in Payroll, Pensions & Reward Payroll’s practical role in delivering employee rewards and well-being PROFESSI NAL Issue 75 November 2021 Official publication of The Chartered Institute of Payroll Professionals
The future of payroll The profession that never stands still
A new health and social care levy What we know so far…
Autumn Budget 2021 A report for payrollers, wri&en by payrollers
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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“People work for money but go the extra mile for recognition, praise and rewards.” Dale Carnegie
Editor’s comment Recent figures released by the Office for National Statistics (ONS) show that post- pandemic vacancies are on the increase and that the competition for staff is fierce. Employers will need to ensure they are not just
others will be permanently working from home. To maintain a happy workforce, it will be essential for organisations to address the concerns of workers in all types of arrangement, and to act upon them accordingly. I hope you enjoy the November issue of Professional . Make sure you don’t miss out on the update on the health and social care levy, which can be located on page 50. I will see you next in the special Christmas issue of the magazine.
offering attractive base salary rates, but also a wide range of rewards and benefits if they are to both attract and retain the best staff. The pandemic has also shone a light on the importance of employee well-being and raised moral and ethical considerations around the extent to which employers should be responsible for this. Individuals who have been working from home for a period of eighteen months are being asked to return to offices and places of work, some will be adopting a hybrid working approach, whilst
Lora Murphy ACIPP (editor@cipp.org.uk) Editor
Chair’s message
This month, the magazine explores how employee well-being links to reward and payroll’s practical role in ensuring rewards and well-being are delivered and promoted. From a financial reward perspective, this covers
The organisation’s reward strategy should be reviewed, or one implemented to reflect its culture, purpose and values. As payroll have access to financial pay data, they are well placed to advise the business of the total cost of making different rewards available to employees. The tax position can be identified and any associated costs for the employees highlighted to allow them to establish if this could affect their financial planning and well- being. Payroll can also be proactive and review whether costs for current rewards provided could be reduced for employers and their employees.
all financial provisions made to employees, but should this extend to total reward including non-pay benefits? The answer will vary between organisations. Some payroll departments will already deal with reward and benefits or compensation and benefits, while others can reflect on whether they should extend the role of payroll to drive change for different types of rewards to increase employee well- being. Reward as an area is vast and can be complex in nature, as it is not only financial rewards that impact on an employee’s well-being, but also non-financial rewards, such as flexible working, recognition and career progression opportunities.
Liz Lay MSc FCIPPdip FHEA ACIPD (liz.lay@cipp.org.uk) Chair, CIPP
As we approach the end of 2021, we can once again reflect that there has been nothing normal about this year. For many, vaccinations have provided a much-needed line of defence. CEO’s message
in 2020. Sadly, as last year, this was not to be the case, but I did see many of you attend and follow the event online. Excellence was once again rewarded at our awards ceremony, ably handled by our business development director, Vickie Graham and our ‘master of ceremonies’, Clare Balding OBE. The CIPP congratulates all the winners and celebrates their success. A supplement from the Annual Conference and Excellence Awards is provided as an insert in this month’s magazine. Finally, we have planned to celebrate our graduation ceremony in Birmingham in November, for those who have successfully completed our university-approved qualifications. As last year’s ceremony was postponed, we are looking forward to celebrating both the classes of 2020 and 2021.
I continue to convey the best wishes of the CIPP staff and myself, that you, your families and colleagues have continued to keep safe and well, as clearly, in some form, this virus will be around for a while yet. It was pleasing to hold some of the National Payroll Week events back in September in person, and it was evident by the volume of conversation that the sessions were thoroughly enjoyed. It was great to celebrate these events with friends and colleagues in our key industry in a face-to-face environment. Last year I wrote hoping that, by now, the world would have returned to some semblance of normality and that, once again, we could celebrate our flagship Annual Conference and Excellence Awards Ceremony at Celtic Manor in Newport, having missed out
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
in Payroll, Pensions & Reward PROFESSI NAL Contents November 2021
Also available online at professionalmag.co.uk
THIS ISSUE’S FEATURE TOPIC PAYROLL’S PRACTICAL ROLE IN DELIVERING EMPLOYEE REWARDS ANDWELL-BEING
Features
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Introducing the CIPP’s technical panel By Samantha Johnson
Hot topic – the health and social care levy By Gemma Mullis
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Tips and tricks to keep you at the top of your game By Lora Murphy
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Tax on payments to volunteers By Sudeep Ganguli
Blinded by the (northern) light By Justine Riccomini
Budget update By the CIPP policy and research team
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Understanding the relationship between RTI and UC By theCIPPpolicyand research team
Making a mistake isn’t always a bad thing… By the CIPP policy and research team
Why empathy should be promoted in the workplace By Louise Burke
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 75 2
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Editor Lora Murphy 0121 712 1018 | lora.murphy@cipp.org.uk Advertising Daniel Cull 0121 712 1021 | advertising@cipp.org.uk Design James Bartle; and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd
How ‘value for money’ is taking over from ‘cost and charges’ By Henry Tapper
The power of payroll deduction to empower individuals By Ma; Bland
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Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Louise Gray ChMCIPPdip
Carer’s leave – a brand new employment right By Danny Done
Fair and unfair dismissal By Nicola Mullineux
Stuart Hall MCIPPdip Helen Higson ACIPP Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP
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Carole Pearson MCIPP Katie Sharpe MCIPPdip
Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA
Payroll’s practical role in delivering employee rewards and well-being By Jerome Smail
Useful contacts
How Covid-19 has accelerated the use of people analytics By Daniel Cookson
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
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Using existing payroll skills and technology to drive change and improve employee well-being By Glyn King
The future of payroll By the CIPP policy and research team
Regulars
01 Editor’s comment, and
20 Compliance 26 Industry news 27 Reward 39 Technology 45 Wordsearch 50 Hot topic
Chair’s andCEO’smessage
0121 712 1013 cipp.org.uk @CIPP_UK
04 CIPPupdate
Events, news and developments
05 My CIPP
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2021. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
On your behalf, Advisory, Spotlight on, The CIPP and climate action
10 Movers andShakers 11 Personal development Diary of a student, BePayroll 17 Payroll news
Health and social care levy 52 Confessions of a payroll manager
Full issue including additional online content available at professionalmag.co.uk
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
CIPP update
The future of News Online THE CIPP’s policy and research team is dedicated to providing you with any news and developments that impact you – the payroll professionals – and the roles you carry out. The team also wants to ensure that it continuously improves the content that is sent out to you, as we appreciate that payroll departments are increasingly busy, particularly given the events of the past eighteen months. Historically, we have provided the option of receiving News Online on either a daily or a weekly basis. From 17 November, News Online will be distributed weekly. It is hoped that this will help to alleviate some of the pressure on those who work in payroll, whose inboxes are most possibly already full to the brim. The weekly newsletter will be sent out each Wednesday and will contain a round-up of the key information from that week that you need to know. You will not miss out on any of the breaking developments in the industry, as the team continue to publish information of this nature as soon as it happens – so keep an eye on those inboxes. CORRECTION UNFORTUNATELY, THERE was an error in the October 2021 issue of Professional . Within Payroll News , we stated: “The initial increase will be collected via National Insurance contributions (NICs), but then it will be ringfenced out as a separate health and social care levy in tax year 2021/22”. It should have read that the separate health and social care levy will be ringfenced out in tax year 2023/24. The online version of the magazine has been amended so that this now reads correctly, but unfortunately the printed copies were distributed including the erroneous text. We apologise for any inconvenience this may have caused.
In-house training SHOULD YOU or your team require in-house training sessions, you can contact us to let us know your requirements and to find out more details. In-house training courses can be delivered on either a face-to-face or virtual basis, and courses can be tailored to suit your company’s needs. Contact us on enquiries@cipp.org.uk.
Face-to-face training returns SOME OF the CIPP’s training courses have reverted to being delivered face-to-face. If online learning isn’t for you or you have been waiting until face-to-face learning returns, you can now book your place on the following training courses at a location to suit you: ● payroll update ● introduction to payroll ● P11Ds expenses and benefits training course collection You can, of course, still participate in these courses online. Visit http://ow.ly/90Fa30rXQXv to find out more and to book your place.
Congratulations to the newly accredited PAS organisations
THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test your payroll processes in relation to payroll processing, compliance and the people skills and development opportunities. One of the most important elements is ensuring business continuity plans are in place and effective, should they be required. Given the events over the last eighteen months, congratulations to all organisations that have achieved this accreditation and will have been able to put those plans into action. Special congratulations to our recently accredited organisations:
Benchmarking survey report
THE HIGHLY anticipated annual benchmarking report from the CIPP is now available to full, fellow and Chartered members, and to those who assisted us in our research by completing the survey. The report, compiled from the results of the survey, can be utilised as a tool to highlight the current productivity of your payroll team in comparison with the wider market. It also provides insights into current salaries and benefits offered for various payroll roles, to establish whether your company is operating competitively or not. The report is an annual membership benefit for full members and above, so if you would like to upgrade your membership, then simply email: membership@cipp.org.uk . The report is also available to those who completed the survey to thank them for their participation. If you are eligible to access the survey, you can view it here: http://ow.ly/RlbW30rXR2t.
● Ceridian Europe ● Sanctuary Group ● Thomson Cooper Accountants
Ken Pullar, CIPP chief executive officer, said: “Never has it been more important for businesses to have good payroll processes, knowledge and skills that enable them to implement new government legislation and guidance quickly. Congratulations to those organisations that have recently demonstrated just that.” To find out how the PAS can benefit your organisation, email compliance@cipp.org.uk .
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 75 4
Policy hub
On your behalf
Policy teamupdate
The CIPP’s policy and research team provides an update on developments
W hile much of the population were considering which costume to wear for Halloween, the policy team waited expectantly for the Autumn Budget, which was delivered by chancellor of the exchequer, Rishi Sunak, on 27 October 2021. Read the policy team’s Budget update, featured later in this issue, to explore what will impact the work of payroll professionals in the not-too-distant future. The team welcomed new policy and research officer, Mathew Akrigg, and have acquainted him with the busy world of policy. As always, there has been involvement in a wide spectrum of activities, all with the aim of educating the profession and ensuring that the voice of members is heard. Events There has been a flurry of activity in the events world – we hope you enjoyed the CIPP’s Annual Conference and Exhibition at the start of October as much as we did. The event was a roaring success, with over 200 attendees, across fifteen informative and engaging sessions. A supplement covering the conference has been included with this month’s issue of the magazine. Policy lead, Samantha Johnson, hosted the CIPP’s technical panel on 17 September – get acquainted with the panel and find out what they spoke about on page 14 of this issue of the magazine. Sam also appeared at Phase 3’s Festival of Knowledge on 12 October and discussed how to solve the conundrums that payroll teams face. Sam did not stop there – she joined Reward Strategy’s Global Payroll
stakeholder forum, which meets to discuss all things CJRS-related. There has been ongoing discussion for some time on the topic of CJRS and offsets. Namely, can you offset an overpayment against an underpayment? Following much debate, the stance is now that yes, you can, if the overpayment and underpayment occurred in the same claim period. What this fundamentally means, is that if an overclaim has been made for one employee, you can offset this by an amount that has been underclaimed, for another employee, in the same claim period. An overclaim made in one period cannot be offset against an underclaim made in another period and the amount underclaimed must be made good to the employee. The guidance discusses this and provides a helpful example. For reference, please see: http://ow.ly/qWVr30rXqdl. Virtual think tank – off-payroll working rules in the public sector The CIPP is inviting members who are part of the public sector special interest group (SIG) to join the National Audit Office (NAO) in a study. It is hoped that this will help to establish any issues that have impeded successful implementation of the reforms to off-payroll working rules. The session will take place on 8 November 2021, and is another shining example of how being a member of the CIPP allows you to get your voice heard. The key areas of focus will be on the check employment status for tax (CEST) tool, compliance with external agencies and the dispute process for status determination statements (SDS). ■
Question Time on 22 September, which was a question-led television broadcast, designed to help the payroll community navigate an ever-evolving payroll landscape. Sam will also be appearing at Zellis Connect in November, where she will join a panel to discuss the impact of processing payroll in the cloud and exploring ways to prepare for any transition to cloud technology, along with the benefits of making the move. Additionally, she’ll lead a session discussing the future of payroll, to include the impacts of technology, soft skills, compliance, succession and recruitment. We promise that Sam does find the time to sleep despite her hectic schedule! National minimum wage (NMW) technical forum A joint Her Majesty’s Revenue and Customs (HMRC) and the Department for Business, Energy and Industrial Strategy (BEIS) technical forum was held to discuss the intricacies of the NMW. BEIS holds the policy on NMW and is responsible for publicly naming those employers who fail to pay workers in line with NMW law. HMRC, however, is responsible for enforcement of the NMW, so it was good to have a session in which both departments were involved. There was lively and interesting discussion and debate, particularly in relation to the considerations surrounding employer use and benefit when establishing what is and isn’t included in calculations for the purposes of NMW.
Coronavirus job retention scheme (CJRS) offse)ing The policy team sits on the CJRS
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
MY CIPP
The CIPP's Advisory Service team provides answers to popular questions
Q: When parental leave is shared between both parents, must both parents be employed by the same company to be eligible to shared parental leave? A: No, the employees do not have to work for the same employer as eligibility for shared parental leave (SPL) and shared parental pay (ShPP) is tested independently for each employee. If the parents will share responsibility for the child at birth and meet the criteria to be entitled to either statutory maternity leave, statutory adoption leave or statutory paternity leave (as applicable), they can choose to request SPL and ShPP. Requests should be made in writing to each of the affected employers, and there is no requirement to communicate with the other employer involved to check the entitlement of your employee’s partner. For reference, see: https://bit.ly/3kICvMl. Q: Our company office has relocated following the closure of our current site as we could not maintain running costs due to the pandemic. As the office is located a further 38 miles away, we would like to reimburse the cost of the additional travel to assist staff with the relocation. Is there a time limit on how long we can assist the employees with this additional cost, and can we make the payment tax and National Insurance (NI) free? A: If an employer chooses to reimburse this additional cost to employees, in all cases, it would be subject to tax and NI contributions (NICs), as it would be regarded as ordinary commuting. In effect, the employer would be providing employees with a travel allowance which is processed via pay as you earn (PAYE) as earnings.
Q: My client has asked what the implications are for giving their
one if they believed a refund was due. For reference, see: https://bit.ly/3zMFNTl and http://ow.ly/WqNf30rZiOV. Q: Please could you clarify the following? If an employee is on a zero- hour contract, are they entitled to 5.6 weeks holiday per year irrespective of the hours they work? The employee in question has only worked ten hours a week for eight weeks in the full twelve- month period. Please can you advise on the correct calculation? A: Where there are no contractual hours of work and an employee remains on the payroll for a full leave year, they are entitled to 5.6 weeks’ holiday regardless of the hours they work. As this employee has no normal hours of work, entitlement cannot be expressed as anything other than weeks and they are entitled to 5.6 weeks’ worth of pay at their normal remuneration levels. The Working Time Regulations 1998 refer the calculation of a week’s pay for the purpose of annual leave to sections 221- 224 of the Employment Rights Act 1996. Essentially, a week’s pay is the contractual remuneration due to an employee for working their normal working hours in a week, however, special rules apply for those employees who do not have a normal working week, such as employees on zero-hours contracts. An employer must base the rate at which holiday pay must be paid upon the average pay received in the previous 52 weeks, as per the Employment Rights (Employment Particulars and Paid Annual Leave) (Amendment) Regulations 2018 No 1378. Please see: https://bit. ly/3icfK1Q. If there is no pay in a week, an employer must ignore that week and bring in an earlier week, up to a maximum reference period of 104 weeks. If the employee
employees either a cash payment of £50 or a voucher worth £50 as a thank you for all the work they have completed during the pandemic. Can you advise on both methods? A: There is only one option where a cash payment is made, and that is to treat it as earnings and process through payroll for the purposes of tax and class 1 NICs. If you provide a non-cash voucher this is classed as a benefit, however, the amount is a reward for the employee’s performance so it will not be eligible for the trivial benefits exemption. Non-cash vouchers must be reported for tax and class 1 NI as follows: ● report the value on the P11D for tax and collect the class 1 NICs through the payroll at the time the voucher was provided ● if registered for payrolling benefits prior to 6 April 2021, add the cost of the vouchers to the employee’s earnings for tax and class 1 NI. Alternatively, the employer could settle the tax bill on behalf of the employee via a PAYE settlement agreement (PSA). For reference, see: https://bit.ly/3EUKVII. Q: An employee is due to begin a period of unpaid leave. Our payroll provider has told us we need to put this employee on hold to prevent any tax refunds being paid. Should we be paying the tax refund? A: This question can be answered by referring to Regulation 63 (1) and 63(2) of the Income Tax (Pay As You Earn) Regulations 2003. Here, it confirms that, if an employee were on a cumulative tax code, they would not be automatically entitled to a tax refund, but the employee or their personal representative could request payment of
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 75 6
O N L I N E L E A R N I N G
Policy hub
Policy hub
Off -payroll working (IR35) and other employment status considerations Mediumand large organisations in all sectors of the economy will become responsible for assessing the employment status of individuals whowork for them.
reimburse the employee. How should this be dealt with for tax and NICs purposes? A: There is an exemption for the payment of legal fees where those fees are in connection with the termination of employment and whereby the payment is made directly to the solicitor involved. Legislation in section 413A of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) discusses this exemption. As the employee has already made payment to the solicitor, any reimbursement would not come within the above exemption, however, the only reason that the payment is being made is because of the termination of employment. This would make the payment a relevant termination award under sections 401 to 403 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003), and so subject to the £30,000 exemption from income tax, class 1 and class 1A NICs. For reference, see: https://bit.ly/2ZAGfHU. Q: In this tax year, the gross wage bill of one of the payrolls we process looks like it could exceed £3 million. Are we liable to pay the apprenticeship levy in the current tax year, or must we wait until the next tax year? A: HMRC’s Apprenticeship Levy Manual ALM09200 provides an excellent example of this scenario: “Example 5 – Single employer whose pay bill increases unexpectedly over the tax year Company E is not connected to any other companies. It had an annual pay bill of £2.5 million in the tax year 2016 to 2017, and had no reason to believe that its pay bill would increase in the tax year 2017 to 2018, so there is no need for Company E to report and pay the levy in April 2017. However, in October 2017 Company E’s pay bill increases significantly, leading the company to believe that its annual pay bill for the year will exceed £3 million. Company E must therefore begin reporting and paying the levy. Company E will still be entitled to the full annual levy allowance of £15,000, pro-rated over the 12 months of the tax year. Because Company E does not begin reporting the levy until October, its pro-rated annual levy allowance for October will be £8,750 (£1,250 x 7 – because October is the seventh month in the tax year).” For reference, see: https://bit. ly/3i8HiFu. ■
has only worked eight weeks within the reference period, for example, then total pay for the period should be divided by the eight weeks that have been worked to establish ‘normal remuneration’ for a week’s holiday pay. For reference, see: https://bit. ly/39GSUL9. Q: As an employer, we operate a three-month postponement period on automatic enrolment (AE) for all new starters – is it mandatory to advise employees that we are doing this? A: An employer must notify their employees if they are using postponement. Staff must receive written notification to inform them there will be a delay in the AE process. Notification must be issued within six weeks from the date the employees become eligible to be automatically enrolled into the pension scheme. For reference, see: https://bit.ly/3ueeWOS. Q: We have received a direct earnings attachment (DEA) for a contractor who is processed as an off-payroll worker. We are aware that this individual is not an employee, but the Department for Work and Pensions (DWP) is insisting that we should operate the DEA. Any advice would be welcomed. A: Contractors who are captured by the off-payroll working rules have their deemed employment income processed via PAYE for the purposes of tax and NICs only. The reason for this is that they are not classed as employees, therefore any other deductions, including DEAs should not deducted from them. Guidance published by Her Majesty's Revenue and Customs (HMRC) confirms that only tax and NICs should be deducted. Employers must ensure that the off- payroll worker indicator is ticked within their software when processing an off-payroll worker to avoid deduction requests being sent. If deduction notices are still sent, then the CIPP advises that you contact the sender to advise them you will not be making the deduction. Q: We have an employee who is leaving under a settlement agreement. It appears that the legal fees have been settled personally by the individual. Under the terms of the settlement agreement, the company are liable for the payment and so now must
Make sure you are compliant with the legislation training course.
Visit cipp.org.uk/training to book your place
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
MY CIPP
Spotlight on...
rules were implemented in the public sector. The term ‘baptism of fire’ does not even begin to cut it, but after the dust had settled, my team and I had a better collective knowledge of the off-payroll working rules and I had a much-improved knowledge of payroll processes. What aspects of your new role are you looking forward to the most? I am eager to meet lots of new people in the profession, as well as raising the profile of payroll in the wider business world. Payroll, as the pandemic has demonstrated, is an essential part of any business’s workforce and structure. Hopefully, as part of the policy team, I can make sure everyone outside of the payroll profession knows that. What skills does a policy team member need to have? They need to be adaptable to change, as the team always needs to be on top of the latest developments, getting updates out to members. What advice would you give to someone who is just at the start of their payroll career? Utilise all the resources available to you. Everyone was new once and did not know anything beyond how to read their own payslip. However, there is information all around you, whether that be within your own organisation or a quick internet search away. If you do not know the answer, there is someone out there who does. All you need to do is find them. ■
MathewAkrigg ACIPP CIPP policy and research officer
How did you start your payroll career? An agency approached me with a payroll job close to my home. I had minimal previous involvement with payroll, but due to my accounting background, I possessed many transferrable skills for the role. The rest is history. How did you then move into the CIPP’s policy team? Following promotion to a payroll team leader role, I was searching for my next challenge. I saw the job listing for policy and research officer and was instantly intrigued. The role and its responsibilities were like nothing I had seen before, and after a tough interview process, thankfully, the team wanted me to join them as much as I did. Did you study a specific course to help you enter this career? I completed the Association of Accounting Technicians (AAT) Diploma in Accounting. The course prepared me for work within a professional environment and equipped me with some of the skills required to excel in payroll. I have now been enrolled on the CIPP Foundation Degree and can’t
wait to see where it takes both me and my career.
Was there a moment in your life or career that made you want to work in payroll? I love to absorb information. I can sometimes be a bit of a useless fact generator, but with payroll constantly evolving, I found I enjoyed keeping on top of changes that were relevant to the role I was in and keeping the team around me updated too. How does it feel knowing that you have made, and are making, a positive difference through your guidance and advice? Whether it is guiding a colleague through a particularly tough calculation or explaining payroll processes in a way they will understand, nothing beats the thanks you receive when it is all done. What has been your biggest sense of achievement in your career so far? Not long after commencing my previous role, which involved processing outsourced payrolls for the National Health Service (NHS), off-payroll working
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 7 5 8
My CIPP
The CIPP’s climate action plan
The CIPP’s business support coordinator, Amir Aziz ACIPP , talks about the Institute’s commitment to becoming net zero by 2035
A ll across the world, people are beginning to realise the impact climate change is having on the environment we live in. Research suggests that if no action is taken now, by the year 2050 the world as we know it will change forever as we would have caused irreversible damage from which we cannot return. Such changes include: ● increased drought and wildfires ● increased flooding and extreme weather ● icecap melting and rising sea levels ● collapsing agriculture and fisheries ● increased spread of disease ● ecosystem disruption and species extinction. Alarming to say the least, but what are we doing about it? If the latest United Nations (UN) Nationally Determined Contributions Synthesis Report is anything to go by, then no country is on track to meet the targets set out by the 2015 Paris Agreement. Therefore, with the annual climate change conference (COP26) currently taking place in Glasgow, the focus on business and industries reducing carbon emissions is more prominent than ever. So, what is the CIPP doing about it? Well, in 2021, we decided to take a stance. To bring companies together to tackle the global climate change emergency, we partnered with Climate Action for Associations (CAFA), to kick off our journey. With their support, and working in line with government-set targets, we were able to make a commitment pledge of being net zero by 2035. With this newfound enthusiasm for change behind us and a wealth of knowledge to go off, the CIPP has also committed to a climate action plan with the aim of accelerating the transition to being net zero by 2035. Encompassing company values, the action plan, created by the business support team, aims to provide guidance on actions
we hope to complete to achieve long term success. From simple actions such as moving to recyclable toilet paper, to the more complex tasks of reviewing all used suppliers, the journey is long but something the CIPP is proud to be a part of. Long gone are the days of negatively impacting our environment. Sustainable practices will be introduced, including the use of renewable energy, recycling bins and light emitting diode (LED) lighting, to name just a few. We all know the adage, ‘actions speak louder than words’ – well, we have this covered. Backed by a company-funded pledge of £500 and a heap of enthusiastic volunteers, we recently made our way to Solihull College with the goal of making a change. With the support of local sustainability officer, Maddie Booth, we were able to source a local project which involved various tasks aimed at making a change. This is what we got up to on the day: ● using repurposed tree bark, we created a pathway for safer wheelchair access to a picnic area and pond, allowing those with disabilities to access more of the campus with ease ● painting newly sourced picnic benches to create a seating area for both students and the local community
● weeding pathways for vegetable patches, so that students can plant and grow locally sourced produce and distribute to the college and local community. Having seen first-hand the impact our time and effort had on campus, our volunteers began to feel a profound sense of satisfaction towards the work that had been completed and the long-term impact it was likely to have on the local community and environment. Stacey Graham, business support manager, said: “Spending the day improving the conservation area at Solihull College was an enjoyable and worthwhile experience. To contribute to sustaining the environment in the local community and creating a safe outdoor space for students felt empowering and meaningful. I would recommend getting involved in local environmental projects as it also boosts wellbeing.”
Additionally, business support administrator, Shameelah Islam,
commented: “Considering that I haven’t been here for long, the fact that I was able to participate in giving back to the community was really rewarding. I enjoyed myself and got to spend time with some of my colleagues I had not met before as they were working remotely.” You may ask what is next... Well, here at the CIPP, we see this as just the beginning. There’s plenty more to be done to reach the goal of being net zero by 2035 and we have a long way to go. We would also like you to get involved. Why not contact us to let us know what you and your company are doing at admin@cipp.org.uk , and be in with the chance of being featured in our next climate change article update? n
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Volunteers: Amir Aziz, Angela Adams, Megan Dudley and Shameelah Islam
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CIPP COMMITMENT TO CLIMATE CHANGE
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
To appear on this page contact editor@cipp.org.uk
PRO-GROUP APPOINTS RAY MOORE AS HEAD OF PAYROLL RECRUITMENT RAY MOORE has joined Pro-Group – specialist recruiters in tax, finance and human resources (HR) to create their latest subsidiary, Pro-Payroll. Moore’s role will focus on the recruitment of payroll professionals across all sectors and throughout the UK. His large client base spans across all industries from financial services to not-for-profit. He has a timeline of successful recruitment experience and knowledge of over ten years in the payroll sector, building important relationships with candidates and clients alike.
Ray said: “It is fantastic to be representing clients and professionals in this fundamental industry. It is a hugely pivotal time in the market for payroll and I am excited for the opportunities ahead.” Claire Stradling, director at Pro-Recruitment Group said: “The market is strong currently and we are investing heavily into new service offerings for our clients and candidates. It is clear to see Ray’s passion and enthusiasm for the market is infectious and he is already contributing to the success of the business”. If you have any movers and shakers news you’d like to feature here, then just email your news to: editor@cipp.co.uk. Please remember to include the subject’s name, company and new position title, along with any quotes or extra relevant information about the position and/or company and we’ll do our best to feature as many as we can.
Contains updated information from the Autumn 2021 budget
CPD 7 points
Payroll update
This focused update course represents the single best opportunity to be briefed and updated on changes affecting payroll.
ONLY £192+VAT* FOR MEMBERS
This course covers: ● The Coronavirus Job Retention Scheme (CJRS) and other developments as a result of Covid-19 ● Tax and NI contributions ● Operating Pay As You Earn (PAYE)
● Statutory pay and leave ● Statutory deductions ● Expenses and benefits ● Pension ● Employment rights and other matters
Book online today at cipp.org.uk/training
*Price correct at time of print
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 7 5 10
Personal development
Diary of a student…
going for promotions. The course itself is not too long and does not require copious amounts of time, which is great when you are juggling it with working full time. How did you manage the work- life balance and your study? Do you have any tips for others in the same position? The main thing that worked for me was to devise a weekly plan of the hours I could spare for studying, ensuring I was keeping up with the timetable supplied. It was difficult to come home from a full day at work and have to study, so for me, early mornings at weekends were the optimum time to study, as it meant I could relax in the afternoons and evenings. I would advise others to take their time to read and digest each unit and to take regular study breaks, as there is a wealth of information to cover. Taking days off to dedicate to studying is important too. What would you say is the most important thing you learnt? The most important thing I learnt was probably all about the statutory sick pay (SSP) scheme, as I deal with this regularly in my role. The course assisted me – a beginner to UK payroll – in fully understanding how the scheme works, allowing me to advise both employees and managers. What did you gain from this qualification – both in terms of skills and career progression? I have gained heaps of confidence in myself now that I have knowledge around things like SSP and other statutory payments, and also of UK tax and National Insurance contributions. n
Jessica Barker Payroll specialist Avoca Ireland
Tell us a little bit about your background and life, so far? I am 25 years old and from Wicklow in Ireland. I graduated with a Bachelor’s Degree in human resource (HR) management back in 2019 and part of the course involved completing a work placement. I ended up going to the Electricity Supply Board (ESB) and completing a payroll work placement, which I loved. I continued to work for the ESB for a while after college, before moving on to start working at Avoca Ireland this year. What can you tell us about your career and qualification? I obtained my Bachelor’s Degree from the Technological University Dublin. I am currently working for Avoca Ireland and have approximately two years’ experience in the payroll world. I completed the Irish Payroll Association (IPASS) Payroll Techniques course in May 2021 and have just submitted my assessments for the UK Payroll Technician Certificate with the CIPP. Why did you choose the Payroll Technician Certificate? Before joining Avoca, I had no prior UK payroll experience, which was an issue, as part of my role involved looking after our Northern Irish branches. I chose the CIPP’s Payroll Technician Certificate as it seemed to cover the majority of the basics that I
needed to equip me to carry out my job efficiently.
How did you find the qualification?
I found the qualification challenging but very interesting. Having only recently completed the Irish payroll qualification helped a lot, as there is some consistency surrounding certain rules and regulations. However, it could be confusing where differences emerged. I found it extremely useful that a timetable was provided at the start of the course, which outlined how much material to cover each week as it helped me to stay on track. I also found the flexibility of the course beneficial – having everything online meant I could study at my own pace, at times suitable for me. The knowledge checks at the end of every unit were extremely beneficial as they allowed me to track my progress and prepared me for the final assessment quiz. What advice would you give to others who are thinking about studying to improve their career? I would say to go for it. I am always looking to gain more knowledge and learn new things. It is always a good idea to continue to learn – it can be impressive when applying for jobs or
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
CIPP training courses – which option is right for you?
Whether you prefer to study online, face-to-face, or require an in-house training course for you or your team, the CIPP has a training option that’s right for you.
You can now choose to study the following courses face-to-face: ● payroll update ● introduction to payroll ● P11Ds expenses and benefits training course collection. Contact our team to find out more and to book your location and date. Should you or your team require in-house training sessions, these can be delivered either face-to-face, or online and can be tailored to suit your needs.
Simply contact enquiries@cipp.org.uk for more information and took book your place.
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 75 12
Personal development
# Be Payroll
Michelle Roden ACIPP, payroll team leader at PDSA, talks all about the perks of being amember of the CIPP
Why did you choose to become a member of the CIPP? I have worked in the payroll profession for over a decade and most recently, have been promoted from a payroll and pensions administrator to a payroll team leader. I decided to become a member of the CIPP once I gained my Level 3 Apprenticeship in Payroll and Pension Administration. I felt it was imperative to my role and team to keep up to date with payroll and pension changes, and to ensure my skills and knowledge were up to date. Without a doubt, membership with the CIPP has allowed me to fulfil my role with both confidence and integrity. How has your membership helped in your career? My CIPP membership is helping me in my career on so many diverse levels. I have started studying for my Level 5 Payroll Assistant Manager Apprenticeship and am gaining so much more confidence in my studies. As I have only recently been appointed to the payroll team leader role, it is reassuring that I can seek guidance from the CIPP whenever I need to, ensuring that I’m meeting compliance requirements and statutory regulations. I am also able to identify best practice through the CIPP so I can develop myself further, along with my team and colleagues. What membership benefits have you used, or enjoyed the most, and can you provide some examples? The weekly CIPP news emails are extremely informative, and it is great to share them with my team so that everyone is aware of any upcoming changes or updates. Another benefit that I find really beneficial is the Advisory Service. It is a relief to know that guidance and advice is just a phone call or email away, and I always receive prompt responses. It is fantastic to have that safety net in place to double check things prior to knowledge sharing or actioning any legislative changes. I always look forward to Professional magazine landing on my doorstep too – I particularly enjoy the Advisory Service team’s Q&A page and the discussion of recent employment law cases. Additionally, I find the online Continuing Professional Development (CPD) function invaluable, as it is easy to access
at any time, which enables me to have a structured, practical and methodical approach to my professional development.
What are your hopes for your future career? At present, I am happy where I am in my career, with my current employer, in my current role. However, I am always eager to enhance my skill set and will always strive to gain more qualifications and training. This is to enhance my confidence and professionalism – not just for myself, but also for my team and my employer. Do you have any plans to study any CIPP qualifications or training courses? I have just over a year left on my Level 5 Payroll Assistant Manager Apprenticeship but would like to pursue more qualifications and courses once this is complete. The CIPP’s BA (Hons) Business Management course looks particularly interesting. Another area of payroll I would like to achieve a higher qualification in is pensions. As with payroll, pensions are highly regulated and involve complex processes which makes them so interesting to me. What advice would you give those new to the payroll profession who are just starting out in their careers? If payroll is something you are passionate about, studying will be a massive boost to your payroll career. There is so much available through the CIPP, along with courses through the apprenticeship levy that will enable you to become the talented payroll professional you wish to be. At times, payroll can be complex and challenging, but always remember that with challenges come opportunities. I will be forever grateful for the opportunities the profession has offered me and the career path I have followed. You will not regret joining the world of payroll. ■
If you are interested in being featured in the BePayroll series, please email marketing@cipp.org.uk .
Be Knowledgeable . Be Developed . Be Recognised . Be Supported . Be Connected .
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| Professional in Payroll, Pensions and Reward |
Issue 75 | November 2021
PERSONAL DEVELOPMENT
Introducing the CIPP’s technical panel
Samantha Johnson LLB(Hons) ChMCIPPdip, CIPP policy lead would like you to meet the panel created to discuss the topics impacting the payroll industry most
S haring knowledge is at the heart of the payroll profession. No one delivers payroll in isolation – even the solo payroller makes use of their network, their training and representative body – the CIPP. Here at the CIPP, sharing knowledge is key to ensuring we deliver the best, most topical and informative updates to our members. As part of our passion for sharing knowledge, the CIPP is delighted to introduce the CIPP technical panel, which was created in 2019 and continues to meet regularly two years on. What is the CIPP technical panel? The panel consists of fourteen payroll professionals who have a passion for payroll and are experts in their field. They are representatives from professional bodies, private and public sector payroll and payroll software providers. The meetings are an opportunity to discuss and debate current topics that are, or will be, impacting the payroll industry. What is discussed at the CIPP technical panel? The last panel was held on 17 September 2021 and the panel discussed an array of topical payroll items: Off-payroll working rules The panel reflected that the time given to prepare for off-payroll working in the private sector meant that the implementation of the rules had a modest impact on the Here at the CIPP, sharing knowledge is key to ensuring we deliver the best, most topical and informative updates to our members.
industry. This was reflected in a recent CIPP poll during National Payroll Week, which highlighted that approximately 20% of respondents had found the implementation of the rules challenging. The conversation predominantly focused on Her Majesty’s Revenue and Customs’ (HMRC’s) check employment status for tax (CEST) tool and the problems it created. Media reports shone a light on penalties faced by many government departments for incorrect usage of the CEST tool, and some of the panel were advocates for using alternatives to CEST which provided less variations in outcomes. There were several concerns that arose due to the implementation of the off- payroll working rules. The use of umbrella companies, and a significant increase of fraud in these types of companies was cause for concern for many. In addition, the growing use of disguised remuneration schemes to avoid a drop in pay for contractors was becoming increasingly visible to some of our experts.
Finally, the panel discussed HMRC’s approach to enforcement and favoured a more joined-up approach than the one that currently exists, with a single point of ownership for these rules in HMRC being the preferred option. Changes to National Insurance contributions The panel discussed several changes to National Insurance contributions (NICs), including the NICs relief for employers hiring veterans that was introduced in 2021/22, but without a real time solution. There was concern that uptake had been low, and this was supported by a recent CIPP poll which showed that 0% of respondents were using the relief in the current tax year. Inevitably, discussion progressed to the recently announced health and social care levy, and the panel agreed that the increase in NICs in the 2022/23 tax year would be relatively simple to administrate. The immediate concerns for payroll were focused around providing information to businesses ● Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP , head of taxation for Institute of Chartered Accountants for Scotland ● Karen Beckett BA (Hons) ChFCIPP, head of payroll and benefits for Dorset Healthcare National Health Service Trust ● Meredith McCammond , technical officer for Low Incomes Tax Reform Group ● Michelle Sutton MCIPPdip , head of reward and pensions for Suez Group ● Neil Tonks ChMCIPPdip , legislation manager for MHR Global ● Pauline Green ACIPP MBCS FMAAT , head of product compliance and programs for Intuit ● Simon Parsons MSc FCIPPdip MBCS , director UK compliance strategies, SD Worx UK Ltd
Who is on the technical panel?
Chair of the technical panel:
● Samantha Johnson LLB(Hons) ChMCIPPdip, policy lead at the CIPP
Panel members:
● Charles Cotton, senior performance and reward adviser to the Chartered Institute of Professional Development ● Crawford Temple , chief executive officer (CEO) at Professional Passport ● Emelia Quist , head of policy research at Federation of Small Businesses ● Emma Rawson , technical officer at Association of Taxation Technicians ● Jaspal Randhawa ChMCIPPdip , EMEA head of products at OneSource Virtual ● Jon Henderson , head of global employment taxes at RELX
| Professional in Payroll, Pensions and Reward | November 2021 | Issue 75 14
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