CELEBRATING 100 ISSUES
PROFESSI NAL in Payroll, Pensions & Reward Official publication of The Chartered Institute of Payroll Professionals Issue 100 May 2024
OUR AMAZING COMMUNITY
ENSURING COMPLIANCE Handy pointers on how to ensure the correct handling of complex payroll issues
TREADING THE TIGHTROPE
How to provide the best payroll guidance without venturing into the territory of advice
Payroll people love to help each other, and we should celebrate this more
CIPP UPDATE | POLICY HUB | PERSONAL DEVELOPMENT
Meet us on stand D41 CIPD Festival of Work 12th - 13th June 2024 ExCeL London
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“We rise by lifting others.” Robert G. Ingersoll
Editor’s message
Hello, payroll, pensions and reward professionals. I’m absolutely delighted to be bringing you the 100th issue of Professional magazine. I’m so proud we have reached this significant milestone and
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that we’ve been able to share so many articles with you over the years, whether they have been technical pieces which have helped you in your day-to-day role or content which was thought-provoking and encouraged you to think outside of the box. I have only been editing Professional for a relatively short time (roughly two and a half years), so it’s only right I credit Mike Nicholas, my predecessor, who made the magazine the publication it is today. The theme of our 100th issue is ‘ Here to help ’. I don’t know about you but whenever anyone I know has a query about literally anything to do with their pay, they automatically come to me to resolve all their problems! This is one of the things I love about working in payroll, as I enjoy helping others and I’m sure that will resonate with you, reading this today. Our feature article (page 35) discusses just how payroll can provide the best guidance to employees, friends and family but without stepping into the murky territory of advice, which could have unintended consequences. There are also some essential tips on how to proceed when delivering sound financial guidance, on page 38, and discussion of how to implement payroll savings schemes within organisations, to help with employee financial well-being, on page 42. Finally, we’re all so busy and focussed on helping others, but what about helping ourselves, the payroll professionals, a little? Our hot topic article on page 62 is designed to assist you in considering ongoing compliance with two extremely complex areas of payroll – the national minimum wage and holiday pay. I hope you enjoy our 100th issue and I’ll see you in June!
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
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35 - Feature topic – here to help By Jerome Smail
38 - Top ten tips: delivering sound financial guidance By Anna Buckle 42 - Saving for a rainy day: how payroll savings schemes can help employees’ financial and mental well-being By Michelle Sutton 62 - Hot topic – ensuring continued compliance: national minimum wage and holiday pay By Charlie Barnes
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2 0 3 5 CIPP COMMITMENT TO CLIMATE CHANGE
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
Chair’s message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Lora Murphy 07920 787221 | 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
Welcome to the May issue of Professional . We’re really moving towards the summer now, with holiday plans starting to become a reality. With the longer, lighter days and the sound of birds basking in the sunshine, it really is my favourite time of year.
One of the most rewarding parts of working in the payroll industry is being able to help people. From complex payroll queries to understanding payments on a payslip, we are the experts that can help. We’re also the point of liaison between HM Revenue and Customs and employees, helping with the translation of terminology and explaining how tax is calculated and what tax codes mean. For a payroll professional, it’s simple, but employees need the guidance and reassurance that their deductions are correct. Then we have all the complex developments and changes around holiday pay, national minimum wage and salary sacrifice schemes, which are all covered by legislation that can be difficult to interpret and understand. Hopefully, this issue of Professional magazine will provide you with some insightful information on these complex topics. Remember, as a member, you can also access our Advisory Service team, who will help guide you through the ever-changing world of payroll.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
CEO’s message Welcome to this issue of Professional magazine. The tax year start is behind us and now other deadlines loom for payments and submissions. Hopefully, your plans for meeting those are all working well. Recently, I have been reflecting on the term ‘work-life balance’ and
Useful contacts Consult compliance@cipp.org.uk 0121 712 1023 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 0121 712 1013 cipp.org.uk @CIPP_UK
how it’s interpreted. It shouldn’t mean that in every day and every pay period, there’s a perfect synergy between the two. It should mean that when considering the whole, balance comes from being able to commit to work, alongside committing to family, friends, sports and other activities, as and when you need to. Payroll, pensions and reward professionals, by nature, are hugely conscientious. Working to deadlines and doing whatever it takes to meet cut-off dates often means the balancing act can be detrimental to something in your personal life. I know this was certainly the case when I was building my career and committed as many hours as possible to work. Today’s work environment, in my experience, is far more supportive of well-being and health (both mental and physical). Indeed, in the UK, Mental Health Awareness Week runs during May. This has come about because our society is progressive and wants to continually develop and support the working individual. Just knowing there’s support if needed can be enough for some. For others, take advantage when you need it. This year’s theme for Mental Health Awareness Week is movement. For those with desk- based roles (isn’t that most of us?!), getting up and moving around is good for both your body and mind. Movement doesn’t need to mean going to the gym, running a marathon or taking part in a team sport (well done to all those who do that, especially those Tough Mudders out there) and it doesn’t need to cost the earth. I really enjoy weekend walks with the family, and it could be as simple as stepping off the bus a stop early, moving a sitting meeting to a walking one or dancing in your kitchen while you cook dinner. It would be a pleasure to hear from you and know what plans you may have for Mental Health Awareness Week and beyond, to support your employees and colleagues alike.
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 2024. 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.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 2
Contents MAY 2024
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk.
Reading the magazine gives you one CPD point
REGULARS 01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments 05 My CIPP 13 Personal development BePayroll 14 Compliance Read all about the estoppel principle and how it could Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll news
FEATURES - ‘HERE TO HELP’
A roundtable with Margaret Beels By Paul Chamberlain
What’s next for NMW? By Jeni Morris
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online exclusive content
HMRC’s stakeholder conference Attended by Jason Davenport, Samantha O’Sullivan and Lora Murphy
Employers and internationally mobile employees – the impact of non-dom changes By Charlotte Hobrough and David Yewdall
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Understanding estoppel By Lauren Handley
EPG letter: the mandation of payrolling benefits in kind By Justine Riccomini
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online exclusive content
Hundreds of pieces of legislation By Cybill Watkins
Advertorial: unlocking operational efficiency and well-being By Stuart Matthews (Experian)
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impact a payroll professional’s work and discover what could be next for the national minimum wage
30 100 TH ISSUE
Celebrating 100 issues of Professional magazine
103% small business relief (that’s 100 + 3%!) By Mathew Akrigg Service desks in pay and reward (Part 2) By Ian Hodson and Ana Laiu
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We’re super excited to be celebrating the 100th issue of Professional magazine
35 Feature topic
Read all about the theme of the current issue
Our thriving payroll community By Lora Murphy
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38 Reward
An exploration of how payroll and wider organisations can help with the financial and mental well-being of staff
Gateway to gold: improving your emotional intelligence (Part 2) By Polly Sinclair
What can I do to help people’s understanding of payroll and reward? By Karen Beckett online exclusive content
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62 Hot topic
Compliance doesn’t just happen at tax year end; it’s something we need to always be mindful of, so discover top tips on ensuring compliance with holiday and national minimum wage rules
Helping payroll clients to solve the financial well-
Five ways payroll professionals can help to boost efficiency By Liya Jacob How to eliminate risk when employing family or friends By Danny Done
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64 Payroll pets
We say hello to some of your furry friends
online exclusive content
being puzzle By Emma Watson
online exclusive content
Contracts, claw- backs, claims (whistleblowing) By Nicola Mullineux
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
CIPP UPDATE
CIPP update
Easter celebrations AS WE approached the Easter break in April, our wonderful charity committee organised a fun raffle to raise money and support our two charities: ● Acorns Children’s Hospice ● The Marine Conservation Society. From raffle ticket sales, we raised a total of £179, which will be split between both charities. We had some great prizes up for grabs including easter egg hampers, bottles of bubbly and, of course, lots of chocolate! Congratulations to all our winners.
Attendance at a Leaders Council event IN MARCH, our chief executive officer, Jason Davenport and business development director, Vickie Graham, were invited to and attended a Leaders Council event at the Lord Mayor of London’s Residence. England rugby icon, Jonny Wilkinson attended and delivered a speech about the importance of having the right mindset and being positive when it comes to life and business. It was an insightful and wonderful event.
Walk to Work Day 5 APRIL WAS National Walk to Work Day, and to celebrate, our green team organised a lunchtime walk to our local Costa. It was a great way to take a break from work, get some fresh air and enjoy a nice walk. Our team walked nearly two miles in 30 minutes, reaping the benefits of walking, including burning calories, strengthening our hearts and boosting our energy levels. Thanks to our amazing green team for arranging this. Let’s keep embracing the outdoors!
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 4
Scan to book
Event horizon Your guide to upcoming events and training
Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.
Our award-winning BeKnowledgeable series returns Following a brief hiatus which allowed us to focus on delivering our highly successful BeConnected sessions, we’re delighted to announce that our award-winning BeKnowledgeable series is back! We will offer several BeKnowledgeable webinars over the next few months. Coming up, we have: ● 8 May: considerations around shares ● 19 June: the mandation of payrolling benefits in kind ● 10 July: anti-money laundering. You can sign up to any of these online sessions here: https://ow.ly/ OfbU50R7ENm. We’d encourage you to join them all if you can.
THE CIPP
2024
There’s still time There’s still time to submit your nominations for the CIPP’s prestigious Annual Excellence Awards 2024! Do you know someone within the industry who you feel should be recognised for the amazing work they do? Why not nominate them for one of our awards, to show them their hard work hasn’t gone unnoticed? You can view the full awards list and submit your nominations here: https://ow.ly/5uX150R7F8z. The closing date for nominations is 30 June 2024 , so make sure you don’t miss the deadline if you have somebody in mind!
Early bird rates: The CIPP’s Annual Conference and Exhibition (ACE) 2024 The early bird catches the worm! You can now book to attend ACE 2024 at discounted rates, until 30 June 2024 with our early bird prices. This year’s conference is shaping up to be bigger and better than ever before, and you won’t want to miss it. Secure your place at this must-attend event, at the special price of £200 under the advertised rate now, by clicking here: https://ow.ly/oJcI50R7Fwa.
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to-face are highlighted in orange. Please note, there are additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
COURSE
DATE
LOCATION
23 May 24 June 03 June 02 May 30 May 26 June 07 May 13 May 10 June 26 June 07 May 28 May 17 June 02 May 21 May 05 June 13 June 03 June
Online Online Online Online Online Online
Automatic enrolment and pensions for payroll
Global mobility key payroll issues
Holiday pay and leave
Manchester
Online Online
Introduction to payroll
Birmingham
Online Online Online London
P11D expenses and benefits
Online
Payroll update
Manchester
Online Online
US payroll practice essentials
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
POLICY HUB
On your behalf
Policy team update
What has CIPP’s policy and research team been getting up to over the course of the last month?
responding to those documents which are of relevance to our industries, so keep your eye out for your chance to share your opinions and contribute to those responses. We will also be sharing updates in a future issue of Professional magazine.
Consultation and call for evidence (CfE) updates The government has published a consultation on raising standards in the tax advice market – strengthening the regulatory framework and improving registration. It sets out three possible approaches to strengthen the regulatory framework: ● joint HM Revenue and Customs (HMRC) and industry enforcement ● regulation by a separate statutory government body ● mandatory membership of a recognised professional body. HMRC welcomes views from anyone who may receive or provide tax advice or who offers services to third parties to assist compliance with HMRC requirements. The policy team is responding to the consultation. However, if you wish to respond directly and have your say, all the consultation information and response details are available at https://ow.ly/ qVSG50QZpQg. The consultation closes on 29 May 2024.
Tackling small pots Following the pension small pots consultation that the Department for Work and Pensions (DWP) ran from July to September 2023, policy and research officer, Mathew Akrigg, has been invited by the DWP to take part in the initial scoping and specification work for the proposed clearing house model and default multiple consolidator processes. Mat will have the opportunity to shape the legislation and processes in a way which assists employers in complying with new duties without increasing administrative burden. We will, of course, keep you informed of any updates as we receive them. Tax administration and maintenance day (TAMD) At the spring budget in March 2024, it was confirmed that tax administration and maintenance announcements would be made at the next TAMD, which was held on 18 April 2024. TAMD involved the launch of new consultations and CfEs, some of which will have impacts for payroll, pensions and reward. The policy team will, of course, be
Forums The policy team is privileged to sit on several HMRC forums. Samantha O'Sullivan, policy and advisory lead, Mat and Sarah Smith, policy and research officer, attended several forums between them in April, including: ● the guidance strategy forum ● employment and payroll group (EPG) ● HMRC’s expert panel forum ● employment status and intermediaries (IR35). The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups, via Professional and News Online . If you have any issues you would like to raise at any of the professional forums we sit on, please reach out to the team by emailing us at policy@cipp.org.uk . n
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 6
MY CIPP
Tell us a little about your career and background. I joined the CIPP as a qualifications administrator in December 2008 and have since progressed my career through various roles within the company. I was the qualifications team leader for many years and then made the move to project manager in December 2021. However, my passion has always been in education, so in June 2022, I took the opportunity to become the education services manager. Additionally, I’m a CIPP deputy designated safeguarding and prevent person. Over the years, I have successfully completed numerous qualifications and undertaken training to continuously evolve my personal confidence and competence, which completing any qualification gives. I’m currently studying a transformational leadership qualification to further develop my leadership skills. What are your day-to-day duties at the CIPP? My day-to-day is very varied, which I really enjoy. I line manage the education services project executive and the education project support. I also help the education services team to drive excellence and professionalism as I review and analyse feedback and implement internal processes. Additionally, I work closely with the education manager, working on standardisation, improvements and the operational delivery of new products. In my role, I’m involved in many projects which relate to the customer relationship management system, the learning management system (LMS) and our new products. I also work closely with the digital learning team around the operational side of delivering the qualifications on the LMS. What does your role mean to you? I really enjoy my role within the education department. It constantly challenges me and enhances my personal development. I’m very fortunate to work with such an amazing team. The role is very rewarding, particularly when it comes to coaching the team to help them reach their full potential. Supporting students is an area I’m passionate about; we’re developing this within the department to enable us to provide more support for students. What does a typical week look like for the education services team and how do you support students through their qualifications? A typical week for the education services team involves the operational coordination and administration of all qualifications, while ensuring all academic processes, rules and regulations are adhered to. The processes are driven by the qualification timetables and include processing student enrolments, preparing results for moderation and the release of results. With new qualifications regularly being added to the IPP Education (IPPE) Ltd portfolio, such as the Payroll Specialist Certificate (PSC), how can completing a qualification with IPPE help an individual in their career? Completing the PSC will give students the in-depth knowledge and skills they need to enhance their career by highlighting the complexities surrounding payroll legislation and contractual obligations. This will, in turn, help to raise the profile of the payroll and pensions professions. n
Vicky Hilton ACIPP Education services manager
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Treatment of termination payments above £30,000 Q: Does a termination payment over £30,000 attract both tax and employee National Insurance (NI) on the amount over £30,000? A: If this payment falls under Section 403 of the Income Tax (Earnings and Pensions) Act 2003, the first £30,000 isn’t subject to tax and NI. Anything above that £30,000 will be subject to income tax. The amount above the £30,000 is subject to class 1A employer contributions and must be reported and paid over in real time. So, the amount above the £30,000 doesn’t attract primary and secondary NICs, but does impact class 1A NICs, which must be paid by the employer in real time.
to each company. You would need to consider the type of worker and ensure you’re mindful of any national minimum wage implications. How proration is handled is usually written into contracts of employment or in the conditions of service. Two things to consider are: ● whatever method is used, it should be fair and consistent across the organisation ● when there’s nothing in the contract, terms of conditions or employment handbook, the contract is deemed silent on the subject, and where a contract is silent, the accrual method should be 1/365th for each calendar day, in accordance with the Apportionment Act 1870. Apprentice NI category letters Q: I’ve got an apprentice who is on NI category letter H, and they have turned 25 during the year. Do I move them to NI category letter A from the pay period following the one in which they turned 25, or do they remain on category letter H for the duration of the tax year / apprenticeship? A: This employee should be moved to NI category letter A from the contractual pay date on or after their 25th birthday. So, for instance, if a monthly payroll has a pay date of the 20 February and this employee’s 25th birthday is on 19 February, then category letter A applies from February’s pay date onwards.
By contrast, if the birthday falls on the 21 February, then category letter A applies from March’s pay date onwards.
Pensions and unpaid parental leave
Are there rules surrounding pension contributions when employees take unpaid parental leave?
Q: When an employee takes unpaid parental leave, are there any rules or requirements around whether pension contributions should continue? A: If the employee isn’t being paid, the employer must still make contributions for the first 26 weeks of an employee’s parental leave. After this, there would be no pension contributions due unless your pension scheme rules are more generous. Please see the link here to HM Revenue and Customs’ (HMRC’s) guidance, specifically the section on maternity and other parental leave: https://ow.ly/3Na850R6CuQ: “Maternity and other parental leave
The correct proration of salary
Are there specific rules around how to prorate salaries when employees are on unpaid leave?
Q: How do you prorate salary when an employee is on unpaid leave? A: The proration of salaries is individual
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 8
ONLINE LEARNING
POLICY HUB
If you’re looking for an answer to the question “what is automatic enrolment?” then look no further than this course. It highlights employers’ challenges, responsibilities and obligations to all parties involved with pensions and auto-enrolment, to enable compliance. You will leave this course equipped with the knowledge and skills to administer this vital and much- changed arena. Automatic enrolment and pensions for payroll
You and your employer will continue to make pension contributions if you’re getting paid during maternity leave. If you’re not getting paid, your employer still has to make pension contributions in the first 26 weeks of your leave (‘Ordinary Maternity Leave’). They have to carry on making contributions afterwards if it’s in your contract. Check your employer’s maternity policy.” The application of attachment of earnings orders (AOEs) Q: Can a direct earnings attachment (DEA) be applied with two council tax AOEs? A: No more than two council tax AOEs can be operated at the same time. However, a DEA can be applied in conjunction with the two council tax AOEs. You would need to prioritise the AOEs, as a council tax AOE takes priority over a DEA, and you’d also need to consider the protected earnings.
“Normal pay day Regulations define a ‘normal pay day’ as either the pay day specified in the contract, or the day on which they are usually paid if: ● they have no contract, or ● their contract does not specify a pay day.”
Director NI
Could someone explain the rules surrounding NI when an employee becomes a diretor?
Q: We have someone who was an employee from April 2023 and then became a director from December 2023. We’re struggling with how to calculate the NI for the tax year 2023/24. A: The calculations for the individual will need to be done manually / separately e.g., the employee earnings cannot be added to the director earnings. Also, there’s a blended rate for the director earnings for tax year 2023/24 of 11.5% for employees. You should prorate the annual earnings for the director earnings from the point at which they were appointed. Please see the following link and below for guidance on this: https://ow.ly/ MeGF50R6F8J: “Earnings paid for a period before appointment Earnings paid to a person before the date on which they were appointed as a director which relate, for example, to when they were employees of your company, are not included with the earnings paid after that date when the director’s NICs are assessed. Earnings paid to a person after the date on which they were appointed as a director which relate, for example, to when they were employees of your company, are included with the other earnings paid after that date when the director’s NICs are assessed. Use the director’s earnings period (annual or pro rata annual).” n
Statutory maternity pay (SMP) calculations
Visit cipp.org.uk/training to book your place
What happens to the calculations for SMP when payments are made earlier than the contractual pay date?
Q: We’ve been discussing the calculation of average weekly earnings (AWE) for SMP when payments are made earlier than the contractual pay dates (due to a payday falling at the weekend, for example). When the actual payday falls within the qualifying week, but the contractual payday falls into the following week, what should we do for the purposes of paying SMP? A: HMRC states that it’s the ‘normal’ pay date which should be used for calculating the AWE for SMP. If the normal payday is the 24th of the month, this would be the date used to work out the AWE and not the date the employee was actually paid on. The following link and below information corroborate this: https://ow.ly/ okle50R6GmV:
Member price: £395.00 + VAT Non-member price: £495.00 + VAT
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
THE CIPP
2024
Celebrate excellence in the payroll profession
Taking place on 3 October 2023 as part of the CIPP’s Annual Conference and Exhibition; the Annual Excellence Awards are the longest running, independent awards in the industry. They celebrate the commitment and excellence of both individuals and organisations in their role of ensuring that people are paid.
2024 awards categories
Spotlight Award The CIPP Spotlight Award is open to anyone working in payroll, pensions and / or reward. This award will be presented to an individual who has shown themselves to be an outstanding professional and could be working at any level within the industry. Bright Beginnings Award The CIPP Bright Beginnings Award is aimed at those new to the payroll, pensions and reward industry within the last two years, or who are currently completing an apprenticeship. This award recognises an individual who has made a significant impact and contribution to their organisation within that time. Luminary Award The payroll, pensions and reward industry has many leaders who use their influence to advocate for the industry and drive change. They inspire others by mentoring, empowering and supporting those around them. The CIPP Luminary Award will celebrate and recognise an individual who has demonstrated leadership within their organisation or across the wider industry and has had a positive, inspirational impact on the careers of others.
In-house Payroll Team of the Year Award
Software Product of the Year Award This award is aimed at software products which are sold and supplied for companies to run their own payroll in-house. It will recognise an organisation that is committed to ensuring that its software is compliant, user friendly, enables best practice and is well supported. International Payroll Service Provider of the Year Award Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation, and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant international payroll service. Payroll Service Provider of the Year Award Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation, and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant payroll service. There are now three awards within this category as follows: l 750 payslips per month or fewer l 751-2,500 payslips per month l over 2,501 payslips per month.
Teamwork is crucial to the success of any business. Employees should all be working towards one overall goal or mission for the organisation, otherwise the organisation will fail. This award recognises the in-house payroll team which has compelled their employer to recognise the important role that the department can play in improving the overall company performance, and not just perceive the department as a cost centre. Project of the Year Award Implementation of projects in payroll, pensions and reward is commonplace and this award recognises the work involved in implementing a successful project. Well-being and Employment Engagement Award With an increasing focus on employee health and well-being, this award will recognise organisations who have introduced initiatives to improve the general health, well-being and / or financial awareness of their employees.
Visit cipp.org.uk/awards to submit your nominations
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 10
How are the awards judged? Judges are selected from various industry sectors based on their skills and knowledge within payroll and pensions. All judges are members of the CIPP, so you are truly being recognised by your peers.
The judges only review the information in the nomination, they cannot, and do not, base any decision on personal opinion or prior knowledge of an individual or organisation.
Tips and guidance
Allow plenty of time to complete your nomination It takes time to put a nomination together, so make sure you improve your chances by allowing plenty of time. Take the time to consider how clear and concise your entry is to stay within the word limit and give your entry the best chance of standing out to the judges.
“Being awarded the CIPP Excellence Award for Well-being and Employee Engagement is a tremendous honour for Pento. This recognition, given to us by such a respected organisation, shows our genuine commitment to creating a positive and supportive atmosphere for our team. “We’re truly thankful to the CIPP for acknowledging our hard work, and we aim to constantly raise the bar for employee well-being and engagement. A heartfelt thank you to everyone at the CIPP.”
Entries must be submitted via the online platform by 30 June 2024.
Focus on the criteria and evidence Make sure you meet each of the criteria outlined for the award. Ensure you provide evidence of how you have met the criteria to attain higher scores from the judges. The winning nomination is, quite simply, the nomination with the highest score at the end of the process. You can attach up to four supporting PDF files. But be sure they add to your nomination. Avoid adding unnecessary information that the judges will need to sift through to find your point. Have a great summary statement You should write your summary statement last to be sure it covers everything contained in your nomination. It needs to be succinct. Remember, the Annual Excellence Awards get lots of nominations. Use your summary to stand out from the competition.
Georgia Winters , customer experience agent
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
MY CIPP
PAYROLL news
Agents able to register to payroll benefits IN THE latest Employer Bulletin from HM Revenue and Customs (HMRC), it has been confirmed that agents will be able to register for the payrolling of benefits from May 2024. This news comes amidst the confirmation that payrolling benefits in kind is to be made mandatory from April 2026. The publication confirms that providing the agent has the correct permission, they can use the payrolling benefits in kind service to register or remove benefits and expenses to be payrolled in the next tax year. The benefits and expenses covered include mileage / motoring, private medical and relocation expenses, and agents will be able to register ready for payrolling from the start of the tax year 2025/26. The March Employer Bulletin can be accessed in its entirety here: https://ow.ly/Xbmp50R7GyV.
Calls for the reform of statutory sick pay (SSP) grow THE WORK and Pensions Committee recently released a report which delved into the current effectiveness of SSP and made some recommendations to the UK government. Within the report was the conclusion that, “SSP does not provide adequate support for those who most need protecting from financial hardship during periods of sickness absence.” Some of the recommendations within the report were as follows: ● a slight increase to the rate of SSP, to align it with statutory maternity pay ● the removal of the lower earnings limit earning requirement, so all employees could be entitled to SSP ● waiting days should be kept, to limit unpredictable behavioural changes ● the government should consult with small and medium businesses to explore the possibility of a small business rebate for SSP. Nothing has changed at the time of writing but if there’s any movement in this space, we will, of course, keep you updated. The Work and Pensions Committee’s report can be accessed in full here: https://ow.ly/ NHGx50R88BN.
Clarification regarding part-year (PY) workers definitions for holiday pay and entitlement GUIDANCE RELEASED by the Department for Business and Trade has been updated, to confirm whether term-time workers paid in a certain way can be classed as PY workers. This is particularly important for payroll professionals when determining the holiday pay and entitlement these types of workers are entitled to. The guidance can be found here: https://ow.ly/hb2G50R88H6. Previously, the guidance stated a worker would be classed as a PY worker if, “In relation to a leave year, if, under the terms of their contract, they are required to work only part of that year and there are periods within that year (during the term of the contract) of at least a week which they are not required to work and for which they are not paid.” It was therefore considered that a term-time worker, paid in equal instalments across the year, couldn’t be classed as a PY worker. The guidance has now been updated to include the following clarification: “The regulations require that there must be a period of at least one week ‘for which they are not paid’ which means that it would still be possible for a worker to be paid ‘during’ that period so long as there is no expectation of them working in that period and nor are they receiving payment ‘for’ that period.” So, it’s now accepted that a PY worker may be paid in equal instalments across the year and still satisfy the description provided within the legislation, meaning term-time workers paid in this way could be classified as such.
Diary dates
5 June 6 June
Last day of tax month 2
First day of tax month 3
19 May (This is a weekend date)
Last day for submitting a real time information employer payment summary to apply to tax month 1 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
22 May 31 May
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
Employees on payroll as of 5 April 2024 need to receive their P60 by this date
5 July 6 July
Last day of tax month 3 First day of tax month 4
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 12
Worry-free payroll & HR compliance*
WINNER Best Payroll & HR Software Product Award
*Yes, that could be you, kicking back with a brew. Not a worry in the world.
MY CIPP
# Be Payroll Paul Morley ACIPP, reward advisor, Irwin Mitchell , tells us about his career journey and how the CIPP has helped along the way
Can you describe your payroll journey to us so far? I started as a payroll and benefits apprentice back in 2013, and over the past decade, I have held a number of payroll, human resource and reward roles across both the public and private sector, covering different areas such as sports and legal. I currently find myself in a reward advisor role within the legal sector, which I’m finding really beneficial, insightful and challenging. Why did you choose to become a member of the CIPP? I chose to become a member of the CIPP to provide myself with the much- needed knowledge, tools and education to complement the wealth of experience I have already gained. Having access to guidance and literature on critical payroll matters has been beneficial in making decisions at
What qualification have you studied? I have just finished the final year of the Foundation Degree in Payroll Management, a challenging but very rewarding course, from which I have gained lots of knowledge and information to use going forward. Why was it important to you to gain this qualification? I have over a decade of experience when it comes to payroll and reward, and was finding I had reached a point in my career where I was meeting the requirements for more senior roles from an experience
work and provided further insight into any uncertainties I may have had.
What’s your future career goal? I have always been highly motivated when it comes to career progression and have always aimed to be the best I possibly can be. More recently, my ambition has been to be part of senior management in reward, whether this be at director level or as a group head. What advice would you give to those new to the payroll profession? Don’t fear change. Really consider options and explore new avenues when it comes to career progression. The payroll industry is constantly evolving, and no payroll is the same, so being open to change will be challenging but very rewarding and will provide plenty of learning opportunities.
perspective but not when it came to qualifications. I also felt that having a qualification would bring me further
knowledge and insight into niche, complex payroll scenarios which I may not otherwise have come across. n
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*Correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 14
COMPLIANCE
A roundtable with Margaret Beels
Paul Chamberlain, partner and head of employment law, JMW Solicitors LLP, provides an overview of the areas discussed at a roundtable session held with Margaret Beels, the director of labour market enforcement (DLME)
O n 8 February 2024, JMW Solicitors LLP hosted a roundtable event with Margaret Beels, the DLME. In attendance were also several delegates from various organisations across a host of employment sectors. The session commenced with a presentation from Ms Beels, which provided insight into her role and aims in respect of: l labour market compliance l improving employment rights l tackling the exploitation of vulnerable workers. Following the presentation, attendees at the event were presented with the opportunity to engage in meaningful and insightful discussion about pertinent employment issues such as holiday pay, employment status and national minimum wage (NMW). Overview of the labour market enforcement strategy As part of her role, Ms Beels produced the Labour Market Enforcement Strategy 2023/2024 , which was published in October 2023 and aimed to assess the scale and nature of non-compliance in the labour market, along with setting a strategic direction to address such issues. Specifically, the report focussed on four strategic themes: l improving the radar picture l improving focus and effectiveness l more engagement and support for businesses and workers l better joined up thinking between the labour market enforcement bodies: m The Employment Agency Standards Inspectorate m HMRC’s NMW Team
m The Gangmasters and Labour Abuse Authority. The strategy was informed following considerable stakeholder participation, including a call for evidence (CfE) conducted in 2022, follow-up submissions and a series of stakeholder events. In addition to this, the devolved administrations in Scotland, England and Wales were also consulted. In response to the 2022 CfE, several concerns were raised regarding non-compliance within the labour market, including, but not limited to:
as well as concerns regarding underpayment of workers in accordance with the NMW.
Misclassification of workers There were worries regarding the misclassification of self-employed workers, particularly within the gig economy. Digital and online recruitment platforms As the use of these types of platforms has become more widespread, the risk of scams and fraud has also increased. Practical considerations It’s important for employers to consider the impact non-compliance can have on their business and to ensure necessary steps are taken to prevent this. One of the key takeaways from the roundtable event was the importance of employers remaining well informed and recognising any risks which could arise. Further, employers should ensure they have active compliance strategies and robust policies in place so that both the business and its workers are protected. Where issues are encountered, employers should be proactive in reporting them and should seek help to address them appropriately.
Umbrella companies The most common concerns raised related to the lack of transparency around the enforcement of employment rights and pay arrangements. Further, concerns were raised about the use of joint employment models due to the impact they could have on worker protections. Workers within the agriculture and care sectors Concerns were raised because of the increased number of workers within these sectors deemed to be at risk due to working in isolated environments, not being remunerated in accordance with minimum wage and not receiving formal contracts. Hospitality The CfE further highlighted the impact labour shortages have had on the hospitality sector,
What next? In preparation for the Labour Market
Enforcement Strategy 2024/25 , additional evidence has been gathered by Margaret Beels through a series of roundtables which took place in June 2023. In addition to this, a further CfE was concluded on 8 September 2023. The Labour Market Enforcement Strategy 2024/25 was presented to ministers before the end of March 2024 and is currently awaiting publication. n
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| Professional in Payroll, Pensions and Reward |
Issue 100 | May 2024
COMPLIANCE
Payroll Assurance Scheme (PAS)
The prestigious gold standard accreditation for your payroll processes and people Developed in partnership with HM Revenue and Customs (HMRC) and launched in 2012, the PAS is the only industry kitemark to ensure your payroll processes and people are compliant and robust. Examining over 60 facets of your payroll operations, the scheme is consistently evolving and not only shows that lifelong learning and development is planned and encouraged, but that you’re dedicated to compliance and best practice in payroll, a huge accolade for staff, as well as ensuring procurement is much easier.
Every issue we want to recognise and celebrate those organisations which have successfully achieved, or retained, their accreditation.
This month we would like to congratulate: Hays Specialist Recruitment Ltd (re-accreditation) North Kesteven District Council (re-accreditation).
Our chief executive officer, Jason Davenport, said, “ Thank you and congratulations to all the organisations achieving their PAS accreditation. You’ve made a very clear commitment to your teams, customers and to our industry in demonstrating your excellence and professionalism, well done.”
TESTIMONIALS Hear from a few of our accredited organisations, on how PAS has benefited their organisation:
Entrust Support Services: “The CIPP accreditation has provided, not only us as a business, but also our clients with the confidence that our processes, procedures and leadership are robust and resilient. The whole process was very well organised from start to finish, and the assessment team were very knowledgeable and supportive. “This is a great quality assurance check for us to consistently review and ensure we’re developing our staff, to meet the high standards we need to achieve this accreditation. Our clients will benefit from the strong leadership and customer service excellence our team brings within our payroll bureau.”
East Midlands Shared Services: "EMSS are proud to have achieved PAS re-accreditation, which is an important step in our next phase of progress. We have some challenges to overcome in the ever-changing world of the public sector, but we’re really pleased to have demonstrated what we have planned and to highlight how we’re building our team to provide robust support to our partners. “It’s important to us to be able to demonstrate that we have independent scrutiny of our payroll services and to evidence our commitment to high quality services through our key priority of nurturing our staff. As a provider of quality training for both the Level 3 and Level 5 payroll apprenticeships, the PAS provides us with external verification of the quality and commitment of the staff that deliver our training. We look forward to continuing to maintain the standard, which we have consistently achieved since 2015.”
Liberty Global Shared Services Limited:
“As a payroll provider with clients all over the world, this demonstrates the robust procedures and compliance we have in place to provide the best possible service. It also gives deserved recognition to our payroll team, who work tirelessly to maintain the highest possible operational standards. “We're hugely proud of the team and look forward to continuing to provide the best possible experience to our clients, as well as welcoming more businesses to benefit from our payroll services in the future.”
Hayley Walker MCIPPdip, global payroll manager
Lucy Littlefair, head of EMSS
Michelle Williams, business head
To find out more, visit cipp.org.uk/PAS or email compliance@cipp.org.uk
| Professional in Payroll, Pensions and Reward | May 2024 | Issue 100 16
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