PROFESSI NAL in Payroll, Pensions & Reward Issue 98 March 2024 Official publication of The Chartered Institute of Payroll Professionals Prepare to payroll Pensions dashboards How can employers and payroll prepare for upcoming pensions dashboards?
Say hello to a brand new tax year How can payroll professionals prepare for the new tax year and ensure successful closure of the current one?
The customer is king Are you prepared to deliver the best service possible to your customers (your employees or your clients’ employees)?
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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“The future belongs to those who prepare for it today.” Malcolm X
Spring into the new tax year
Spring into the new tax year
Editor’s
comment
April is synonymous with the start of a new tax year for payroll, pensions and reward professionals. And this year will be no different as we look to 2024/25 and beyond. For individuals receiving their pay, the
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transition to the new tax year will appear seamless – as if by magic, they get their wages paid to them exactly as they would in any other pay period. But behind the scenes, it’s a different story. Software developers and payroll professionals will have been burrowing away and working tirelessly to ensure any changes for the new tax year are working correctly and that all the year-end activities have been completed. Turn to page 26 now to see what you should be doing for year end, along with discussion of those things heading your way from April 2024 and beyond. Our feature article, on page 36, also provides discussion and handy tips from a panel of experts on how to prepare for the new tax year. We’re always talking about holiday in the payroll industry, and not just about taking it! Many of our conversations are dominated by changes to holiday pay and entitlement, particularly of late. You won’t want to miss our hot topic article this month, on page 56, which helps to put the changes coming from April into practice. Finally, I’m sure you’re all aware that multiple changes are afoot in the world of pensions too! On page 50 of this issue, read all about pensions dashboards and how preparing for their introduction could impact payroll and employers, more generally.
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
26 - Spring into the new tax year By Samantha O’Sullivan
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36 - Feature topic – prepare to payroll By Jerome Smail 50 - What do pensions dashboards mean for employers and their payroll teams? By Richard Smith 56 - Hot topic – holiday pay: preparing for operational change By Mathew Akrigg
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
Chair’s
message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA (Hons) FCIPP Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Editor Lora Murphy 07920 787221 | 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
Welcome to spring! With the daylight lasting much longer and the weather improving, it’s a great time of year for spring cleaning and getting rid of the items we no longer need. It’s the same this time of year for our payrolls – getting ready for year end and cleaning up our data.
So, as we start to face the end of one tax year and prepare for the start of a new one, what additional activities are payroll professionals thinking about? Have you started to get all your outstanding over and underpayment adjustments up to date? How about considering a data cleanse (e.g. locating missing National Insurance numbers, ensuring address lines are in the right format, etc.)? And, of course, there are so many other tasks which can help us ensure a smooth transition to the new year. But that’s not all! Are you also preparing for any changes in legislation planned for April? Are you reviewing ongoing consultations and discussions to ready yourself for any potential future change? One thing we all know is that the world of payroll, pensions and reward is constantly changing and the more understanding we have, the more effectively we can plan for the future. Remember, the CIPP is here to help you navigate all these changes so please get in touch with us. As we begin our events programme for this year with our BeConnected sessions, please say hello and come over for a chat.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts Consult compliance@cipp.org.uk 0121 712 1023 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 0121 712 1013 cipp.org.uk @CIPP_UK
CEO’s
message Here we are at the end of the 2023/24 tax year and preparing for the start of another. There are lots of activities to be completed for all hands-on processing whether in-house, managing a bureau or offering a fully managed
service. Also, now’s the time to review the communications needed to best support your workforce or customers, so they know what’s changing and can be properly prepared through awareness. Timetables must be tightly managed to ensure all deliverables are met, and if you’re also in the process of changing or upgrading your current payroll system, then you have my empathy and support. I wish you well in your endeavours. Testing is key around this time to ensure all the great work completed by the software providers has delivered the expected results. Typically, it’s those within operations (due to their constant review of the data and the working agreements of the employee base) who know what to expect from the changes and they’re often so close to the information that they can see immediately if the resultant calculations aren’t as expected. Whether you’re working within payroll, pensions or reward, this time of change requires a keen eye for detail to ensure the results delivered are right first time. I don’t know if performance reviews are aligned with tax years within your businesses but I do hope not, for the sake of capacity and planning. However, if any of you have an objective to write an article and be published in the coming year, and have a contribution to make, please do get in touch. I’m keen to know of any additional items you would expect to be covered and would be delighted to support the publication of contributions to help the broader membership. It’s through sharing our experiences that we all grow and learn together. Please contact me on the email address shown below and I commit to reviewing and responding to all requests, thank you.
Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 2
Contents MARCH 2024
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk.
Reading the magazine gives you one CPD point
REGULARS
FEATURES
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll news, Movers and shakers 12 Personal development BePayroll
The CIPP’s cyber security course By Fiona Smith
Top five springtime NMW Q&As By Jeni Morris
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The right start: how HMRC is helping businesses get new employees on the right pay By Ben Dudley
New legislation to enhance workers’ rights By The Department for Business and Trade
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Considering claw-backs By Lauren Handley
Increasing the minimum wage By Tony Gordon
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Happy new tax year! By Christine Robinson
What is autonomous global payroll? Its rise and role in the future By Shreekrithi CK Mileage allowances and living accommodation expenses By Justine Riccomini
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13 Compliance
This issue, we consider finalising the current tax year and preparing for the next, across a range of articles
Construction industry scheme changes from April 2024 – do they impact you? By Susan Ball and Lee Knight Global payroll: What to do when an employee is paid too much By Billy Meyerkorth
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Feature topic Read all about the theme of the current issue
online exclusive content
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Reward Read up on the latest
Gateway to gold: improving your emotional intelligence (Part 1) By Polly Sinclair What employment-related legislative changes are happening in the new tax year? By Paul Chamberlain
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employment law case updates and familiarise yourself with the new right to carer’s leave available from April 2024
online exclusive content
50 Pensions
The customer is always right By Ian Hodson
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Consider the potential impacts of the upcoming pensions dashboards
56 Hot topic
online exclusive content
Ensure you’re ready for the changes to holiday, and how they might work in practice
A new right to carer’s leave By Danny Done
Self-employment, stress and surgeons By Nicola Mullineux
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58 Payroll pets
We say hello to some of your furry friends
| Professional in Payroll, Pensions and Reward | 3
Issue 98 | March 2024
CIPP update
Annual General Meeting (AGM) 2024 THE CIPP’s AGM took place on 7 February at the Grand Hotel in Birmingham and online at 11:00am. This was your opportunity to have your say about how you’re represented at the CIPP for the year ahead. This year, there were three spaces on the CIPP board available, and the results of the AGM were published on social media and the website.
Catch us at the following events this March THE CIPP will be attending two events in March. First, we’re heading to Kendal on 7 and 8 March for the National Health Service Conference 2024. Our sales representatives will be there to discuss all things CIPP and to highlight what we can offer to you. Later in the month, on 13 and 14 March, we will be visiting closer to home, at the NEC, Birmingham for the 2024 Festival of Accountancy and Bookkeeping! If you’re also attending, make sure you head over to the CIPP stand and speak to the team. Also, don’t miss our payroll specialist, Julie Northover, who is delivering a payroll update session at the event.
New Chartered member
THE CHARTERED Institute is pleased to announce the following individual has recently gained Chartered membership status: l Samantha Jeffs ChMCIPPdip , head of payroll for UK and Ireland, GXO Logistics, Inc. Gaining Chartered status is a huge achievement, so congratulations to you.
The CIPP’s Payslip Statistics Survey 2024 THE CIPP’s Payslip Statistics Survey 2024 is now online. The survey analyses the latest trends in payslips, pay frequencies, payment methods and distribution, and is an important resource for the payroll industry. Aside from the staple bank of questions we ask each year, we also throw in more topical ones. This year, the Money and Pensions Service (MaPS) has contributed to our questions, to investigate how payroll professionals are supporting employee financial well- being. You can access the survey here: https://ow.ly/CSFv50QykwG.
New fellow member
WE’RE DELIGHTED to announce we also have a new fellow member. Join us in congratulating: l Brian Sparling ChFCIPPdip, payroll services and compliance principal, Ceridian.
Are you considering applying for your fellow or Chartered membership? Contact our team at membership@cipp.org.uk to find out more.
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 4
Scan to book
Event horizon Your guide to upcoming events and training
Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.
Final call for our BeConnected sessions for the year! This is the final call for the CIPP’s BeConnected events for 2024. As we enter March, there are still two sessions of the series left: l 12 March online l 13 March in Manchester. The CIPP’s policy and research team will ensure you’re up to date with all the changes coming for the new tax year, and the March BeConnected events take place after the spring budget on 6 March, so there’ll be discussion of the announcements made that impact our industry. You won’t want to miss out on this. Head online to secure your place at one of these must-attend events now, at: https://ow.ly/78oX50QnjKT.
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to-face are highlighted in orange. Please note, there are other dates, locations and training courses available. Please visit http:// ow.ly/iVfT50MU7yr.
Course
Date
Location
Payroll year end
Available online every Wednesday
27 March Online 10 April Online 24 April Online 04 March Online 09 April Online
Holiday pay: What’s changed?
Holiday pay and leave
01 March Newcastle 04 March Online 08 March London 13 March Manchester 14 March Online 20 March Leeds 25 March London 26 March Online 10 April London 15 April Birmingham
The CIPP’s Annual Conference and Exhibition (ACE) and Annual Excellence Awards 2024 Yes, we’re already talking about events taking place in October in March, because they’re such fabulous events and we’re looking forward to them already. The early bird catches the worm, and ACE tickets are now available at ‘early bird’ prices until 30 June 2024. You can book them here: https://ow.ly/qcHQ50QxEhu. Additionally, submissions for the Annual Excellence Awards are open, and you have until 30 June 2024 to get those in. You can do so here: https://ow.ly/cZ4H50QxEhT. Do you know a non-member who is interested in attending? If any non-members book a place at ACE this year they will receive a year of affiliate membership, completely FREE ! They will also have a personal welcome from our CEO, Jason Davenport when they arrive on day one, along with a free gift, as well as enjoying a whole host of membership benefits for the next year! Email enquiries@cipp.org.uk for more information.
Payroll update
29 April
Online
06 March Birmingham 11 March Online 22 April Online 24 April London
Introduction to payroll
20 March Online 4 April Online
Automatic enrolment and pensions for payroll
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
POLICY HUB
On your behalf
This issue, we cover what the CIPP’s policy and research team were getting up to throughout February to raise the profile of the industry and keep you all updated on the latest in the payroll world Policy team update
BeConnected events Mathew Akrigg, policy and research officer, and Sarah Smith, our newest
and transparent distribution of tips following the publication of the ' Draft code of practice on fair and transparent distribution of tips' . Employers in England, Scotland and Wales will need to abide by new rules that aim to come into force later this year, on 1 July 2024. This consultation sought to understand how employers or those in charge of tips plan on handling the new rules with staff members. The team responded, asking for clear and complete clarification on the rules in guidance. If you’d like to take a closer look at the team’s formal responses to any other consultations and CfEs, you can do so here: https://ow.ly/3Kav50QigsG. Events Samantha O’Sullivan, policy and advisory lead, Lora Murphy, editor and Jason Davenport, chief executive officer, were invited to the HM Revenue and Customs (HMRC) Stakeholder Conference, which took place on 29 February (a date we won’t see again for a few years). We leapt (get it?!) at the chance to attend this event, where the team were able to brainstorm in workshop sessions to address challenges and provide feedback
to make improvements, subsequently further strengthening our relationship as a critical friend to HMRC. A summary of the event will feature in May’s issue of Professional . Keep your eyes peeled!
member of the team, kicked off our 2024 BeConnected events with our first face-to- face event taking place in Birmingham on 7 February, which followed this year’s annual general meeting. The team continued with this series of events, running our second face-to-face slot in London on 21 February and two online events on 15 February and 28 February respectively. If you missed out on these events in February, there are two more running in March, which will incorporate any relevant announcements from the spring budget taking place on 6 March. Don’t miss out and book your place now: https:// ow.ly/2boA50Qiguq.
Forums The policy team is privileged to sit on several HMRC forums. Sam and Mathew Akrigg, policy and research officer, attended forums in February, including the: l Charter Stakeholder Group meeting l Agent Support Group meeting. The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups via Professional and News Online . If you have any issues you would like raising at any of the professional forums we sit on, please reach out to the team by emailing us at policy@cipp.org.uk . n
Consultation and call for evidence (CfE) updates The government consulted on the fair
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 6
MY CIPP
Zoe Pope ACIPP Assistant marketing manager
Tell us a little about your career and background so far I'm from Wales and have lived in Birmingham with my little family for seven years. I graduated from university in 2012 with a BA (Hons) in journalism but decided I wanted to pursue something other than that (the course could have been better). My degree did give me the skills such as written and verbal communication, attention to detail and digital literacy, among others, to 'fall' into a marketing career. Over the past ten years, I have worked in many different sectors, from the fast- paced world of agency, where I managed numerous hospitality and recruitment accounts, to in-house, where I was marketing the wonderful world of radiators and houses, to spending the last three and a half years in the not-for-profit sector. I'm also an associate member of The Chartered Institute of Marketing and being part of my professional body brings me so much joy. I've been lucky to work for some fantastic companies and people. My love and passion for digital marketing is stronger than ever, and I couldn't see myself doing anything else. What are your priorities as the assistant marketing manager? I have a lot of priorities as the assistant marketing manager. My biggest priority is supporting and assisting Sarah Winnett, the marketing manager, and helping / guiding Sam Parkes, the marketing executive and Dipesh Pankhania, the marketing
What do you think you and the marketing team can bring to the future strategy of the CIPP? There’s an abundance of things the marketing team can bring to the CIPP. The marketing industry is evolving constantly, and with new channels, trends and technology, it's essential to our roles to keep up to date so we don’t fall behind. The marketing team is one of the core teams in any company, as we are the ones who deliver messages to our members and market our products and services. For the future strategy of the CIPP, we want to change the perception of payroll. We don't want to keep hearing 'I fell into payroll'; we want to hear 'I chose payroll', so our focus is to continue promoting the industry and building the brand of the CIPP. What should our social media followers keep an eye out for in the coming year? I'm not going to give too much away, but we want to inject some fun and personality into our social media posts and show you, our members, who we are. We have recently introduced short-form videos on our LinkedIn channel, so you will see more of the teams digitally. The marketing team has a long list of ideas we want to implement, from educational and inspirational pieces, resources and guides to those snapshot ‘behind the scenes’ pictures and anything we can rope our colleagues into, to show the 'fun' side of CIPP. So, watch this space! n
co-ordinator. Aside from the above, some of my other priorities include: l overseeing the marketing strategy l the day-to-day delivery of our content plan l proofreading and editing online and offline content l collaborating with different departments and teams l making sure my team are happy and supported. Each day is varied and jam-packed, and there's always something new to create, proofread or collaborate on daily, which makes the days fly by. What does your role in marketing mean to you? I started at the CIPP in September 2023, so I'm still relatively new to my role. It's my first assistant marketing manager role, so it's a complete step up from previous titles and responsibilities. My new role means I can mould it into my own and come into the company with new and fresh ideas on how to grow our membership base, market our training / qualifications and grow engagement through our various communication channels. The marketing team was extremely welcoming when I started. I know how daunting it can be coming into a new company, but I found it easy to settle into the role. I'm still learning all about the company and the industry more broadly, but I couldn't be happier than where I am and with what my role entails.
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
statutory maternity pay (SMP) from the old company. Would this now need to be paid by the new employer? A: Under a TUPE transfer all the conditions of service transfer with the employee. Therefore, the new employer would be responsible for paying the SMP in the same way they must pay salaries. As part of the due diligence carried out prior to the transfer, it’s advisable for the new employer to receive information regarding how much SMP has already been paid and if any keeping in touch (KIT) days have been used, to ensure the employee receives the correct pay and leave. The new employer could also claim 92% of the SMP back from the government (or 103% if eligible). Confirmation can be found in the following link: https://ow.ly/ s56M50QvnZt.
of business mileage undertaken vs private mileage. You also need to implement a process (if you don’t already have one in place) proving you’re satisfied that the cumulative mileage recorded is accurate.
How do you treat e-vouchers and NI purposes?
Where can you find guidance on troncs and the allocation of tips?
Advice regarding tronc schemes Q: Could you provide some general advice on tronc schemes, and confirm whether they have to be registered with HM Revenue and Customs (HMRC)? A: A tronc is a special arrangement with HMRC, where the employer doesn’t control the allocation of tips. This is decided by an appointed troncmaster, who is responsible for collecting, distributing and accounting for pay as you earn (PAYE) on tips. The following links provide a wealth of information: https://ow.ly/FjnX50QvoYv and https://ow.ly/9fBc50Qvp04. If the tips are distributed by the business owner or someone with influence on how the business is run, then the payment is subject to both PAYE and National Insurance contributions (NICs). If you elect a troncmaster to decide on the allocation of tips and to deal with the distribution, and the scheme is agreed with HMRC, then payments are subject to PAYE only. Responsibility for maternity pay during Transfer of Undertakings (Protection of Employment) (TUPE) transfers Q: I’m processing the payroll for a company which has acquired staff from another organisation under the TUPE Regulations. One of the employees was on maternity leave and receiving
What are the timelines for fostering for adoption?
Timeframes for fostering for adoptio n Q: How early can adoption leave and / or fostering for adoption leave commence please? A: The rules are the same for adoption as they are for fostering to adopt, so the leave must begin no earlier than two weeks before the child is expected to be placed and no
later than the date the child is placed. See https://ow.ly/Jxe350QvqKA. It
What can you reimburse in terms of business mileage undertaken in a company motorcycle?
states: “An employee approved as a foster parent and a prospective adopter who has been notified of being matched with a child under section 12B of the Adoption Agencies Regulations 2005, is eligible for SAP, subject to qualifying conditions. Those who meet the qualifying conditions can take SAP beginning no earlier than two weeks before the child is expected to be placed and no later than the date the child is placed.”* Annual leave and statutory maternity leave (SML) Q: Employees are given the option of receiving holiday pay for any bank holidays which fall in the period their SMP sits at 90% of average weekly
Paying fuel costs for company motorcycles Q: Does HMRC publish advisory fuel rates for employees who have a company motorcycle? A: No, advisory fuel rates are only applicable for company cars. If you wish to cover the cost of business journeys for an employee using a company motorcycle, the only way to do this is for the employee to maintain accurate mileage records of all personal and business journeys undertaken, as well as fuel receipts. Then you can reimburse part of the fuel costs proportionate to the ratio
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 8
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 Become a qualified professional at the forefront of your industry
POLICY HUB
earnings. Not all employees select this option, but it is available to help them financially should they need it. Is this allowable? A: Holiday pay can never be paid unless an employee is taking annual leave attributable to that leave (except when the employee is leaving). Annual leave and SML are mutually exclusive, meaning that only one can be taken at any given time. To be paid holiday pay (and thus be on annual leave) during maternity leave technically curtails that SML, and all outstanding SMP which would be payable is lost. We would recommend that you amend your processes so employees accrue the bank holiday days, to then be used when the employee ends their maternity leave.
purposes, so although this employee did go off sick after a few hours, this day was nonetheless enough to constitute a day in which the employee worked. So, I infer that self-certification is fine for the first seven calendar days for this second (albeit linked) period of incapacity. Correct deadlines for automatic re-enrolment for pensions Q: We’re currently in the process of getting ready for re-enrolment and have chosen to assess staff on 1 February 2024. Please can you advise if the ‘within six weeks’ to write to employees is before or after 1 February 2024 in this scenario? A: The relevant employees must be written to within six weeks following 1 February 2024 in this case. The following link corroborates this: https://ow.ly/ YRwa50QvraG.
How do you treat e-vouchers for tax and NI purposes?
How do you treat e-vouchers for tax and NI purposes?
When does a self-certification form suffice for covering periods of illness- related absence?
Visit www.cipp.org.uk/study for details and to enrol
Evidence requirements for illness- related absence Q: An employee completed a self- certification form for illness absence due to a car accident. He returned to work the following week, worked for a few hours, and then went home sick again. I understand the linked periods of incapacity for work rules. However, should we be asking for a ‘fit note’ or can he self- certify for the further seven days? It’s likely he will be off for the next week or so. A: Regulation 2(2) of the Statutory Sick Pay (Medical Evidence) Regulations 1985 (https://ow.ly/OZJ950Qvr33) stipulates that: “An employee shall not be required… to provide medical information in respect of the first 7 days in any spell of incapacity for work; and for this purpose ‘spell of incapacity’ means a continuous period of incapacity for work which is immediately preceded by a day on which the claimant either worked or was not incapable of work”. Now although these periods of sickness are linked, this doesn’t alter the fact that they are separate spells of incapacity for work. A person must be incapacitated for a full day for it to ‘count’ for statutory sick pay (SSP)
How do payments for sickness absence relate to NMW calculations?
Sick pay and its interaction with national minimum wage (NMW) Q: In our system, if someone has been off sick, we make a sickness deduction and then top up with SSP or occupational sick pay (OSP) if applicable. When calculating the hours worked for the month, we take workers’ salaries, less OSP, less salary sacrifice (if applicable) and divide by the number of hours worked that month to see if any workers drop below the NMW. Should OSP and SSP payments be included in the calculation used? A: The time spent absent from work due to sickness and any payments made in respect of that absence must be discounted from your NMW / national living wage compliance calculations. The following link provides further guidance and information: https://ow.ly/ AMwE50QvrkL. n *Please note, SAP means statutory adoption pay.
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
PAYROLL news
Payrolling of benefits in kind (BiKs) to become mandatory HM REVENUE and Customs (HMRC) confirmed, in a policy paper, that it will mandate the reporting and paying of income tax and class 1A National Insurance contributions (NICs) on BiKs via payroll software. This will be introduced from April 2026. The policy paper can be accessed in full here: https://ow.ly/ RqEP50QvPkS. It’s hoped that this move will help to reduce the administrative burden placed upon both employers and HMRC, as the process for reporting and paying tax on employment benefits will be simplified. Ahead of this huge change, HMRC has
confirmed it will engage with stakeholders (your very own CIPP being one of them!) around how it will all work in practice, and will ensure there are no unintended consequences of mandating the payrolling of BiKs, which may not have already been considered. Guidance on the topic will also be published ahead of the changes. Currently, there are two options for reporting BiKs, one being payrolling and the other being via P11D submissions. The P11D submission process (commonly referred to these days as the ‘legacy process’) means that employees’ tax codes are often adjusted mid tax-year and can cause confusion, as the deadline for reporting P11Ds to HMRC isn’t until 6 July in the tax year following the tax year in which the employee received those benefits. This means there can be a substantial amount of time between an employee receiving benefits and paying tax on those benefits. The CIPP wants to address the following issues with HMRC: l we want to ensure the calculation methods for employer-provided living accommodation and beneficial loans are updated and can be processed via payroll software l working sheets must be available to employers and agents, to assist with the calculation of values to be payrolled l there needs to be sufficient time given for changes to be made to payroll systems and for rigorous checks to be carried out l making payments of class 1A NICs in real time should be made possible, to eliminate the need for P11D(b)s. The CIPP’s policy and research team will be asking for your input on this important area in the future, so keep your eyes out for ways to get involved.
Employment tribunal fees to return? THE MINISTRY of Justice has published a consultation which considers whether employment tribunal (ET) and Employment Appeal Tribunal (EAT) fees should be re-introduced. You will be aware of the nature of ET and EAT cases if you read the employment law pages of this magazine. To read the consultation in full, please go here: https:// ow.ly/F4es50QvPUC.
Diary dates
5 March 6 March
Last day of tax month 11 First day of tax month 12
Last day for submitting a real time information employer payment summary to apply to tax month 11 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 March
22 March
5 April 6 April
Last day of tax month 12
First day of tax month 1 2024/25
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 10
MY CIPP
We welcome a new policy and research officer WE’RE DELIGHTED to announce that, here at the CIPP, we have welcomed the newest member of the policy and research team, Sarah Smith. Sarah started the role on 2 January 2024 and is already getting her teeth into the range of activities the team carries out, including News Online articles, longer length articles for various publications (keep your eyes out for content from Sarah in future issues of this very magazine), presenting at events and responding to government consultations and calls for evidence. Of the new role, Sarah said, “It’s an honour to be the newest member of the policy team at the CIPP. I’m really looking forward to sharing my passion for payroll. I started working in payroll 15 years ago and have remained there (other than taking a short break to work overseas as a holiday
Jobsb- orad
rep in 2015). I couldn’t imagine doing anything else now. I completed my Foundation Degree in Payroll Management with the CIPP in 2022. I really enjoyed the challenge of studying to help strengthen my knowledge and progress my career. It was an amazing sense of achievement to graduate after studying for three years during the pandemic, working from home and having two children. I’m originally from South Wales, but I relocated to the Midlands in 2016 after meeting my husband. We now live in Tamworth with our three-year-old daughter and two-year-old son.”
If you are moving roles and would like to appear on this page, please contact editor@cipp.org.uk .
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| Professional in Payroll, Pensions and Reward |
Issue 98 | March 2024
PERSONAL DEVELOPMENT
# Be Payroll Emma Keech MCIPPdip, payroll supervisor, Grafton Group PLC, shares her personal experiences of being a member of, and studying with, the CIPP
Can you describe your payroll journey to us so far? You hear about falling into payroll and I’m one of those cases! I’ve worked in payroll for over 20 years now, which seems insane because that time has gone extremely fast. After leaving university, if you told me I would be in payroll for two decades, I’d laugh, but I just love it. It’s fast-paced, with room for developing yourself both professionally and personally. I have also worked with many brilliant people (both internal and external stakeholders), making genuine connections and sharing our payroll journeys. I’ve worked in different sectors: retail, catering and manufacturing. Each role has presented new challenges and the chance to develop. Alongside UK payrolls, I also process Irish payrolls which I really enjoy and it’s wonderful to have the variations. During those 20 years, many changes have taken place, from both a legislative and cultural perspective. Payroll’s profile has risen – it’s finally gained the long overdue respect and acknowledgement that it’s a department which offers a vital function and deserves a place at the strategic table. Hurrah! Why did you choose to become a CIPP member? At the start of my career, payroll wasn’t seen as a valuable function. It felt like we were just a department on the sideline which simply paid people, and we went pretty much unnoticed. Also, sadly, payroll was never openly promoted as a career, so I wasn’t initially aware of the CIPP. I learnt a lot on the job, which was enough to make me excel and successfully achieve my goals. It wasn’t long after joining the CIPP as an associate member that I realised the immense gains of being a member. Which membership benefits have you used or enjoyed the most and how have they helped? The Advisory Service has been a godsend. The team is always helpful and it’s certainly a comfort knowing that any guidance is easily accessible, especially if you have queries around new legislation. Sometimes the HM Revenue and Customs website is enough, but other times it’s good to have the opportunity to talk something over. I also love Professional Magazine. The articles are always relevant to new legislation and keep you up to date. The presentation and content are relatable and engaging. Also, regular sections are always an informative read, especially ‘ On Your Behalf’ and the compliance articles. What advice would you give to those new to the payroll profession, just starting out in their careers? Firstly, great choice! Payroll is now an ever-changing dynamic environment which offers a myriad of paths – not simply end-to-end processing.
If they’re passionate about payroll, start gaining qualifications. Soak up all that knowledge and apply it at every given opportunity. I feel that, until recent times, experience seemed to rule as a recruitment requirement. As I previously highlighted, payroll was hardly ever promoted as a career. In hindsight, I wish I knew about the CIPP earlier and the opportunities it presented. Alongside qualifications, join professional platforms like LinkedIn and start networking to create valuable connections and seek out opportunities. What qualification(s) have you studied? I was fortunate enough to be sponsored by my employer to complete the CIPP Foundation Degree in Payroll Management. Following an assessment, I was able to skip year one. I graduated in 2023 and was awarded Work-Based Project of the Year, which was an honour to receive from Helen Livesey (the senior business director at Hays). It was certainly wonderful recognition of the many hours I invested in the assignment – some of which were while I was on holiday! How would you describe your experience of studying with the CIPP? I was initially apprehensive about the course, because although I already have a degree, it’s not in payroll and I graduated in 1998. At that point in time, my knowledge was achieved through learning on the job and one-day training courses, which didn’t necessarily result in a certificate. It turns out I loved revisiting studying. The course was well organised, and the tutors were excellent. They were always on call if you needed guidance or advice. It certainly wasn’t a breeze at times, but it was highly rewarding. I learnt way more than I anticipated. Why was it important to you to gain this particular qualification? I wanted to gain this qualification for professional development. Other professionals may agree that you can find yourself in a role where you’re not exposed to all areas of payroll so your skills and / or awareness may reduce and become less effective. Or conversely, that you’re exposed to all areas meaning the skills / awareness become stretched too thinly. Do you have any plans for further study with us? If so, what are they and why? I don’t have any plans for further CIPP study at present. However, I’m currently studying for an Irish Payroll course with IPASS. I have been processing Irish payrolls for several years now and I’m finally working towards a qualification. Better late than never. n
12 | Professional in Payroll, Pensions and Reward | March 2024 | Issue 98
COMPLIANCE
Payroll Assurance Scheme (PAS)
The prestigious gold standard accreditation for your payroll processes and people Developed in partnership with HM Revenue and Customs (HMRC) 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.
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: ● Entrust Support Services Limited (new)
● Ceridian Europe Ltd rebranded as Dayforce (re-accreditation) ● East Midlands Shared Services (EMSS) (re-accreditation) ● Liberty Global Shared Services Limited (new).
Our chief executive officer, Jason Davenport, said, “Huge congratulations to all the organisations that have achieved or retained their PAS accreditation. This process takes time and effort but is crucial in demonstrating commitment to your teams, customers and to the payroll industry.”
TESTIMONIALS Hear from a few of our accredited organisations, on how PAS has benefited them.
PricewaterhouseCoopers LLP: “We’re absolutely thrilled to have obtained this accreditation for our UK payroll services team. The PAS is a gold standard award in the payroll industry, and it was hugely important for us to obtain this. Not only does it demonstrate our commitment to our staff in terms of continuous learning and development, but our clients can also be assured that we’re dedicated to compliance and best practices in the payroll industry.”
Tesco Bengaluru Private Limited: “Achieving the PAS accreditation has elevated the profile of the payroll team by showcasing that our payroll processes and capabilities met and exceeded key standards required within the UK payroll industry, giving us the confidence that the services we provide are of the highest level. This validates our efforts over the years of implementing efficient processes through validations and reconciliations, continuous improvement and automation, along with strong collaboration and robust governance processes. “The accreditation process was well organised and the guidance from the assessor in understanding the requirements helped us compile all the required evidence and conduct the assessment smoothly.”
Thomson Cooper Accountants: “Having the CIPP’s PAS accreditation is a great endorsement of our payroll team's dedication and commitment to delivering payroll services of the highest standard. “Maintaining our accredited status helps keep us focussed on continuous improvement and learning. It allows us to differentiate our payroll outsourcing and recognises our robust payroll processes and procedures, aimed at ensuring our clients receive the best possible service.”
Leanne O’Hara MCIPP, UK payroll services senior manager
Elaine Cromwell ACIPP, partner
Mohammed Fazil ACIPP, senior operations manager
www.cipp.org.uk/PAS compliance@cipp.org.uk
To find out more, visit our website or contact our PAS team:
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| Professional in Payroll, Pensions and Reward |
Issue 76 | December 2021 – January 2022 Issue 98 | March 2024
COMPLIANCE
Fiona Smith MCIPPdip, CIPP payroll training manager, answers the key questions surrounding the CIPP’s new eLearning course on cyber security essentials for payroll, and explains why you should complete this course C yber security continues to be a crucial topic for any organisation that handles sensitive data, especially would provide them with the essential knowledge and skills to do that, targeted
security, such as what it is, why it matters and some common types of cyber threats and attacks. It also covers how to protect your data and systems, such as using strong passwords, encryption, backups and secure file handling. It also covers how to respond to a cyber incident, such as how to identify an incident, how to report it and how to recover from it. Q: Why should someone consider completing this course? A: The topic of cyber security should be considered essential learning for anyone who works in payroll or handles payroll data, whether they’re new to the industry or are experienced professionals. Cyber security isn’t something you can ignore or leave to someone else; it’s everyone’s responsibility. By taking this course, you will not only improve your own skills, but also contribute to making your payroll more secure and resilient. Q: Thank you for your time, and where can we find more information about this course? A: It’s been a pleasure. To find further information or to book this course, go to our website at https://ow.ly/vIcL50QrbwC. The new course is available now, and costs £199 + VAT for two hours of eLearning content. n
specifically at the challenges faced by payroll. That’s why we created our new eLearning course, ‘ Cyber security essentials for payroll ’, designed to help payroll practitioners understand the basics of cyber security and how to apply them in their daily work. Q: How did the team go about putting the course together? A: We conducted research into best practices in cyber security and worked closely with cyber security experts, who provided us with valuable guidance and feedback on the course content and structure. We also consulted with payroll practitioners and employers to understand their needs and challenges regarding cyber security via the CIPP industry roundtable. Understanding that the life of a payroll professional is a busy one, we decided to create this course as an eLearning course which can be accessed anytime, anywhere, on any device. The course doesn’t take longer than two hours to complete, and has been designed to be engaging and interactive, using real-life examples, videos and knowledge check quizzes. Q: What are some of the main topics covered in the course? A: The course covers the basics of cyber
payroll. Payroll professionals are responsible for the sensitive personal and financial data of employees, clients and suppliers. This data is valuable to cyber criminals, who can use it for identity theft, fraud or extortion, making payroll a hugely attractive target. We sat down with the CIPP’s payroll training manager, Fiona Smith, to discuss how the CIPP’s new eLearning course on cyber security essentials for payroll is helping payroll professionals to understand how to protect themselves and their data from cyber threats. Q: Hi Fiona, thank you for joining us today. Can you tell us how a need for a cyber security course was identified? A: Hi, thank you for having me. The CIPP is always looking for ways to support our members and the wider payroll community with relevant and up to date training opportunities. Recent news stories about cyber-attacks affecting organisations of all sizes and sectors have highlighted that cyber security is one of the most pressing issues facing payroll today. Payroll professionals handle a lot of sensitive data that could be targeted by cyber criminals, so they need to be aware of the risks and how to mitigate them. We wanted to create a course which
| Professional in Payroll, Pensions and Reward | March 2024 | Issue 98 14
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