Professional September 2021

Official publication of The Chartered Institute of Payroll Professionals PROFESSI NAL in Payroll, Pensions & Reward Issue 73 September 2021

Time and attendance systems

Tax year-end review The ins and outs

The employee experience Informative devices

When can I retire? Just amoment


HCM software for your organisation: Local, National or Global

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“So long, farewell, auf wiedersehen, adieu” A lyric from The sound of music , by Oscar Hammerstein II (1895–1960) (

Editor’s comment

Well, my plan to retire in December has unfortunately been brought forward because of ill health; so, this is my last issue of Professional magazine. I have thoroughly enjoyed being editor since

Vickie Graham and James Bartlett who throughout have been a pleasure to work with. I wish my successor, Lora Murphy, every success.

2009 for reasons of creativity and intellectual challenges, but also because it brought me in touch with so many extraordinary and wonderful people in the industry. In particular, I must mention CIPP’s

Mike Nicholas MCIPP ( Editor

Chair’s message

Time and attendance systems is the feature topic this issue. Some employees will no longer be utilising such technology within organisations, as staff continue working from home, but there are others in the workplace who don’t have that flexibility.

a primary factor, along with budget, frequency of upgrades, the level of technical support and customer feedback. Whichever systems are shortlisted, speak to current users of a similar size and industry type to get their feedback, and explore how they manage and utilise the collection of data. Training will need to be planned and provided to users, aiding development, and supporting workforce transition. Managing expectations and making good use of technology can support user health and wellbeing, examining the data collected to spot trends, monitor hours to ensure compliance with the working time directive, and to support calculations for national minimum wage. Implementing a strategy that defines how the data will be used and stored will reduce the risk of non-compliance for general data protection regulation and provide value for an organisation in understanding the patterns and trends to be identified.

Within the gig economy, many will have multiple jobs across different platforms. There are numerous considerations for payroll teams who want to persuade their employer to adopt such systems. Payroll data collection is increasingly automated, and for some, choosing a system will be for the first time. Others may be reviewing current systems and exploring new technology. In this instance, you will know what improvements and extras you are looking for from any change. It could be that, after reviewing what is available, development of your current system would be the best option. You’ll consider whether you are looking for software that is stand- alone or integrates with payroll software. Does it need to be able to automatically schedule shifts? Will it be biometric, remote clocking, cloud based, accessible on tablet or smartphone? These are all things which will influence the decision-making process. Cost will be


CEO’s message

I hope that, despite uncertain times, this second summer of lockdowns has allowed you to take a break from the pressures and intensity of work. Dispelling the perpetual myth that payroll and pension departments could not work from

almost 700 members to ensure this response reflects the voice of the payroll industry. You can view our submission (and video update) by entering the following link: . It is encouraging that as we ease out of this pandemic, employers are still actively ensuring their payroll and pensions staff are suitably skilled; and we are pleased to play a leading part. The Payroll Technician Certificate continues to grow year-on-year, and it is evident that its content is crucial for those entering the profession, as well as for those needing a refresher or returning to payroll. As an online qualification, it is particularly relevant at present. This equally applies to our online Certificate in Pensions Administration as it becomes apparent that more payroll professionals play a key part in the administrative area of pensions. This time of year also signals the autumn enrolment to our Foundation Degree (with either the payroll or pensions offering). Enrolling will bring benefits to both you and your employer.

home, payroll departments have transitioned from an office environment to a remote one with great success. This prompted the CIPP to chair a roundtable with luminaries from the industry discussing the future of payroll skills (see pages 16,17). The headlines from the panel are that payroll professionals have had to adapt, be agile, and flexible in a range of areas, whilst ensuring an accurate and timely service. So, is the future of payroll working from home? The panel conveyed differing views, but one thing that is obvious is that payroll skills continue to evolve and adapt alongside the ever-changing landscape of the payroll (and pensions) profession. On behalf of the membership, we responded to the recent HMRC consultation – Raising standards in the tax advice market . The CIPP considers that this consultation has the potential to create fundamental change and has completed thorough research through internal discussions, a member thinktank, a technical panel meeting, and polled

Ken Pullar FCIPP ( Chief executive officer, CIPP


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at


September 2021



Time and attendance

systems by Jerome Smail





The future of payroll skills roundtable by the CIPP policy team

Workplace imposter syndrome by Dr Lynda Shaw

The employee experience by Samantha Johnson




PAYE settlement agreements by Lora Murphy

The future of the CJRS by the CIPP policy team

Tax year-end review by the CIPP policy team

| Professional in Payroll, Pensions and Reward | September 2021 | Issue 73 2



Editor Mike Nicholas 0121 712 1000 | Advertising Daniel Cull 0121 712 1021 | Design James Bartlett and Nicole Davis Printing Warwick Printing Company Ltd

The creation of a single enforcement body by the CIPP policy team

Notional payments by Mike Nicholas



Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Louise Gray ChMCIPPdip

Is your workplace pension doing any good? by Henry Tapper

Welfare counselling tax exemption by Beverley Gibbs

Stuart Hall MCIPPdip Helen Higson ACIPP Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP



Carole Pearson MCIPP Katie Sharpe MCIPPdip

Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA

Useful contacts

Coronavirus pandemic: contract changes, dismissal, pregnancy by Nicola Mullineux

Education 0121 712 1023 Events 0121 712 1013 General enquiries 0121 712 1000 Marketing and sales 0121 712 1033 Membership 0121 712 1073 Training

When can I retire? by Ian Neale


Beyond the furlough scheme by Danny Done


01 Editor’s comment, and

21 Compliance 30 Reward

0121 712 1013 @CIPP_UK

Chair’s andCEO’smessage

04 CIPPupdate

Events, news and developments plusWe’ve got mail

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 2021. 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.

38 Industry news 40 Technology 43 Wordsearch 48 Confessions of a payroll manager

07 My CIPP

Policy hub: On your behalf, Advisory; Spotlight on…

13 Movers and shakers 14 Personal development BePayroll, Diary of a student 20 Payroll news

Full issue including additional online content available at


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021

CIPP update

Congratulations to the newly accredited PAS organisations

Graduation 2020 and 2021 PLANS ARE currently underway for a graduation ceremony for 2020 and 2021 graduates of the CIPP’s two Foundation Degrees. The ceremony is planned to be held on 5 November at the Symphony Hall in Birmingham and will feature two separate ceremonies: one to celebrate those students who graduated in 2020; and the second for the 2021 students. As soon as we have more information, the CIPP we will communicate this via email. We are certainly looking forward to seeing you all in person and being able to celebrate your success together.



The CIPP’s Payroll Assurance Scheme recognises best practice in organisations. The assessment looks at, (amongst other things) core processes, security, gross to net calculations, compliance, staff development and managing major change. A huge well done to our recently accredited organisations: ● Cintra HR & Payroll Services ● Durham County Council ● Kinleigh Folkard & Hayward ● Oxford City Council ● Sainsbury’s Supermarket Ltd ● Virgin Media Ltd Ken Pullar, CIPP chief executive officer, said: “Events over the last year have proven the resilience of the payroll profession and its ability to ensure business continuity plans are in place and fit for purpose. Special recognition goes to these organisations that have demonstrated best practice during trying times. Well done to these organisations for acheiving this industry recognised accreditation.” To get recognition for your organisation’s best practice, contact for more information.

Annual Conference and Exhibition OUR ANNUAL Conference and

National Payroll Week NATIONAL PAYROLL Week is here, and we are looking forward to celebrating the week with you all, in style. It’s not too late to take part in the week and you can still

Exhibition will be taking place online this year, as the safety and welfare of our delegates and sponsors is of paramount importance to us here at

CIPP’s Annual Conference and Exhibition

the CIPP. We have a brand-new platform for this year’s event which allows for excellent networking opportunities, live video messaging and is easy and fun to use. The Annual Conference and Exhibition is an invaluable opportunity for payroll professionals to educate, collaborate and celebrate all things payroll, pensions, and reward. We are thrilled to announce our guest speaker will be Eddie ‘The Eagle’ Edwards, who will be inspiring and entertaining us all with his stories. Eddie became the first competitor since 1928 to represent Great Britain in the Olympic ski-jumping event. New events are being added every week, so don’t miss your chance to stay up to date with current and future changes and issues affecting the profession. This is an essential event in the payroll calendar, so visit uk/ace for more information, to book your place and to get updates about the event as they happen.

book your place on a wide variety of online events. Visit to take your pick from the events on offer. There is still time to download your National Payroll Week pack to help you celebrate with your colleagues. The packs are full of posters and other printable decorations, themed wallpapers, screensavers for mobile devices, NPW games and much more. Download your pack at Let’s build on the success of 2020 and ensure that payroll professionals continue to be at the forefront of their industries, whilst celebrating themselves and their colleagues for their outstanding performance and achievements.

Face to face training returns SEPTEMBER SEES some of the CIPP’s training courses return to face-to-face training. If online learning isn’t for you or you’ve been waiting until face-to-face learning returns, you can now book your place on the following training courses at a location that suits you: ● payroll update ● introduction to payroll ● P11Ds – expenses and benefits training course collection. You can take part in these courses online. Visit to find out more and to book your place.

| Professional in Payroll, Pensions and Reward | September 2021 | Issue 73 4


Payslip Statistics Survey 2008 - 2021 THE CIPP’s flagship piece of research – the Payslip Statistics Survey , which has been running for more than a decade, has been completed for 2021. The associated report has been published and can be located here: The research is crucial in identifying current trends in how organisations pay their staff. Each year, the survey contains a standard set of questions that explore this area, which means that they can be monitored to establish how they have changed over time. One key example of this relates to the distribution of payslips – traditionally, they were physically printed off and provided to employees but in recent years there has been a substantial shift to payslips being distributed online, via an online portal or by email. Each year, a selection of more topical questions are included that focus on the issues payroll professionals are currently facing.

This year’s survey incorporated questions on the effect of the coronavirus job retention scheme and recent changes to legislation, such as amendments to the calculation of holiday pay and the requirement to display hours which cause pay to vary on payslips. Key findings from the survey are as follows: ● more than 96% of respondents confirmed that they operate at least one payroll on a monthly basis within their organisation ● 1.07% of answers showed that organisations currently operate pay on demand ● 68% of organisations opt to pay their staff early in December, to account for Christmas ● the last day of the month is the most popular pay day for monthly payrolls ● the most popular pay method is via BACS – this has not changed since the survey was introduced in 2008. The full report includes various graphs and images to highlight how survey responses have changed over time and provides comprehensive insight into the responses to each of the questions included. The report is an invaluable source for anyone who wants to understand how payroll teams are currently operating, but also how processes may have evolved and shifted over time.

New member benefit THE CHARTERED Institute is pleased to announce a new online member benefit for associate, full, fellow, and Chartered members. Payroll Management , published by Bloomsbury Professional, contains useful information for all payroll professionals and will be added to your subscription package this month. It not only offers best practice information to guide you in your role, but also contains practical information about subjects such as project planning, staff retention and recruitment along with much more. You can access the online version of this book in the MyCIPP area of the website at .

Class 1A NICs misunderstanding

Vince Ashall MSc FCIPP writes: There is a very useful article on pages 26 and 27 of the June issue of Professional magazine on reporting benefits and expenses, but unfortunately it has an error in the first paragraph under the ‘Payrolling of benefits’ heading in column 2 of page 27. The text states that “…and tax and class 1A NICs applied to them at the same time as they are received.” However, class 1A NICs on payrolled benefits in kind (BiKs) only become due after the tax year end and paid to HM Revenue & Customs by 19 or 22 July depending on the payment method. I’ve no doubt that in due course, class 1A NICs on payrolled benefits will become payable in real time, but for the time being this is not the case.

The Editor responds: Thank you for drawing this to our attention, Vince. The text in question may have been misleading and so deserves clarification. The text was intended to indicate that employers could (and maybe should) calculate, charge and accrue in the organisation’s financial accounts a cost/liability for the amount of class 1 NICs due on payrolled BiKs in each pay period of the tax year. Class 1A NICs are only payable in real time on termination payments that exceed £30,000 and on sporting testimonials of more than £100,000. Class 1A NICs on BiKs are payable in the tax year following that in which the benefits were provided. The CIPP apologises for any misunderstanding caused.


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021 #NPW21 #BePayroll #KeepUKPaid

Book your place on our National Payroll Week events now

It’s not too late to book your place on our free to attend online events, as part of National Payroll Week, taking place from6 – 10 September. The week will be packed full of useful, fun and informative events. Somake sure you book your place and don’t miss out on themost important week in the payroll industry.


Are you ready to run your HR and Payroll like a boss? Thursday 9 September – 10 – 11am

Join Sage and a panel of payroll experts, who will share their knowledge on payroll in a changing world, provide advice on getting it right first time, highlight common mistakes, offer top tips and how to plan ahead for payroll year end.

Disrupting Payroll – a webinar in conjunction with Hi Friday 10 September 10am – 11am

Founded by David Brown and recently joined by Eira Hammond, new start-up company Hi, a payroll funding platform and Social Enterprise, are making waves in the industry through their unique combination of experiences. Enabling businesses to defer salary payments and helping employees benefit from instant pay, this webinar promises to be both informative and lively.

Don’t forget to download your pack so you can celebrate the payroll profession with friends and colleagues who have kept the UK paid. You can download your pack here:







Spotlight on...

undertook the Pitman’s Microsoft Office Specialist qualification. After successfully passing this qualification, I walked into the IPPM’s (a CIPP forerunner) office in Hockley Heath on 14 August 2006 as a very nervous marketing temp. It was a very busy time as within six weeks the Institute became simply ‘IPP’. I became a permanent member of the team in March 2008 and both the Institute and I haven’t looked back since. I took on my current role in April 2020. What does your role mean to you? I am passionate about the Institute and its members. The values the company hold are important to me and I use them as a standard in my work. As membership manager, it is essential that I keep abreast of what is happening in the profession so that the CIPP continues to meet the needs of its members. My experiences at the Institute shape how I work with internal and external stakeholders. I love attending events, in particular the Annual Conference and the Graduation Ceremony, and am looking forward to when we can all meet face to face. What do you think you can bring to the future strategy of the CIPP? There have been lots of changes to the Institute during my time here. I think that the experiences I have had in marketing and business operations allow me to contribute ideas, participate in project

teams and generally contribute to the success of the CIPP. By meeting the members and discussing their issues, reading legislation updates and attending industry events, I am confident that I can bring a positive contribution to the CIPP’s strategy. What does the future hold for payroll, pensions and reward? I was asked this question in 2018 and who would have guessed the trials and tribulations that 2020 and 2021 would bring. There have been many challenges and the profession has risen to meet them all head on. If you look how far the industry has come since I received my first brown envelope, prepared by another member of staff with no training or real knowledge, there is no doubt in my mind that with the advances of technology, a Chartered body to represent you, and an ever-changing and challenging workforce, there will be exciting times ahead. What do you do in your available time to unwind? When I am away from the office, I am a keen watcher and reader of fantasy and science fiction. I enjoy technology and am probably known as a bit of a geek when it comes to a certain brand of phones, tablets and laptops, as I have the whole range. Family is hugely important to me and as a proud (but very young, of course) grandma, I love spending time with them as it gives me a renewed outlook on life. n

Dawn Baxter ACIPP CIPPmembershipmanager

Tell us a little about your career and background. I have had a varied background along with a career break to have a family, but my experience was predominantly in retail management. I started, in the distant past of 1980, on a youth trainee scheme at a local chemist, where I was paid £23 a week in cash, with a handwritten payslip. I soon progressed to cashier and window-dresser at Etam in Birmingham. Along the way, I have been a store manager for some big names – including River Island and Laura Ashley – and achieved my career goal in 1998 of becoming store manager in the largest Mexx outside London, where I managed forty staff, three clothing departments and a huge stockroom.

When did you first become involved with the CIPP?

In 2005, I decided the long hours of retail were not for me so chose to retrain and


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021


On your behalf

Policy team update

The CIPP’s policy and research team provide an update on developments.

A s the July heatwave hit the UK, and many returned to their workplaces after the work- from-home restrictions were lifted, the CIPP policy team were kept busy attending various forums, responding to consultations, and collecting the views of you – the payroll professionals. A new CJRS forum In exciting news, HM Revenue & Customs (HMRC) has set up a brand-new coronavirus job retention scheme (CJRS) forum, which will enable free-flowing discussion between the CIPP policy team and a group of key stakeholders. CJRS has been a hot topic in HMRC’s Employer Payment Group since March 2020, and this new dedicated group continues to provide a forum to discuss the impact of CJRS as the scheme begins to wind down. HMRC has already issued letters to thousands of employers asking them to review their claims for errors. The CJRS forum will provide a focus on HMRC compliance activity and will work to ensure that employers have the necessary information and guidance to support their claims. As the impact of the CJRS will continue to be felt by organisations throughout the UK long after the scheme is closed, the CIPP will ensure the voice of our membership is represented and heard. Payrolling of benefits research The CIPP is working in conjunction with HMRC to establish how organisations report the taxable benefits they provide to employees. Employers can choose whether they process them in real time through their payroll software or to utilise P11D returns, which HMRC has recently

been referring to as the ‘legacy’ process. Some businesses will opt to use a combination of both processes. In order to explore this area, the CIPP’s ...the impact of the CJRS will continue to be felt by organisations throughout the UK long after the scheme is closed, the CIPP will ensure the voice of our membership is represented and heard. policy team published a survey which ran throughout June 2021. The questions asked primarily how benefits are reported and then delved into the reasons behind why organisations adopt the approach that they do. Unsurprisingly, the most popular response in relation to the process used was for P11D returns, with 41% of respondents confirming that they only use this method. Some 29% solely payroll benefits, and 30% use a combination of both methods. There are a few barriers for employers that don’t payroll benefits in real time. This could be because: ● their payroll software isn’t compatible with the process, or ● they are worried about the issue of employee double taxation in the first year

of payrolling benefits, or because agents cannot register to payroll benefits on behalf of their clients. Additionally, at the time of writing, not all benefits can be payrolled, as employer- provided accommodation and interest- free and low-interest loans cannot be processed in this way, and these benefits need to be included in a P11D return. Guidance also appears to be a stumbling block for payrolling benefits, as 56% of responses indicated that the guidance was only adequate, with others declaring they find it poor. There was confusion around the information that needs to be provided and the deadlines associated with payrolled benefits: ● 6% of organisations do not provide staff with statements or information relating to payrolled benefits, and ● 26% of respondents were unaware of the different deadlines that need to be observed based on whether an organisation is providing P11D returns or payrolling benefits. Encouragingly, 97% of those who confirmed that they payroll benefits would recommend it. It appears that the issue is with encouraging businesses to implement payrolling benefits in the first instance, but once actioned it is an effective way of reporting taxable benefits. How the CJRS impacted your team and organisation The CIPP policy team ran a series of interviews throughout July and August with individuals and payroll teams to discuss their experience of the CJRS. Conversations of this nature are crucial in ensuring the CIPP remain close to the current issues that payroll teams are tackling. These activities ensure that the

| Professional in Payroll, Pensions and Reward | September 2021 | Issue 73 8

Policy hub

National Payroll Week As we are sure you are aware, National Payroll Week is coming, running from 6–10 September 2021. In traditional style, the policy team will be delivering a legislative update, full of the information that payroll professionals need to be aware of to succeed in their roles. ...the policy team will be delivering a legislative update, full of the information that payroll professionals need to be aware of to succeed in their roles.

CIPP can communicate with a voice that represents the whole payroll profession when discussing issues with HMRC and other key stakeholders; highlighting both the positives and the negatives that need to be addressed. The interviews were each fifteen minutes in length and allowed for individuals plus a maximum of two of their colleagues to share their experiences – whether those were about calculations, audits, guidance, claim processes, or, of course, a combination of all. The discussions were entirely confidential, but the content will be used to provide feedback to HMRC and could potentially mould future research in this area. The sessions proved extremely popular, with members snapping up slots as soon as they were made available. We will be analysing the feedback from the meetings, and will share findings in due course; so watch this space. If there are any key topics that you would like to see the policy team focus on in the future, then please send an email to with your ideas.

what changes may be in store. We hope that you will watch and enjoy the update. The policy team would love to receive your feedback, on what worked well, what didn’t work well, or just some considerations for the team to take on board in future. Please contact us at Is hybrid working the future? As we return to some semblance of normality, there is much discussion around the future of working practices. There seems to be a clear steer towards hybrid working styles – that is, splitting time between working from home and from a workplace, such as an office. This will inevitably have implications for payroll departments, particularly in terms of expenses and benefits. Will employees qualify for the £6 per week tax relief for working from home, if they split a portion of their time at home, but some in the office? What will happen with qualifying journeys for the purposes of cycle to work schemes? Are there any areas that you would like to discuss? Get in touch with the policy team, at . n

The team will also look at payroll in practice and will glimpse into what the future of the profession may hold, and

Standard Enrolments close 1 October

Become a qualified professional at the forefront of your industry Enrolments are nowopen for the Autumn 2021 intake of our Foundation Degree in Payroll Management and Foundation Degree in Pensions Administration andManagement Designed for those who wish to thrust their way into the dynamic world of payroll and pensions administration and management, these foundation degrees are the perfect way to gain skills, knowledge and confidence to help boost your career.

Visit for full details.

CPD 20 points


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021


The CIPP's Advisory Service team provides answers to popular questions

Q: A client runs a restaurant and has two employees who will be leaving the business soon. For the majority of last year, both employees were furloughed. As annual leave was not formally requested or granted, is it correct to assume that the annual leave outstanding needs to be paid in full and not at a reduced rate to account for furlough pay? A: Holiday entitlement continues to accrue for employees during periods of furlough, and any untaken holiday entitlement must be paid at the point of termination. The holiday pay must be calculated in accordance with current legislation, as stated in sections 221 to 224 of the Employment Rights Act 1996; see: https:// As both employees were employed for the full annual leave year, they would be entitled to 5.6 weeks holiday pay which must be based on their contractual rate of pay. If the worker is a variable hours’ worker, the holiday pay rate must be based upon the average pay received for hours worked in the previous 52-week period. If for any of those 52 weeks the employee received no pay at all, then an earlier week needs to be used for the calculation. The period that can be looked back to is the preceding 104 weeks. However, if the worker had been flexibly furloughed, the employer could include the figures relating to flexible furloughed hours in the weeks where paid hours were worked. This would ensure that the employee was not disadvantaged by reducing the worker’s average holiday pay for any week where they received pay for both furloughed and working hours.

worth £50 as gratitude for all their efforts during the pandemic. What are the tax and National Insurance contributions (NIC) implications? Is it possible that the cash payment or voucher can be made tax free as there are approximately 10,000 employees? A: The provision of any cash payment or ‘non-cash vouchers’ (NCV) will always incur a tax liability and will ordinarily be subject to class 1 NICs. There is, however, an exemption from NICs where certain vouchers are provided as part of a scheme available to all employees, or to all employees at a specific location (see: for details). For the majority of NCVs, an employer is required to report its value via the P11D return for income tax and collect the class 1 NICs though the payroll at the time the voucher was provided. If an employer is registered to payroll benefits before 6 April 2021, notionally add the cost of the voucher to the employee’s pay for both class 1 NICs and tax. An employer may also apply for a PAYE (pay as you earn) settlement agreement (PSA) and if the agreement is in place by 5 July following the end of the tax year, the employer can then gross up the payments and pay tax on behalf of the employee, but class 1 NICs must still be processed through the payroll. However, any cash payment awarded by the employer must be treated as earnings and processed through payroll for tax and class 1 NICs. Q: If an employee is on a phased return to work after a period of sickness and is working every day but at reduced hours, can we pay statutory sick pay (SSP) to top up their pay? A: To qualify for SSP, an employee must

be off work sick for four calendar days in a row, including weekends. Currently SSP is not payable on any day an employee works, even if they are only in work for a short period of time. Q: An employee has sadly passed away and we are being asked to pay the final payment directly to the ‘next of kin’. Please could you confirm if this can be done and what is the best practice to follow? A: An employer needs to exercise caution and take steps to ensure that any final payments made after an employee has died are only paid to a lawful recipient. We would not advise amending bank details to transfer any final payments without some legal notification to do so. Once informed of a death, banks may freeze accounts, including joint accounts. The final payment is therefore usually made to the employee’s representative or beneficiary. The company would ordinarily request a copy of the death certificate and a copy of the will. If there is no actual will, the administrator or executor of an individual’s estate will normally need to apply to the probate registry for them to grant of letters of administration. However, the employer remains responsible for ensuring any monies outstanding to the deceased employee’s estate is paid over to the most appropriate recipient. (https:// Q: The completion of the P11D returns was outsourced to a payroll bureau that has now advised the cost of the delivery of the fleet’s vehicles to our site needs to be included when calculating the benefit in kind value of the car. Although this information was quite vague, we are now concerned

Q: An employer wishes to give their employees a cash payment or voucher

| Professional in Payroll, Pensions and Reward | September 2021 | Issue 73 10


Policy hub

Holiday pay and leave

A: It really depends on the type of BiKs. For regular benefits such as company cars, HMRC receives the details via the P46(Car) return. HMRC will collect tax in real time through the tax code as there is an anticipation of the ongoing provision of the BIK. When an employer begins to payroll BiKs, steps should be taken to ensure employees do not pay tax on the regular benefits at source through payrolling while still having the benefit in their tax code. Therefore, it is important to agree the benefits that are to be payrolled with HMRC, along with an agreed date to commence payrolling, so that adjustments to the tax codes in respect of regular benefits can be made in time. For ad hoc benefits relating to the previous year, they must be reported to HMRC by 6 July using the P11D return. On receipt, HMRC would adjust the tax code later in the tax year; so, in theory, the person's tax code could change again after July to collect any extra tax due. Q: As an employer, we are very unsure when our computation for PSA needs to be submitted. The guidance is very vague. Please can you advise? A: The employer and HMRC must agree on the types of benefits that will be included in a PSA by 5 July following the end of the tax year in which the benefits were provided. Note that a PSA cannot be retrospectively agreed. Upon receipt of two copies of form P626 from HMRC, the employer must sign, date, and return both copies to HMRC. HMRC will return one of these, which will be the employer’s PSA. An employer can now begin the PSA computation using form PSA1. The CIPP’s advice would be to then ensure all agreed benefits have been captured, and all employee tax thresholds have been established (not forgetting that employees living in Scotland and Wales may have different income tax rates). The appropriate PSA1 computation form should be populated with the data and sent to HMRC as soon as possible. This should then give HMRC enough time to raise any questions relating to the submission before the electronic payment deadline of 22 October (or 19 October, if paying by cheque). For further guidance visit oQ0v30rQ92j. n

that it should be included in the cash equivalent reported in the P11D returns. Should we include the delivery cost even though it does not form part of the list price, nor is it an accessory? A: The law defines the list price as the price of the car before the 'on-the-road' charges are added. It includes standard accessories, any relevant taxes – value added tax, car tax (where appropriate), any customs or excise duty, any tax chargeable as if it were a customs duty – and delivery charges that relate to the sale of the car to a car dealer following manufacture. It does, however, exclude the new car registration fee because it is an administration fee, not a tax. Although the initial delivery charge is included in the manufacturer’s list price, the charges relating to the onward delivery of a company car from a fleet company to a business would not impact the list price of that car. (See: ss 122 & 123 of the Income Tax (Earnings and Pensions) Act 2003,, and HMRC’s guidance: Q: A former employee received a company loan of £15,000 in 2020 but this has still not been repaid. The ex-employee has not made any repayments towards this loan and HMRC has advised this would be a benefit in kind (BIK) and would need to be reported via P11D returns. How would this be reported as P11D returns must not be issued to ex-employees? A: Where a benefit in kind has been provided beyond an employee’s leaving date, the P11D return is not applicable. Employers are required to provide a statement of the benefits provided after termination to both HMRC and the individual concerned by 6 July. The statements can take the form of a letter on company headed paper. Q: An employer has formally agreed with HMRC to begin payrolling benefits from the start of the new tax year, so that tax can be collected at source through the payroll. As the time has come to report the benefits for tax year 2020/21 using P11D returns, we are concerned that the employees will be taxed on two years’ worth of BIKs. How should we inform them of this?

Duration One half day

CPD 3 points

Case law continually produces changes to employees’ statutory holiday leave and pay entitlement, which are covered in this informative course, along with the various types of leave and the calculation of pay.

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| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021


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Payroll for non-payroll professionals


Duration Two half days

CPD 7 points

PAYROLL SERVICE provider, BDO, has appointed Doug Bird as payroll technology manager to assist with the development of their systems and processes on a national scale, due to the rapid growth of client work. Doug has worked in the payroll industry for more than thirty years,

This course gives a high- level overviewof the day to day obligations of the payroll function, including the fundamentals of payroll, statutory and voluntary payments, and deductions.

and has worked in various sectors, including the National Health Service, before moving into implementation and consultancy. He worked for a human resource and payroll software provider for many years. Before joining BDO, Doug used his knowledge of systems and the marketplace to help clients in identifying and sourcing suitable solutions as well as project managing implementation. Doug commented: “I am delighted to be given the opportunity to join a team who not only understand the importance of technology in our industry but use it in innovative ways to aid the team and service of the client.”


IN JULY 2021, Terri Gall MCIPPdip was appointed as head of payroll services at Barts Health NHS Trust. Terri brings a wealth of public sector payroll experience with her, having been part of three NHS Trusts at previous points in her career, where she used an Oracle based HR/payroll system. Terri began her career in payroll back in 1990 at Newcastle University, which gave her exposure to how payroll works within a private sector organisation. Commenting on her new role, Terri said: “It was very evident in my interview that Barts have a real vision for what they want to be and where they want to go, harnessing innovation and deeply caring about the workforce and their wellbeing. I found this very attractive, and from my perspective would allow me to modernise and be at the top of my game, in the largest acute Trust in the country.”

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MAZARS PROMOTES KATIE SHARPE MCIPPDIP THE AUDIT, tax and advisory firm, Mazars, has promoted Katie Sharpe MCIPPdip to the position head of UK payroll. In February 2020, Katie, who is a CIPP board director, was initially appointed as national delivery manager for Mazar’s UK payroll business, before changing roles in July 2021.

PAMELA CORMACK AND KAREN GRIEVE LAUNCH FAMILY PAYROLL LTD THE TWO business partners have created the new company to provide a payroll service for anyone employing staff for any type of paid role within the home such as nanny, carer, cleaner. Pamela, founder of Lothian Childcare Solutions, which specialises in recruiting and providing childcare to families in their homes and workers to nurseries, identified the gap in the market. The service aims to alleviate pressures associated with juggling work and a busy life, plus the additional responsibilities domestic employees can put on families. Karen, a payroll administrator, said: “We’ve both been juggling family and our careers over the years, so we know the value of finding something that can make life just that little bit easier.”


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021


Diary of a student…

Honestly, when I started studying I didn’t realise how much of a change it would make to my lifestyle. I learnt to prioritise daily during term time. I also carried out different tests to confirm my learning style. This helped me set out a realistic study timetable for myself. I negotiated study leave at my workplace, so I was not stressed about exam time and assignment submission dates. What would you say is the most important thing you learnt? The most important thing I learnt was that development is a continuous process. Payroll itself is constantly evolving, so as a professional I am always ready to embrace change and develop and be up to date with current legislation. What did you gain from this qualification – both in terms of skills and also career progression? Career progression – my qualification made me a more desirable candidate for job interviews. I found I was also more confident at interviews and progressed following my qualification. Colleagues, as well as my employer, find me credible, too. I developed strategic and analytical skills that have become useful whilst carrying out projects at work. During my studies my passion for the profession grew, which made me interested in becoming a tutor myself. I have been tutoring for a year now and have found it easy to relate with my students as I was a student myself not too long ago. n

Sunmola AdeyemoMCIPPdip Senior payroll & pensions officer, City, University of London

Tell us a little about your background and life, so far. I was born in the UK and moved to Nigeria with my parents as a child but decided to move back to the UK 22 years ago. I now live in Greater London. My hobbies include trying out new food recipes and singing. I enjoyed trips to the theatre and cinema before the pandemic, but I make do with Netflix these days. I also love spending time with family and friends. What can you tell us about your career and qualifications? On arriving back in the UK, I enrolled on a part-time business studies course at Southbank University whilst working in accounts payable. I was made redundant soon after graduation and started picking up temporary roles in various finance departments via employment agencies. I was assigned to a temporary position on one of these occasions, and thought it was for an accounts payable role, but, on arrival, I found out it was a payroll job. I have not left payroll since, and it has been twelve years. I began as a payroll clerk and worked my way up to the role of payroll specialist, managing multiple payroll runs. This move was prompted by the completion of the Foundation Degree in Payroll.

Why did you choose to study the Foundation Degree? Six years into my payroll career, I was interested in enhancing with studying the experience I had thus far. I looked at the module contents of the Foundation Degree and was convinced it was the way forward for me.

How did you find the qualification?

Although I had working knowledge of some of the modules, there was so much detail I didn’t know. Tutors were easy to interact with, and always ready to support on areas of weakness. Networking with other students as well as sharing experiences was also helpful. What advice would you give to others who are thinking about studying to improve their career? The CIPP’s Foundation Degree is well- rounded and will help individuals improve already acquired skills and gain more while they are at it. So, I would say, go for it! How did you manage the work- life balance and your study? Do you have any tips for others in the same position?

| Professional in Payroll, Pensions and Reward | September 2021 | Issue 73 14

Personal development

The employee experience

Samantha Johnson LLB(Hons) ChMCIPPDip, CIPP policy lead, provides guidance and suggestions on howpayroll professionals can deliver financial education

S eptember beckons and the of school age – learning is crucial in the world of work and takes many forms: training courses and qualifications, learning new skills, keeping abreast of policy and legislative change, and understanding more about workplace processes and culture. A curiosity to learn is part of human nature, and payroll professionals recognise the important part learning plays to remain at the top of their game. new academic year is here, but education is not restricted to those But what part can payroll teams play in educating their colleagues, employer and clients, particularly as they are often at the centre of employee experience? Pay is personal, and payroll sits in a privileged position to support employees in this area. Pay has the power to motivate and demotivate, and for that reason, great customer service has always been an integral part of any successful payroll function. Wellbeing tops the agenda in many organisations, with one in two (55%) earners ( worrying about money. So, can payroll teams extend their remit and provide financial education to improve employee experience? ● Financial awareness – Payroll professionals are skilled individuals, with knowledge that spans tax and employment law. Often, employees and clients do not have an equivalent extent of awareness. There is an opportunity for payroll professionals to use this knowledge to enhance the service they provide. Although, many will err on the side of caution when discussing an individual’s financial affairs, to avoid providing advice, there are many opportunities to signpost employees and clients to information that could ultimately benefit them. In 2021/22, 800,000 individuals ( benefited from the working from home tax relief. If payroll teams make a concerted effort to highlight this and similar schemes, employees could

ensure they claim their entitlement. Eligible employees could see their tax codes changed to reflect the costs of cleaning, repairing, or replacing uniform. Married employees could take advantage of the marriage allowance transfer. Employers who do not pay the maximum allowable tax-free expenses linked to travel, could notify employees about tax relief on the difference. ...can payroll teams extend their remit and provide financial education to improve employee experience? ● Understanding pay – There is a legal requirement to show certain information on pay statements (‘payslips’), including the number of hours worked, and pay, before and after deductions. As payslips are an opportunity to communicate with employees regularly payroll teams can make this a great experience for employees, whilst also educating them. Using appropriate descriptions for pay elements on the payslip is a simple way to improve the transparency of information and reduce queries. Listening to feedback and regularly reviewing existing pay elements can ensure the information presented on payslips is relevant. Research ( suggests most employees now access payslips through digital portals, giving payroll teams more flexibility in sharing information via links to guidance or frequently asked questions. ● Employee control – Pay on demand is a tool that could help improve financial wellbeing, as it enables employees to drawdown earned pay before pay day, offering a viable alternative to pay day

loans, credit cards or overdrafts. Some argue that these tools go too far and perpetuate poor money management rather than promote it. Others are advocates for such products suggesting the control given to the employees helps them financially, and personally – maintaining their dignity when struggling. Many of these platforms also provide budgeting tools, to give individuals more transparency across their income and outgoings. Payroll teams are in a unique position to lead the introduction of this technology. However, any decision to invest in these products should be well researched, with clear objectives implemented and safeguarding steps identified to ensure that the employee impact is a positive one. ● Pensions and savings – Pension advice is a regulated activity, and so payroll professionals must ensure they are not providing such advice to employees or clients when discussing pensions. To encourage positive retirement decisions, including saving the right amount for retirement, employers can pay up to £500 for tax-free pension advice to an employee. Payroll professionals could play a leading role in facilitating this type of financial education, supporting employees by raising awareness with the employer, and investigating from where the budget could come. Save as you earn is another scheme that payroll teams could introduce to help employees save money before they receive their take-home pay. However, payroll teams should remain vigilant to the impact this could have on national minimum wage compliance, following the Iceland Foods case, particularly if the employer maintains the savings account. n Strategic payroll Payroll is continuing to evolve, and professionals should be encouraged to seek opportunities to work strategically and to impact employee experience.


| Professional in Payroll, Pensions and Reward |

Issue 73 | September 2021

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