in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 89 April 2023
Soft skills for payroll professionals
HMRC’s future plans How is HMRC focussing on simplification of the tax system?
Spring budget 2023 update Read all the updates from the latest fiscal statement
Payroll soft skills A collection of articles exploring the non-technical elements of payroll roles
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
Meet us on stand C60 CIPD Festival of Work 7th - 8th June 2023 London Olympia
Payroll Outsourcing Services Accurate, Compliant and Secure
01276 456902 sales@frontiersoftware.com www.frontiersoftware.com
OFFICES IN AUSTRALIA, INDIA, MALAYSIA, NEW ZEALAND, PHILIPPINES, SINGAPORE AND UNITED KINGDOM
23
The future belongs to those who learn more skills and combine them in creative ways Robert Greene
Editor’s
comment
24
I don’t know about you, but I can’t quite get my head around the fact we’re in April already. Where’s the time going?!
Happy new tax year to everyone! This issue focusses on the often- overlooked soft skills that payroll professionals must possess and use to be successful in their roles. So frequently, we focus
on the highly technical elements of the role, which are undoubtedly of high importance, but those who excel within the industry must be able to combine a variety of soft and technical skills in their work. You’ll see from the articles within the magazine there are certain skills which crop up time and time again, communication being a prominent one. Flick to pages 36, 40 and 42 to explore how communication and a range of other soft skills can help payroll professionals boost their careers. Individuals working in the industry will frequently interact with HM Revenue and Customs (HMRC) regarding payroll topics and queries. In this issue of the magazine, we bring HMRC’s Charter to your attention, which sets out the level of service those liaising with HMRC can expect, and what HMRC expects in return (page 23). We also provide a wealth of information regarding HMRC’s future plans, in particular, on tax simplification, as members of the policy team learned all about this when they attended HMRC’s stakeholder conference for 2023. Check it out on page 24. 15 March saw chancellor of the Exchequer, Jeremy Hunt, deliver the spring budget. You’ll be relieved to hear there wasn’t much news to directly impact payroll but there are still some announcements to be aware of. Read our hot topic piece (page 54) for this month to get an update on the things the industry needs to know.
36
40
42
Lora Murphy ACIPP (editor@cipp.org.uk) Editor
23 - HMRC’s Charter: what does it mean for you? By the CIPP’s policy and research team
24 - HMRC’s stakeholder conference 2023 By Mathew Akrigg, Samantha O’Sullivan and Vickie Graham
54
36 - What are soft skills, and how can they be used most effectively? By Lara Smart
40 - Soft skills signal success By Stuart Hall
42 - Soft skills to boost your career By Jaspal Randhawa
54 - Hot topic – spring budget 2023 update By Lora Murphy
1
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
Chair’s
Editor Lora Murphy 0121 712 1018 | lora.murphy@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 Chief executive officer Ken Pullar FCIPP CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Katie Sharpe MCIPPdip Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP
message
It’s with great honour I take over the role as chair of the CIPP and over the next two years, I will continue leading the profession through education, membership and recognition. I look forward with excitement as I continue to progress and keep the CIPP moving forward, following the fantastic work Liz Lay has done over the last two years. My thanks go out to her for directing and supporting the strategic direction of the Institute for its members during her term. As we see Ken Pullar retire and pass the chief executive officer (CEO) baton to Jason Davenport later this year, I would like to thank Ken for all the great work he has done since becoming CEO, and welcome Jason to the team. I look forward to working with them both in continuing to drive the CIPP forward in all the great work it does for the staff, members and payroll profession. Focussing on the future of payroll and the range of skills required to be a payroll professional in a changing environment, with automation and the introduction of new technology, we often take for granted the soft skills used in our everyday work. Skills, including customer service when liaising with our employees, HM Revenue and Customs or internal departments, such as human resources, information technology and finance are just part of our day-to-day roles. Time management is another, keeping to strict deadlines and ensuring every task falls into place so we can pay employees accurately and on time. Being organised is also key, working with schedules and timetables to check we’re on track and that we don’t miss one of the many tasks which need to be completed as part of the payroll cycle. As members, we’re all ambassadors for the payroll profession, and together we can continue to raise the profile of the industry. I look forward to speaking to you at future events, both face-to-face and online, over the coming months.
Useful contacts
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk
CEO’s
message Once again, we enter a new tax year and as you finalise year end, I hope this all goes to plan with minimal or no issues, and everything goes smoothly. As we enter the new tax year, this is the ideal time with potential changes, planned and surely forthcoming, to keep on top of what’s happening in the payroll
world with our Payroll Update course. Did you know there are nearly over 185 pieces of legislation which can affect your payroll processes? Book your place on the next Payroll Update course to keep your knowledge current and ensure your business is compliant. As part of your membership benefits, it’s available to you for just £249.50 + VAT. As I regularly state, we’re able to offer training and various other events at not-for-profit rates, as the CIPP exists for the benefit of our members and doesn’t answer to shareholders. Therefore, making a profit isn’t our key driver, and our focus is on education, training and membership, so this price ensures invaluable, affordable information is available to members. This month, may I extend a heartfelt thank you to Liz Lay after two years as CIPP chair of the board; and welcome Clare Warrington to the start of her two-year term as CIPP chair of the board. Liz will serve as past chair for the next year, offering support and guidance as required, for Clare. In addition, we welcome two new board directors (one specifically representing pension interest), who were successfully elected at the Annual General Meeting on 29 March. Their profiles and how they will represent you as members are on display at http://ow.ly/RuOx50NkYie.
0121 712 1013 cipp.org.uk @CIPP_UK
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2023. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 2
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at cipp.org.uk
Contents April 2023
REGULARS
FEATURES
Happy Earth Day 2023 By Chloe Sell
Say hello to the CIPP’s new chair By Clare Warrington
01 Editor’s comment
15
14
02 CEO’s and chair’s message
Hidden working time By Jeni Morris
Don’t get caught out – an overview of the construction industry scheme By Susan Ball and Lee Knight
18
20
04 CIPP update
News and developments, PAS accreditations
06 My CIPP Events horizon, On your behalf, Payroll news, Spotlight on, Advisory Q&As, Happy Earth Day 2023, Meet the new chair 16 Personal development BePayroll
Cross-border payrolls and remote workers By David Yewdall
Feature article – soft skills for payroll professionals By Jerome Smail
26
28
online exclusive content
18 Compliance
How payroll can turn challenges into big wins By Maria Mason
The skills to set you apart By Mae Kennedy
34
32
From compliance with the construction industry scheme to hidden working time for minimum wage purposes
online exclusive content
28 Feature topic
Read all about the theme of the current issue
Dismissals, disabilities, disciplinaries By Nicola Mullineux
Presentation prep pointers By Fiona Smith
44
32 Reward
Discussion of how payroll turns challenges into victories and an exploration of the soft skills required in the industry
38
48 Pensions
Learn about the new value for money tests for workplace pensions
Workplace pensions to get three value-for-money tests By Henry Tapper
Exploring effective recruitment strategies By Danny Done
48
54
Hot topic Read up on the updates from Jeremy Hunt’s spring budget 2023
46
56
Payroll pets We say hello to some of your furry friends
| Professional in Payroll, Pensions and Reward | 3
Issue 89 | April 2023
CIPP update
BeConnected: National Forums THROUGHOUT FEBRUARY and March, our policy team delivered an all-important legislative update for the year ahead, after what has been a turbulent 12 months. A big thank you to everyone who attended, whether in person in Birmingham or London, or online. We had record numbers, and we hope you found it useful in preparing for a busy year ahead. Payroll Leadership Academy WE’RE VERY proud to work alongside payroll associations worldwide, and in July we’ll be supporting the Australian Payroll Association, as they deliver their Payroll Leadership Academy here in the UK. The two-day workshop will be held from 21-22 June 2023 at the University of Oxford. The training is aimed at payroll managers and leaders, and explores payroll leadership, people and teams, productivity, payroll processes / technology and presentation skills. For more information, visit: http:// ow.ly/7KvS50NleUz.
Provide your feedback when it matters AS A membership organisation, feedback from industry and our members is always crucial to ensure we’re delivering the correct mix of products and services, and representing you within government consultations and forums. One way we do this is through our annual Market Insight Survey , with the 2023 report currently being compiled. In response to your suggestions, we have also just launched a feedback tool on our website to allow you to share your views on any issue that’s important to you, at any point in the year. You can find this on the News Online page of our website, just below the Quick Poll – http://ow.ly/ybIX50Nlewg.
The CIPP appoints new CEO THE CIPP has announced Jason Davenport as its new chief executive officer (CEO), succeeding Ken Pullar who is retiring after seven years at the Institute. Bringing with him more than 25 years of industry experience, Jason has spent most of his career in the business process outsourcing industry, including managing the northern human resource (HR) services division during his time at CMG (now CGI). Jason worked globally for NGA Human Resources, leading payroll, pensions and HR outsourced services to the domestic and international market, and was chief operating officer for Capita HRS Division, delivering to a variety of both public and private sector organisations. He founded the payroll consultancy firm, Calendar Consulting Ltd, which was established in 2017 to support clients with their payroll performance and strategy. Jason is also a ‘Be The Business’ mentor, supporting the UK government-led initiative to drive productivity growth within the small and medium-sized enterprises market, and recently held the position of chair of the CIPP board of directors between 2019 and 2022. He was previously a non-executive director with the Institute for several years and will commence his new role from July 2023. Commenting on his appointment, Jason said: “Founded over four decades ago, the CIPP has provided training to thousands of payroll professionals. With 9,500 individuals benefitting from the CIPP’s services
across the country, working both independently as service providers and within businesses, our aim is to provide support and education to the payroll, pensions and reward industries. With the government target of achieving a trend growth rate of 2.5 per cent, it’s crucial we welcome more professionals to the industry, and play a key part in the recovery of the British economy. As I have since my first appointment at the CIPP, I’ll continue to champion the incredible work of our team and members, and I look forward to sharing their successes when I start my new role on 3 July 2023.”
4
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89
CIPP update
The prestigious gold standard accreditation for your payroll processes and people Developed in partnership with HM Revenue and Customs and launched in 2012, the PAS is the only industry kitemark to ensure your payroll processes and people are compliant and robust. Examining over 60 facets of your payroll operations, the scheme is consistently evolving and not only shows that lifelong learning and development is planned and encouraged, but that you’re dedicated to compliance and best practice in payroll, a huge accolade for staff, as well as ensuring procurement is much easier. The CIPP Payroll Assurance Scheme (PAS)
Every issue we want to recognise and celebrate those organisations which have successfully achieved, or retained, their accreditation. This month we would like to congratulate: l Bupa UK Payroll Services (re-accreditation) l Bradford NHS Payroll Services (re-accreditation) l AWS Accountancy Ltd. Our chief executive officer, Ken Pullar, said “I’m delighted to see so many organisations gaining this important payroll accreditation. The PAS assessment requires commitment but ultimately shows how imperative best practice is within our fast-moving sector. Huge congratulations to you all.”
Testimonials Hear from a few of our accredited organisations, on how PAS has benefited them:
Education Personnel Management Limited:
University Hospitals Birmingham National Health Service (NHS) Foundation Trust: “I’m extremely proud of University Hospitals Birmingham (UHB) NHS Foundation Trust Payroll department for being awarded this important accolade. The PAS accreditation provides reassurance when sourcing a payroll provider to know that the organisation operates to a certain high standard. “There are many benefits of being a PAS accredited employer. For employees, it shows that staff are being trained to a high standard. It shows we’re consistently able to deliver a high quality and robust payroll service to UHB and our customers, and this couldn’t have been achieved without the constant hard work from the department. It’s a reflection of the great work of the payroll team. Well done.” Tina Phillips ACIPP, head of payroll.
Skanska:
“As a company, we’re delighted to receive our PAS re-accreditation – not only does it assure us that our processes are compliant, but it also provides excellent learning and development opportunities for our employees to continue progressing in the field. EPM has embarked on many changes since our last certification, so it’s an absolute pleasure to see the positive outcomes acknowledged, particularly given the adaptation of our services to schools during the lockdown period. “Thank you for the valuable feedback, alongside the support provided by our CIPP assessor, which has helped to support our continuous improvement and secure EPM’s future in payroll operation.”
“Skanska is a leading project development and construction group, active in selected markets in the Nordic region, central Europe and the United States. As a values- based organisation, our purpose is to build for a better society, including our vision to achieve net zero carbon emissions by 2045. A smooth payroll process is crucial to any organisation. “Skanska UK is delighted and proud to receive PAS accreditation from the CIPP. It recognises that Skanska UK’s payroll department operates to the very highest standards, allowing us to continue delivering great projects for our customers.”
Judith Aldridge, head of payroll and expenses.
Amy Pettitt BA Hons, director.
To find out more, visit our website or contact our PAS team:
compliance@cipp.org.uk
www.cipp.org.uk/pas
| Professional in Payroll, Pensions and Reward | 5
5
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
Event horizon
Full details of events and training courses can be found at cipp.org.uk or you can email info@cipp.org.uk for more information.
It’s time to get your nominations in Yes, that’s right, you can now submit your nominations for the CIPP’s Annual Excellence Awards 2023, which will be taking place on 5 October 2023, at the prestigious Celtic Manor Resort in Wales. Our awards are the longest-running independent awards in the industry, and you can nominate yourself, your team or your organisation. Flick to page 8 for more information on the simple nomination process. We can’t wait to receive your nominations, and further information is available here: http://ow.ly/ cRcZ50NnRlB.
Training courses Take a look through the training we have on offer over the next few months.
Join us at the UK’s largest independent payroll conference and exhibition
The Annual Conference and Exhibition is arguably the CIPP’s flagship event and an amazing opportunity to educate, collaborate and celebrate all things payroll, pensions and reward. We’re already extremely excited about the event for 2023, and a brilliant schedule is planned over the course of the two-day event. There’s still time for you to secure your place at this unmissable event, at early bird prices. Make sure you don’t miss out and find out more information here: http://ow.ly/AO9W50NnRKR.
Course
Date
Location
17 April
Online
Payroll for non-payroll professionals
11 May
Online
22 June
Online
06 April
Online
02 May
Online
Holiday pay and leave
30 May
Online
28 June
Online
BeKnowledgeable: Construction industry scheme
17 April
Online
Introduction to payroll
15 May
Online
05 June
Online
On 9 May 2023 at 11am, join us for the next BeKnowledgeable event on the construction industry scheme (CIS), in our award-winning series. Susan Ball, tax partner at RSM UK and President of the Chartered Institute of Taxation and Lee Knight, director at RSM UK will talk us through the complexities of the CIS, focussing on how payroll experts can handle the nuances of the scheme. The session will help you identify who needs to register, as well as how to operate the scheme and which payments are caught. Importantly, they’ll explain that the scheme doesn’t just apply to construction businesses. They will address the: l purpose and background of the CIS l importance of establishing employment status and off payroll working / IR35 l scope of the scheme – what’s in, what’s out? l difference between mainstream contractors and deemed contractors l verification process and compliance requirements l paying of subcontractors and processing the deduction of tax l consequences when mistakes are made, including the penalties for getting it wrong l registration and cancellation of registration. To book your place, visit http://ow.ly/2ABe50NpYix.
11 April
Online
02 May
Online
P11D expenses and benefits
22 May
Online
12 June
Online
11 April
Online
26 April
Birmingham
Payroll update
04 May
Online
24 May
Online
15 June
Online
05 April
Online
12 April
Online
NEW COURSE Payroll year end
19 April
Online
26 April
Online
Please note, there are other dates and locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
*Early bird rate for members, valid until June 30 2023
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 6
POLICY HUB
On your behalf
In the world of payroll, March is that time of year where you may feel as if you’re working around the clock. Performing end of tax year duties, while getting set up for the new tax year can be a juggle. The CIPP’s policy and research team have also been testing their juggling skills, attending a number of events and ensuring they keep payroll professionals up to date with change that impacts the work they carry out Policy team update
The one-to-many compliance advisory board (OCAB) forum also took place in March, which reviewed compliance and customer engagement initiatives with HMRC, to ensure they’re fit for purpose and appropriate for the target audience. It's a wrap! We can’t go without mentioning the landmark government consultation on holiday entitlement for part-year and irregular hours workers. If you haven’t already read the CIPP’s response, this is now available to view on the website. Ensure you update yourselves now at: http://ow.ly/kkR950NpUfU. Finally, the team have wrapped up the BeConnected events in March. One was held in London face-to-face and a further two hosted online. This was a successful year with positive engagement and responses from the wider payroll community. The CIPP would like to thank everyone who attended both face-to-face and online, and we eagerly await seeing everyone at the next series in 2024. n
year. Along with top tips for getting ready, the panel looked at legislative changes and assessed what some of the key challenges may be for the industry in the immediate future. Policy lead, Samantha O’Sullivan, delivered a session on how charities can engage with payroll to promote payroll giving. The CIPP is part of the accessible payroll giving project. This is a cross-sector, cross-stakeholder initiative, to build a business case to take to the government to make having a payroll giving scheme mandatory for companies over a certain size. There are several organisations involved in the project group. Policy and research officer, Mathew Akrigg presented at the Association of International Accountants (AIA) webinar, covering the tax implications of employee benefits. In addition, Mathew also provided a lunchtime legislative update for One Advanced, rounding up all the changes for the new tax year and any budget outcomes. Forums Sam attended the Chartered Institute of Taxation's President's networking evening. She heard from Jim Harra (HM Revenue and Customs) and joined other guests participating in tasks, to feed back on tax-related matters. It was a great evening, and gave Sam the opportunity to network with contacts in the tax world.
Events On 9 March, the editor of Professional , Lora Murphy joined Justine Riccomini, from the Institute of Chartered Accountants of Scotland (ICAS) to discuss how crucial it is to ensure payroll is processed correctly, and the ramifications when individuals aren’t paid accurately and on time. The session covered: l the importance of getting payroll right l some common areas of error l the consequences when payroll isn’t handled correctly l how payroll qualifications can help to mitigate payroll-related risks. The CIPP is passionate about raising the profile of payroll, along with demonstrating the true value of the profession and this session focussed on exactly that. On 13 March, Lora also joined Sage to discuss how to prepare for the upcoming tax year end and, of course, the new tax
7
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
How to win an Annual Excellence Award
The CIPP’s Annual Excellence Awards are the longest running, independent awards in the industry. They were established to recognise the outstanding contribution to the UK economy made by the payroll and pensions professions. The Awards celebrate the commitment and excellence of both individuals and organisations in their role of ensuring that people are paid.
TIPS AND GUIDANCE To give yourself the best chance at winning an Annual Excellence Award, here are a few tips to follow.
Allow plenty of time to complete your nomination It takes time to put a nomination together, so make sure you improve your chances by allowing plenty of time. Take the time to consider how clear and concise your entry is to stay within the word limit and give your entry the best chance of standing out to the judges. Entries must be submitted via the online platform by 31 July 2023.
Focus on the criteria and evidence Make sure you meet each of the criteria outlined for the award. Ensure you provide evidence of how you have met the criteria to attain higher scores from the judges. The winning nomination is, quite simply, the nomination with the highest score at the end of the process. You can attach up to four supporting PDF files. But be sure they add to your nomination. Avoid adding unnecessary information that the judges will need to sift through to find your point.
Have a great summary statement You should write your summary statement last to be sure it covers everything contained in your nomination.
It needs to be succinct.
Remember, the Annual Excellence Awards get lots of nominations. Use your summary to stand out from the competition.
THE JUDGING PROCESS Judges are selected from various industry sectors based on their skills and knowledge within payroll and pensions. All judges are members of the CIPP, so you are truly being recognised by your peers.
The judges only review the information in the nomination, they cannot, and do not, base any decision on personal opinion or prior knowledge of an individual or organisation.
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 8
Visit http://ow.ly/PA9q50NpUlm to submit your nominations
This year’s awards categories
Now you know how to prepare and write your nomination, it’s time to choose from one of the many categories below:
Spotlight Award The CIPP Spotlight Award is open to anyone working in payroll, pensions and / or reward. This award will be presented to an individual who has shown themselves to be an outstanding professional and could be working at any level within the industry. Bright Beginnings Award The CIPP Bright Beginnings Award is aimed at those new to the payroll, pensions and reward industry, within the last two years, or who are currently completing an apprenticeship. This award recognises an individual who has made a significant impact and contribution to their organisation within that time. Luminary Award The payroll, pensions and reward industry has many leaders who use their influence to advocate for the industry and drive change. They inspire others by mentoring, empowering, and supporting those around them. The CIPP Luminary Award will celebrate and recognise an individual who has demonstrated leadership within their organisation or across the wider industry and has had a positive, inspirational impact on the career of others.
In-house Payroll Team of the Year Award
will recognise an organisation that is committed to ensuring that its software is compliant, user friendly, enables best practice and is well supported.
Teamwork is crucial to the success of any business. Employees should all be working towards one overall goal, or mission for the organisation, otherwise the organisation will fail. This award recognises the in-house payroll team that has compelled their employer to recognise the important role that the department can play in improving the overall company performance, and not just perceive the department as a cost centre. Project of the Year Award Implementation of projects in payroll, pensions and reward is commonplace, and this award recognises the work involved in implementing a successful project. Well-being and Employment Engagement Award With an increasing focus on employee health and well-being, this award will recognise organisations who have introduced initiatives to improve the general health, well-being and / or financial awareness of their employees. Software Product of the Year Award This award is aimed at software products which are sold and supplied for companies to run their own payroll in-house. It
International Payroll Service Provider of the Year Award
Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant international payroll service. Payroll Service Provider of the Year Award Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant payroll service. Best Cost-of-Living Response Award As we all know, the cost-of-living crisis is impacting both people and organisations throughout the UK. In the last year, employers have been implementing strategies and solutions to address this, and to support their staff. This award aims to recognise payroll teams / departments who have supported staff through this turbulent time.
NOMINATIONS CLOSE 31 JULY 2023
“I feel incredibly honoured to have received the CIPP’s Luminary Award at last year’s Annual Excellence Awards, particularly given this is judged and awarded by my industry peers and I recognise the standard of other nominees. I am glad that I was able to convey just how passionately I feel about elevating the payroll profession and ensuring that it is given the respect and recognition it deserves! As a firm, BDO LLP is also extremely proud to have been shortlisted in seven award categories and be ‘highly commended’ for two of these. Payroll specialists work hard to keep up to date with the constant changes impacting their work, paying people on time and accurately, and are intrinsic in creating and managing the pivotal data that controls all areas of a business, so are key and this needs to be recognised and rewarded.”
Maria Mason MCIPPdip, , BDO LLP
9
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
PAYROLL NEWS
PAYROLL news
Wave goodbye to paper P11D forms HMRC CONFIRMED in its February Employer Bulletin that, from 6 April 2023, P11D forms cannot be submitted in paper format. This is hugely important for organisations who currently still use paper format P11Ds. What this means is that any P11Ds or P11D(b)s relating to the current tax year (2022/23) will need to be submitted online via HMRC’s pay as you earn (PAYE) online service or through commercial payroll software. Where organisations have up to 500 P11D and P11D(b) returns to submit, they can use the PAYE online service. Any paper forms submitted to HMRC on or after 6 April 2023 will be rejected, which will cause delays. Additionally, paper amendments to P11Ds will no longer be accepted. An online submission link for amended P11D and P11D(b) forms will be made available some time in April. If you or your client(s) are relying on paper P11Ds, you’ll need to ensure you amend your processes as soon as you are able to. Please note, however, that it’s still allowable to provide paper P11Ds to employees, just that HMRC will no longer accept paper P11D submissions.
Do you use the HMRC app? HM REVENUE and Customs (HMRC) uses an app and, to increase usage and uptake, has recently been promoting it. Over 340,000 people have used the app since July 2022 to easily access their employment and income information. The app can be used to access employment history and income information, check tax codes and find National Insurance numbers. Ordinarily, it could take up to ten days for this information to arrive in the post, following a phone call through to HMRC’s busy phone lines, which can often come with long wait times. On the app, however, this information is available instantly. The app can also be used to: l get tax estimates l calculate take home pay
l claim refunds if too much tax has been paid. It’s hoped that more widespread use of the app will reduce the number of queries directed to HMRC helplines, which will give operatives more time to liaise with those who have more complicated or urgent questions. There are links to use to download the app on both the Apple App Store and the Google Play Store, here: http://ow.ly/aM1L50Nl7Pp.
Further holiday pay case law IN A case that could have significant impacts for the gig economy, 49 medical couriers have been enabled to pursue their claims for unlimited backdated holiday pay in an Employment Appeal Tribunal. Please see here for further information: http://ow.ly/EVO550Nl944. The case was originally raised in 2018, when the medical couriers were represented by the Independent Workers’ Union of Great Britain. The claim for backdated holiday pay was made from their engager, The Doctors Laboratory, and for some individuals would date back as far as 1999. The couriers asserted that they were classed as workers, as opposed to being self-employed, meaning they would be entitled to paid annual leave.
Although the couriers haven’t yet been classed as workers, they have been granted backdated holiday pay for a period of two years. However, the appeal was delayed until the judgment from the Smith v Pimlico Plumbers case. More details around this case can be found here: http://ow.ly/aMNf50Nl9vw. This Court of Appeal stated that, as long as a worker claims for holiday pay within three months of the termination of an engagement, they’re entitled to retrospective unpaid holiday pay. Factoring this outcome in, the couriers’ case will be reheard at a new employment tribunal. If the couriers are deemed to be workers, this has the potential to open up many more cases in the gig economy.
Diary dates
5 May
Last day of tax month 1
6 May
First day of tax month 2
Last day for submitting a real time information employer payment summary to apply to tax month 12 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 April
22 April (this is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 June 6 June
Last day of tax month 2 First day of tax month 3
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 10
MY CIPP
Spotlight on...
Natasha Taylor ACIPP, Change and transformation manager
Tell us a little about your career and background so far. My first role straight from school was as a business administrator apprentice in the marketing team here at CIPP. One of the modules within this apprenticeship was on project management; it’s from here my career direction changed. Following the successful completion of my apprenticeship at the CIPP, I was accepted onto a higher apprenticeship in project management with Lloyds Banking Group (LBG). During this time, I worked on some complex large-scale projects within the group operation change function at LBG while completing my diploma in project management. After graduating from my apprenticeship, I was promoted to a hybrid project manager and business analyst role. At that point, I had my daughter and following maternity leave, decided to leave the bank and start my own business. I owned a property management company, specialising in serviced accommodation for two years and then had an online business management organisation, specialising in system and process improvement for a further two. Directly prior to joining the CIPP, I worked as a contractor for a video animation company, project managing the animation process for explainer videos. Once my daughter started school, it was a great time for me to move back into employment and here I am back at the CIPP as project manager. I was thrilled to be welcomed back to the CIPP and bring all the skills and experiences
often overlooked, which adds great value to the project; engagement is paramount. What does your role mean to you? The role of project manager is a hugely important one within any business but particularly within the CIPP. Without having a project manager in place, the management team would need to pick the workload up themselves which would impact on both their ability to deliver the project but also on their day-to-day roles. Although I still require time from each manager, I can see the difference my role makes to every one of them, which is a great feeling. It’s incredibly rewarding seeing the difference I make to the company and each business area through successfully implementing change. What do you think your role can bring to the future strategy of the CIPP? The CIPP has ambitious growth targets over the coming years. To be able to meet these, we need to ensure the systems and processes we have meet the demands of the business. My role indirectly contributes to the organisation’s objectives through increasing the efficiency of the business, which will allow for far more sustainable growth – the ultimate goal of any organisation. Being able to drive change and transformation will have a huge impact on the future strategy of the CIPP, something I’m looking forward to being a part of. n
I’ve developed since my time here as an apprentice. I’m looking forward to contributing to the continual development and improvement of the CIPP through the projects I’m managing. What are your main priorities as a project manager? My two main priorities as project manager are to: l manage the way we deliver change l ensure meticulous stakeholder management. For me, the role of the project management function is to deliver change and transformation to positively impact the way we do business. Predominantly, this will come through process and system improvement. However, there are many ways we can increase the efficiency and improve the business which go above and beyond a system or process. Within change and transformation, the biggest priority is ensuring we’re working towards a vision and challenging current working practices. Always asking ‘what are we trying to achieve?’ rather than mirroring current processes in new systems. Effective stakeholder management is fundamental to the success of project delivery, along with high levels of communication. Understanding who your stakeholders are and how to effectively communicate with them is incredibly important; without, you can expect delayed timelines, have a risk of missing key information and could ultimately lose control of the project. Keeping your stakeholders updated is a simple element,
11
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Application of new national minimum wage (NMW) rates
Insurance (NI) relief. This is often referred to as payroll giving, and more information can be found here: http://ow.ly/ SSkg50Nmmha. The salary sacrifice arrangement should be ceased immediately, and the associated underpayment of both employee and employer NI addressed. If the existing arrangement hasn’t been set up through an approved payroll giving agency, there’ll probably be underpayments of tax due as well. How salary sacrifice interacts with workplace nurseries Q: Can an employee have a salary sacrifice for a workplace nursery? A: Section 318 of Income Tax (Earnings and Pensions) Act (ITEPA) provides qualifying conditions which must be met by the employer to provide a tax-free benefit for childcare under the workplace nurseries rules. This means there must be a scheme in place at a designated location. The employees must be employed by the employer that has arranged this scheme, or the employees must work at the same location of the employer who opened the scheme. Please also refer to page seven of the following link: http://ow.ly/ s2EK50NlgfB. A salary sacrifice is a contractual arrangement in which an employee gives up the right to cash in exchange for a noncash benefit, in this case the provision of a workplace nursery. So yes, a salary sacrifice scheme could be created but I would advise you to seek employment law advice as this requires a change to their
Further guidance, which includes the instruction that, “A worker must be paid the minimum wage, for the time worked in the pay reference period”, can be found here: http://ow.ly/vgSx50NmnGo.
Q: I have a question regarding when I should start paying the new rates for the NMW for weekly paid employees. I’ve read the following, “when an employee’s minimum wage increases, the new rates apply from the first full tax period after the date it increases”. Our weekly paid employees are paid a week in hand, therefore hours worked last week are paid this Friday. Can you confirm when I’ll have to increase the pay rates and the reason for this, as I may have to explain the reasoning to senior management? A: The legislation explaining this matter can be found in the National Minimum Wage Regulations 2015, Regulation 4(2), which stipulates: “The single hourly rate of the national minimum wage at which a worker is entitled to be remunerated as respects work, in a pay reference period, is the rate which applies to the worker on the first day of that period.” The legislation can be found here: http://ow.ly/7GNW50Nmn0Z. NMW is applied based on the first day in the pay period. If the first day of the pay period is in March, the increase wouldn’t apply. Only when the first day in the pay period is in April would you need to apply the new rate. In the scenario described in the question: l pay reference period Monday 27/03/23 to Sunday 02/04/23 paid Friday 7 April – increase not yet necessary l pay reference period Monday 03/04/23 to Sunday 09/04/23 paid Friday 14 April – increase must be applied.
“How do you ensure you apply NMW rates from the correct period?”
Director-only payroll Q: On a director-only payroll, a
director pays his wife a one-off salary in March to reduce his corporation tax bill for the year. Can he claim the employment allowance (EA)? A: National Insurance Contributions Act 2014, Section 2, Paragraphs 3, 10 and 12 (anti-avoidance measures), advise the director couldn’t claim the EA, as he’s paying the salary to reduce his own liabilities. Charitable giving arrangements Q: My employer lets employees donate to a charity via a salary sacrifice arrangement. Is this allowed? A: An employee cannot make contributions to a charity through a salary sacrifice scheme. Tax relief is available in scenarios where the employer has registered through an approved payroll giving scheme, but there’s no National
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 12
Become a qualified professional at the forefront of your industry
POLICY HUB
Statutory maternity pay (SMP) rates across two tax tears Q: How would SMP be calculated in scenarios where the pay period crosses tax years? A: The revised statutory rates for 2023/2024 will be effective from Sunday 2 April 2023. If the employee’s SMP pay period began on a Sunday, then the new rate of £172.48 will apply for the entire week commencing 2 April 2023. If the employee’s pay week commenced on any other day, the SMP due would be the rate which applied on the date beginning that week. HMRC guidance states: “Annual uprating of maternity related statutory payments takes place on the next full SMP / SAP / ShPP payment week if the payment week starts on any day except Sunday.” Please see here: http://ow.ly/4pP950NlgIo.
terms and conditions. There are also NMW implications to be aware of.
The CIPP’s Foundation Degree in Payroll Management is the industry benchmark qualification for individuals looking to progress their career, and gain an in- depth understanding of payroll processing and legislation. FOUNDATION DEGREE IN PAYROLL MANAGEMENT
“How do salary sacrifice schemes interact with workplace nurseries?”
Treatment of director P11D forms Q: Why does a director’s P11D have to be ticked? A: A director cannot approve and check their own expenses. Tax relief can then be claimed via a self-assessment tax return (SATR) if they’re a sole director of a small company. However, they would use their accountant to check and approve their expenses, as their accountant would be responsible for submitting the SATR. However, most companies are large, limited companies, so in this case, we’d be dealing with a limited company director. In this instance, there wouldn’t normally be a personal accountant or a stringent checking procedure in place for the director of a large limited company. All expenses would be approved by a finance administrator or manager, someone of a lower position within the company, which could be open to abuse by an unscrupulous person in such a responsible position. Since April 2016, directors are included in the benefits code of the ITEPA, Section 63. See also 480 Chapter 2 (2.2), relating to the checking system. The tick simply highlights the director’s position to HM Revenue and Customs (HMRC), which would have its own checking systems in place. If, upon receipt of the P11D, HMRC was concerned some expenses didn’t appear reasonable, it would have the right to approach and question the amounts directly with the director. It’s simply a safeguarding measure to prevent fraud.
Visit www.cipp.org.uk/study for details and to enrol
“What happens when an employee has reached their lifetime allowance limit?”
Pensions lifetime allowance Q: An employee has reached their lifetime allowance limit and will cease pension contributions as of December 2022. Payment to the equivalent value of employer contributions will be paid to the employee as a pension supplement allowance, which will be subject to both tax and NI through the payroll. This allowance will incur an unexpected higher employer’s NI bill and we’d like to know if we can reduce the employee’s net pay by the additional employer costs. A: An employer cannot pass their own liabilities onto an employee. if the company decided to recoup these additional employer costs from the employee, the company director may be liable to prosecution by HMRC under Section 114 of the Social Security Administration Act 1992. For reference, see: https://bit.ly/3In0op1. n
Scan to book
13
| Professional in Payroll, Pensions and Reward |
Issue 89 | April 2023
MY CIPP
Happy 2023 Earth
Chloe Sell ACIPP, membership communications co-ordinator, the CIPP, discusses the current climate situation and how we can turn apathy into action
I magine it’s 22 April 1970 in San Francisco, USA. Janis Joplin and Jimi Hendrix are still churning out hits, and you’re allowed to smoke your favourite cigarettes on airplanes. And today, there’ll be an environmental ‘teach-in’ to every university in America. Environmental protection is becoming a huge topic in the media. The Santa Barbara oil spill last year released four million gallons of crude oil into the Pacific Ocean, killing countless animals such as fish, birds and ocean life. People are becoming more aware of the drastic effects of pollution and deforestation. For decades, Los Angeles has been known for its smog, the unfortunate effect of urban industrialisation and America’s passion for clunky, gas-guzzling automobiles. And as you learn more about the very real impact of industrialisation on human health, you’re compelled to attend your university’s Earth Day protest. There, united with others who care about the environment like you do, you find
a difference. The first Earth Day kicked off the need for more environmental laws and policies, such as the Clean Air Act (1970), the Clean Water Act amendment (1972), the Endangered Species Act (1973) and in 2016, the Paris Agreement. The climate contract is an initiative signed in 2016, with 194 parties agreeing to combat climate change in their own countries, with the goal being to limit global warming to below 1.5 degrees Celsius by 2099. None of these laws and initiatives would have flown off the ground if people had twiddled their thumbs in 1970, instead of sparking environmental action.
common ground. And you feel hopeful about the future. How can we replicate that feeling in 2023? You might be tempted to say the world is burning – and you’d be right. 53 years after the first Earth Day, humans have had to deal with pandemics, terrorism, mass shootings, war, famine and all with no reprieve in sight. The first Earth Day is a blip in the distance. Hope is simply gone, replaced with apathy. It’s hard to think about climate change when almost seven million people have died of coronavirus in three years (according to the Centre for Disease Control.) It’s difficult to argue about the great benefits of re-using and recycling when the UK is in a cost-of-living crisis. And as news outlets report more on global warming causing lakes to dry up and species to die out and wildfires to increase – you may be wondering when this will end. Perhaps it ends with us. We can actually, believe it or not, make
How can we turn apathy into action?
Even if it’s starting a recycling initiative at your workplace or setting up a tree- planting day with your colleagues, let the CIPP’s green team know at climate.change@cipp.org.uk. n
Facts l every April 22 is Earth Day l the first Earth Day was held in 1970, and the idea came from US Senator, Gaylord Nelson l Earth Anthem is the official song
l Earth Day is the largest secular observance in the world l Earth Day cemented many major environmental policies.
| Professional in Payroll, Pensions and Reward | April 2023 | Issue 89 14
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60Made with FlippingBook - Online magazine maker