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Editor’s
comment
Welcome to the first issue of Professional for 2023. I hope you’ve all managed to have a break over the festive period and are now feeling refreshed and ready for a new year of
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payroll challenges and adventures. This issue centres on the topic of payroll apprenticeships, as we celebrate
National Apprenticeship Week, between 6 and12 February 2023. These apprenticeships give individuals the opportunity to ‘earn while they learn’ and there are currently two payroll apprenticeships on offer: l the Level 3 Payroll Administrator apprenticeship l the Level 5 Assistant Payroll Manager apprenticeship. This issue’s hot topic, of course, centres on celebrating payroll apprenticeships, and includes testimonies from those who’ve either completed, or are currently in the process of completing, a payroll apprenticeship. Ensure you flick to page 56 to hear their stories. Our feature article (page 36) also focusses on apprenticeships, but from the perspective of those working at training providers and end point assessment organisations. Although we’re only in February, we all know the new tax year will soon be upon us. Discover what preparations software developers must make and the challenges they face ahead of this, on page 32. I hear so many conversations regarding different working practices and how they have shifted following the pandemic. Read about how you can make homeworking work for you, on page 16, if you’re in a position where you work from home full time or have adopted more of a hybrid working pattern. There’s also important guidance for employers on the issue of tackling workplace conflict on page 46, whether their staff work from home, from a workplace or a mixture of both. I hope you enjoy this issue, and I can’t wait to see some of you at our BeConnected sessions, running throughout February and March. Lora Murphy ACIPP (editor@cipp.org.uk) Editor
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36
46
16 - Make homeworking work for you By Steve Watmore
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32 - Happy new tax year By Simon Parsons
36 - Feature – falling in love with apprenticeships By Jerome Smail
46 - Tackling workplace conflict By Gill Dix
56 - Hot topic – let’s celebrate apprenticeships By Gemma Mullis
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
Chair’s
Editor Lora Murphy 0121 712 1018 | lora.murphy@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd
message
Happy new year to all our readers. With a focus on learning and development and payroll education, it’s a great way to start the year. And with National Apprenticeship Week this month, what an excellent way to celebrate. Having a payroll apprentice in the team is a great platform for a new starter to
learn and grow in the payroll profession, giving them the basic tools they need to build their career at Level 3. These skills can then grow further with the Level 5 apprenticeship taking the individual’s career to the next stage. With the mix of on-the-job training, studying and putting learning into practice in the workplace, there’ll be instances where even a well-established team find themselves asking questions and learning along the way with the apprentice. An apprentice is well supported in their learning journey. They have the support of their employer, their team and the apprenticeship provider. Good luck to all apprentices in their apprenticeship journey and well done to all who have passed their Level 3. Not to forget the many other forms of learning and development qualifications from Level 3 up to Level 7, with a master’s degree and beyond, to a doctorate. It’s never too late to continue the learning journey, and, as the saying goes, we all learn something new every day.
Chief executive officer Ken Pullar FCIPP CIPP board of directors Louise Gray ChMCIPPdip Stuart Hall MCIPPdip
Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Katie Sharpe MCIPPdip Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA
Liz Lay MSc FCIPPdip FHEA ACIPD (liz.lay@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s
Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk
message Here we are in 2023 with many different challenges to be faced. A cost-of- living crisis, high inflation and uncertain times, with industrial action across many sectors, all of which hasn’t been seen for many a generation. In this time of hybrid working and working from home, the CIPP is among
many employers giving colleagues the opportunity to work in the office for the days when they’re scheduled to work from home. In addition, opening the office earlier and closing it later, enabling colleagues to work in a warm location, with access to an endless free supply of hot drinks. I’m sure many employers are working at being imaginative during these difficult times. In an important change of subject, in November 2022, the CIPP advised eligible members that they could put themselves forward for election to the board. It was pleasing to note that nominations in double digits were received. During December, the Nominations and Appeals Committee, led by our independent chair, Helen Fairfoul, along with various board colleagues, met and interviewed all candidates as part of our governance process. Those members who met the criteria to stand for election will be advised on 11 February (when the board will review the recommendations of the Nominations and Appeals Committee as to who should be put forward on the ballot papers for members to decide). Those of you who are voting members (Associate, Full, Fellow and Chartered Fellow) once again play an important role, as the election is launched on 14 February via email. You’ll receive notice of the Annual General Meeting (AGM) to be held on 29 March at the Eastfield Rooms in Birmingham, and your communication on 14 February will include: l details of the voting process l a link to the CIPP page to book to attend AGM (for Associates, Full, Fellow and Chartered members)
0121 712 1013 cipp.org.uk @CIPP_UK
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2022. 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.
l candidate statements l previous AGM minutes
l a link to the accounts for 2021/2022 l a deadline for posing extra agenda items. The successful candidates who will stand for election will be announced at our AGM on 29 March. Remember to use your vote! All that remains is to wish you all a safe but successful and prosperous 2023.
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 2
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at cipp.org.uk
Contents February 2023
REGULARS
FEATURES
01 Editor’s comment
Leading the future of payroll and pension professionals By Vickie Graham
Apprenticeships take centre stage By Helen Hargreaves
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02 Chair’s and CEO’s message
Considerations for employers helping employees through the cost-of-living crisis By Meredith McCammond
NMW and apprentices – ‘you never stop learning’ By Jeni Morris
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04 CIPP update
Events, news and developments
Reap the rewards of payroll automation By Caine Bingham
Rangers case precedent still impacts tax cases today By Justine Riccomini
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05 My CIPP
online exclusive content
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On your behalf, Payroll news, Industry news / Movers and shakers, Spotlight on, Advisory Q&As, Leading the future of payroll and pension professionals
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The Payroll Services Summit By Mathew Akrigg 410mm Customer 410mm Description Customer EXPERIAN Black Backed Fabrics White Light
Exploring the apprenticeship levy By Beverley Gibbs
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SILICON TO REVERSE PERIMETER • NO TABS REQUIRED • PANEL MUST LINE UP
Can payroll help save the day? The Workplace Savings Summit 2022 By Ian Hodson This layout is for reference purposes only and as such should not be used as an accurate representation of print quality or colour.
Payroll apprenticeships – a career for life By Ian Holloway
From how employers can help employees during the cost-of-living crisis to tips for working from home
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36 Feature topic
Read all about the theme of the current issue
Payroll apprenticeships: learn while you earn
How can you get involved this payroll giving month? By Caroline Gaskin
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By Emily Cocking
online exclusive content
40 Reward
Learn all about how employers can tackle conflict in the workplace
Appeals, avocations, adjustments By Nicola Mullineux
What is outplacement support? By Danny Done
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56 Hot topic
Celebrate apprenticeships this National Apprenticeship Week!
58 Payroll pets
We say hello to some of your furry friends
| Professional in Payroll, Pensions and Reward | 3
Issue 87 | February 2023
CIPP update
BeConnected: National Forums OUR MEMBER exclusive BeConnected: National
Evolve Beyond Borders event THE CIPP’s chief executive officer, Ken Pullar and board director, Dianne Hoodless spoke at this year’s Evolve Beyond Borders event, hosted by Neeyamo. The event took place in London on 19 and 20 January 2023 and gave delegates the opportunity to witness the global community coming together on a massive platform to exchange ideas, share best practices and set the tone for the year, while redefining the trajectory for the future of work, borderless workforce and human resources technology.
Forums kick off this month, with the first taking place in Birmingham on 8 February 2023. With a mix of online and face-to-face forums running through February
and March, don’t miss out on hearing from our policy and research team, and ensure you’re up to date with any legislative amendments for the 2023/24 tax year. You’ll also have the chance to connect with like-minded payroll professionals, to discuss challenges and share solutions in our discussion groups, with the face-to-face events finishing with a networking drinks reception. For information on dates and to book your place, please visit our website, at: http://ow.ly/vpFl50MmGUV. MARKET Insight Survey closes OUR 2023 Market Insight Survey closed at the end of January and gave you, as stakeholders of the CIPP, the opportunity to let us know what you think about the services we provide. This will assist us with our 2023 strategies, allowing us to continue developing our services, so you can enhance your knowledge, build your professional community and further your career. We would like to thank everyone who completed the survey and helped to shape the future of the professional body and industry.
THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test payroll processing and compliance, along with people skills and development opportunities. One of the most crucial elements is ensuring business continuity plans are in place and effective, should they be required. Congratulations to all organisations that have achieved this accreditation and been able to put those plans into action. Special congratulations to our recently accredited organisations: l Eque2 Limited (reaccreditation) l Education Personnel Management Limited (reaccreditation) l Frontier Software (reaccreditation) l IRIS FMP (Cascade) (Leeds) (reaccreditation) Ken Pullar, CIPP chief executive officer, said: “Congratulations to those organisations that have attained PAS accreditation. They’ve clearly demonstrated their sound payroll processes, knowledge and skills. This is imperative in the payroll profession, as reacting quickly to ever- changing legislation and guidance is crucial.” We’ve reported in previous issues of Professional how HR Connect and LivePay have recently received PAS accreditation. Speaking about the accreditation, Kelly Huntington, head of commercial, at HR Connect, commented: “We hold the prestigious CIPP PAS accreditation. PAS demonstrates our organisation’s dedication to compliance and best practice. Accreditation also shows our commitment to employee development and lifelong learning within the sector, which is key when attracting the next generation of payroll professionals. Payroll is an integral part of any business and PAS lets us showcase what excellent looks like.” Managing director at LivePay, Marc Johnson MCIPPdip, said: “At LivePay we’re very pleased to have been awarded the PAS recognition from the CIPP. This affirms the core values of our business in serving our customers with in-depth payroll knowledge, along with our target of ensuring a payroll expert talks to our customers within eight seconds. LivePay has operated within the payroll market for over 40 years; and the PAS solidifies our position more so by being accredited to the Chartered Institute for our industry. We combined high quality service and payroll technology to support our customers through recent volatile times.” l Anderson Anderson & Brown LLP (AAB LLP) (reaccreditation) l Seetec Business Technology Centre Ltd (reaccreditation) l Trident Trust Marine Services Limited (reaccreditation).
To find out how the PAS can benefit your organisation, email compliance@cipp.org.uk
| Professional in Payroll, Pensions and Reward | 4 February 2023 | Issue 87
POLICY HUB
On your behalf
No two days are the same in payroll and this can certainly be echoed by the CIPP’s policy and research team. December 2022 and January 2023 have seen a combination of exciting events and interesting changes. So, let’s review and recap, while also looking at what’s in store for the future Policy team update
delivered an in-depth legislative update for the CIPP’s external trainers. There’s no better way than by attending an early update to prepare for all the changes in the new tax year. A roundtable was held by HM Revenue and Customs (HMRC) in January 2023, which focussed on the topic of the McCloud remedy, and Mathew assisted this. It was a chance for stakeholders to provide their feedback on the planned legislative changes required to implement the remedies. The discussion revolved around scheme providers and their obligations, and the policy team were there to ensure the processes for payroll and pensions administrators were reasonable and defined. Mathew also hosted a BeKnowledgable webinar on the topic of umbrella companies, presented by Chris Bryce, chief executive at the Freelancer and Contractor Services Association (FCSA). This was a valuable webinar, in which Chris delved into the details of the contingent worker minefield, recognising the associated risks and dealing with them. While we’re all still getting used to referring to the year as 2023, for this very short moment let us take you back to December 2022. It does seem a while ago, but, it’s one of the busiest periods for payroll professionals and, indeed, for the policy team. In December, Acas delivered a BeKnowledgable session, which covered key statutory sick pay legislation and considerations around long Covid. Mathew also held a think tank with the Office of Tax Simplification (OTS) and CIPP members, to get member feedback on the tax treatment for overseas and remote workers. The evidence collected
was insightful and provided the OTS with qualitative views on current systems and how they could be changed.
Welcome to the team… We’re delighted to announce that there’s a new face in the policy team. Meena Salhan joined the team in December 2022 and received a mention at the Graduation Ceremony last November, as she celebrated gaining her Degree in Payroll Management. You can read more about Meena on page seven.
What’s in store for February? It’s apprentice week! No, we’re not talking about Sir Alan Sugar, but it’s the actual National Apprenticeship Week from 6-12 February 2023. This is the key opportunity for us all to celebrate the achievements of apprentices. Love is in the air Here at the CIPP, not only do we share the love for payroll, but we also share a love for discount codes. If you know anyone whose membership has lapsed in the past two years, they can use the code LOVE to rejoin as a member, without having to pay an admin fee. Don’t delay and sign up today This is a polite nudge to sign up to the BeConnected: National Forums taking place in Birmingham, London and Manchester. These will be held by the policy team in both an online and a face- to-face capacity. We look forward to seeing some of you there! n
Events Mathew Akrigg and Meena kickstarted the year with a live legislative update for 2023/24, hosted by the Payroll Forum UK. This session was incredibly important and received positive feedback from the wider payroll community. Additionally, Samantha O’Sullivan, the policy lead,
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
PAYROLL NEWS
Payroll news
New consultation: holiday entitlement calculations
New legislation aimed at tax repayment agents to be created HM REVENUE and Customs (HMRC) has confirmed, in a press release, that new legislation will be created to make legally binding ‘assignments’ invalid. This follows the consultation it held: Raising standards in tax advice: protecting customers claiming tax repayments . An ‘assignment’ is an agreement in which a taxpayer gives a repayment agent permission to receive a tax refund directly from HMRC. Currently, this may only be cancelled if both parties agree to do so. This creates issues when an individual is unhappy with the service they receive and when they want to resume management of their account. The alternative arrangement is for the taxpayer to make a ‘nomination’. This can be cancelled at any point by the individual, which will ultimately give them greater control. ‘Assignments’ made prior to the date the legislation takes effect will still be legally binding, but any made after that date will be invalid. In addition to this, HMRC also announced the following changes: l an update to the Standards for agents, which are applicable to all tax agents. They will now include greater transparency requirements l a new HMRC registration process for repayment agents, to make the agent sector more transparent, so customers are more informed regarding what they’re signing up to. The press release can be accessed here: http://ow.ly/mHgR50MrLva, and the consultation document here: http://ow.ly/NenW50MrLAE.
THE DEPARTMENT for Business, Energy and Industrial Strategy (BEIS) has opened a consultation on the topic of the
calculation of the holiday entitlement received by part-year and irregular hours workers. This follows on from the recent Supreme Court judgment in Harpur Trust v Brazel. BEIS proposes to introduce a holiday entitlement reference period for part-year and irregular hours workers. This will ensure their holiday pay and entitlement is directly proportionate to the time they spend working. As part of this, BEIS also seeks clarification on how holiday entitlement is calculated for agency workers at present. There’s also consideration of how the consultation proposal may be implemented. Please note that this doesn’t impact the current requirements for calculating part time or irregular hour workers’ annual leave entitlement, so employers must ensure workers receive 5.6 weeks’ worth of annual leave entitlement.
Scottish budget delivered THE SCOTTISH budget was presented to the Scottish Government, back in December 2022. Here are the announcements for payroll professionals to be aware of:
l higher rate of tax increased from 41p to 42p l top rate of tax increased from 46p to 47p l top rate threshold reduced to £125,140. Other announcements included: l an increase to the second homes element of land and buildings tax, from 4% to 6% l increased funding for local governments l child payment to remain at £25 l benefits under Scottish control to be uprated by 10.1%.
Diary dates
6 – 12 February
National Apprenticeship Week
5 February
Last day of tax month 10
6 February
First day of tax month 11
19 February (this is a weekend date)
Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
22 February
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 March 6 March
Last day of tax month 11 First day of tax month 12
| Professional in Payroll, Pensions and Reward | November 2022 | Issue 85 6
Available online or face-to-face
Industry news
MAKE SURE YOU’RE UP TO DATE WITH THE LATEST CHANGES
PAYROLL UPDATE
PayCaptain reaches major milestone in 2022 PAYCAPTAIN, THE artificial intelligence (AI) powered, cloud payroll service, was set to hit the important milestone of processing £100 million in payments for UK businesses by the end of 2022, which it achieved! Launched less than two years ago, PayCaptain has seen rapid growth and provides payroll services to almost 50 major British companies. The company was declared 2022 software product of the year in the CIPP’s Annual Excellence Awards in October 2022. It has also been awarded a £400,000 grant by the Government’s Innovate UK agency, to develop the next generation of financial management tools for UK employees. It was the first payroll provider in the world to be recognised with B Corp status. Simon Bocca, PayCaptain’s founder and chief executive officer, said: “When we set out on our mission to supersede clunky, inefficient legacy payroll systems with a truly modern, AI-powered service that puts people’s experience first, we had faith that forward- thinking companies would be quick to see the potential. We’ve been hugely gratified by the rapid success of PayCaptain in 2022. We’ve always wanted to help people gain the best possible understanding and control of their money. For employers, the benefit is simple: financial worry among staff is one of the most significant drags on productivity. What PayCaptain offers couldn’t be more relevant – and smart businesses are seeing enormous value in our service and innovations. There’ll be much more to come in 2023.” Visit http://ow.ly/TBj650MmqNj for more information.
Duration Two consecutive half days for online option OR one full day for face-to-face option
This focus s ed update course represents the
single best opportunity to be briefed and updated on changes affecting payroll.
Book online at cipp.org.uk/training
To appear on this page contact editor@cipp.org.uk
And then the policy team became four THE CIPP’S policy team is delighted to introduce its newest policy and research officer, Meena Salhan, who started with the company back in December 2022. Existing policy team members, Samantha, Mathew and Lora are really pleased to have Meena on board, and can’t wait to get her involved in raising the profile of the profession. Meena started her payroll journey at an accountancy firm in a client-facing role, back in 2009. She has since held roles, both bureau
*Price correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
ONLINE DELIVERY Member price: £224.50 + VAT Non-member price: £449 + VAT FACE-TO-FACE DELIVERY Member price: £249.50 + VAT Non-member price: £499 + VAT
and in-house, across UK and global payrolls. Meena holds the CIPP Foundation Degree in Payroll Management, and attended the Graduation Ceremony in November 2022. In her personal life, Meena enjoys spending valuable time with both family and friends. She also appreciates walks among nature, and likes to volunteer within the community, also staying active by attending dance classes. Meena said: ‘‘Payroll is a passion of mine, and I’m all about making a difference through the work I do. With over 12 years of experience in the payroll sector, what better way to further my passion than by joining an institute like the CIPP, which celebrates and represents payroll in everything it does? I’m proud to be joining the policy and research team, who have a very important role. I look forward to sharing the same vision as the CIPP by raising the profile of payroll.”
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
MY CIPP
Spotlight on...
Samantha O’Sullivan MCIPPdip Policy lead
How did you start your payroll career? Was it choice, or did you fall into the role like many payroll professionals do? My career in payroll happened completely by chance, so I fell. After leaving school, I realised the traditional educational path of college and university wasn’t for me. I interviewed for a human resources assistant role, and the day before I started, the recruitment agency rang me to offer me a ‘trainee payroll specialist’ position instead. The 17-year-old me could only focus on the fact the annual salary was higher than the role I originally applied for, so of course I said yes, and the rest is history. That role opened my eyes to the world of payroll, and it was that position which made me appreciate that people go to work to get paid. After all, I only accepted that role because I could get more money; at that point I knew this was a career for life. How did you move into policy? I have worked in several different roles within the industry, from operational payroll to working in an advisory capacity. I was made aware of the vacancy for policy lead at the CIPP and having been a member of the Institute for more than ten years, I jumped at the opportunity to give something back to our members, and the wider payroll, reward and pension professions. After an initial conversation with Vickie Graham, business development director, I bit the bullet and applied. I got the job and haven’t looked back since. Did you study a specific course to help you to enter this career? I did, and I’m very proud to say I studied the Foundation Degree in Payroll Management with the CIPP. I graduated in 2015 and celebrated with
my family and peers from my three-year course. It was undertaking this qualification that inspired me to make the move from operational payroll into a more strategic role, like the one I’m in today. That really is the beauty of working within payroll; the career path opportunities are endless. From apprenticeships to management roles, software development to policy lead, you can really home in on what makes you tick and pursue a career which incorporates your passion. Tell us about a typical week as a policy team member. Being policy lead must be the most varied role of my career. A typical week could entail: l attending government forums, to share member feedback and provide advice on how policies should look moving forward l writing articles for the CIPP and other external publications l developing presentations for internal and external events l delivering presentations or taking part in roundtable discussions l maintaining relationships with key stakeholders, for example, the Department for Work and Pensions, HM Revenue and Customs, the Treasury and the Department for Business, Energy and Industrial Strategy. No two days are the same in my role, which is a recurring theme when working within the payroll industry, and one of the things I love most about it. What’s the most interesting fact you’ve ever heard about payroll? That we push a big red button once a month… or maybe that all payroll professionals have crystals balls sat on their desks… Jokes aside, this is a tricky one. At our last
Annual Conference and Exhibition, I attended a workshop, and the presenter explained they were asked to speak at their child’s school careers day. Their child was in primary school at the time, so to make payroll relative to eight-year-olds, she asked them, “Who likes playing video games? Well, I ensure your parents get paid from work, so they can buy you video games,” and this has stuck with me ever since. This may not be an interesting fact per se, but it does highlight that payroll professionals enable people, families, you, to enjoy the special and meaningful things in life. Whether that be a drive-through coffee, a sandwich on the run or a trip to the cinema. Payroll professionals ensure that every worker is paid accurately and on time, so they can pay their bills, and enjoy the things that matter the most. What’s been your biggest achievement since joining the policy team at the CIPP? My biggest achievement is seeing my team grow and flourish. It may sound cheesy, but my team are fantastic and it’s a privilege to see people you care about go from strength to strength, whether that be in the presentations they deliver, the articles they produce or the wonderful page-turning content you read in this very magazine. n No two days are the same in my role, which is a recurring theme when working within the payroll industry, and one of the things I love most about it
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 8
NEW COURSE
Payroll year end E-LEARNING COURSE
Payroll year end can be challenging for payroll professionals, whether they are veterans or new to the field. This short eLearning course covers all the information you need to effectively handle the end of the tax year and the start of the new one. ● Understand the requirements for completing the year-end process ● Adhere to the deadlines for the supply and production of end of year documents ● Update statutory information in the payroll system based on the order of priority ● Apply best practice techniques to overpayment recoveries made through the payroll that span several tax years.
Enrol today at cipp.org.uk/training
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Cycle to work schemes Q: It has come to our attention that our client failed to set up salary sacrifice agreements for a cycle to work scheme for tax years 2021/22 and 2022/23 but the employees concerned had use of hired bicycles. How should we correct this? A: A salary sacrifice is an arrangement whereby an employee agrees to sacrifice cash salary in exchange for a noncash benefit. Section 244 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 provides the tax exemption of the provision of a cycle or cyclist’s safety equipment to an employee. Please see: https://bit. ly/3imbIqR. We would advise that the client ensures a benefit in kind has not arisen on the provision of the bicycle, by ensuring the conditions set out in Section 244 are met. A retrospective salary sacrifice arrangement cannot be implemented for a previous tax period. However, if the employer and employee come to an agreement to implement a salary sacrifice arrangement going forward, they must ensure that a contractual change is agreed to prior to any deductions being made.
Tax treatment of payments made on the grounds of medical incapacity Q: A contractual payment on the grounds of medical incapacity is to be paid to an employee whose contract is ending on the grounds of ill health. As this payment is included within the contract can this be paid tax free? A: Section 406 of the ITEPA 2003 provides a tax-free payment for ill health if that illness renders the employee incapacitated. However, as this lump sum payment for ill health is included in the contract, an employer financed retirement benefit scheme (EFRB) will have been created under Sections 393 and 394 of the ITEPA 2003. An EFERB is an unapproved pension scheme which means it doesn’t share quite the same tax advantages of a conventional occupational pension scheme. As this has been created, the payment will not be an exempt benefit. However, it’s our understanding that if the illness renders the employee disabled and incapable of working again, Section 406 ITEPA 2003 takes precedence over Sections 393 and 394 ITEPA 2003, and the payment can be paid tax free. For reference, see https://bit.ly/3X8ZPmS, https://bit.ly/3VR8QQu and https://bit. ly/3VHa2pC. Deductions from pay for job-related tools Q: A client has purchased tools for employees to use in their jobs but wants to deduct the cost of those tools from them in case the tools aren’t returned.
Can a deduction be made and if it can, should it be from gross or net pay? A: We would advise that no deduction is made in respect of the cost of these tools, as stated in Regulation 12 of the National Minimum Wage Regulations 2015. This states that a deduction made by the employer in the pay reference period, or payments due from the worker to the employer in the pay reference period for the employer’s own use and benefit are treated as reductions. However, the inclusion of a clause within the employment contract that allows for the payment of damages to the equipment under Regulation 12(2) (a) of the National Minimum Wage Regulations 2015 can allow the employer to make a net deduction from the employee’s pay providing that negligence can be proven. For reference, see: https://bit.ly/3IuDHPQ.
Can employers make deductions from staff for job-related tools?
Confirmation regarding data item 58B Q: Our client is extremely confused over the pay items to be reported in column 58B of the full payment submission (FPS). Our client regularly makes payments to employees outside of the Bacs process, for example by cheque, and has been told by their software provider that all
How should an employer proceed where employees have had use of hired bicycles but no salary sacrifice arrangement was set up?
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 10
POLICY HUB
Is providing menopause support an exempt benefit? Q: The company is about to launch a menopause support plan, which involves an annual consultation with a menopause specialist costing £295. We believe this would be an exempt benefit as it’s a health assessment. Is this correct? A: Legislation provides for an exemption for one annual medical assessment per year under Sections 266 and 320B, 266(3) (g) and 267(2)(i) of the ITEPA 2003. For reference, see: Employment Income Manual (EIM21765) – https://bit.ly/2DyGaJi. However, the legislation states this medical check-up is a physical examination of the employee by a health professional for, and only for, the employee’s state of health. The menopause may be considered as a disability under discrimination law and could hinder an employee’s capabilities when performing the duties of employment, so the legislation may now apply. A direction from HMRC would be the advised route to take in this unique situation. n
payments outside of the Bacs process must be recorded in box 58B. However, the real time information data item guide states that the value of deductions from net pay in the pay period must be entered. Please can you advise what data items must be included? A: The CIPP understands that, although data item 58B may be used for the hash match, it shouldn’t only be used for Bacs payments. This field is actually for deductions made from salary and there’s no instruction that non-Bacs payments shouldn’t be included. If non-Bacs payments were disregarded, HMRC would have no record of the employees’ deductions. HMRC requires details of all deductions to ensure national minimum wage compliance is being met. Bonus payments and the calculation of attachment of earnings orders Q: An employee will receive a bonus payment at the end of February and has asked if we can exclude this payment when calculating his attachment of earnings order for council tax. Can we do this? A: The bonus must be included within the calculation for the attachment of earnings order. Earnings defined under Section 24 of
the Attachment of Earnings Act 1971 states that wages or salary including any fees, bonus, commission or other emoluments payable to the employee shall be included within the calculation for an attachment of earnings. For reference, see: https://bit. ly/3imcQuB.
What considerations are there for employers hoping to offer menopause support?
Don’t wait until it’s too late
Payroll Assurance Scheme Can you afford penalties of up to £10,000* per day for non-compliance? Make sure your people and processes are working, and get ahead of any nonconformities before they become a problem.
Visit cipp.org.uk/PAS to see how we can prepare you
* Correct at time of publication
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
MY CIPP
D uring 2019, the senior leadership team and board of directors outlined a ten-year strategic plan and four strategic objectives to support the growth of the CIPP. Those strategic objectives are: l to grow membership and brand awareness l leading innovation and engaging certified solutions l providing knowledge and skills to practitioners l providing governance and advice to all payroll professionals. While it’s important to have identified these strategic objectives, for these to be achieved, it’s imperative the strategic objectives are aligned with our ways of thinking and working. As such, an exercise was started in 2021 to review and develop our vision, mission, values and quality objectives. An exercise was started in 2021 to review and develop our vision, mission, values and quality objectives Current position The CIPP worked with employees and the board of directors to develop our current mission statement in 2006, but we don’t have a vision statement. Within business, it is widely accepted that a vision statement outlines where the organisation wants to be and what it seeks to achieve, broadly speaking, in line with its values. Whereas a mission statement should provide a brief overview of the organisation’s current purpose – who we are, what we do and why we’re here. Our current mission statement is: “Leading payroll and pension professionals through education, membership and recognition.” Our values were also identified at the same time, and these are: l authoritative knowledge l community l diplomacy l professionalism. We invest in our processes and ISO
9001, through which we have identified the following quality objectives: l respect for colleagues l key customer contact l improve customer care l improve membership retention and increase membership base l improve financial performance. Respect for colleagues was added in 2017. The other four quality objectives have been in place since 2004, when we first engaged with ISO. They are reiterated monthly through our team meetings. Although communicated within monthly team meetings, they aren’t publicised more widely. As such, members don’t know what the values are, which was demonstrated when asked within a recent survey. In addition, the language used is confusing and isn’t inclusive, so employees don’t consciously identify with these values and ways of working. What we did and what we wanted to achieve Research was undertaken during 2021/22 to establish whether our current mission, values and quality objectives were still fit for purpose, and what our vision should
Vickie Graham DipM ACIPP ACIM, business development director, the CIPP, shares our plans for the future, revealing our new vision, mission, values and quality objectives Leading the future of payroll and pension professionals
be. Members are surveyed annually through our Market Insight Survey .
It was also important to us to include our employees, including tutors, in this process and separate surveys were sent to all employees, tutors and board members to seek their views. The aim was to present a proposal to the CIPP board of directors which outlined: l a potential vision l the mission statement l revised values in line with our vision, mission, employee and stakeholder perceptions l revised quality objectives, aligned with our values l measures of success to be incorporated within the strategy action plan and employee appraisal process, ensuring the revised values are demonstrated. We wanted to develop vision, mission, values and quality objectives, which were: l fit for purpose l reflective of the views of our stakeholders l aligned with our strategic objectives l embedded into our culture and ways of working l known, understood, communicated and shared by the payroll and pension communities we represent.
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 12
MY CIPP
Following the research and analysis, this report was presented during the July 2022 board meeting and our new vision, mission, values and quality objectives were agreed. Our vision As previously noted, a vision is widely recognised as being a statement of where an organisation wants to be and what it seeks to achieve, broadly speaking, in line with its values. Considering the feedback received, as well as what’s outlined within our Royal Charter regarding who and what we represent as a Chartered Body, it was agreed that our vision should be: “Leading the future of payroll and pension professionals.” Thus, recognising that we seek to lead and develop payroll and pension professionals of the future, which will be achieved through our mission. Our mission A mission statement should provide a brief overview of the organisation’s current purpose – who we are, what we do and why we’re here. It should support the achievement of the vision. As such, the board agreed our mission should be slightly altered to: "Supporting and developing payroll and pension professionals through education, membership and recognition." Our values When considering our values, we had to ensure these were aligned with our vision and reflected the ways we want to work with our colleagues, members and the wider payroll and pension communities. Our previous values were developed in 2006, and while still valid in what they set out to achieve, they were vague and potentially open to interpretation. It was important that our new values were clear in terms of what they meant and what’s expected against each of these. The values agreed were: Collaboration We work together to achieve our goals and objectives to the benefit of the payroll and pensions communities.
It’s incredibly important to us that the vision, mission, values and quality objectives are embedded into our culture and ways of working but are also open to constant review and feedback l developing our internal appraisal processes to measure how individuals perform against values and quality objectives, as well as their performance objectives, aligning this with our existing competency framework by June 2023. This article is the first step in communicating our direction with you. The steps taken above will ensure we’re accountable, and providing consistent and regular updates to you, our members. n the vision, mission, values and quality objectives are embedded into our culture and ways of working but are also open to constant review and feedback. This will ensure we’re representative and supportive of the professionals we serve. As such, an internal working group has been set up, who meet monthly to work through an action plan, which includes: l publishing our vision, mission statement, values and quality objectives on our website l publishing our ten-year strategic plan on our website, including the four strategic objectives outlined at the start of this article, as well as our commitment to achieving net zero and our equality, diversity and inclusion policies, along with our progress in achieving these l linking this with corporate accounts when published for future Annual General Meetings, to communicate to members how we’re achieving what we set out to and providing a forum for them to ask questions relating to the future of the Institute l ensuring the vision, mission, values and quality objectives are used within our recruitment processes
We seek to lead and develop payroll and pension professionals of the future, which will be achieved through our mission Professionalism We’ll always act ethically, with courtesy and respect, listen to views other than our own and put forward ideas in a positive and constructive manner. Our quality objectives Finally, we sought to review our quality objectives in line with the strategic objectives and the new vision, mission and values. The continuous pursuit of excellence We actively seek feedback and review our ways of working to ensure we deliver an excellent service to the payroll and pension communities, and to our colleagues. Communication Clear, open and transparent communication with all. To communicate payroll and pensions knowledge with authority. Trust and honesty We trust our colleagues and provide a safe environment for honesty within the working environment. Again, our previous quality objectives were set out some time ago, in 2007. As such, they reflected goals and objectives at the time. Some of these have been achieved and others are business targets, measured through performance objectives within the organisation. Following the review, the following quality objectives were agreed: l to ensure we’re inclusive and accessible to all l to understand our customers and improve customer care l respect for all l to create a safe working environment, promoting positive well-being. Next steps So, what happens now? It’s incredibly important to us that
If you’d like to provide feedback or further thoughts, please get in touch with me at vickie.graham@cipp . org.uk
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| Professional in Payroll, Pensions and Reward |
Issue 87 | February 2023
PERSONAL DEVELOPMENT
# Be Payroll Daryl Marshall ACIPP, senior payroll and pensions officer at Citizen Housing, discusses his passion for payroll and how studying with the CIPP has helped
What course have you studied / are you currently studying? I’ve studied the Payroll Technician Certificate and I’m currently finishing the third year of the Foundation Degree in Payroll Management. How would you describe your experience of studying with the CIPP? My experience has been amazing. I remember when I first started learning with the CIPP and was petrified I just wouldn’t understand how it all worked. It had been a fair while since I‘d studied. Everyone has always been helpful, from emailing enrolments, to tutors and attending workshops. The CIPP brings likeminded professionals together who really do have each other’s backs. Why was it important to you that you gained this payroll qualification? Originally it was important to me because my first payroll manager was qualified with the CIPP, and I really wanted to be like her. She knows so much and was always supportive. As I studied further, I realised just how much a CIPP qualification mattered if I wanted to progress. A CIPP qualification shows you know your stuff, and that you’re professional and knowledgeable. Can you describe your payroll career / journey to us so far? It’s been a whirlwind the last four years. I’ve worked hard, studied hard and been lucky enough to have had some amazing managers who have pushed me, developed me and ultimately helped me to achieve my goals. I can’t quite believe that in four
years, I’ve found the career I love and made my way to payroll manager. I will graduate next year, and that’s something I’ve never contemplated before. Do you have any plans for further study with us? If so, what are they and why? I’m not yet sure what my next steps will be. I plan to have a break when I’ve finished my degree, but I also know deep down that I enjoy the pressure and I’ll need something to keep me occupied. Therefore, I’ll likely study something else with CIPP; I just don’t know what yet. What advice do you have for someone who is thinking of studying a qualification with us? Just go for it! It will be hard work, but it will all be worth it in the end. You’ll be supported by the CIPP but you’ll also meet some fabulous payroll professionals along the way. How do you feel about working in payroll, and what does working in payroll mean to you? I absolutely love working in payroll. It’s like finance, human resources and customer service all rolled into one. It’s a huge responsibility to be a payroll professional, and a responsibility which is often overlooked. The #BePayroll campaign is shining a light on us all a lot more now and we’re starting to gain recognition for our skills and knowledge. I couldn’t imagine doing anything else. n
| Professional in Payroll, Pensions and Reward | February 2023 | Issue 87 14
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