Policy hub
The CIPP’s policy and research team provide an update on developments. The teamhas been busy delivering the first in a series of new-style BeConnected: National Forums, attending consultation forums, and keeping payroll professionals up-to-date with all of the latest news Policy team update On your behalf
BeConnected: National Forums Over the past year the CIPP has, like many organisations, adapted to delivering updates and webinars virtually. Traditionally, such events have been held face-to-face, so the transition meant several departments being involved and substantial changes made to event processes. With this change came the opportunity to trial a new style for the BeConnected: National Forums. The sessions now involve policy and research officers Gemma Mullis and Lora Murphy providing the traditional legislative update of all the changes with the focus shifting in part two to practical payroll and the exploration of implications of coronavirus. The BeConnected: National Forums also feature new policy lead, Samantha Johnson, who discusses the future of the profession, providing an overview of some of the recently launched consultations which could have significant impact on payroll. Samantha also considers how payroll teams might look in the future, and how to maximise the benefits of membership with the CIPP. This is followed by a Q&A session, which provides the opportunity for delegates to submit any questions that they may have. The BeConnected: National Forums also include questions for the audience to answer, which feed into the research that the policy team undertakes. When the BeConnected: National Forums programme ends, the BeKnowledgeable webinar series will resume following a brief hiatus. The policy team would like to know which topics you would like to see featured. Please send your ideas to the team at policy@cipp.org.uk . Payrolling of benefits The CIPP’s policy team, in conjunction with HM Revenue & Customs (HMRC), has
been looking at ways in which the use of payrolling benefits can be encouraged and advertised more widely to businesses. Payrolling involves processing benefits through the payroll in real time, negating the requirement to issue annually a P11D return for those provided with those benefits. There are currently a couple of benefits that cannot be payrolled, which are employer-provided living accommodation and interest-free and low interest loans. There is still a requirement for details relating to those benefits to be reported in the P11D return. ...the pandemic has disproportionately impacted some sectors... Given the impact of the pandemic and the subsequent enhanced focus on financial wellbeing of individuals, employers may opt to payroll benefits as this means employees effectively pay the tax associated with the benefits at the same time as they receive them. The P11D process means that they are not taxed on those benefits until the following tax year, as their tax code is adjusted accordingly only once HMRC has received the relevant information. The CIPP will be hosting a survey asking organisations about the process they use to report taxable benefits to HMRC, and what the barriers are to payrolling benefits. Please keep an eye out for this survey, and respond where possible, as your feedback is invaluable to both the CIPP and HMRC. A Quick Poll recently hosted on our News Online page revealed that the majority of employers still issue P11D returns (49%), with 20% opting to payroll benefits, and 31% combining the two processes.
If you have any additional feedback on the topic of payrolling benefits, please contact policy@cipp.org.uk . The future of the NMW/NLW In April 2021, the CIPP’s policy team held a virtual roundtable Think Tank, giving full, fellow and Chartered members the opportunity to liaise with the Low Pay Commission about the recently published consultation which explores the national living wage (NLW) and national minimum wage (NMW) rates for use from April 2022 (http://ow.ly/rxKi30rGE4u). The session was beneficial, with attendees giving insight to how businesses, particularly in certain sectors, have been affected by the pandemic. It was interesting, and at times sombre, to hear how some organisations have thrived but how others have consistently struggled. It is apparent that the pandemic has disproportionately impacted some sectors, and this could potentially continue for a long time. The resounding outcome of the meeting was that though increasing the NLW/NMW would be a positive move, wider external economic conditions need to be considered carefully. There was much discussion about the impact of the increases on individuals paid at a rate not much higher than the minimum but who have greater responsibilities than those paid at the minimum. There were also questions raised as to why the minimum rates are linked to age, and not job requirements or skill sets, as somebody aged 18 could potentially be performing the same duties as a 25-year- old but be paid significantly less. The CIPP will be submitting a formal response to the consultation, but we require your feedback. There’s still time to respond to our survey on NLW/NMW rates from April 2022, here: https://bit.ly/33nhmy1 . All feedback and responses are much appreciated, so thank you in advance. n
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| Professional in Payroll, Pensions and Reward |
Issue 71 | June 2021
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