly Twitter). 87% of respondents follow us on LinkedIn, 34% on Facebook, 18% on Instagram and 14% on Twitter. Respondents told us that LinkedIn and Facebook were their preferred professional platforms, and that they followed the CIPP as it provided ‘real time updates’ and ‘advice from within the industry’, all from a ‘reliable source’. This marries with 98% stating that the CIPP social content was ‘relevant’ or ‘extremely relevant’. We then asked if there was any additional content we could share to provide further value. Requests covered
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| Professional in Payroll, Pensions and Reward |
Issue 102 | July - August 2024
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