Professional March 2020

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 58 March 2020

Risk assessment and management

The winning entry Be successful

Being payroll Be part of the CIPP

The future of payroll Be analytical and influential



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“Those who rule data will rule the entire world.” Masayoshi Son (1957–) (

There are many good articles in this issue, but the one which is an energising must-read is ‘The future of payroll’ (page

In another era – when I was young(ish), in the mid 1990s – I had an article published in Personnel Today magazine in which I advocated that HR practitioners should note and use the high quality and accuracy of payroll data. Well, what other system’s data is ‘audited’ so frequently by so many people? I asserted that employers should be drinking from the well of pure payroll data. (Sadly, I didn’t keep a copy.) Today, all data is highly valued.

41) by Nick Day. If you were worried about the impact that automation and artificial intelligence might have on the profession,

Nick foresees a fascinating, positive future in which payroll data is increasingly utilised by employers. Of course, payroll professionals must meet the challenge ahead and adapt and evolve. The contributors to the feature topic article ‘Risk assessment and management’ (page 18) quite rightly discuss various aspects of payroll data security. Jerome Smail observes that “the payroll function is the custodian of a huge amount of confidential and sensitive data”.

Mike Nicholas MCIPP AMBCS ( Editor

Chair’s message

For most individuals, the first contact with risk assessment comes as they move into a management position, and then it becomes part of their everyday life. Typically, this will begin with inclusion in business continuity planning to ascertain what actions need to be taken

going-concern, are we managing money correctly, with the right ratio of creditors and debtors and cash on hand? I hope each of you enjoy and take something from the articles contained in this edition. I have certainly always enjoyed reviewing risk and ensuring plans in place to mitigate the risks identified are both robust, tested and regularly reviewed with everyone who has a part to play. No point having a risk register and no one knowing the part they are expected to play in its enactment. As always if you have any comments on this edition or other items you would like to see covered, please do drop me a line at the email address below.

to ensure the business will be able to run in the event of a multitude of factors. The management of mitigating situations include actions to cover sickness and long periods of absence of staff, testing of key systems to ensure they are available when needed and back-up plans to continue supporting clients and maintain access to key documents. However, risk assessment broadens as you move to more senior positions and are asked to determine various other factors, such as a risk appetite when tendering for business and considering new clients or territories who may wish for items to be included in contracts that you are not used to agreeing. Also, for those within the C-suite, typical first questions foremost in the mind are whether the business is a

Jason Davenport MCIPP MIoD ( Chair, CIPP

Regular as clockwork and here’s another year-end. I hope everything is in hand, no reconciliation issues and it all goes smoothly. Which reminds me I recently attended the annual training event held for our trainers, who deliver training across the country on a CEO’s message

to enact. It’s also an appropriate time to remind you of an invaluable key member benefit, namely: Payroll: need to know - your guide to UK payroll legislation and reporting for 2019-2020 (https://online. This contains all relevant UK payroll, pensions and general employment items and is indexed and categorised for easy reference. Each item is in date order to ensure you have the latest updates on any given subject. The titles of new news articles added since the last publication are highlighted to ensure visibility in the index. In addition, for those earlier year queries all previous annual editions (2011/12 through to 2018/19) are always available to view and download in the dedicated area of the CIPP website. The policy unit of the CIPP produce this detailed document for your benefit so please follow the link and avail yourself of this benefit.

large number of educational and practical topics. Discussing the challenges of adapting and being flexible in how we deliver training in a marketplace where individuals and organisations want greater use of flexibility and technology, the passion and many (many) years of experience and desire to educate came across so strongly. Many in the room had training provided to them by the CIPP at times during their careers. It was gratifying to see this being carried forward by a group of payroll and pension professionals keen that those in payroll and pensions today recognise the benefits of solid training and education. My personal thanks to all the trainers who work with the CIPP – their efforts, knowledge and professionalism on behalf of the CIPP are really appreciated. As ever – and although this is written before the later than usual Budget! – I’m sure that in the next fiscal year there will be changes

Ken Pullar FCIPP ( Chief executive officer, CIPP


| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020

in Payroll, Pensions & Reward PROFESSI NAL

All issues available at


March 2020


Risk assessment and management

by Jerome Smail





Business Tax Account – PAYE for employers by Helen Hargreaves

Endings and beginnings by Samantha Mann

Pension regulators by Ian Neale




Changes to termination payments by Susan Ball and Lee Knight

Flexible working to accelerate in 2020 by Michelle Hobson

Maternity leave By Lora Murphy

| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 2

Charity Stories Here is a quick catch up of some charity stories over the last couple of months! London to Brighton Trek



Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Editor Mike Nicholas 0121 712 1000 | Advertising Jill Bonehill 0121 712 1033 | Design James Bartlett and Nicole Davis Printing Warwick Printing Company Ltd Claire Kennedy and Rosie Damarell took on the challenge of walking from London to Brighton to raise money for the British Heart Foundation. In 30 degree heat the ladies certainly found this difficult but want to thank everybody who donated and got them to their grand total f £1800! Wear it Pink The third floor of the Minerva Building was turned in to a charity fund raising machine, with cakes, tombola and games galore. Thank you to everyone who donated goods or participated and helped raise over £300!

Time to Change

Linc-On Roadshow The winning entry of Project of the Year 2019 by the University of Lincoln’s pay and reward team

A waste of time? By Henry Tapper

TheUniversity iscommitted to changing thewaywe thinkand actaboutmentalhealthand aspartof thisonWorldMental HealthAwarenessDay, the ViceChancellor,MaryStuart, andDeputyViceChancellor, JulianFree,signed the “Time to Change”pledgeonbehalfof the University. “The signing of the “Time toChange EmployerPledge”demonstrates the University’s continued commitment tonot onlybreakingdown the stigma inour society attached tomentalhealth,but also our dedication toproviding a considerate and supportive environment. Manydifferentpeople experienceperiods ofnotbeingwell and it isperfectly possible tobe looking out forpeople, to be caring for theworkforce and to ensure that very talentedpeople thatwehave in organisations like theUniversity can continue to contribute their full level of skills. We arenot only supporting our staffbutwe are supporting our students in thispromise, to create aworldwhere there is equality whateverpeople’s experiences are.” MaryStuart,ViceChancellor

The Linc-On Roadshow came to the Isaac Newton Building, displaying all that the University offers you as an employee. Showcasing our brilliant benefits such as Filmology and the Visa Spree card it was great to see so many of our colleagues turn out, including those that took part in our competitions. Here is just a snap shot of the day! 44

Linc-On Live

Check out Linc-On Live for all our current competitions! For October, the spookiest month of the year, we are asking you to send in your pictures of your carved pumpkins to win a treat of 4 x tickets to the Odeon! So get creative, get your family involved… the spookier the better! Send your photographs to help@uolrewards. by 11am on 1st November and the winner will be announced on 2nd November.


Linc-On Loves We have a new building called Linc-On Loves which is your chance to tell you what you are passionate about.

Whether you have read a good book, visited a fantastic restaurant or are raising money for charity, why not shout about it? Send your stories to

Emergency vehicles – time for action by Peter Minchinton

Evidence, copyright, reason by Nicola Mullineux

Liz Lay MSc FCIPPdip Katie Sharpe ACIPPdip

Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Clare Warrington MSc FCIPPdip AFHEA



Useful contacts

Membership 0121 712 1073 Education 0121 712 1023 Training 0121 712 1063 Events 0121 712 1013 Marketing and sales 0121 712 1033 General enquiries 0121 712 1000

Top ten developments by Danny Done

The future of payroll by Nick Day


01 Editor’s comment, andChair’s andCEO’smessage Events, news and developments 04 CIPPupdate 12 Events horizon 13 My CIPP Being payroll, membership benefits, On your behalf, Advisory 19 Industry news 20 Personal development CPD, Diary of a student

24 Compliance 35 Payroll news 37 Reward 48 Technology @CIPP_UK

Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2020. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 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 retreival 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.

Additional online content 21 Preventing remote worker burnout 22 Coping with stressful work


Issue 58 | March 2020

| Professional in Payroll, Pensions and Reward |

Facsimile 1 Letter to The Local Government Chronicle

[Institute public an I have in the ind technolo is now a and I am has grow investme The pr CIPP has achievem I atten a couple passing t Payroll far more jobs. I’ve

Facsimile 2 Invitation to inaugural meeting I would be grateful if you would bring this letter to the attention of your readers especially those responsible for the payment of salaries, wages and superannuation in their organisations. There is, in my opinion, a need for a new professional body to train, advise and increase the professional status of Salaries, Wages and Superannuation Officers. For some unknown reason officers responsible for the vital functions of pay and pensions have never had an organisation to cater for their professional needs. Professionally these functions are in a void somewhere between the accountancy and personnel management spheres of responsibility. In my opinion the complexities of wages etc. administration warrants the creation of a specialist organisation. During the last few years Wages etc. administration has acquired a new dimension of importance and the solving of problems associated with pay has become a rational problem. If any of your readers are interested in assisting in the creation of this new professional body or of giving moral support will they please write to me at my home address Liverpool, L13 6RT. George Powell Salaries & Wages Officer Merseyside P.T.E. Dear Sir, You are cordially invited to attend the inaugural meeting of the Institute of Payroll and Superannuation Administrators (IPSA). The meeting will commence at 1.30 p.m. in Committee Room 5 on Friday 10th October 1980 at: The Town Hall, Royal Borough of Kensington and Chelsea, Hornton Street, Kensington, London W.8. The Town Hall is only a few minutes walk from the underground at High

CIPP update

Celebrating 40 years of supporting payroll professionals THE CHARTERED Institute’s business development director, Vickie Graham DipM ACIM, has been investigating the origins of the CIPP. She writes: “I am wholly enjoying the investigations into the humble beginnings of our Chartered Institute. Prior to this exercise, I was confident in my knowledge of our history, the people involved and key dates. But in delving deeper I am finding things that I did not know. “I write this shortly after attending the CIPP trainer away day, an opportunity to get together with those who deliver training on behalf of the CIPP. It was a fantastic event, but one of the most positive outcomes for me was discussing the history of the CIPP with some of the trainers who have been involved with the Institute since the late 1980s early 1990s.

A perf In May, Charter that he years ag Geor the CIP the pro organisa In 19 account regardin professi Local G there sh for work George and wit the first praise f professi Ken officer, c delighte CIPP m helped payroll o up for t pivotal r Geor payroll a continu the CIP Professi Reward , legislatio Short lovely le staff exp day”.

Street, Kensington. The Agenda will be: 1. The formal creation of the Institute. 2. Appointment of Officers. 3. Appointment of Regional Officers.

4. Membership. 5. Publicity. 6. Proposed meeting of Officers with Director of IDS Ltd. 7. Training. 8. Recognition. 9. Any other business.

“I told them of how I had come across an article within APSA News circa 1986 outlining a history of significant payroll changes 1948–1985. The trainers told stories of counting cash and moving from manual to computerised payroll; all fascinating as we consider how few people carry cash nowadays and that the hot topic in technology is about automating processes.

CIPP WELCOMES NEW CHARTERED MEMBERS CONGRATULATIONS TO Jim Woodlingfield ChMCIPP, and Lara Smart ChFCIPPdip our latest member to join the ranks of Chartered members. A full list of Chartered Members can be found at . Chartered membership demonstrates the highest level of professional membership in the industry, and recognises those individuals who have worked hard to raise the profile of payroll and their professional standing through education and continuing professional development. It demonstrates to employers that you are committed to keeping up to date and raising the standards of best practice within the industry. To become a Chartered Member, or find out more, visit or email Congratulations to newly accredited PAS organisations THE CIPP Payroll Assurance Scheme is our flagship payroll audit solution, the gold standard for your processes and people and the prestigious award to covet in the payroll industry. It consists of two distinct elements: one will audit your payroll processes, and the other will audit the learning and development of the staff within the payroll function. Congratulations to our most recent accredited organisation Moore East Midlands . Ken Pullar, CIPP chief executive officer, said: “We are thrilled that Moore East Midlands have embarked on the journey to achieve this respected accreditation. It is imperative that organisations comply with government legislation and the Payroll Assurance Scheme is designed to help companies do just that.” Email to find out how the Payroll Assurance Scheme can benefit your organisation. APSA was originally launched for payroll and pension professionals working within the public sector and therefore the BPMA followed for those within the private sector five years later. A full timeline of the history of both organisations, leading to the merger and name changes that followed, will be published at the end of 2020. Images of pages from APSA News can be found in the online version of this issue ( ). If you have any knowledge or documentation of the history of the CIPP, from the early days, please contact . “Things have changed immensely over the last forty years, but the challenges we face in respect of effectiveness, efficiency and technology remain the ‘same’. This prompted the introduction of a new feature article from the April issue of Professional , ‘When we were young’. As part of our anniversary celebrations I invite you to tell your stories of payroll as was, how things used to be and how they changed payroll for it to become how we know it today. Please email if you want to get involved.” With regards to the CIPP’s history, Vickie outlines below a brief timeline of history from 1980 to 1985: June 1980 Letter published within the Local Government Chronicle outlining the need for a new professional body 10 October 1980 Inaugural meeting of the Association of Payroll and Superannuation Administrators (APSA) (see image) January 1983 APSA’s first payroll qualification launched, the Certificate in Payroll and Superannuation Administration September 1983 Criteria for Fellowship of APSA outlined and communicated to members 12 April 1985 APSA’s inaugural annual general meeting held in London November 1985 Registrations to the British Payroll Managers Association (BPMA) commenced was from the computer man when new government chemes, such as arnings related National Insurance, came in. I can honestly tell you that I would wonder why there wasn’t something like the accountancy bodies for payroll. Having given it thought I wrote to the Local Government Chronicle [see Facsimile 1] and the formation of the Association of Payroll and Superannuation Administrators (APSA) eventually followed. Though my letter acted as a catalyst it was two people from Kensington and Chelsea who progressed formation of the UK’s first professional payroll body. There was an established network in London which was important in getting the body up and running. What are your thoughts about the CIPP? The merger of APSA with the IBPM

| Professio

Issue 33 | September 2017

| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 4


OF ATTENDEES” Diganta Gogoi, head payroll sales UK & EU at Neeyamo

The CIPP Annual Conference and Exhibition is the UK’s largest independent payroll conference and an umissable opportunity to celebrate the profession, get essential updates to changes in the industry and grow your professional support network.

EDUCATE Educate yourself about the forthcoming changes to payroll and pensions legislation

COLLABORATE Collaborate with like-minded individuals, ask questions and hear from industry experts

CELEBRATE Celebrate the profession and your contribution towards making it successful

Don’t get left behind. Jump into the future of payroll with us .

14-15 October 2020 | Celtic Manor Resort, Wales E D U C A T E C O L L A B O R A T E C E L E B R A T E CIPP’S ANNUAL CONFERENCE AND EXHIBITION

SAVE £200

Attended in the past five years? Email for your special loyalty rate*

*Valid until 31 March 2020

Thank you to our Annual Conference and Exhibition and Annual Excellence Awards sponsors:





| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020


| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 6

CIPP update


| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020


| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 8

CIPP update


| Professional in Payroll, Pensions and Reward |

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| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 10

CIPP update


| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020

Events Horizon Full details of events and training courses can be found at or you can email for more information.

CIPP and AAT hot topics London – 14 May | Leeds – 2 June

National Payroll Week Conference and Exhibition 2020 10 September 2020 | Grand Central Hotel, Glasgow Taking place on 10 September 2020 at the Grand Central Hotel in Glasgow, the CIPP National Payroll Week conference is the only payroll conference in Scotland. This invaluable event will provide you with the latest legislative changes and give you the perfect opportunity to meet exhibitors to see what they can offer you as well as network with like-minded professionals. With six workshops and four plenary sessions providing an update on a range of topics delivered by industry-expert speakers, this event really is unmissable. Then, after an information-filled day, join us to celebrate at the National Payroll Week drinks reception. To view the programme and book your place please visit or email us at . 10 SEPTEMBER | SCOTLAND 2020

Join the CIPP and the Association of Accounting Technicians (AAT) at this half-day workshop, to gain an update on the forthcoming changes in legislation affecting payroll, whether in practice or business, and to network with other members and speakers to learn from their experiences and build your network of support. With educational and interactive sessions on the latest in payroll and pensions legislation, this event really is a must attend. This workshop also offers an excellent opportunity for members to discuss their CPD objectives and requirements with a member of the CIPP team and achieve their CPD from the event. To book your place please visit or email us at .

*applicable levels of membership only.

National forums 2020 Exclusive to CIPP members*, the national forums are an excellent opportunity to hear from the policy team, as well as other key speakers, on developments in payroll, pension and reward legislation. Attend this event and keep up to date on key changes to legislation and network with other CIPP members and speakers. Bookings are now open on the CIPP website.






Manchester Edinburgh

5 May

11 June 16 June 18 June 24 June

London Bristol Cardiff London

13 May 19 May 20 May



9 June

Thank you to our National forum sponsors

*applicable levels of membership only. Please be aware that lunch will not be provided.



Training courses


Date *



Date *


Leeds Cardiff London

26 March

Off-payroll working and other employment status considerations


24 March

1 April 3 April 6 April 8 April

Payroll and HR legislation update (50% off for members)

London London

16 April

17 March 18 March

Manchester Cambridge Newcastle

Edinburgh Manchester

Holiday pay and leave

21 April

27 March

Bristol Exeter

31 March

Automatic enrolment and pensions for payroll


9 April

P11D, expenses and benefits

29 April


14 April 16 April

Dates are subject to change. More dates are available at training-listing


Have you considered in-house delivery of training courses?

Can’t find a date or location to suit your needs? Let us know by visiting . New dates and locations may be added if there is enough interest.

| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 12


So, you’re amember of the CIPP – brilliant! You are receiving this magazine and are aware of the useful articles and news updates which it brings; but are you aware of the other benefits available to you? CIPP membership benefits

Be recognised Being a member of the CIPP sets you apart from other professionals within the industry. Those of you who are associate, full, fellow or Chartered members will be able to use the CIPP’s designatory letters after your name on your social media profiles, email signatures and business cards, therefore demonstrating your value as a CIPP member to your colleagues and peers. You’ll have a membership certificate which you can display with pride, and you will be able to vote at the CIPP’s annual general meeting to determine who represents your Institute on the CIPP board of directors – you may even choose to stand for a board position yourself. Be knowledgeable Stay up to date, solve problems and save time with our knowledge resources. We know, because you told us, that you are a member to keep up to date – and we have a vast array of resources available to enable you to do just that, including: ● National forums – if you have not booked already book your place on one of our national forums running in May and June. Held following the Budget, these events are free to attend for associate, full, fellow and Chartered members of the CIPP to provide you with the latest legislative updates. And, if you can’t get to a face-to-face event, we run a national forum webinar which you can attend live online, or access through My CIPP after it has taken place. ● Payroll: need to know – your guide to UK payroll legislation and reporting – this essential guide is produced by the CIPP policy and research team who use their knowledge of payroll and pensions legislation to maintain and update this

● £100 off our other face-to-face training courses ● discounts off our online training portfolio, such as the ‘off-payroll working’ webinar. Be supported, and supportive Be part of a community where you can collaborate with, share, learn from and support other professionals. This includes: ● access to the CIPP’s Advisory Service to support you with technical and legislative queries as they arise; the team has over ninety years of combined experience and form part of the wider policy and research team so have access to the latest legislative developments and information ● Specialist Interest Groups (SIGs) available online to share experiences and ask other members within the same industry as yourself for insights and ideas ● annual benchmarking exercise available to full, fellow and Chartered members which enables you to compare your payroll with others who have completed the survey – results are completely anonymous, and the report will help inform payroll business decisions. Whatever stage of your career, the CIPP can support you. Our membership

indexed summary of news and links to payroll, pensions and employment legislation. The team issue an updated guide fortnightly so you can be assured that you have the most up to date information to hand. ● The Compact Payroll Reference Book – introduced to the CIPP benefits portfolio in 2019, this book is known as the ‘Payroll Bible’ and includes current tax and National Insurance tables, together with as much information as is likely to be required during the tax year. associate, full, fellow and Chartered members will be sent the book automatically as part of their tax pack following the start of the new tax year. Your tax pack will also include other benefits such as: ❍ CIPP payroll factcard ❍ CIPP payroll factpen ❍ CIPP wallplanner. ● Policy webcasts – throughout the year, the CIPP policy team release updates on topical issues relating to legislation changes, including the Budget webcast which will be released shortly after 11 March. These are available at any time and can be accessed through My CIPP. Be developed Take advantage of the vast opportunities and our professional development resources to grow your career, develop your team or grow your business. Members of the CIPP can benefit from: ● online continuing professional development (CPD) logging tool, enabling you to log your learning objectives and progress towards achieving these throughout your membership year ● 50% off our ‘payroll and HR legislation update’ and ‘calculating a payslip’ training courses

levels are: ● affiliate ● Associate ● full ● Chartered full ● fellow ● Chartered fellow

If you are unsure where you are on your membership journey, or want to find out about upgrading your membership, contact the membership team on 0121 712 1073 or email .


| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020


On your behalf

Policy team update

The CIPP’s policy teamprovides information about recent meetings and developments

National minimumwage A new forum – which has been a long time coming, is one that sees the Department for Business, Energy and Industrial Strategy (BEIS) and HM Revenue & Customs (HMRC) work together with a small number of stakeholders from the Employment and Payroll Group to discuss the subject of national minimum wage and national living wage (‘NM/LW’). Since the inaugural meeting draft guidance for NM/LW has been shared with the forum members for comment, which bodes well for the future. Statutory Payments Consultation Group This long-standing forum brings BEIS, HMRC and the Department for Work and Pensions working together with stakeholders to discuss issues arising from the administration of statutory payments. A key subject of discussion at the January 2020 meeting of this biennial forum was that of parental bereavement leave (PBL) and statutory parental bereavement pay (SPBP). Employer guidance was intended to be published in December, but the general election prevented its release. However, by the time you read this it should have been published, alongside the publication of regulations that will bring the PBL and SPBP rules into effect. Another subject of discussion was that of the latest off-payroll working reforms. It was confirmed that a worker delivering their personal services through their personal service company (other intermediaries are available) and is deemed to be caught by the off-payroll working rules – and do have their tax and NICs liability affected – will not mean they have entitlement to employment rights. Such rights should be available to them through the intermediary that is being

sized organisations, explains what changes are coming in for contracts from 6 April 2020 and what recipients need to do in order to prepare. Namely, to start reviewing their current workforce and to open lines of communications with all internal stakeholders who will be impacted by an increased workload and with all external contractors whose contracts of work will need to be assessed. The method of assessment to be used is a key issue as the engaging client will need to demonstrate that they have taken reasonable care in reaching a decision. Although the CEST (check employment status for tax) tool, which HMRC launched in 2017, has been updated, controversy continues over the subject of MoO. The CEST tool is one resource that can be used, but engaging clients are free to use specialist IR35 services or other professional services if they prefer. Whatever service is used it is important is to be able to demonstrate that reasonable care has been taken. Though at the time of writing HMRC had not published full guidance, by the time you read this it should have been. As announced during the general election, a review of the roll-out of the latest reforms is being carried out. However, this is not, as many hoped, a review of IR35; and no delays are being hinted at by HM Treasury. Council tax pilot to recover debts direct fromworkers’ wages In July 2019 we told you through News Online about a pilot scheme affecting some local authorities in England that are using information sharing powers to recover unpaid council tax debt directly from earnings. Although we knew that this was a Cabinet Office pilot involving the sharing of

paid for their services. We hope that 2020 will finally provide government response to the 2018 consultation on employment status, and the impact on worker rights and taxation. A response is long overdue. ...start reviewing their current workforce and to open lines of communications... stakeholders from a range of sectors to meet with HMRC officials to discuss the operation and administration of IR35. Discussions and agenda items range from complex legal considerations that have dominated First and Second Tier tribunals for many years and will often focus on key subjects such as: mutuality of obligation (MoO), control and substitution. The current focus, however, is the delivery of the latest raft of off-payroll reforms which will see medium- and large-size entities, that were not previously captured within the public sector off-payroll reforms of 2017, having to assess whether a contractor who is delivering their personal services through an intermediary is captured by off-payroll working rules. The HMRC education programme, which began late summer 2019 with large businesses, stalled during general election purdah but has restarted with the delivery of webinars through HMRC’s Talking Points. Direct communications, in the form of a letter posted to medium- IR35 forum This long-standing forum enables


| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58

Policy hub

HMRC data, detailed information has been scarce and there has been much industry speculation about the project and the implications it will have for payroll and payroll software providers. Since our initial reports, representatives from the CIPP and the ICAEW (Institute of Chartered Accountants in England and Wales) were invited to discuss this pilot with Cabinet Office representatives. We are now able to share details about the project. The Digital Economy Act 2017 allows permissive data sharing between specified public authorities for the purpose of managing and reducing debt. Currently councils can only use data supplied by the resident to recover their debts. In this pilot, 29 councils are able to obtain HMRC employer and self-assessment data for a sample of residents who have not paid their council tax. The pilot only affects people who have not paid their council tax for 2018/19 or earlier years and the council has obtained a liability order from the Magistrates Court. Each council in the pilot will supply HMRC with a title, forename, initial or middle name, surname, debt address or contact address for around 4,000 debtors to obtain employment for a sample of residents who have not paid their council tax payment against employed debtors. Whilst it is likely that there will be an increase in the number of CTAEOs issued in pilot areas, this is the only change that payroll practitioners are expected to face. There are no new fields required for real time information submissions and this pilot does not involve the creation of a new type of AEO. and self-assessment information. HMRC will use the council-supplied information and compare details against their internal records. Where there is an exact match with the first name and surname and either debt or contact address, HMRC will provide requested details to the council. Where data is matched, the council will contact the individuals concerned to decide how best to recover the debt. It may be that the council decides to raise a council tax attachment of earnings order (CTAEO) in order to enforce

The pilot will run for one year, after which it will be evaluated and a report produced for the Review Board and Minister for the Constitution. Factors determining whether the pilot is a success could include: ● amount of council tax debt recovered in an affordable and sustainable way ● increase in the number of vulnerable customers identified ● a reduction in the use of enforcement agents. If the pilot is successful, a national solution for all England and Welsh councils may be developed. The CIPP policy team remain keen to understand whether payroll practitioners in the pilot areas experience an increase in the number of CTAEOs received and, if so, whether they experience any additional administrative burden. We will be liaising with the Cabinet Office to ensure this area is explored. n If you have any comments or experiences you would like to share on any of the subjects raised please get in touch by email to .

OFF-PAYROLL WORKING (IR35) Medium and large organisations in all sectors of the economy will become responsible for assessing the employment status of individuals who work for them. Make sure you are compliant with the legislation with our off-payroll working (IR35) webinar and off-payroll working and other employment status considerations training course.

Visit , email or call 0121 712 1000 for more information.



Issue 58| March 2020

| Professional in Payroll, Pensions and Reward |


The CIPP's Advisory Service team provides answers to popular questions

Q: Do we submit an employer payment summary (EPS) as our final submission of the tax year, even if we have sent a final full payment submission (FPS)? A: You would only send an EPS as your final report instead of a final FPS. So, if you have forgotten to put ‘yes’ in the final FPS submission for the year, or you did not pay anyone in the final pay period of the tax year, then you would have to send an EPS and indicate that this is your final submission for the tax year. Q: When sending final real time information returns for the tax year, is it possible to send more than one FPS for a pay as you earn (PAYE) reference scheme, if for example you have weekly and monthly payrolls on the same PAYE scheme? A: You would only send one final FPS per PAYE scheme, and you would tick the box to state: “This is your final FPS” in the last payroll you run. Regardless of the pay frequencies, you would only mark the payroll nearest to the end of the tax year as your final submission. Alternatively, if this box is not ticked you would use an EPS to tell HM Revenue & Customs (HMRC) that it is your final submission for the PAYE scheme. If you make an error in your final FPS, you will be able to send a replacement. You would need to ensure you have selected a late reason as well as marking this as your final FPS for the tax year. advances where employees are missing a large payment and are unable to wait until the following payday. If this is still a valid process, can you please advise on the rules? A: I can confirm that HMRC do allow you to make ‘ad hoc’ payments outside of your regular payroll without the requirement Q: Within our organisation we occasionally issue payroll loans/

to send a FPS (such as where you have missed an overtime payment, or after the payroll has processed you are told about a new employee). However, if you make regular payments outside your normal payroll these would not be classed as ‘ad hoc’; and in these circumstances an additional FPS should be sent. Please refer to the following guidance: http://bit. ly/2S0AbRA. Q: We have been advised that as of 6 April 2020, class 1A National Insurance contributions (NICs) will be due on all termination payments that exceed the £30,000 threshold. How will these NICs be collected during tax year 2020/21? relevant termination award that exceeds £30,000 from 6 April 2020. This will not be collected and reported via the P11D(b) return unlike class 1A NICs liabilities on benefits in kind. Instead this will be reported and collected in real time, meaning that your payroll system will need to be updated to accommodate this change. Class 1A NICS due on these payments will be reported and paid when the payments occur in year. You will need to liaise with your software provider to ensure that your software and payroll codes have been updated so that the class 1A NICs are shown correctly in the FPS returns and are included in the PAYE bill due for the period. Q: Can we use a new employee’s form P45 in our April 2020 payroll if it has a leaving date in the ‘previous’ tax year, e.g. 23 March 2020? A: You cannot use the pay and tax shown in a form P45 for a previous tax year, but in this case you would use the code in the P45 and uplift it as appropriate. Best practice would always be to use the tax A: Class 1A NICs will be due on payments awarded in relation to a

code checker provided by HMRC at the following link:

Q: Is it possible to pay holiday pay in advance in week 53? A: It is not advisable to do this because the employee will not be entitled to tax and NICs allowances for the new tax year. This could mean the employee would pay more PAYE income tax and class 1 NICs than they would have if the holiday pay had been paid in the pay period when they take the holiday. Q: An employee intends leaving the company on 31 March 2020 and will receive form P45 then. Do we need to give this person a P60 certificate for the 2019/20 tax year? A: A P60 certificate would not be issued in this scenario as the employee was not employed by the company on 5 April 2020. In the event a former employee loses the form P45 they received when leaving their employment, they might request information about earnings and tax etc to complete their annual self- assessment tax return in which case you could provide a statement of earnings to assist. Q: Can you provide an overview of the changes to the employment allowance (EA) that have effect from April 2020? A: From 6 April 2020 the EA will be restricted so that it can only be claimed by an employer if its total qualifying employer’s (secondary) class 1 NICs liability in the previous tax year was less than £100,000. Also, if the employer has multiple PAYE schemes or is part of a connected group of companies, the employer’s (secondary) class 1 NICs liabilities of all companies and PAYE schemes must be added together in order to assess eligibility for the EA. Remember the allowance can only be

The CIPP Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email or visit to live chat.

| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 16

*please see summary at for details.

PAYROLL ASSURANCE SCHEME DON’TWAIT UNTIL IT’S TOO LATE Can you afford penalties of up to £10,000* per day for non- compliance? Make sure your people and processes are working, and get ahead of any non-confirmities before they become a problem.

Policy hub

claimed once across all PAYE schemes and connected companies, and employers will need to decide which PAYE scheme to set the claim against. Q: I have just taken over payroll processing from another bookkeeper who hasn’t passed me any new tax codes to be used in the 2020/21 tax year. One of the employee’s tax codes is 18T, so when I am moving her to the new tax year can I keep the old tax code or should I change it to BR? A: You would carry over this 18T tax code to the new year and you wouldn’t change this to BR. Note that there is also no uplift; any change to the code will be advised by HMRC. Q: We operate a two-weekly payroll, with pay day for week 52 falling on 20 March 2020. There will be another pay day on 3 April 2020. I am unsure which tax week to use; please advise. A: In some tax years where employees are paid fortnightly there will be 27 pay periods, so in the scenario you outline for tax purposes a ‘week 54’ is to be processed for pay day 3 April 2020. Regulation 31 of the Income Tax (Pay as You Earn) Regulations 2003 determines what happens in these circumstances. If the employee has earned above their income tax personal allowance, apply tax week two free pay on a non-cumulative basis. If earnings are not above this threshold, apply their normal tax code. The employer will also need to indicate that tax week ‘54’ is being operated in the FPS return. Q: We paid an employee an enhanced company redundancy payment of £26,000 in March 2020 (month 12) and sent the employee a form P45. We have been informed that an additional £8,000 of company redundancy pay is due to this employee and will be paid after 6 April 2020. Can you please advise on the tax and NICs implications? A: As the termination took place in tax year 2019/20 and the payment is for the redundancy in the same employment, you would aggregate the two payments. As the total package would be £34,000, the first £4,000 of this additional £8,000 would not be subject to PAYE, and the balance of £4,000 would be taxed as a payment after leaving using tax code 0T on a month

one basis. Note that there would also be no class 1A NICs due on this additional payment as NICs liability does not arise on termination payments made or issued prior to 6 April 2020. Q: We currently have several workers who have been assessed as within the off-payroll working rules from April 2020 and will be processed via our normal payroll. How will HMRC know that they are off-payroll workers rather than employees? Also, when entering them onto our payroll system, what tax code would be used to operate PAYE? A: During your software update for the tax year 2020/21, you will notice that there will be a new indicator field. You must make sure that this indicator is ticked to ensure that HMRC does not send any generic notification service messages for student loan notifications When entering the off-payroll workers onto your payroll system for the first time, you should treat them as you would a new employee, using tax code BR and applying class 1 NICs using category A. When setting them up on your system, use their National Insurance number and not the company’s UTR (unique tax reference). Q: Our company cars are payrolled. As we have a new fleet delivered this April, mainly consisting of ultra-low emission cars, how will these be taxed? A: From 6 April 2020, if a car has a CO2 emission figure of 1–50g/km employers must provide the car’s zero emission mileage figure in the new field available. This is the maximum distance in miles that the car can be driven in electric mode without recharging the battery. The reason that this needs to be submitted is because cars with less than 50g/km will now have the benefit charge based on how many miles travelled before the requirement to be recharged. As per the December 2010 issue of HMRC’s Employer Bulletin , further advice will be issued. n

For more information or to book your place: Visit: Email Call: 0121 712 1000 Live chat with us @CIPP_UK

*correct at time of publication


| Professional in Payroll, Pensions and Reward |

Issue 58 | March 2020


Being payroll

Sunmola Adeyamo MCIPPdip, senior payroll specialist, City of London University, looks at the benefits of being part of the CIPP

Why did you become a member of the CIPP I wanted to progress in the payroll field so I looked for where I could do that. I went online found the CIPP and went into the website and looked at what they had. I was attracted to the Foundation Degree course they had. What made you choose to study with the CIPP? I looked at the course content. It was going to be three years to do the Foundation Degree, but I knew it was going to be worth it because every year it had different models that were going to shape me into progressing in my career. Tell us a time when you felt CIPP membership has helped your organisation So, because I am now graduated and have access to the CIPP’s Advisory Service, I usually call the team when we get stuck in the office on how to do some calculations sometimes. The last testing that we had to do for the new tax year, we got stuck because the tables for the manual calculations were not yet on the GOV.UK website. I called the Advisory Service and we talked through from the old tables to the figures that were going to be used for the new tables – and when the new tables were released it worked out exactly as the calculations that we had done with the Advisory Service team. For someone who is thinking about joining as a member, what would your advice be for what they would gain from joining? I would say that they would gain a lot, and their confidence level would go up. When I joined the Institute and started studying, I found that when conversing with other payrollers my confidence level went up. When I went for interviews, I always had answers to all

Why is it important to you that you became a member of the CIPP? It was important to remain a member even after I finished my study because I knew I could get access to the CIPP’s Advisory Service. I knew I would be up-to-date with payroll updates and with legislation before other payrollers most times and for networking purposes.

If you would like to be part of the being payroll series, please email

of the questions asked; and even if I didn’t have the answers, I had the confidence to tell them I knew where to get the answers, so that helped me a lot.


| Professional in Payroll, Pensions and Reward | March 2020 | Issue 58 18

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