Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 29 April 2017
Modern employment practices
Minding the gap Reporting gender differences
Blessing or curse? The creation of AI
Less tech, more talk Interaction developments
CIPP update | Policy hub | Professional development
FREE Employment Law advice
We’re offering CIPP members FREE* access to our experienced team of HR & Employment Law subject matter experts (*T&C’s apply). Call the CIPP/Moorepay Employment Law & Advice Helpline quoting CIPP001 on 0845 1844607.
*T&Cs: Telephone advice & guidance only. The service is available from 9am to 5pm Monday to Friday. A Fair Usage Policy applies (maximum of 3 calls on one ongoing HR case).
Payroll & HR Solutions
Unless a tree has borne blossoms in spring, you will vainly look for fruit on it in autumn. Sir Walter Scott (1771–1832)
Editor’s comment
I love spring – more sun, rising temperature, bloom and blossom, and bright/light apparel supplanting dark/ dense garments. But a miserable recurring downside at this
for the Chancellor to extend similar intermediaries rules to the private sector from, say, April 2018. Given the importance of pensions, it would be surprising if there were no savings related pronouncements in tomorrow’s Budget. Could any announcement affect the perceived crisis in pensions (page 37)? Maybe key announcements arising out of the automatic enrolment review will feature in the second 2017 Budget (page 38)? And might the impending changes to salary sacrifice – which were initially signalled in Budget 2016 – beneficially impact pensions savings (page 39)?
The focus for me over the past few months has been looking specifically at how we can bring more people into the CIPP family; either as board directors, fellow, full or associate members or by more people being educated in payroll through our training and qualifications or through our special interest group online forums. At the moment I’m paying particular attention to National Payroll Week, which takes place the first week in September. I’ve been privileged to spend time recently with the Canadian Payroll Association to find out how they celebrate this special week. This year we will be putting a #spotlightonpayroll and launching a new level of membership during National Payroll Week taking place 4–8 September – watch out for more exciting information about time of year, however, is the Budget, which – as I’m writing this on 7 March – is being delivered tomorrow. (Well, okay, Budgets aren’t bad as they help keep us employed.) Thankfully, this particular blight on the delight of spring is being banished as this year the UK moves timing of delivery to the autumn. You’ll find four articles in the payroll insight section covering imminent or potential changes that arise to some extent out of earlier Budgets: salary sacrifice (page 18), modern employment practices (page 14), sickness absence ideas (page 20), and intermediaries in the public sector (page 16). One announcement tomorrow (or in the autumn Budget) that I imagine could well cause chaos and perhaps uproar would be
Mike Nicholas MCIPP AMBCS Editor
Chair’s message
this over the coming months – and I’ll be working with the team to tell the world how incredibly special payroll people are, and what an important role payroll plays in every company. There are lots of things coming up over the next few months in the payroll calendar, and I’m asking all our members and readers to continue doing the fabulous job you are already doing. Keep up with your learning, keep logging your continuing professional development, and think about what more you might like to do to further your own personal development and your career.
Eira Hammond FCIPPdip Chair, CIPP
So here I am, six months in as your CEO and the time has just flown by. Do I have a mid-term report? I’ve CEO’s message
to set our vision, plans and direction to get us to that place where we start to become world class. Many of you recently completed our market insight survey and that contribution has helped us focus in areas you have identified. In addition, with the full support and agreement of the board, we are seeking to become more inclusive with any organisation, company or consultancy engaged in promoting payroll in UK plc and I have started discussions with many of these, large and small, to ensure we are a collaborative voice.
had chance to review all areas of our operations within the CIPP to ensure we are able to act as a standard bearer in payroll,
pensions and reward for all our members, and the industry, at all levels in the UK. And it’s fair to say our portfolio of services range from excellent to, perhaps, needs improvement. I want all our members (and non-members who participate) to feel that their training, qualifications and membership, as well as attendance at forums and conferences, is world class quality. So, how are we doing? There have been changes to our management and administration functions and during April the management team and I are hosting a strategy day with the board
Ken Pullar FCIPP Chief executive officer, CIPP
1
| Professional in Payroll, Pensions and Reward |
Issue 29 | April 2017
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
April 2017
31
Minding the gap
Hannah Pryce outlines gender pay gap reporting requirements
Features
18
14
16
Intermediaries in the public sector John Harling explains changes from 6 April
Modern employment practices Helen Harvey discusses the Taylor review
Salary sacrifice Jas Jhooty outlines the imminent changes
20
38
37
Flexing SSP Samantha Mann discusses the role of SSP and new ideas
Are pensions in crisis? Henry Tapper says no and argues the contrary
Automatic enrolment review Stuart Price gives his thoughts
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 2
39
41
Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Gumery design@cipp.org.uk Printing Warwick Printing Company Ltd
iPads out, pensions in Darren Hedgley argues changes may benefit pensions savings
Blessing or curse? Doug Sawers gauges the impact of AI
42
43
Chief executive Ken Pullar FCIPP CIPP board of directors
Giving your financial processes a spring clean Adam Reynolds identifies a great opportunity ahead
Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT
Less tech, more talk Ally Johns reviews AI developments
45
46
Useful contacts Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1013 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries
Pay – it’s what we go to work for Lisa Gillespie outlines why accuracy affects household finances
Successful payroll implementation Sandra Walker provides tips
Regulars
29 Reward insight 36 Pensions insight
01 Editor’s comment,
and Chair’s and CEO’s message Events, news and developments
Employment law cases, redundancy and alternatives
04 Membership insight On your behalf, Advisory, Five minutes with, Election to CIPP board 10 Professional development Diary of a student 11 CIPP update PAS accreditation, NPW 2017 – #spotlightonpayroll, Payroll Complexity Index 2017
The Pensions Regulator
40 Pensions news 41 Technology insight 45 Feature articles 47 Confessions of a payroll manager Additional content in the online version: 30 The 2017 Modern Families Index 25 Dancing around the new joiner question 29 Reward news
info@cipp.org.uk 0121 712 1000
cipp.org.uk @cipp_uk
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2017. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
13 Payroll news 14 Payroll insight 26 Events Horizon
3
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update
Making Tax Digital Forum At the end of January 2017, and following extensive consultation with more than 3,000 responses, HM Revenue & Customs (HMRC) issued in-depth detail on digitising the tax system. Alongside draft legislation HMRC published its responses to the six consultation documents issued in August 2016; contrary to many of the headlines in the media HMRC say they have heard a lot of positive feedback. The second meeting of the Making Tax Digital Forum (MTD Forum) was held in February and CIPP’s senior policy and research officer, Samantha Mann, attended. The aim is that the group will be an effective forum for HMRC to explain and explore implications of potential changes to policies, products and processes relating to MTD, and provide an opportunity for early review of guidance and information to make sure processes are clearly explained so that customers understand what is required of them. The MTD Forum will reflect the internal HMRC organisation of the MTD programme and, in recognition of the differing stakeholder priorities, separate time will be allocated to changes relating to individuals and those relating to businesses. ● Dynamic coding – Under discussion once again was the fact that from 2017–18, HMRC will be using real time data to make automatic adjustments to pay as you earn (PAYE) tax codes as they happen. As we all know, the current process is that any underpayment of tax that remains owing at the end of the tax year can either be
coded out by way of an adjustment to the following year tax code, or be paid in full by the tax payer/s. ...increase in employee enquiries relating to tax code changes as customers get used to this change From April 2017, HMRC will be looking to the data that has been submitted using the full payment submission (FPS) returns by employers and pension companies and assessing during the tax year whether an individual may be on target to owe a balance at the close of the tax year. Where this happens, HMRC will amend their tax code to make that collection before and not after it arises. The article ‘Paying the right amount of tax’ has been included in the February 2017 issue of Employer Bulletin (http://bit.ly/2lj4GU7). Members of the MTD Forum raised concerns about the impact of coding out double underpayments. For example, what about the effect on the vulnerable/low paid of receiving a letter or coding notice and the hardship and distress this may cause. People not reading the letter or the coding notice may only realise there is a problem when their pay suddenly reduces. Could an individual ask to have coding out of a
second underpayment deferred? It is acknowledged that, in the short-term, employers may receive an increase in employee enquiries relating to tax code changes as customers get used to this change. Coming out of the MTD consultation paper Transforming the tax system through the better use of information (http://bit. ly/2cwLHia) the aim is for HMRC to make better use of information that is being submitted by third parties and remove the need for the customer to have to report to HMRC information that it already holds. A win-win all-round? Your views as ever would be welcomed to the team at policy@cipp. org.uk . ● Personal tax account – The personal tax account (PTA) (www.gov.uk/personal- tax-account) is seen to be the priority resource for employees to see all the information that HMRC holds about them. It includes, for example, their tax code and how it is calculated, information on tax credits, National Insurance contributions, state pension, company car and marriage allowance; and further services are being added all the time. The ultimate aim is that
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 4
Policy hub
Consult Choosing the wrong payroll software provider can be a costly mistake
the more employees understand and have some control over their tax affairs, the less they will query any anomalies with their payroll department. At the time of writing, HMRC was creating support packs and webinars to help employers and employees through the new real time PAYE change. The Employer Bulletin will contain further details and we will of course publish any new information through News On Line . ● Agents – A bone of contention within the payroll industry is the ongoing inability of agents to access client information and to carry out tasks on behalf of clients. It was pointed out again at the MTD Forum that this goes against information in HMRC’s Your Charter (http://bit.ly/1ni9sPh) and the right to appoint an agent and have HMRC deal with that agent. It is hoped that HMRC’s Agent Services will attend a future meeting. ...whether you have brought a call to an HMRC helpline to an end before connecting to an adviser CIPP quick polls A member recently asked the policy team what we do with the quick poll information we collect. In providing some of the reasons we have for using the quick polls, this in turn answers what we do with the results. ● Informal consultation research – An example is the November 2016 poll where we asked if you include the number of hours paid for on a pay slip if the employee is hourly paid. We asked this question because a report from the Low Pay Commission (LPC) recommended (not for the first time) that the government consider requiring that payslips of hourly- paid workers should include the number of hours for which they are being paid. We have fed back the data we received to the LPC for consideration if the subject is consulted on further. ● Awareness – Where we have an indication that a legislative change or new requirement is not quite where it should be on an employer’s/payroll department’s agenda, we ask the question to increase
awareness; e.g. the gender pay gap. In a poll in May 2016 we asked if you were ready for reporting requirements from October 2016 (if applies to those employers with 250+ employees). Results showed that 35% of the 144 respondents were not aware of the requirement. We could then do a follow up news piece/ article/webcast/presentation to raise awareness. Just asking the question raises awareness. ● Policy Think Tanks – In advance of some of our Think Tanks, we may want a piece of information such as how many members operate a salary sacrifice scheme. This was a poll we ran at the beginning of 2016 and showed 88% of respondents do operate a scheme. ● Member feedback – Some of you may remember the emotive question we asked in May 2015 as to whether you have brought a call to an HMRC helpline to an end before connecting to an adviser. We asked this as so many members tell us about their issues. Well, as 91% said they had ended a call this led to a more in-depth survey in conjunction with HMRC and to follow-up surveys to measure improvements. We sometimes receive requests from members to ask a question. A recent one being the IR35 poll we ran in December 2015/January 2016. This was asking how public sector employers are planning on processing IR35 workers when the way the intermediaries legislation is applied to off- payroll working changes from 6 April 2017. ● Snapshot – These quick polls are only one question which is limited in length, as are the answers and the number available. The poll results show only a snapshot from those who chose to respond. There is no real detail received from these questions; however, they can be very useful for seeing a particular trend at a particular time or for getting an indication of how wide-spread an issue may be or simply to gauge an interest in a topic. Most of the results are incorporated into news items but there will be some that we don’t necessarily share at the time if they are for research that is currently confidential. All the results we have published can be accessed through our Policy News Journal under the quick polls section. n If you would like to take part in our latest poll it is situated to the right of all of our news items on the CIPP website.
CIPP Consult offers independent and impartial advice on software selection and implementation to help your organisation make the right choice.
Call 0121 712 1000 to discuss your requirements or visit cipp.org.uk for more information.
cipp.org.uk @CIPP_UK
5
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
on a non-banking day we change the pay date reported in the full payment submission (FPS). This has resulted in some employees experiencing difficulties in the amount of universal credits they receive. We have been told that we should not change the pay day reported in the FPS if the pay day falls on a weekend or other non-banking date, and that this would solve the problem. We are concerned whether this would be compliant. Can you please advise? A: In 2013, employers started to report (in real time) earnings data and personal information for their employees. This real time reporting was mainly driven by the introduction of the new state benefit, universal credit. Since these changes under real time information (RTI), pay as you earn schemes are now required to send information about income and personal circumstances to HMRC ‘on or before’ the date that each individual is paid. Though you are aware that you are required to submit FPS returns on or before the date of payment, which you do, there are however certain times when your client’s payment dates are brought forward (normally if the pay date falls on a non-banking day), and this in turn is leading to issues with the DWP and universal credit payment. Namely, the date of payment does not correspond with the DWP’s accounting period, meaning that the employee is seen to be receiving two payments in the one assessment period. This in turn impacts on the amount of universal credit the employee is entitled to. It goes without saying that due to the types of employees and their level of earnings, this can cause some additional hardship. In order to help you remain compliant and also help the client deal with this issue in the best way possible for their employees you should utilise the easement which is allowed when a payment is due on a non-banking day (e.g. weekend or bank holiday). To apply the easement, you would do the following. ● leave the payment date as the regular payment date ● process the BACS payment to credit on the closest available banking day ● submit the FPS, ensuring that you select late reporting reason G – reasonable excuse.
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m.
to 4.30p.m. on Fridays. It is free to all CIPP members * , students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk for frequently asked questions.
Advisory
*please see summary at cippmembership.org.uk for details.
Q: An employee requested one week of statutory paternity leave (SPL) and statutory paternity pay (SPP) but during the week’s SPL he worked a shift. How does this affect his entitlement to SPP? I can’t seem to find anything in the guidance. A: Yes, it will affect the employee’s SPP. If the employee comes into work within the period of the seven (or fourteen) calendar days of the SPL week (or weeks), it will mean that the employer cannot pay SPP to the employee. This directly links to form SPP1 which you would use to inform the employee that you cannot pay him SPP: https://goo. gl/Bvytn0. The reason you would choose is the one entitled ‘you worked on’, which explains to the employee that you cannot pay him SPP as he worked during the SPL week. business miles travelled (under and over 10,000 in a tax year) is 20p though this is only payable for business miles and not for the home to work commute. We apologise for the confusion caused and would like to thank members for drawing this to our attention. Erratum An answer written in response to a question featured in the Advisory article of the March issue (see page 9) included an error. Approved mileage rates are published by HMRC via GOV.UK and different rates are set for cars and vans, for motorcycles and for bicycles. They can be used to reimburse an employee for miles travelled in the course of business using their own vehicle. The current rate for bicycles for all
Q: An employee is taking two week’s SPL. Company policy allows the employee to receive occupational paternity pay (OPP) which equates to full pay. Usually, SPP would be offset against OPP; for example, based on the employee being entitled to £800.00 full pay per week, he or she would be entitled to £139.58 SPP with £660.42 being OPP. We are unsure what should be paid if the employee doesn’t qualify for SPP but we still pay full pay (as per company policy). How does the Department for Work and Pensions (DWP) know the employee would be entitled to and in fact receive OPP? Should we deduct an amount equal to the SPP of £139.58, and only pay £660.42 so the employee can claim SPP from the DWP? A: When an employee is not entitled to SPP there is no other statutory payment available. Potentially the employee may be able to make a claim for some other social security benefit, but it would be the employee’s responsibility to declare any income they receive from their employer to DWP. The employer would not be able to reduce the OPP for anything other than SPP, unless there was provision for that in the employment contract and the company’s paternity pay scheme. If the employer made a deduction without a provision that could mean that the deduction would be illegal. Q: A client’s employees are having problems with universal credits. When we pay early because pay day falls
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 6
Become a strategic business leader with this qualification, covering: Enhanced leadership Managing change Project management Finance for professionals Applied Business and Management Lead with confidence with the CIPP BA (Hons) in
Policy hub
one used as the leave date by the old provider)? A: If the PAYE scheme has to change because the bureau had pooled two or more distinct payrolls, then the bureau will need to inform HMRC via the FPS that the
This will ensure both that you remain compliant and that your client’s employees are not disadvantaged by the movement of the actual payment date. The GOV.UK website provides information on when an employer can send a late FPS which can be accessed here: https://goo. gl/5LbiH8. Q: What is the National Insurance contributions (NICs) treatment for invigilators and where would guidance be found on GOV.UK website as I understand it changed recently? A: HM Revenue & Customs (HMRC) changed the treatment for these individuals in 2014 and therefore it depends on whether the individuals would be considered as self-employed or not. If they are classed as self-employed then Class 2 NICs are due. The guidance can be found on GOV.UK website at the links shown below. If the invigilator is considered an employee, then they are Q: I have a query relating to pensioner payroll and RTI and what we need to report if we take over a new payroll. For a lot of the schemes that we win as new business, we have to set up a new pay as you earn (PAYE) account because many of the larger providers hold a generic PAYE reference for all of their payrolls regardless of the client, pension scheme etc. Prior to RTI, when we created a new reference, the only difference to a ‘true’ starter was that we would advise the transfer date on a P46(Pen) pension starter form (as opposed to their original start date) and put an indicator to show the pensioner was not having a P46(Pen) submitted due to bereavement. However, under RTI you do not send starter declaration for a pensioner. Would you be able to clarify the process we should follow when we need to transfer records from one PAYE scheme to another? Do we need a starter declaration and if so what do we use? And what start date should we advise; (we have always previously used the next consecutive date to the liable for Class 1 NICs. ● https://goo.gl/T7biKZ ● https://goo.gl/7rGwLQ ● https://goo.gl/x17QI7 ● https://goo.gl/8EKp10
BA (Hons) in Applied Business and Management employee has left that PAYE scheme. The new bureau would set up the pensioner on the new payroll using the P45 information. Where the tax code is operated on the cumulative basis, you have to use previous pay and tax from the old PAYE scheme; non-cumulative tax codes would not need previous pay or tax. The starter declaration would not be appropriate in this circumstance as the pensioner is effectively receiving their pension from the same source, just the PAYE scheme is changing. This direct link to GOV.UK advises that you do not run the new pension payroll until you have finalised the old one: https://goo.gl/LH9NLu. Please refer to ‘moving pension recipients from one payroll to another’. Q: We engage with building contractors directly; for the purpose of the
construction industry scheme (CIS) some are paid gross and some are paid net. Will any of the companies, which are limited companies now, come under the off-payroll working legislation, and does the reporting and PAYE/NICs calculation that we would have to do supersede any CIS reporting? A: Once the appropriate checks have been processed and if the building contractor is deemed to be subject to chapter 10 of the Income Tax (Earnings and Pension) Act 2003, off-payroll working will take precedence over the CIS regulations. For clarification please refer to this link to GOV.UK website: https://goo. gl/IlGzFP. n
Delivered in conjunction with
Enrol now at cippqualifications.org.uk or email info@cipp.org.uk for more information
cipp.org.uk @CIPP_UK
7
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
Eira Hammond, CIPP’s chair, encourages members to consider standing Election to CIPP board
I mentioned in my chair’s message in the March issue of Professional about how important it is for the CIPP to engage and lead our members in new and different ways to promote payroll and the role of the CIPP and, in particular, getting members to consider putting themselves forward to the CIPP appointment’s committee to request standing for election to the CIPP board of directors at the next annual general meeting (AGM) in December 2017. To encourage you to consider standing for election, I am going to tell you about my history with the CIPP. I first became associated with the Institute in 2000 when I commenced the Diploma in Payroll Management (now the Foundation Degree in Payroll Management). There have been lots of changes, not least the name of the Institute and achievement of the Royal Charter making us the Chartered Institute of Payroll Professionals. Along with these changes I have personally grown with the Institute, starting in 2002 as a tutor for the Diploma in Payroll Management and in 2008 when elected to the CIPP board. It was one of the proudest moments in my career of over thirty years when, in November 2016, I stood on the stage at the Birmingham Symphony Hall as chair of the CIPP and presented hundreds of certificates to payroll and pensions professionals who had given their time, energy and knowledge in order to achieve their qualification, graduate and have the honour to use the professional letters MCIPPdip after their name. I had no way of knowing, when receiving my own graduation certificate, that continuing my association with the Institute and becoming a Full CIPP member would change my career. I have gained more through the last seventeen years than I could have ever imagined. The experience, fellowship, relationships and knowledge
have been unbelievable and I would urge any of you considering volunteering your time to the CIPP, in whatever capacity, that you won’t regret it.
reading the papers beforehand; adhering to the agenda items; and contributing to discussions for the development of the CIPP rather than for personal objectives/gain ● working constructively as part of a team, both on the board and for the CIPP as a whole ● representing the board at CIPP events and other membership meetings. There are a range of skills and qualities that would be expected from each board director including: ● knowledge and understanding of the objectives and range of activities of the CIPP ● ability to think, and act, at a strategic level ● analytical understanding and a logical approach to problem solving ● ability to promote the CIPP internally and externally in a positive and constructive way ● specific skills to enhance professionalism ● ability to communicate ideas and views effectively. The call for applications will be published in an upcoming issue of Professional magazine and online through News On Line . The appointments committee will review all applications and those who do not have conflicting interests and are therefore suitable candidates for the board will be published with the voting papers ahead of the AGM on 5 December 2017. If you’d like to discuss any of the above in any more detail, I’m sure any of our current board members will be happy to have a conversation with you; or feel free to contact me directly at eira.hammond@ cipp.org.uk and I’ll be delighted to discuss fully. n The CIPP’s mission statement: “Leading payroll and pension professionals through education, membership and recognition.”
...you won’t regret it
Having said that, I feel in order to get you to consider whether serving on the board is an appropriate step to take, as it was for me, it is only fair to provide further information about what standing for election and serving might mean. There is a role specification available by contacting info@cipp.org.uk , which explains in detail what a board director’s responsibilities are, but I’d like to summarise some key points so you have all the facts to support your decision. The role involves a time commitment to four quarterly board meetings, plus occasional ad hoc meetings throughout the year, as well as representation at a number of CIPP events and conferences. Over a year, the total commitment can be expected to be around eight to twelve days for a period of four years, but directors can stand for re-election. As a member of the board, the range of responsibilities include: ● ensuring that the CIPP upholds and pursues the mission statement and values ● making proposals to develop strategy and policy in the interests of the profession as a whole ● representing the CIPP’s policies and views in a positive way to external audiences ● communicating with the membership, representing the views and policies of the CIPP and bringing issues back to the board thus acting as a source of information to membership views ● taking responsibility for addressing the items that appear on the board agenda by:
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 8
Policy hub
Covering a comprehensive range of topics, the Foundation Degree in Payroll Management offers students a work-based learning experience to gain knowledge, understanding and confidence in their role, and provide a fundamental grounding in payroll administration. Foundation Degree in Payroll Management Join over 15,000 qualified payroll professionals in the UK
Shirley Harris MSC, FCIPPdip Head of HR and payroll, CIPP 5 minutes with…
Tell us about your career and background When I moved back to Birmingham from Hampshire in 1995 I decided I wanted a complete career change. I thought working in finance would be a great job and in 1996 I was given the opportunity to work in an administration role in payroll. When did you first become involved with the CIPP? I am the human resources (HR) and payroll manager for the CIPP, having joined the CIPP in 2004 on completion of the Association of Accounting Technician’s qualification Level 4. The CIPP required me to develop the role of the payroll department, and was given a chance to study the CIPP Diploma in Payroll (now the Foundation Degree in Payroll management) which enabled me to further my career and provide the CIPP with a good service. My main role with the CIPP was finance and payroll administrator. I was promoted to team leader and continued to develop my role and position within the CIPP. I completed the Master’s Degree in Payroll and Business Management in 2012 (now known as the Msc in Business and Reward Management) and received my MSc in January 2013. I am very proud of this achievement and grateful to the CIPP for the support they have given me throughout my learning and development in academic qualifications and for helping me to develop my role within the organisation. I was promoted to HR and finance manager in 2012 and began to develop my HR skills and successfully completed the Chartered Institute of Personnel and Development’s
intermediate certificate in HR. I have now been head of HR and payroll for the CIPP since 2015. How does payroll and HR fit with the overall CIPP strategy and vision? A driver for the CIPP is to continue to increase the efficiency and effectiveness of payroll-related legislation. Compliance and paying employees correctly and on time have always been the key drivers for any payroll department, which is no different for the CIPP. Recruiting and retaining the best and most talented employees who can be trained and developed with the necessary skills and experience is important to the CIPP. This will achieve the goals of the payroll and HR function and assist the CIPP to continue to be a financially viable organisation through skilled and dedicated employees. What does the future hold for the future of payroll, pensions and reward? The payroll department has more and more responsibility to collect tax and administer pension deductions on behalf of the government. I see the payroll duties increasing in the future especially given that there is now currently an option to put benefits in kind through the payroll. What do you do in your available time to unwind? I like to go to the gym to unwind after work. I love watching movies either at home or at the cinema and love to look after my grandson. I even like to take my son’s dog for a walk on the odd occasion. n
Delivered in conjunction with:
Enrol now at cippqualifications.org.uk or email info@cipp.org.uk for more information
cipp.org.uk @CIPP_UK
9
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
PROFESSIONAL DEVELOPMENT INSIGHT
Nicola Stanton FCIPPdip Payroll manager, Game Retail UK Ltd Diary of a student…
I knew the dissertation would be a hard slog, six months with no break, so I kept to the countdown calendar. My final grade was a 2:1 and I am the first in my immediate family to attain a degree. They are so proud of me and I will treasure my time studying interesting and reflective modules. I learned more about myself than of payroll and management. How important is this degree in relation to your future career? Very. The BA has provided me with a skill set that I use now and in my future career. As an example, project management, finance, leadership and change management are all of the modules I passed and help every single day in my job. Also, my dissertation subject was about auto-enrolment and age diversity in the work force. Age diversity is a fascinating subject, especially as in my previous role my work colleague was over the age of retirement and now, in my new role, I’m one of the oldest. How do you cope with work- life balance and study? This is a tough one. I wanted to push myself for the best possible grades I could get for each assignment. I studied three evenings per week and six hours a day on weekends. I seemed to eat, sleep and dream about my assignment. I thought to myself that it is only for eighteen months, and almost put my life on hold. You hear all sorts of stories how people have got through the course; my own is just one. I kept to a strict deadline and celebrated each and every stage. I got a month off after each module before the next one started, which gave me family time. My grades gave me inspiration, knowing my hard work was paying off. n
Can you give us an insight into your career and qualifications background? I joined a bank straight from school in 1988 which provided me with essential organisational skills. After my two children I wanted a job that fitted around childcare and I joined Surrey County Council. I absolutely hated the first week but found myself there eight years later and promoted to a senior payroll officer. My team leader provided me with inspiration for my management style; she was professional, easy going and so knowledgeable and laughed in the face of crisis with her great sense of humour. I moved to a private company in 2005, which gave me further insight into payroll and aspirations. I knew that to further my career I had to gain a qualification. CIPP were my first choice as their Foundation Degree in Payroll Management was the benchmark. My first mark for my assignment was a grade C+ in my second year and my final mark was an A+ in my third year, a massive achievement for myself and something I thought I’d never top. The course not only provided me with management skills but also the confidence to argue my case and to influence decisions that I would once back off from. So, after a three-year break, I started the BA (Hons) Applied Business and Management as I wanted to stand out from the crowd. Only a few people achieve this degree each year and I wanted to prove to myself that I could achieve not only a Foundation degree but also a BA in payroll. I knew that
alongside my full-time job this would be difficult but achievable with the help of family and friends. After completion in 2016 I successfully applied for my current position; my qualification and gained confidence landed me the role. With module one completed, how do you think you did and was it what you expected? Module one was change management. I very much enjoyed this module and use the models l learned every time there is a change with my job. In my BA I used the same formula and format I used from my Foundation Degree. This served me well and my first mark was 83%, a first. I was over the moon and this definitely provided me with confidence in my ability to complete my degree. My family were very proud and this reinforced my choice in starting the course. How did you see the rest of the course working out and were you getting used to making it part of your routine? I had a one-month break after handing in my first assignment but I was absolutely looking forward to my second and raring to go. I created a ‘count down’ calendar and after each section celebrated with a glass of bubbly. We usually went on holiday after each module, and looked forward to this more than handing in my assignment. Happy memories with hard work. I made a very good friend on the course and we supported each other a lot; Karen Beckett passed her course also and was a fantastic student help for me.
| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 10
CIPP update
CIPP update
PAS accreditation Domestic and General have taken the worry out of payroll through re-accreditation of CIPP’s Payroll Assurance Scheme (PAS). Specialising in
NPW 2017 – #spotlightonpayroll The theme for CIPPs National Payroll Week 2017 has been confirmed as spotlight on payroll (#spotlightonpayroll) which recognises the valuable role that payroll plays both within organisations and the UK economy as a whole. National Payroll Week takes
place 4–8 September 2017, and the CIPP is encouraging
protecting appliances and electrical good, it seems fitting that Domestic and General also protect their payroll service through the PAS which provides payroll departments with assurance that its payroll and associated processes are fit for purpose and comply with government legislation. It also ensures that it has the right payroll activities in place and suitable processes are in place for picking up and preparing for legislative changes. Rebecca Mothersill, payroll manager at Domestic and General commented on their recent accreditation: “It’s wonderful to be re-accredited. It’s good to know that we are still at the top of our game not just in our processes but also in our attitude towards keeping up to speed with new legislation. Our business always strives to be the best in their field, and my team are no exception.” Ken Pullar, chief executive officer of the CIPP, said: “We are thrilled that Domestic and General has continued to demonstrate commitment to compliance and best practice standards in payroll. It is imperative that organisations comply with government legislation and the CIPP Payroll Assurance Scheme is designed to help companies do just that.”
members to use the #spotlightonpayroll on Twitter to raise the profile of your payroll manager and/or teams. You can find out more by visiting the events section on our website cipp.org.uk . We also encourage you to nominate your payroll professionals and teams for the CIPP Annual Excellence Awards and really demonstrate the value that they have within your organisation. Nominations are now open and there are new categories for 2017, including the ‘my biggest influence award’ designed to recognise individuals who have supported you throughout your career. So nominate before 11 August 2017 and make sure that you shine a #spotlightonpayroll.
CIPP working with NGA to create Payroll Complexity Index 2017
The CIPP has agreed to work with NGA to create the Payroll Complexity Index 2017 . During March, the survey was distributed to members of the CIPP, American Payroll Association, Global Payroll Management Institute and clients of NGA across the globe to help better understand the unique complexities of payroll legislation in most countries around the world. Those who participated following the email invitation will receive early and free access to the Payroll Complexity Index 2017 when it is available in May. In addition, the CIPP will provide a report on the findings to members via News On Line and a later issue of Professional in Payroll, Pensions and Reward magazine.
In the last five years, since the first Payroll Complexity Index was published, the valued input of global payroll professionals to this survey has led NGA Human Resources (formerly NorthgateArinso) and its technology partners, to develop solutions – on premise and managed in the cloud – that best support payroll teams in their daily efforts to support, secure, and troubleshoot the complexities of global payroll. The CIPP is pleased to be working with NGA this year so that we can use the findings to help us in continuing to improve the support and guidance we can provide to our members, either indirectly or through working with others within the industry.
11
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
Choose your workshops and create your own programme based on your learning and development needs Learn about the forthcoming changes to payroll and pensions legislation Have the opportunity to hear from, and ask questions of, industry ‘experts’ Network with other payroll and pension professionals Find out what new services the CIPP is working on and which consultations we are attending on your behalf Attend the prestigious Annual Excellence Awards 2017 The CIPP’s Annual Conference & Exhibition 2017 4–5 October | Celtic Manor Resort, Wales P P P P P P BOOKINGS OPEN
For the latest announcements relating to the annual conference follow us on Twitter
@CIPP_UK #cippace17
Full programme now available at cipp.org.uk
SESSIONS INCLUDE: l Devolution and Brexit and the impact on payroll l The latest from The Pensions Regulator l Global terrorism l Money Laundering Regulations
l Update on benefits in kind l Managing communications between payroll and pension providers l Utilising gender pay gap data l Global strategic management
Book your place before 30 June 2017 to get the early bird rate * of £800+VAT for members or £1,000+VAT for non members Accommodation sold out in 2016 so make sure that you book early to avoid disappointment, visit cipp.org.uk or email events@cipp.org.uk for more information. FORMAT CHANGE: The conference will now begin on Wednesday afternoon with registration, workshops and an evening networking buffet. Workshops will continue throughout Thursday and the CIPP’s Annual Excellence Awards will close conference on Thursday evening.
*member rates are only applicable to paid associate, full and fellow members of the CIPP when quoting your membership number at booking, no other discounts can be applied.
* Rates above include two night’s accommodation on 4 and 5 October. Visit cipp.org.uk for more information.
Thank you to our conference and award sponsors
Main conference sponsor
PORTFOLIO PAYROLL LTD
12 | Professional in Payroll, Pensions and Reward | April 2017 | Issue 29
Payroll news
Payroll news
Advisory fuel rates THE ADVISORY fuel rates changed with effect 1 March 2017 and apply, until further notice, to all journeys made on or after this date. For one month from the
Employment law statutory limits THE STATUTORY limits, which apply to certain awards of employment tribunals and to other amounts payable under employment legislation in Great Britain (excluding Northern Ireland), will increase with effect 6 April 2017 by virtue of The Employment Rights (Increase of Limits) Order 2017 (SI 2017/175).
Engine size
Petrol
Diesel
LPG
11p
9p
7p
Up to 1400cc
9p
1401cc to 1600cc
14p
9p
11p
1601cc to 2000cc
22p 13p
14p
Over 2000cc
date of change, employers could choose to use either the previous or revised rates. Employers may therefore make or require supplementary payments if they so wish, but are under no obligation to do either. Negative taxable earnings SECTION 128 of the Income Tax Act 2007 (ITA) enables a person who is in employment or holds an office in a tax year to make a claim for employment loss relief against general income. Section 11 (3) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA) explains that loss relief may be available under section 128 ITA in particular circumstances such as where taxable earnings minus deductions from earnings is negative. Generally, the result is treated as nil. A taxpayer, Julian Martin, received a signing bonus from his employer in consideration for agreeing a new contract of employment which reflected the employer’s wish for him to remain with the company for a further period of at least five years. The contractual terms included a provision which required that, in certain circumstances, such as the early termination of the contract, Mr Martin repay an amount to his employer. Such forfeiture or clawback clauses may feature in remuneration policies in the form of a requirement to repay signing-on bonuses, training fees or termination payments, resulting in situations similar to that which arose in Mr Martin’s case. Application of the contractual provision lead to Mr Martin having negative taxable earnings in a tax year. The Upper Tribunal judge construed ‘negative taxable earnings’ to refer to an item – typically a payment by an employee to his employer – which is brought into account in computing the total amount of earnings in accordance with the formula contained within section 11 (1) ITEPA. As a consequence of this decision, HMRC have introduced new guidance on the concept and definition of negative earnings along with practical examples, which can be found in the Employment Income Manual (http://bit.ly/2m9kc5y).
Great Britain
Subject of provision
Limit on amount of guarantee payment payable to an employee in respect of any day
£27.00
Maximum amount of a ‘week’s pay’ for the purpose of calculating
£489.00
basic or additional award of compensation for unfair dismissal or redundancy payment
And briefly… ● P9X(2017) – This form, which sets out procedures on tax codes employers are to use from 6 April 2017, can be found at: http://bit.ly/2mAYfd1. ● 480 guide – The Expenses and benefits A tax guide , which has been updated for tax year 2017–18, can be found at http://bit.ly/2m8IiO3. ● Apprenticeship levy – HMRC has added the Apprenticeship Levy Manual to its range of staff guidance (http://bit. ly/2mplES8). ● New £1 coins – A twelve-sided £1 coin enters circulation on 28 March 2017. The existing £1 coin ceases to be valid tender from 15 October 2017. Visit www. thenewpoundcoin.com for information. ● Statutory pay tables – The tables for linking periods of incapacity for purposes of statutory sick pay and for determining entitlement to statutory maternity/ paternity/adoption leave and pay, can be found at http://bit.ly/1Eb0ZVu. ● Employer Bulletin – HMRC has published issue 64 (http://bit.ly/2lbt0ao)/. ● Voluntary payrolling – Regulations have been laid to extend voluntary payrolling for tax year 2017–18 to include non-cash vouchers and credit tokens.
Diary dates
Automatic enrolment staging date for: (a) employers with fewer than thirty employees with either the last two characters in their PAYE reference number: 84–91, 93–99 or unless otherwise described; and (b) employers that do not have a PAYE scheme
1 April
5 April
Last day of tax month 12 and tax year 2016–17
6 April
First day of tax month 1 and tax year 2017–18
Last day for submitting a real time information employer payment summary to apply to tax month 12 of 2016–17 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 Automatic enrolment staging date for new employers where PAYE income first payable between 1 April 2012 and 31 March 2013
19 April
22 April
1 May
13
Issue 29 | April 2017
| Professional in Payroll, Pensions and Reward |
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55Made with FlippingBook - Online catalogs