Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 33 September 2017
It pays to learn
Individual Chartered Status Putting you in the picture
Creating a profession Founder framed
Good work Setting the scene
CIPP update | Policy hub | Professional development
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Editor’s comment
This issue carries informative articles about Chartered status for individual CIPP members, learning and development, and the ‘Taylor review’. All are essential reading. On pages 8-9 you’ll find a report of George Powell’s recent visit to the CIPP head
development in our work and careers. This also reminds us that continuing professional development is crucial in our profession, and will play a key role in supporting Individual Chartered Status. Even if the government were to accept just some of the Taylor review proposals there will be significant impact on payroll management. The articles on pages 19, 20/21, 32 and 41 set out some of the details and implications for payroll and pensions. Please remember to view the online version of this issue for additional content.
office. George was instrumental in the foundation of the first payroll/ pension professional body in the UK. We should revere George for instigating our profession by his actions in 1980. The report complements the article on page 13 which announces details of individual Chartered status. Surely, this status would have been unimaginable in 1980? Amongst other things, the feature topic articles which are found on pages 34–38 emphasise the role and value of learning and
Mike Nicholas MCIPP AMBCS Editor
Chair’s message
All I seem to have done over the past few months is travel, meeting lots of payroll professionals on my way. This morning I woke up in New York City where I’m on a flying visit for a couple of days meeting with my US payroll teams and our new supplier…hopefully I’ll get a chance later to go and explore the city for a few hours. I was very excited to pick up an email when I arrived yesterday from the CIPP office to tell me that we have had a great response to my requests for more of our members to stand as board directors and this is better than I could have ever expected. Applications have now closed and when the appointments committee meet later this month, I’m sure we’ll end up with a very exciting voting process with a wide selection of candidates for members to choose from to represent them on our CIPP board. Don’t forget to vote for your preferred candidates when the voting opens online soon. This month we’ve launched our new online prospectus which you can view on our website; this will provide you with full details
of the CIPP’s education offerings including the industry recognised Foundation Degree in Payroll Management qualification for which enrolments are currently open. The prospectus also includes a useful career pathway to make it clear which study route is best for you. Final plans are being made for our annual conference and exhibition. If you haven’t booked your place, there is still time to join us at the largest independent UK payroll conference. If you want to approach your employer to show what a benefit it will be to your professional development we have created a sample business case on our website. I hope to see you at some of our events over the coming weeks.
Eira Hammond FCIPPdip Chair, CIPP
CEO’s message
I recently attended the CIPP’s tutor training for our CIPP tutors who are the bedrock of our qualifications process. It was a great weekend with close to 100 in attendance. It was good to meet and speak with many of the
work throughout the year. Within this special week, dedicated to you, we’d love to see your comments and ideas shared with the CIPP, to further raise the profile for the profession. With the General Data Protection Regulation fast approaching, we’ve been holding roundtable events to help shape a standard within the payroll and pensions environment. It has been great for me to witness how the industry leaders have come together for a common purpose, to be one voice for the good of the profession. Follow and read the article on page 26 and it will become a regular feature to assist in this key piece of legislation for go live in May 2018. We encourage others to join the forum as it gains momentum, so please speak to the CIPP to express your interest.
tutors, most of whom have a busy day job, yet make time to support the students making their way through their respective levels of qualification. A big thanks to you all. I’ve also finished presenting at various National Forums around the country, ably supported by the policy and research team, and gratefully supported by several industry sponsors. This is, of course, an inclusive benefit for all associate, full and fellow members; including the webinar, not far short of 1,000 members have participated. We’re now into the autumn season and hopefully you’re all prepared for National Payroll Week. The theme is Spotlight on Payroll, so think of ways in which your payroll professionals, teams and suppliers can celebrate success and be recognised for all your hard
Ken Pullar FCIPP Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 33 | September 2017
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
September 2017
49
AE and the gig economy
Henry Tapper asserts that fundamental change is likely
Features
22
15
21
Unravelling the Gordian knot Neil Tonks cuts through the tangled issues
Individual Chartered Status is almost here Helen Hargreaves announces details
‘Good work’ Helen Hargreaves summarises findings of the Taylor review
38
24
32
Public interest, performance, and redundancy Nicola Mullineux reviews decisions in three cases
Tax implications for employees using assets Peter Minchinton discusses unexpected legislation change
GDPR – eat the elephant Claire Wright looks at GDPR compliance
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 2
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Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Gumery design@cipp.org.uk Printing Warwick Printing Company Ltd
What does the Taylor review mean for employment law? Danny Done reviews some of the proposals
When in Rome... Lisa Gillespie reveals what the Romans can do for our understanding of L&D
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44
Chief executive Ken Pullar FCIPP CIPP board of directors
Use CPD to promote your success Elaine Gibson discusses why CPD is fundamentally important for L&D
It pays to learn Kavitha Sivasubramaniam argues the case for L&D for payroll departments
Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT
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Useful contacts Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries
Achieving good pension outcomes Alan Morahan looks at achievement of retirement dreams
Regulars
01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with Payroll giving award, Scottish conference, NPW 2017, GDPR 15 Professional development Individual Chartered Status, Tutor training, Diary of a student Events, news and developments 13 CIPP update
36 Events Horizon 38 Reward insight 42 Feature articles 47 Pensions news 48 Pensions insight
Learning and development
info@cipp.org.uk 0121 712 1000
cipp.org.uk @cipp_uk
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2017. 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.
The Pensions Regulator 56 Confessions of a payroll manager Additional content online 10 National forums report 26 Phantoms of the OpRA (roundtable) 28 Applying unemployment wages in USA 29 Self-review of NMW 34 How government uses RTI
19 Industry news 20 Payroll news 21 Payroll insight
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| Professional in Payroll, Pensions and Reward |
Issue 33 | September 2017
MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on a range of topical issues
Introduction Our government continues to plough on in an array of discontent with a heavy focus on Brexit negotiations. The European Union (Withdrawal) Bill (also known as the ‘Great Repeal Bill’) has been introduced to Parliament, designed to ensure that the UK exits the European Union (EU) with maximum certainty, continuity and control. The devolved nations are up in arms about it, with the first ministers of Scotland and Wales joining forces and threatening constitutional crisis as the Bill “undermines the principles of devolution”. To ensure we are prepared for the process of withdrawal from the EU, the government will also be introducing several Bills over the course of the next two years including a Customs Bill and an Immigration Bill. And at some point between 3 May 2018 and 28 February 2019, a referendum may be held (private Bill) on whether the UK should accept the outcome of the negotiations between the government and the EU regarding exit from the EU. Finance Bill measures back on track The Finance Bill introduced in March 2017 provided for several changes to tax legislation that were withdrawn from the Bill after the calling of the general election. The then-financial secretary to the Treasury confirmed at the point they were withdrawn that there was no policy change and that these provisions would be legislated for at the first opportunity in
the new Parliament. Ministers have confirmed that the second 2017 Finance Bill will be introduced as soon as possible after the summer recess and it will legislate for all policies that were included in the pre- election Finance Bill. All policies originally announced to start from April 2017 will be effective from that date. The government published a list of provisions that will apply from the start of the 2017–18 tax year or other point before the introduction of the forthcoming Finance Bill. Included in the list are: ● taxable benefits: time limit for making good ● pensions advice ● legal expenses etc. ● money purchase annual allowance. This is good news for those employers that had worked on the assumption that legislation would be passed early in the next Parliament and therefore any new guidance applied; a prime example being tax exemptions for employer-provided pensions and legal advice, which we wrote about in On Your Behalf in Issue 32 (July/ August). Role of employers in TFC An item in the June 2017 issue of HM Revenue & Customs’(HMRC) Employer Bulletin (http://bit.ly/2sPzkrQ) about parents in receipt of employer-supported childcare (ESC) who opt to come onto tax- free childcare (TFC) contains the following text which raises a few questions: “When a parent in receipt of employer- supported childcare ) (childcare vouchers)
opts to come onto tax-free childcare, they will need to provide their employer with a childcare account notice (CAN). This is a written document (which can be an email) stating that they wish to leave their employer’s voucher scheme and use tax-free childcare. A parent will have 90 days from opening their tax-free childcare account to give their CAN to their employer. At this point the employer will need to terminate their access to employer-supported childcare. “Employers are able to continue to support their employees with the costs of childcare, if they wish to, by paying into their parents’ childcare accounts. However, any contributions will have to be in accordance with income tax and National Insurance rules.” This prescriptive text about an exit strategy from ESC raises questions which we put to HMRC’s TFC implementation team: Does the 90-day window provide an employee with effectively three months of both ESC and TFC? Does that impact on their ability to return to ESC before April 2018 if TFC doesn’t work for them? The TFC replied that it is intended that the CAN process will be as light touch as possible and will allow employees a 90-day period to exit ESC after claiming TFC. The CAN notice is simply a written document (letter or email) informing the employer that they no longer want to receive ESC. The parent is informed of this process through an output when they sign up to TFC. Once a parent provides a CAN notification to their employer, they will not be able to return to ESC. Voucher
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 4
Policy hub
providers have been highlighting this to parents on their schemes. A range of communications materials for employers and employer groups regarding the interaction between ESC and TFC have been developed¸which includes toolkits, leaflets, frequently asked questions – are being distributed. We are also hearing from members at the recent series of CIPP national forums that early experiences of using the Childcare Service (http://bit.ly/2nrBnAk) have thrown up many challenges and frustrations. As with any new digital service the Childcare Service has been launched in beta (trial) mode and is being updated with system fixes, solutions and improvements on a regular basis. If you don’t instantly get a connection when you follow the link, give it a moment or two and then refresh the page in your web browser. Though this is not a guaranteed solution it may remove the need for you to call the helpline on 0300 123 4097. (Helplines are also available in the Welsh language on 0300 123 8124 or by Minicom for the audio impaired on 0300 123 9232.) The CIPP policy team would value hearing about your experience with this delivery of new policy; your emails to policy@cipp.org.uk are encouraged. Thank you. Public sector exit payments cap A question recently asked of our Advisory team prompted us to clarify the current position on public sector exit payments being capped at £95,000. Regulations do not yet exist that create the public sector exit cap itself. The Treasury, Scottish ministers and Welsh ministers have had the power to bring forward regulations since 1 February 2017, but they have not yet done so. ● Background – The statutory instrument The Enterprise Act 2016 (Commencement No. 2) Regulations 2017 came into force on 1 February 2017. Part of this statutory instrument brought section 41 of the Enterprise Act 2016 into force on 1 February 2017 which inserts sections 153A, 153B and 153C into the Small Business, Enterprise and Employment Act 2015 (SBEEA). These regulations apply to all four nations of the UK. Section 153A SBEEA confers a
power to make regulations to restrict exit payments, payable to employees of prescribed public sector authorities or to holders of prescribed public sector offices as a consequence of them leaving employment or office, to a maximum value of £95,000. Section 153B provides for the Treasury to make regulations under section 153A, save that the Scottish and Welsh ministers are to make such regulations in relation to exit payments by relevant Scottish authorities and relevant Welsh exit payments respectively. Section 153C provides that a minister of the crown or, where appropriate, the Scottish ministers or Welsh ministers, may relax a restriction imposed by regulations made under section 153A, and makes further provision about the exercise of those powers. Paragraph 4 confers a power to make regulations to amend public sector schemes to ensure that where the restriction on exit payments would have the effect of preventing immediate payment of an unreduced pension or preventing an employer paying an extra charge to the scheme, benefits are instead immediately payable subject to an appropriate early payment deduction, and that an individual may choose to buy out all or part of that deduction. ● Action required by employers – In consultation on Reforms to public sector exit payments (http://bit.ly/2cGjPf9). The response outlined the government’s expectations that departments should begin work to produce proposals for reform for each workforce by the end of 2016. The major workforces covered by existing statutory compensation schemes and other contractual exit arrangements were expected to begin reforms immediately. These are the: civil service, national health service, local government, teachers, police, firefighters and armed forces. Chapter 5 of the consultation response (http://bit.ly/2cB3fZb) outlines the process and timeline for reform. The government’s expectation is that the necessary changes be made to compensation schemes and other arrangements within nine months of the publication of their consultation September 2016, the government published their response to the
response. That brings us to June 2017. Bearing in mind that this is not a legislative requirement, have all relevant departments actually had these discussions and agreed to implement the necessary changes? We have been running a quick poll on this very subject, so please do take a moment to participate. Our poll is situated to the right of our news items on the CIPP website (http://bit.ly/2i1wLhc). The results will be in the October issue. NMW compliance poll With so many household names in the media for failing to pay the national minimum wage (NMW) to employers, we thought it would be interesting to ask how confident are you about your calculations, processes and record keeping to ensure your compliance in paying the minimum wage. This is what we did through the month of June in a quick poll. We received 548 responses in total with: 65% saying they were ‘very confident’: 22% saying ‘fairly confident’ (so an element of doubt in there which is all it takes); 8% responded with ‘confident’; 3% with ‘not very confident’; and the final 2% opted for ‘not at all confident’. As ever, our polls are a snapshot in time; yet the results indicate that some employers are taking risks and there could very well be areas of weakness in their processes though lack of knowledge or training. We have all seen the ‘naming and shaming’ that has put companies such as Tesco and John Lewis into the spotlight. Not having 100% confidence in minimum wage compliance is not only a potential cost financially but a big reputational risk. n All published information on our polls and surveys can be found in the CIPP’s Policy News Journal (http:// bit.ly/2oxTlh8), a benefit reserved exclusively for CIPP members.
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| Professional in Payroll, Pensions and Reward |
Issue 33 | September 2017
MEMBERSHIP INSIGHT
CCVs to employees up to the maximum level that they can receive within the tax and NICs exemption. The employee concerned was in the CCV scheme prior to 6 April 2011 and so was entitled to receive CCVs up to the maximum of £243 per month. However, the employee had chosen to have a break from receiving CCVs and we have discovered the break was for thirteen months. So, according to HMRC’s guidance this is one month too many, which means this error covers several tax years. We have now determined they should not have received vouchers worth £243 per month but £124 instead. How can we correct this position? A: When an employee has a continuous break from a CCV scheme which exceeds 52 weeks then the employer must apply the tax and NICs rules which operate from 6 April 2011. The treatment for tax and NICs is different, so for the tax element the employer should report the excess value of £119 per month in a P11D return for each tax year that the employee has received the higher amount of CCVs. The excess of the CCVs will also attract Class 1 NICs rather than Class 1A NICs, as the employer should have applied Class 1 NICs through the payroll each pay period that the employee received the higher amount of CCVs. To correct the previous tax years, 2015–16 and 2016–17, the employer will need to make a RTI earlier year update return for both tax years as the employer has a duty to correct errors that occur in current and closed tax years. The underpayment of tax and NICs should be paid to HMRC as soon as possible. The employer must advise the employee of the error and make them aware that there will be additional tax to pay on the vouchers. The employer will have to issue replacement P60 certificates which incorporate the additional NICs paid for the relevant tax years. And, finally, as an error has occurred, HMRC may issue penalties to the employer for late reporting and interest on the relevant amounts underpaid. Q: A pensioner passed away on 8 July 2017, with their payment for July returned to us as his bank account appears to be closed. We were unaware at the time of payment that he had passed away and the original calculation of pay was for a full month. Should we
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to 4.30p.m. on Fridays. It is free to all CIPP members * , students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk for frequently asked questions.
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*please see summary at cippmembership.org.uk for details.
Q: At the beginning of tax year 2016– 17 we provided an employee with a company car, but half-way through the tax year we started to provide her with a fuel card to pay for any fuel she put in the car. I would like to understand how we apportion the fuel benefit charge? A: When an employer provides an employee with a fuel card part-way through the tax year the benefit cannot be apportioned. The only way there would be a reduction in the benefit in kind is where a car is unavailable or the fuel card was withdrawn for a period. Alternatively, if an employer was to allow an employee to keep detailed records of all business journeys and reimburse the employer with the cost of all private fuel then this may reduce the fuel benefit to nil. Or, if the company did not provide a fuel card, the employee could simply claim reimbursement at HM Revenue & Customs’ (HMRC’s) approved rates for all business journeys. In your scenario, the employer will need to calculate the fuel benefit based on a full tax year. HMRC provides technical guidance which can be found on the GOV.UK website: https://goo.gl/BCAlh9. Q: My company still processes the company cars via P11D returns rather than payrolling the benefit. I have been asked recently whether payrolling of company car benefits will become mandatory for tax year 2018–19. Can you please advise? A: Payrolling of cars will not be mandatory for the tax year 2018–19. However, what is going to be mandatory from 2018–19 is that employers choosing to payroll company cars will need to report
all the required information about the car in the real time information (RTI) full payment submission return. This is a similar process to how employers would normally report this information via a P46(car) return. Where an employer is not payrolling company cars, the P46(car) must still be completed and sent to HMRC. For reference HMRC have provided information at the following link to GOV. UK’s website: https://goo.gl/OAwXWY. Q: I am enquiring about the calculation relating to the apprenticeship levy in England and Scotland as we have employees in these countries. Will the apprenticeship levy be calculated on all pay subject to secondary Class 1 National Insurance contributions (NICs) for employees working in England and Scotland? My understanding is that the apprenticeship levy payments only support the English apprenticeship service. A: The apprenticeship levy will be calculated on all pay that is subject to secondary Class 1 NICs in England, Scotland, Wales and Northern Ireland. The UK government will then apportion the contributions to each devolved nation. The English share of the levy payment that the employer pays each month will go into their digital account and this will be available for the employer to spend on approved apprenticeships with approved training providers. Q: After completing the basic earnings assessments we have recently discovered an error in how many childcare vouchers (CCVs) were given to an employee. We normally only provide
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 6
Policy hub
FoundationDegree in Payroll Management Join over 15,000 qualified payroll professionals in the UK
Q: We are a company that offers our employees personal loans, which are repaid through the payroll each month. Should they be reported as P11D items? A: Whether you have to report this depends on the value of the loan. The threshold for small beneficial loans is now £10,000; so, if the loan is no higher there is nothing to report. Bear in mind that if an employee has more than one loan they would need to be aggregated to determine whether the total exceeds the £10,000 limit. If they do exceed £10,000 then there will be a reporting requirement in the P11D return. These links are to the relevant guidance HMRC provides, with the third link showing how the calculation is performed: https://goo.gl/ePvFh9, https:// goo.gl/8muFL2, https://goo.gl/OajRIR. Q: We currently offer salary sacrifice for cycle to work. If we were to provide a trailer to put a child into (a toddler aged two) would this count as safety equipment under the rules of the cycle to work scheme? A: The guidance relating to cycle to work and safety equipment would not include trailers; therefore, they are not considered to be safety equipment and would not qualify as an allowable accessory. The guidance states that the following are considered to be accessories: ● cycle helmets ● bells ● lights, including dynamo packs ● mirrors and mudguards ● cycle clips and dress guards ● panniers, luggage carriers and straps to allow luggage to be safely carried ● child safety seats ● locks and chains to ensure cycle can be safely secured ● pumps, puncture repair kits, cycle tool kits and tyre sealant to allow for minor repairs ● reflective clothing along with white front reflectors and spoke reflectors. n
recalculate the salary correctly now for July and how should this be adjusted in the payroll? A: This is a common situation when an employee passes away. The best procedure to adopt is to ensure the returned payment is paid back to the correct bank account within the company. Yes, you would recalculate the amended pay and correct the tax, NICs and pension deductions on the payroll to arrive at the new amended net pay figure. Decide the method of payment. If it is in the form of a cheque then it should usually be made out to the ‘Executors of Mrs/Mr xxxxx’, unless the employer has proof of who the executors are. HMRC provides guidance for employers on the GOV.UK website on how an employer should treat this situation: https://goo.gl/1MxGJd. Q: We currently claim the £3,000 employment allowance every April for each pay as you earn (PAYE) scheme. Please confirm that we should only claim one £3,000 employment allowance for multiple PAYE scheme where they are connected companies? A: We confirm that the guidance issued by HMRC states that if an employer has multiple PAYE references (which are connected) the employer can only claim the allowance of £3,000 against one of their multiple PAYE references. To help with your understanding I have supplied the links to the GOV.UK website where the detailed guidance can be found: https:// goo.gl/yktEQq and https://goo.gl/CshM9w. Q: We have started to prepare and complete our P11D returns. If an employee earns less than £8,500 per annum and they have reportable benefits in kind is the employer exempt from paying Class 1A NICs on these benefits? A: The £8,500 threshold for P9D returns was removed from April 2016, so this threshold no longer applies (except for ministers of religion). The result is that all employees provided with any benefits in kind that are not payrolled, will have to have these benefits reported in a P11D return. Where the benefits in kind are payrolled, there will be no requirement for them to be reported via P11D, but if Class 1A NICs are due these payrolled benefits in kind are to be reported in the P11D(b).
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Issue 33 | September 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
Creating a profession
This article sets out the instrumental role George Powell played in the foundation of the Institute, and includes a summary of the interview conducted for this magazine. It serves to confirm that one motivated person can bring about extraordinary change
E arlier this year the CIPP invited guest. George’s visit was a perfect day, fittingly acknowledging the initiative he took that over time led to the formation of the CIPP. George left his mark on colleagues within Goldfinger House, as the celebratory atmosphere surrounding his visit was uplifting. That one man’s input from just one letter could have resulted in the Chartered Institute we revere today is both stimulating and humbling. Well done, George – we salute you. George Powell, age 89, to visit the Institute’s office in Solihull as their
The interview with George Tell us about your working life On leaving national service I joined Liverpool Corporation salaries and wages section in 1948. I was a twenty-year old clerk, and there were over twenty payroll staff. I just did my job like the other four or five lads doing the ‘donkey work’. I manually completed payslips by copying entries from some sheets of paper. I remember being strongly told off for making 4s and Xs look the same. Fortunately, a pay clerk spotted one error – paying a bus driver £4 for a week’s work was unheard of then. I used to go out and
pay staff from the money contained in a large tin.
...George – we salute you
I moved around working on various Corporation costs centres looking after wages and accounting and some years later accepted the role of managing the wages and salaries section for the Merseyside Passenger Transport Executive. I had a rule that I would deal with any employee getting abusive when complaining about their wages. There was a large wages sheet for each employee, with entries across the top, which were operated ‘negatively’ unless there was a change. The local tax office was local to the Corporation’s offices and the Inspector was very helpful to me. We’d have a meeting monthly. What motivated you to prompt formation of APSA? My accounting colleagues used to steer clear of payroll, and there was little in the way of help for payroll. The only help I got
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 8
Membership insight
Facsimile 1 Letter to The Local Government Chronicle
A perfect day In May, George Powell visited the Chartered Institute of Payroll Professionals that he was instrumental in founding 37 years ago. George, who was given a tour around the CIPP’s head office, said “This is one of the proudest days of my life. This splendid organisation gave me a day to remember.” In 1980, George, frustrated by accountants in his organisation not regarding the role of the payroll profession very highly, wrote to The Local Government Chronicle suggesting there should be a representative body for workers in payroll (see Facsimile 1). George says that though he created APSA and with help from two others called the first meeting, many others deserve praise for the creation of the excellent professional body CIPP. Ken Pullar, CIPP’s chief executive officer, commented the Institute was delighted “to host George here at the CIPP main office so he can see what he helped start. Everyone involved in the payroll owes him so much for standing up for the profession and realising what a pivotal role it is within organisations.” George is still as passionate about payroll as he has always been and continues to be an avid reader of the CIPP’s membership magazine Professional in Payroll, Pensions and Reward , to keep up with the latest legislation and thought leadership. Shortly after his visit George wrote a lovely letter of thanks to Ken and CIPP staff expressing his delight for a “perfect day”. [Institute of British Payroll Management] – public and private sectors – was brilliant. I have witnessed so many changes in the industry with the introduction of technology and dedicated software, which is now a billion-pound industry globally and I am delighted to see how the CIPP has grown over the years and the level of investment in the future of the profession. The progress the industry and the CIPP has made is astounding. A great achievement. I attended a CIPP graduation ceremony a couple of years ago. All these people passing their exams was out of this world. Payroll and pensions are enjoyable and far more interesting than other clerical jobs. I’ve encouraged people to do it. n
Facsimile 2 Invitation to inaugural meeting I would be grateful if you would bring this letter to the attention of your readers especially those responsible for the payment of salaries, wages and superannuation in their organisations. There is, in my opinion, a need for a new professional body to train, advise and increase the professional status of Salaries, Wages and Superannuation Officers. For some unknown reason officers responsible for the vital functions of pay and pensions have never had an organisation to cater for their professional needs. Professionally these functions are in a void somewhere between the accountancy and personnel management spheres of responsibility. In my opinion the complexities of wages etc. administration warrants the creation of a specialist organisation. During the last few years Wages etc. administration has acquired a new dimension of importance and the solving of problems associated with pay has become a rational problem. If any of your readers are interested in assisting in the creation of this new professional body or of giving moral support will they please write to me at my home address Liverpool, L13 6RT. George Powell Salaries & Wages Officer Merseyside P.T.E. Dear Sir, You are cordially invited to attend the inaugural meeting of the Institute of Payroll and Superannuation Administrators (IPSA). The meeting will commence at 1.30 p.m. in Committee Room 5 on Friday 10th October 1980 at: The Town Hall, Royal Borough of Kensington and Chelsea, Hornton Street, Kensington, London W.8. The Town Hall is only a few minutes walk from the underground at High
Street, Kensington. The Agenda will be: 1. The formal creation of the Institute. 2. Appointment of Officers. 3. Appointment of Regional Officers.
4. Membership. 5. Publicity. 6. Proposed meeting of Officers with Director of IDS Ltd. 7. Training. 8. Recognition. 9. Any other business.
was from the computer man when new government schemes, such as earnings related National Insurance, came in. I can honestly tell you that I would wonder why there wasn’t something like the accountancy bodies for payroll. Having given it thought I wrote to the Local Government Chronicle [see Facsimile 1] and the formation of the Association of Payroll and Superannuation Administrators (APSA) eventually followed. Though
my letter acted as a catalyst it was two people from Kensington and Chelsea who progressed formation of the UK’s first professional payroll body. There was an established network in London which was important in getting the body up and running. What are your thoughts about the CIPP? The merger of APSA with the IBPM
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| Professional in Payroll, Pensions and Reward |
Issue 33 | September 2017
MEMBERSHIP INSIGHT
CIPP National Forums 2017
This year’s series of well-attended National Forum meetings featured stimulating and lively discussions across a range of topics
The speakers Robyn Brentley, corporate account manager, UK & Ireland SAP User Group (UKISUG) Diana Bruce MCIPPdip, senior policy liaison officer, CIPP Gavin Collinson, head of payroll, Smart Pension Jason Davenport ACIPP, vice chair, CIPP Ginnie Freeman MCIPP, i-Realise Elaine Gibson MSc FCIPP, education director, CIPP Lisa Gillespie, HR services director, Moorepay Helen Hargreaves MSc FCIPPdip, associate director of policy and membership, CIPP Samantha Mann MAAT MCIPPdip, senior policy and research officer, CIPP Stuart Morley, advocate, Moorepay Ken Pullar FCIPP, chief executive officer, CIPP
● what this would mean for members and the industry ● the criteria to be met ● the process for applications, and ● the next steps. What impact might Brexit have on payroll and HR? Lisa Gillespie, Stuart Morley and Francis Scoon, Lisa outlined what legislative changes may affect employers once the Brexit process is concluded. The session also highlighted what employers, human resource and payroll professionals need to consider in the coming months. An outline of research findings from Moorepay’s Brexit research revealed: ● 60% of large and 35% of small to medium businesses (SMBs) think Brexit will have a positive impact on their business 21 June – sponsor: i.Realise 4 July – sponsor: UKISUG 5 July Newcastle, 12 July – sponsor: Cintra HR & Payroll Services Birmingham, 18 July – sponsor: i.Realise Locations and sponsors The National Forum meetings were held at venues across the UK from May to July, as follows: Bristol, 9 May Belfast, 16 May Manchester, 18 May – sponsor: Smart Pension Glasgow, 6 June London: 20 June – sponsor: Smart Pension
Francis Scoon, employment law consultant, Moorepay Beverley Smith ACIPP, policy and advisory officer, CIPP Carsten Staehr, chief executive officer, Cintra HR & Payroll Services Ian Walters MSc FCIPP FHEA, non-executive director, CIPP Gail Affleck-Ward, marketing manager, Cintra HR & Payroll Services Ian Whyteside FMAAT MCIPP ATT, non-executive director, CIPP
Introduction session Jason Davenport, Elaine Gibson, Ken Pullar, Ian Whyteside, and Ian Walters shared the role of opening and leading the Forum meetings and introducing the speakers and fielding attendees’ questions. The introduction included a CIPP update, covering: ● CIPP in numbers ● values ● awards, recognitions and quality standards ● the 2017 Annual Excellence Awards ● annual general meeting ● benchmarking ● webcasts ● National Payroll Week – Spotlight on Payroll. Legislative update Diana Bruce, Helen Hargreaves, Samantha
Mann and Beverley Smith delivered these sessions, which covered: ● increasing impact of devolution ● expenses and benefits including optional remuneration arrangements ● off-payroll working in the public sector ● experiences with the apprenticeship levy ● holiday pay and leave ● gender pay gap reporting ● automatic enrolment ● General Data Protection Regulation ● business as usual and the crystal ball. Spotlight on payroll Jason Davenport, Elaine Gibson, Ken Pullar, Ian Whyteside and Ian Walters delivered this session, which included an outline of the CIPP’s successful application to extend its Royal Charter to offer individual Chartered Membership from autumn 2017. The session set out:
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 10
Membership insight
● 64% of large and 54% of SMBs want to retain access to the single market ● two thirds of businesses feel ready to address the challenges and exploit Brexit new trade deals with other countries. Delegates were advised to plan, not panic and provided with guidance. Cintra HR & Payroll Services and CIPP: A partnership approach Carsten Staehr and Gail Afflect-Ward presented this session which revealed that everyone working in payroll at Cintra must be CIPP qualified. If a new employee isn’t so qualified he or she embarks on a qualification. At Cintra, which has achieved CIPP’s Payroll Assurance Scheme accreditation, more than 65 staff have achieved the CIPP Payroll Technician Certificate, more than ten have achieved the Foundation Degree and ten have trained in pensions management. Cintra’s ‘wall of fame’ displays the certificates and qualifications of the staff. The CIPP allows Cintra to be involved in current issues within payroll, and informs via Professional magazine and website. Cintra loves the annual conference and the graduation ceremony is the year’s highlight. 21st century challenge of complying with the minimum wage Beverley Smith and Ginnie Freeman delivered this joint session, which looked at the challenges facing employers and payroll professionals when seeking to comply with minimum wage requirements. The session identified essential steps needed to ensure good compliance. Content included: national minimum wage problem areas; naming and shaming; annualised hours; accommodation provision; salary sacrifice. Ideas for addressing the root causes of a range of problems were outlined. Smart Pension Gavin Collinson explained that Smart Pension is the fastest growing commercial master trust in the UK, offering a comprehensive range of services to support
outlining the role of the UK and Ireland SAP User Group and how it benefits users. The UKISUG is an independent network that has over 4,500 users, and which organises over 100 free events annually. Upcoming events include: ● SuccessFactors, 21 September ● Payroll, 4 October The latter features six key note speakers, 200+ SAP experts, 100+ sessions, 65+ exhibitors and more than 500 customers. To get involved visit www.sapusers.org/ register. n ● Irish HR & Payroll, 25 October ● Connect 2017, 26-28 October.
partners and clients. A range of support and services across the whole spectrum of auto-enrolment is provided, and the trust is underpinned by Legal & General funds and our strategic partnership. Smart Pension supports advisers, accountants and payroll bureaux through the whole journey, at every stage, completely free to use for the employer. The member charge is a flat simple 0.75%. Ahead of the curve: Ensuring your SAP payroll system is always fit for purpose Robyn Bentley delivered this session,
Thank you to our National Forum sponsors and hosts
BENEFITSDELIVERED
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| Professional in Payroll, Pensions and Reward |
Issue 33 | September 2017
Are you keeping up to date?
MEMBERSHIP INSIGHT
5 minutes with… Jason Clark CMgr MCMI, Training and consultancy manager
Continuing professional development (CPD)
CPD is any form of learning or development that benefits you in your professional environment. If you have learned something new then this is CPD, this includes, but is not restricted to:
Using the CIPP’s Advisory Service
Tell us about your career and background in education I began my career in the further education sector more than fifteen years ago when I joined the Learning and Skills Funding Agency. During the twelve years I worked for the company, I gained a lot of experience in several areas from setting education funding rates to writing policy and managed a governance group with a budget of over £4 billion. When did you first become involved with the CIPP? During a planned career break, an ex- colleague from the Skills Funding Agency asked me to complete a process audit of the Professional Careers Academy to identify any potential areas of improvement. After working with CIPP for three months, I joined the organisation as the operations manager for the academy. Managing a department delivering apprenticeships was a definite change in direction going from gamekeeper to poacher but one I enjoyed immensely. In June, I took on a new role at CIPP as the training and consultancy manager which will build on my knowledge of the payroll sector. What is the top activity you are going to focus in your new role? My biggest focus will be to maintain the excellent training that is delivered by my experienced team and to continually improve the courses we offer. That could mean refreshing courses and ensuring that we are offering the right programme at the right time of the year, to reskilling our trainers to build up on their
excellent knowledge to continue providing added value. I would love to hear from members and readers who have any thoughts on our courses, via info@cipp.org.uk . What do you think you can bring to the future strategy of the CIPP? I have proven experience in managing a busy department, introducing new programmes and integrating new systems and processes to enable streamlined programmes. With this knowledge I will assist the CIPP’s education leadership team to take planned strategies forward. My strategy is not only to provide the right courses and the ability to earn continuing professional development points, but to ensure that we provide plenty of added value to members’ payroll careers and value their experience working with CIPP. There is loads of exciting things going on at CIPP, so watch this space. What do you do in your available time to unwind? I am not known for doing anything by half. In February, while reminiscing that I spent most of the late 1970s and 80s in roller skates, I started a new sport…roller derby. It’s brutal, its hard work, but I love it. When I’m not thinking, reading or watching Youtube videos about roller derby, I am studying Spanish. I am also a vice chair trustee for a charity called the Rape and Sexual Violence Project in Birmingham that provides support to survivors affected by rape and sexual violence. n
Taking part in on the job learning
Reading News On Line , Professional in Payroll, Pensions and Reward or another publication
Networking with new or existing contacts
Attending training courses and/or events
Achieving a professional qualification
Log your CPD at cipp.org.uk or email info@cipp.org.u k for more information.
cipp.org.uk @CIPP_UK
| Professional in Payroll, Pensions and Reward | September 2017 | Issue 33 12
CIPP update
CIPP update
NEWprospectus available now
Tax-free charitable giving THE CIPP is proud to have received the Payroll Giving Gold Award this year, in recognition of more than ten per cent of its employees supporting charities through payroll giving. The Institute meets the agency monthly administration fee thereby ensuring employees’ full donations go to their chosen charity. Shirley Harris, CIPP’s head of human
resources and payroll, commented “It’s great that so many of the team are contributing to charities and causes close to their hearts, and that their contribution is worth a little bit more through payroll giving.” Every employer that offers a payroll giving scheme to their employees is eligible to receive a Quality Mark, which can be annually applied for from their contracted payroll giving agency. Contact details for the UK’s main payroll giving agencies and professional fundraising organisations can be found at www.apgo.org.uk/members. GDPR roundtable IN PREPARATION for the coming into force of the General Data Protection Regulation (GDPR) on 25 May 2018, the CIPP have been holding roundtable events. The purpose of these is to bring together a broad spectrum of leaders representing the payroll industry to help shape a standard practice to guide our profession. As momentum builds, the CIPP wants many payroll and pension professionals to get involved and join the forum. To express your interest email events@cipp.org.uk. Breaches of the GDPR can lead to fines up to the higher of 4% of annual global turnover or 20 million Euros. Can you afford not to act now? National Payroll Week 2017 THIS YEAR, National Payroll Week (NPW) runs from 4th to 8th September. This year’s Spotlight on Payroll recognises and celebrates not only the impact of payroll on business, but also the contribution that payroll makes to the UK economy. ● Payroll contributes £418 million to the UK economy through the collection of income tax and National Insurance contributions. ● Payroll is the largest expenditure in most UK organisations and therefore should be managed by qualified professionals. ● Payroll can save employees money through salary sacrifice and other arrangements which improves employee motivation and morale. For NPW, whether it’s encouraging employees to visit the payroll department to understand their payslip, or setting up an information booth, it’s time to help put the spotlight on payroll. Last year over 2,000 organisations participated, making it the biggest NPW; for NPW
See what we can offer you
Viewonline today at www.cipp.org.uk/prospectus
2017 we want to get even more companies on board. Make sure you and your payroll team get involved in becoming part of payroll’s biggest celebration of the year. Join in on all the action via the CIPP website, Facebook page, Twitter #NPW17 #spotlightonpayroll or LinkedIn.
cipp.org.uk @CIPP_UK
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Issue 33 | September 2017
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