Policy hub
be helpful to encourage compliance (simulating opinion within the ERA meeting); 39% of respondents agreed it could be helpful; and the remaining 19% were undecided. Statutory Payments Consultation Group Another of our quick polls was used to help inform discussion within the Statutory Payments Consultation Group (SPCG), around the introduction of a flexible system of statutory sick pay (SSP). We asked if the lower earnings limit (LEL) were removed, so that employees earning either below the LEL or between the LEL and the rate of SSP were eligible for SSP, would changes need to be made to payroll systems? This poll, which ran for three weeks in June/ July, received 322 responses: ● 43% said minor changes would be required ● 27% said major changes would be required ● 11% said that no changes would be required for their payroll systems, and ● the remaining 19% were unsure. Consultation is expected later this year on the introduction of a flexible system of SSP. The SPCG is HMRC’s principal employer consultation group on the full range of statutory payments issues, providing the opportunity: ● for HMRC to explain and explore practical implications for employers, payroll bureaux and payroll software developers of potential changes in statutory payments (legislative and operational) ● for employers, payroll bureaux and payroll software developers to raise and discuss issues or problems in administering statutory payments. The group normally meets every two months so please email us at policy@org.uk if you have any issues you would like us to raise on your behalf. Payroll loan schemes We were prompted to run a quick poll when it was highlighted that UK workers could save more than £250 million a year in interest rate charges if companies introduced a payroll loan scheme like the Co-op (https://coop.uk/2LkTljI). It is estimated that around 300,000 people a month take out high-cost short-term credit. At the end of 2016, 1.6 million people
had high-cost credit debt, with the average loan just over £300. Around one in eight of the borrowers were in arrears, according to the Financial Conduct Authority (https:// bit.ly/2L9sFD4). If that interest was only 7.9% APR instead of the current capped high-cost credit loan rate of £24 per £100 borrowed for thirty days, UK workers could save a total of £252 million per year. We asked through a quick poll: ‘As an employer/business owner would you consider offering employees/workers a payroll loan scheme to enable them to repay loans direct through their salaries?’ Though this poll had been running only for a few days at the time of writing responses showed that while 19% of respondents already offer a scheme, encouragingly a further 32% would consider doing so. ...around 300,000 people a month take out high-cost short-term credit However, 27% said they would not consider offering such a scheme, and the remaining 14% were not sure. There could be a number of reasons for these particular responses, (e.g. lack of resource to administer, not knowing what is involved). If you are considering offering a payroll loan scheme like the Co-op’s to your employees, HMRC provides technical guidance on employer provided loans here: https://bit.ly/2uAQIR3. Little Bacs Guide to Maintaining Accurate Payment Details We are pleased that Bacs has produced The Little Bacs Guide to maintaining accurate payment details (https://bit. ly/2LpjrSK), which will help operational payroll and human resources teams address some of the perceived barriers in updating records, identifying key personnel to communicate to and help recognise common areas where processes may break down. The content of the guide, which has been produced in collaboration with payroll professionals, payroll software providers, service users and the CIPP, has specific focus on processing and acting on AWACS (advice of wrong account for credit service). n
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Issue 43 | September 2018
| Professional in Payroll, Pensions and Reward |
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