PROFESSI NAL in Payroll, Pensions & Reward Issue 97 February 2024 Official publication of The Chartered Institute of Payroll Professionals
Celebration time Join us in celebrating National Apprenticeship Week with a range of articles exploring payroll apprenticeships
Advisory Service Hear from the CIPP’s Advisory Service on what it means to them to act as that extra member of your payroll team
Giving something back
One of our CIPP tutors tells us why she loves teaching others and wants to give something back to the payroll community
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
Payroll & HR complete
The best in payroll meets the best in HR
Payroll
HR
Benefits
Performance
Recruitment
Analytics
Training
Expenses
Timesheets
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“Lean on me when you’re not strong, and I’ll be your friend, I’ll help you carry on” Bill Withers
Editor’s
comment
Welcome to 2024, payroll, pensions and reward professionals! I hope you managed to have a good break over the festive period and that January went smoothly for you all. This issue’s theme is ‘ call on me ’. Now, I
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automatically think of the Eric Prydz song and that video. But we’re looking specifically at how payroll professionals can draw on the strong, close-knit payroll community which has been built up over the years and how you can use the CIPP, your membership organisation, to make the most of the benefits available to you. Help like this can be crucial if you’re struggling with a complex query or trying to get your head round the latest legislation updates. We hear from the amazing Advisory Service team on page 40, as they tell us what it means to them to act as that extra member of your payroll department, and we also hear from the CIPP’s longest-standing tutor on page 42 about just how rewarding teaching and inspiring payroll professionals is. Also, flick to page 34 to hear from a subsidiary of the CIPP, IPP Education Ltd, on the successes and challenges of being an end point assessment organisation over the past 12 months. There’s so much going on! As we head into the new year, this issue’s ‘hot topic’ piece centres on something we all need to be vigilant to, and that is mini-umbrella company fraud. Be prepared and ensure you’re aware of the warning signs to protect your organisation, by turning to page 56 now.
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
34 - EPA with IPP Education – one year on By Leigh-Ann Hart
56
40 - Your Advisory Service: here for you By the CIPP’s Advisory Service team
42 - Why I love being a CIPP tutor By Sandra Lingwood
56 - Hot topic – mini-umbrella companies and the employment allowance – tax avoidance or payroll fraud? By Justine Riccomini
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
Chair’s
message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA (Hons) FCIPP Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP 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
Happy new year to you all; I hope you enjoyed a fantastic Christmas and new year. Did you make a new year’s resolution? Are you still sticking to it, or have you already succumbed to the temptations of what you gave up? We’re already moving through the year at a fast pace, and I find myself wondering where the time goes.
Hopefully, lighter nights are on the horizon at least. With the new year, we naturally start to think about our next challenge, so maybe a new project or even a career move. Make sure you take advantage of your membership – from using the Advisory Service to getting your next qualification or attending a training course, the CIPP has it all covered. There are also many events you can attend, from webinars to face-to-face networking opportunities, which are all designed with the aim of allowing like-minded payroll professionals to share experiences and ideas. Connecting with the payroll community, through LinkedIn and other social media platforms, is critical to ensure we stay connected and up to date as we face new changes and demands. For me, the year starts with the Annual General Meeting, so I hope to see you there and at other events throughout 2024. Remember to stay connected.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
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
CEO’s
message
Here we are at the start of 2024, and I hope your resolutions for this year are still holding good. As part of mental well-being and good health, I’m committing to seven hours
sleep a night, regular exercise (including at least three trips to the gym each week) and getting out walking with the family over the weekends. Sefton Park, built in 1872 as a Parisian landscaped open space, is a particular spot in Liverpool that we go to for walks around the lake and we visit the Palm House. I would like to talk more about healthy eating and drinking but one step at a time, please. 😊 You may have decided, during the holiday season, to drive your career in a new direction during 2024. Or to consider the benefits of a squiggly career and learn another discipline as part of your payroll, pensions or reward career journey. Although running payrolls and / or providing pension services in-house or delivering via a service bureau are different disciplines, both still require the accurate, on time delivery of results as the mantra that we all live by as professionals. And both require additional soft skills to support development. If you’re thinking of a career change or move or you have indeed already made the move, then the team here at the CIPP is here to help you. Training, qualifications, advice and guidance are all covered, and updates provided in News Online , the BeKnowledgeable webinar series and other forums. Plus, the magazine and events / conferences are all designed to support you. The SIGs (specialist interest groups) have been established to cover specific areas of interest. If you have considered additional offerings you believe should be available as part of the membership package which aren’t currently available, then please write to me and let me have your thoughts. The membership benefit package is regularly reviewed, and I’m keen to know of any additional items you would expect to be covered as part of that. Please contact me on the email address shown below and I commit to reviewing and responding to all requests, thank you.
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 | February 2024 | Issue 97 2
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 .
Contents FEBRUARY 2024
Reading the magazine gives you one CPD point
REGULARS
FEATURES
Minimum wage – maximum help By Jeni Morris
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll News, Movers and shakers 12 Personal development BePayroll
CIPP Consult By Natasha Taylor
15
13
The CIPP’s technical panel talks autumn statement updates and holiday changes With the CIPP’s technical panel
Changes to the collection of hours worked through payroll: a journey By Lora Murphy and Samantha O’Sullivan
18
16
The CIPP’s technical panel
How small businesses can protect themselves from money laundering By Nikki Coles
All change for tipping as new legislation draws closer By Peter Davies
22
20
Unlocking success: an EOR – your key to the world of
The NMW: HMRC’s geographic compliance approach By Gary Davies
13 Compliance
26
24
From the new legislation that impacts how tips are paid to staff to the new approach HM Revenue and Customs is taking to education regarding the national minimum wage
global talent By Nafisa Samreen
online exclusive content
Payslips as tools of empowerment, not sources of confusion By Sheryl Steele
Feature topic – call on me By Jerome Smail
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Feature topic Read all about the theme of the current issue
Reward Hear from your very own Advisory Service, and the longest-standing CIPP tutor on what it means to them to help payroll professionals and celebrate National Apprenticeship Week with us
Achieving the Level 5 Payroll Assistant Manager Apprenticeship By Kerri Kingston
How a payroll apprenticeship
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36
could rocket launch your payroll career By Emily Cocking
Payroll giving month 2024 – how can you get
How can training support your career as a payroll professional? By Beverley Gibbs
56 Hot topic
44
46
Be vigilant to the potential threat of mini-umbrella company fraud
involved? By Terry Stokes
online exclusive content
online exclusive content
58 Payroll pets
We say hello to some of your furry friends
Reforms to EU laws, holiday entitlement and holiday pay By Danny Done
Employment law latest By Nicola Mullineux
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
CIPP update
The CIPP’s Christmas party 2023 ON 15 DECEMBER 2023, CIPP employees attended the NEC’s ‘Christmas party world’ to revel in the festive spirit and celebrate the year gone by. We enjoyed a lovely three-course meal accompanied by captivating entertainment, and then put on our dancing shoes with a DJ taking us into the night.
Market Insight Survey closes OUR 2024 Market Insight Survey closed at the end of January and gave you, as stakeholders of the CIPP, the opportunity to let us know what you think about the services we provide. This will assist us with our 2024 strategies, allowing us to continue developing our services so you can enhance your knowledge, build your professional community and further your career. We would like to thank everyone who completed the survey and helped to shape the future of the professional body and industry.
The CIPP’s Graduation Ceremony YOU WILL have seen coverage of the CIPP’s prestigious Graduation Ceremony in the December / January issue of Professional . Due to the slightly later timing of the event in 2023 and magazine production deadlines being what they are, we didn’t have the opportunity to bring you quotes from some of our fabulous award winners, but now we can.
BA (Hons) Business Management Best independent research project award 2023
MSc in Strategic Leadership Michelle Crook award for best dissertation Awarded to: Lisa Woolford
Awarded to: Melanie McGrory
Nominated by: Brenda Pearson, University of Lincoln
Nominated by: Kate Broadhurst, Loughborough University
The independent research project provides students the opportunity to apply, integrate and deepen the knowledge, insights and skills learnt throughout their programme of study, demonstrating their capacity to work on a major project, through real-world issues.
The Master of Science (MSc) in Strategic Leadership is a challenging three year-course, which covers the areas of
leading change, decision making, managing and leading people, governance and transparency, enterprise and innovation and managing risk.
“I can’t believe I won the award for best independent research project 2023.
“Receiving the Michelle Crook award is an incredible milestone in my career, and it’s a true testament to my unwavering dedication to my work. The recognition I received inspires me to continue striving for excellence, and I’m thankful for the support of my loved ones, especially my children. My success is proof that, with determination, hard work and a strong support system, anything is possible. I hope my achievement will inspire others to pursue their dreams with passion and perseverance.” Lisa Woolford Winner of Michelle Crook Award for best dissertation 2023 (MSc in Strategic Leadership) Delivering the business project in the final year of study is a demanding and in-depth piece of work which requires extensive commitment, and this award recognises the extensive work and effort the winner put into this.
“I was disappointed I couldn’t make the awards ceremony but would like to add that I believe I’ve succeeded in my career to become payroll director for GXO Logistics UK and Ireland largely due to my education through the CIPP and the University of Lincoln. All my tutors provided me with advice, which has helped me to navigate the big world of business. I can’t thank them enough, especially the tutor for my independent research project, Andrew Williams. I really appreciate all the help he provided throughout the project. Achieving this award just goes to show that hard work and determination can enable anyone to become successful in the world of payroll.” Melanie McGrory Winner of Best independent research project award 2023 (BA (Hons) Business Management)
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 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.
There’s still time to BeConnected Yes, that’s right. You heard correctly. There’s still time to sign up for either our online or face-to-face BeConnected events, so you can start 2024 with a reinvigorating payroll boost ahead of the new tax year. The CIPP’s policy and research team will ensure you’re as up to date as possible with any legislative changes for 2024/25, and you’ll also have the opportunity to liaise with the team and your peers in our discussion sessions, which have been highly successful in previous years. Head online to secure your place at one of these must-attend events now, at: https://ow.ly/78oX50QnjKT.
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 other dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
Course
Date
Location
07 February
Online Online Online
Holiday pay and leave
04 March
05 February 19 February
Manchester Birmingham
Introduction to payroll
06 March 11 March
Online
01 February
London
08 February 15 February 22 February 27 February
Online
Birmingham
Online Bristol
01 March 04 March 08 March 11 March 13 March 14 March 20 March 25 March 26 March
Newcastle
Online
Payroll update
London
Birmingham Manchester
Online Leeds London Online Online Online
14 February 28 February
Holiday pay: what’s changed?
13 March
Online
27 March
Online
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
POLICY HUB
On your behalf
Happy new year and happy preparation period for tax year end, coming in April. This issue, we cover what the CIPP’s policy and research team has been getting up to over the last two months Policy team update
Forums The policy team is privileged to sit on several HM Revenue and Customs (HMRC) forums. Samantha O’Sullivan, policy lead and Mathew Akrigg, policy and research officer, attended several forums between them in December, including the: l one-to-many compliance advisory board l collection of student loans consultation group l construction industry forum l employment status and intermediaries forum l employment and payroll group. 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 via these groups through Professional and News Online . If you have any issues you would like raising at any of the professional forums we sit on, please reach out to the team by emailing us at policy@cipp.org.uk .
Following on from the team’s response, Sam was (for the second time in three months) asked to provide oral evidence to the House of Commons Work and Pensions Select Committee in late January on this very topic. It’s fantastic that the Institute and the policy team are being recognised at parliamentary level, and our feedback is being received at a ministerial level. The Department for Work and Pensions opened a CfE into the long-term direction of workplace saving. The purpose was to explore whether a lifetime provider model would improve outcomes for savers, how the collective defined contribution market can grow and whether there are synergies between the two. The team responded to this CfE in January and highlighted that no additional administrative burden should be imposed on payroll professionals if implementing a lifetime provider model. If you’d like to take a closer look at the team’s formal responses to consultations and CfEs, you can do so here https:// ow.ly/3Kav50QigsG. Events Mat delivered an extremely well-attended BeKnowledgeable back in December on the key changes to holiday pay and entitlement for part-year and irregular hours workers. This was the perfect platform to update members on our new training course: ‘ Holiday pay: what's changed?’, which started from 17 January. This course gives you an understanding of the new holiday pay legislation which is now in place for 2024. To find out more, head over to the
training area of our website, or go here: https://ow.ly/XEiA50QifXb. HMRC reached out to the team to request we facilitate several think tanks with our members around the work they’re doing in supporting employers to meet their national minimum wage obligations. The team recognises the different challenges faced between in-house and service provider payroll professionals, so separate events were held to ensure those differences could be conveyed back to HMRC. These events took place over December and January and were very well received. HMRC representatives delivered our January BeKnowledgeable on organised labour fraud. The representatives gave an overview of two frauds mainly impacting the payroll industry: payroll company fraud and mini-umbrella company fraud. If you happened to miss this session but want to learn more about these important topics, turn to the ‘Hot topic’ in this issue! Get ahead of the new tax year, and let’s BeConnected Our BeConnected events run at the start of the calendar year, providing associate members and above with a thorough legislative update. They're either face-to-face or online to ensure a successful launch into the new tax year and familiarity with what’s changing and why, along with what’s staying the same. Not only are the events the perfect opportunity to upskill ahead of the new tax year, they’re also an opportunity for wider learning and networking. These events kick off in Birmingham on 7 February 2024, so don’t miss out and book your place now: https://ow.ly/2boA50Qiguq. n
Consultation and call for evidence (CfE) updates
The Work and Pensions Select Committee opened an inquiry looking into the current effectiveness of statutory sick pay (SSP), in supporting claimants, and whether SSP should be reformed to better enable a recipient’s recovery and return to work. The team published a short survey so our members and the wider industry could have their say – thank you if you took the time to complete this. The team collated all feedback provided and responded to the CfE in early December. Our response has been published in the Policy Hub area of the website.
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 6
MY CIPP
Mathew Akrigg ACIPP, Policy and research officer
How did you first begin working in payroll? The first time I dipped my toe into payroll was when my finance director went to Australia for a whole month, leaving me to run the company payroll for a whopping 11 employees. Miraculously, everyone was paid correctly and on time! After that, I made the choice to apply for a job doing payroll full time and loved it. # ChoosePayroll . That role was working in a specialist payroll provider for temporary staffing in the National Health Service. A niche that set me up well with some obscure payroll knowledge and a passion to learn more. How did you then move into the CIPP’s policy team? As someone who likes diving into details, finding out the truth and solving the puzzle, who treats every day as a learning opportunity, the job just seemed perfect. I saw the job description and set my heart on it. Luckily, the policy team felt the same way about me joining the team and I was welcomed aboard. It’s such an unorthodox role within the industry, but it’s an absolute thrill to represent the industry and help to educate payroll professionals. It’s tough at times, but something I have enjoyed so much. I'm so glad I made the move to the CIPP and the policy and research team.
Did you study a specific course to help you to enter this career? When I first started my career in payroll, I had just finished my AAT level 4 qualification. Something which seems fairly common in this industry is to transition from accountancy to payroll. I definitely think there are a lot of transferable skills between the two. When I joined the CIPP, I was enrolled onto the Foundation Degree in Payroll Management and I’m currently in my third and final year. I can honestly say, and not just because the CIPP employs me, that the course has been fantastic for my payroll knowledge. Previously working in a niche did leave me with some gaps that may seem obvious to other payroll professionals and the course has tightened up my knowledge. What skills does a policy team member need to have? Obviously, the role requires a degree of previous payroll experience. Like I previously said though, there are always gaps to tighten up. Therefore, the second thing I would say is the willingness to learn. I don’t like the phrase ‘every day is a school day’, but you really do learn so much in this job, hearing all the weird and wonderful scenarios our members need help with. Besides that, policy team members need a passion for payroll that comes
through in presentations, writing and interactions with government and members. What has been your biggest sense of achievement in your career so far? Just over two years ago, I had never presented to a crowd before; now, I have presented to an audience of 400+ at our Annual Conference and Exhibition and hosted webinars with more than 600 attendees. The feedback I, and the rest of the policy team, have received from these events makes all the hard work worth it. We’re constantly doing everything possible to ensure the profession is up to date, compliant and representing the profession to the best of our ability. What advice would you give to someone just at the start of their payroll career? No one knows everything. I keep talking about learning because I truly believe that payroll is a lifelong learning opportunity. I’m still surprised by edge cases and bizarre queries brought to us from members but relish the opportunity to work them out and assist. But with so much to learn, there’s so much you don’t know, so don’t get down about any gaps in your knowledge – you will get there. n
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Employees appointed as directors mid-tax year Q: We have a client with several employees who have been appointed as directors mid-tax year. I know how to handle directors who are appointed mid- tax year who haven’t been on the payroll so far in the tax year, but in this instance, all three of them have been receiving earnings, and have been appointed as directors as of 1 November 2023. A: When an employee is appointed as a director during the tax year, the pro-rata annual earnings period should be used for the remainder of that tax year based on the tax week of appointment. This doesn’t include any previous earnings prior to the date of appointment. For reporting purposes, additional information should be flagged to HM Revenue and Customs (HMRC) on the full payment submission, as ‘AN’ for the annual earnings method or ‘AL’ for the alternative method, along with the week the director was appointed. Please see the following links for further information: https://ow.ly/Jnwu50Qn1Lp and https://ow.ly/nLvL50Qn1Mj.
allowance through the payroll and is reimbursed for business mileage only, what rate should we be paying for the mileage on a fully electric vehicle? A: As the employee is claiming mileage in their own electric car, the approved mileage rate is 45 pence per mile for the first 10,000 business miles and 25 pence thereafter. If a company wishes to pay a different rate, they can, but any excess is subject to tax and class 1 National Insurance contributions (NICs). Please see here for more details: https:// ow.ly/15Vx50Qn1Ny. The employment allowance (EA) and the kickstart scheme Q: We’re taking on a new company client from another accountant. They confirmed they didn’t claim the EA for tax years 2021/22 and 2022/23 because they weren’t eligible for the EA as state aid was being claimed for an employee on the kickstart scheme. They stated that using the kickstart scheme for one employee meant the company couldn’t use the EA at all for the entire tax years mentioned. Please could you confirm if this is correct? A: The EA counts as de minimis state aid allowance, and there’s a limit to the de minimis state aid allowance businesses can claim over a three-year period. This means that it could be the case that EA couldn’t be claimed if the de minimis state aid limit was breached. Additionally, the kickstart scheme (which has now closed) allowed employers to help certain individuals at risk of long-term unemployment aged 16-24. Employers of all sizes could apply for funding from the government for 100% of the national minimum wage (NMW) for 25 hours per week for a total of six months, along with the associated employer NICs and
employer minimum automatic enrolment contributions. For individuals under the age of 21, there are no employer NICs, so, if the company only had these types of employees (all under 21, plus the kickstart scheme employee), then the EA couldn’t be claimed as there would be no employer NICs to claim it against. Please see here for further information on the EA: https://ow.ly/ nOTm50Qpz1r.
How do you treat e-vouchers and NI purposes?
Can you claim the EA if you have used the kickstart scheme for any of your employees?
What are the rules regarding the maximum number of council tax attachment of earnings orders (CTAEOs) running through payroll? Q: We received two CTAEOs dated 7 June 2023. We later got a priority order dated 23 November 2023. We assumed we could only have two order deductions running concurrently, so have tried contacting the council to consolidate the two existing orders but cannot get an answer. Please can you confirm the order of priority we should be following? A: An employee can only have two CTAEOs running at any one time. Therefore, if this order is another CTAEO, then only the two existing ones can be processed. If, however, this additional order is not another CTAEO, then all three can be processed. This is because with other
What happens when employees are appointed as directors mid-tax year?
Business mileage rates on fully electric vehicles Q: If an employee receives a car
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 8
Available online or face-to-face
POLICY HUB
MAKE SURE YOU’RE UP TO DATE WITH THE LATEST CHANGES
orders (e.g. direct earning attachments or deduction from earnings orders), there’s no maximum limit. The tax treatment of expenses incurred by an employee’s wife Q: A client would like to pay the hotel expenses for an employee’s wife. The employee was working away from home and suffered a stroke. The employee has made payment for the hotel and submitted it to the employer. Is this classed as a benefit in kind (BIK)? A: Although the employer has acted in a very considerate manner, this would, unfortunately, still be classed as a BIK. As the employee was working away from home on business, the cost of their hotel stay is fine, but the wife’s tax liability will need to be reported on the employee’s record. This could be via P11D, or a pay as you earn settlement agreement (PSA). Under the circumstances, we suggest the client contacts HMRC to ask to add this to a PSA, meaning the client will cover the tax and pay class 1B NICs. As the employer didn’t pay for this directly and it has been reimbursed to the employee, if it isn’t included on a PSA, it will be reported on the P11D as a pecuniary liability or disallowable expense. This will be taxable and subject to employee and employer class 1 NICs.
of pay elements to be included in the calculation: l salary l allowances (car, shift, callout, etc.,)
PAYROLL UPDATE
l overtime l bonuses l statutory payments l occupational payments
Did you know that there are over 170 pieces of legislation that can affect payroll processes? Keep your knowledge current and ensure your business is compliant.
l anything which is BIK cash-based, such as a pecuniary liability (box B on P11D), vouchers and credit cards (box C on P11D) and expenses (box N on P11D). For more information, please see here: https://ow.ly/ R8Pi50QpxAz. When do new national minimum wage (NMW) rates apply from? Q: Please can you advise when I pay the new NMW rate which comes into force in April 2024? There’s confusion regarding when this must be paid to weekly and monthly paid staff. A: For the increase to NMW taking effect from pay reference periods beginning on or after 1 April 2024, you must look at the start date of the pay reference period. If that is prior to the 1 April 2024, the old rate applies, but if the start of the pay reference period is on or after 1 April 2024, the new rate applies. There are examples in the following link from the Advisory, Conciliation and Arbitration Service: https://ow.ly/ zjEk50Qn1So.
Duration Two consecutive half days for online option OR one full day for face-to-face option
Book online at cipp.org.uk/training
How do you treat e-vouchers for tax and NI purposes?
How do you treat e-vouchers for tax and NI purposes?
Would a payment made to an employee in relation to their wife’s hotel expenses be subject to tax and NI?
When exactly in April 2024 do the new NMW rates apply from?
Which payments are included in the apprenticeship levy calculation? Q: We would like some guidance in relation to the apprenticeship levy. Can you confirm if statutory payments, such as statutory sick pay and SMP should be included in the calculation for the apprenticeship levy? A: The apprenticeship levy is calculated based on the total amount of earnings on which an employer is liable to pay class 1 secondary NICs. Here are a few examples
Can you claim the EA even if you only take on seasonal workers? Q: We have a new client that intends to take on five employees who will work every year for a few weeks at a time. Can the client claim the EA? A: Yes, if they meet the criteria. They must be a business or charity with employers’ class 1 NICs of less than £100,000 in the previous tax year. Please see here for further guidance: https:// ow.ly/rGQ050Qn23A. n
*Price correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
Member price: £247.50 + VAT Non-member price: £495 + VAT
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
PAYROLL news
Scottish Budget 2024/25 announced – tax changes THE SCOTTISH government announced several changes in the Scottish budget back in December. There are some big changes coming to Scottish taxes, and imminently. The starter, intermediate and higher rates remain unchanged from last year. However, the top rate is going to be increased by 1p to 48%, for those who earn over £125,140 per year.
A new band is also being introduced, known as the advanced rate. This will apply to an individual’s earnings from £62,430 (£75,000 when factoring in the personal allowance) up to £125,140 in taxable income per year. The basic and intermediate bands will increase by inflationary figures and will be applicable to those earning from £14,877 and from
£26,562 respectively. The starting point of the higher and top bands will remain the same. The changes will take effect from 6 April 2024, and you can find a handy table below:
Earnings banding from
Earnings banding to
Tax payable
Personal allowance
£0
£12,570
0%
Starter
£12,571
£14,876
19%
Basic
£14,877
£26,561
20%
Intermediate
£26,562
£43,662
21%
Higher
£43,663
£75,000
42%
Advanced
£75,001
£125,140
45%
Top
Above £125,140
Unlimited
48%
Further information on the Scottish budget is available here: https://ow.ly/q2W250Qn5Of.WS
Draft Welsh budget 2024/25: no changes to WRIT ON THE same day the Scottish government was held, the Welsh government also delivered its draft budget announcement. The Welsh government has the power to amend the Welsh rates of income tax (WRIT) by certain amounts. The UK rates are reduced by 10p for each bracket and the Welsh government then has the power to set the remainder. They’re all currently set to10p, remaining at parity with England and Northern Ireland. It’s been confirmed that the rates will continue to be set at 10p. To illustrate how the WRIT works, the graph to the right has been provided in the budget narrative document. The draft Welsh budget document can be accessed here: https://ow.ly/FOCr50Qn6oh.
Flexible working – a day one right confirmed to commence 6 April 2024 A STATUTORY instrument has been laid to ensure that the amendments to flexible working regulations can come into effect from 6 April 2024. This means that any request made on or after 6 April 2024 will be subject to the new rules and can be made from day one of employment. The statutory instrument can be found here: https://ow.ly/FoA850Qn6A5.
Diary dates
National Apprenticeship Week
5 – 11 February
5 February 6 February
Last day of tax month 10 First day of tax month 11
Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 February
22 February
5 March 6 March
Last day of tax month 11 First day of tax month 12
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 10
Jobsborad We are pleased to provide our exclusive CIPP jobs board to payroll professionals advertising vacancies in payroll Look no further... Looking for a new member of your payroll team?
A move to Ciphr, to shape the future of payroll JULIE LALLY recently moved to the role of managing director for payroll at Ciphr. She has spent over 25 years in the payroll and human resource (HR) industry, during which time she has developed a real passion for helping people embrace change and for driving performance in a rapidly changing business environment. Julie’s expertise has seen her working with some of the leading global software suppliers in the HR and payroll
industry such as Zellis, ADP, MHR, Mitrefinch and Advanced, leading innovation, research / development and sales to help support employee development, engagement and business growth. Julie has worked closely with the CIPP for over 20 years, collaborating with government bodies and HM Revenue and Customs on payroll legislation changes and advising on how they can be administered through software. Julie was also a CIPP tutor for over ten years, supporting students through their payroll degrees. She still advises the CIPP on updates to the payroll technology module of the payroll degree. Julie’s key achievement in the world of payroll was designing and delivering the world’s first real-time payroll solution in 2018, changing the way payroll professionals process payrolls and removing payroll cut-off periods to improve payroll accuracy. She’s keen to share her years of research, insight and knowledge to help others. Julie analyses technology, the economy, the human revolution and the future of work, and looks at the impact this will have on employers. She also regularly speaks at business conferences, posts regular blogs on topical payroll and HR issues and continues to feature in thought leadership articles. Julie says, “With a firm commitment to innovation, pushing technology boundaries and putting the customer at the centre of every strategic decision, this is a very exciting time of growth for Ciphr, and I’m delighted to be joining such a talented team. The world of work has seen so many recent changes supercharged by the pandemic, with the introduction of true flexible working, the rise in demand of job crafting, people wanting instant reward for work and the talent shortage due to the great resignation, which are presenting challenges for business leaders when trying to attract and retain top talent. This is all changing the payroll profession at pace. “I’m eager to contribute my payroll skill set to develop and grow the Ciphr payroll business, to deliver outstanding products and services to our customers and to challenge the payroll technology industry. I look forward to learning from the talented colleagues around me, and building a future of success and innovation together in a team environment where collaboration thrives, ideas flourish and each day brings us closer to our shared goals”.
If you are interested in advertising your latest
vacancy, please email us at enquiries@cipp.org.uk or call 0121 712 1033 .
Scan to advertise
If you are moving roles and would like to appear on this page, please contact editor@cipp.org.uk .
11
| Professional in Payroll, Pensions and Reward |
Issue 97 | February 2024
PERSONAL DEVELOPMENT
# Be Payroll Clare Jackson, MCIPPdip, human resource (HR) transformation and operational excellence lead, Allianz Insurance , tells us about membership and studying with the CIPP
Can you describe your payroll journey to us so far? This may sound very familiar, but I fell into payroll around 30 years ago when I decided to do a bit of ‘temping work’ which was very popular back then. The recruitment agency I registered with needed someone to work for two weeks as annual leave cover to run its payroll for the whole of the UK. I worked my way up to payroll supervisor and ended up staying there for 11 years. This led me on to various payroll roles running in-house, bureau and fully managed payroll services in both the public and private sectors. I started with LV in 2013, becoming payroll manager and then moved onto Allianz in 2020. I’ve pushed myself out of my comfort zone and became a guest speaker at the Reward Conference on the topic of the apprenticeship levy when it was introduced in 2017. It’s important to seek out these opportunities and learn that you can do more than you think with a subject you know a lot about, which leads to getting over the dreaded ‘imposter syndrome’ I’m sure everyone has felt at one time or another. I’m currently working in the HR transformation and operational excellence team on any change projects, which often involves payroll-related items and leading sessions for several departments in the company. Why did you choose to become a member of the CIPP? I was studying for the Foundation Degree in Payroll Management and membership with the CIPP gave invaluable support with face-to-face / email communications and online resources. I also wanted to be part of a professional organisation which works very closely with HM Revenue and Customs and other governing bodies, to make a real difference to the payroll industry. What membership benefits have you used or enjoyed the most and how have they helped you? I keep up to date with any changes and legislation updates by reading the weekly News Online email, along with Professional magazine. I find the Advisory Service Q&As section particularly helpful to refresh on anything I haven’t come across in a while or to confirm my thinking is correct. I have also attended the ‘special interest groups’ in person
to contribute and I post questions online for information from payroll peers on any projects I may be working on, also responding to others to share my knowledge and experience. This is a great resource and builds your network with other professionals in payroll, pensions and reward. How would you describe your experience of studying with the CIPP? I started studying with the CIPP in my 30s with an eight-year- old child, so time to focus on studying was challenging. Time management was very important, so I knew how much I wanted to achieve on each module. I ensured I had some days off to focus on family and friends too. It’s important to keep up your social activities when studying to boost you, ready for the next module. What advice do you have for someone thinking of studying a qualification with us? You won’t regret it and it certainly opens doors on your career path. The CIPP segments each module very well and there’s a great deal of support and various resources to help you. It’s hard work but if you put the time and commitment in, the feeling of the achievement when you graduate is fantastic. What does working in payroll mean to you? My role changed earlier this year and although I’m still in HR, I now work on change projects in our transformation and operational excellence team. This has involved me leading on projects to introduce an electric car salary sacrifice scheme and on payroll changes for our benefits alignment project. As I work for a global company, my change work has involved liaising with colleagues from Allianz Germany and Australia and it’s great to collaborate in this way. My role still has elements of payroll, ensuring any change is streamlined and aligned with our UK and global strategies. My background in payroll will always be valuable because it touches so many areas: HR, pensions, benefits, reward, finance, tax and procurement, to name a few. I enjoy making a difference to the moments that matter and payroll certainly matters! n
12 | Professional in Payroll, Pensions and Reward | February 2024 | Issue 97
COMPLIANCE
consult cipp EMPOWERING SUCCESS IN PAYROLL
Natasha Taylor, CIPP consultancy relationship lead, discusses our CIPP Consult service, to cover the process and explain how it could benefit you and your organisation
C ompliance within payroll is principle of ensuring all employees are paid ‘on time and accurately’ that they don’t have time to step back and review the way they operate. Sometimes, the department is aware that something needs to be investigated but lacks the resource or knowledge and expertise to effectively review and identify any issues. At CIPP Consult, we specialise in reviewing the essential, yet payroll departments are often so focussed on the payroll operation with a ‘fresh pair of eyes’ to recommend innovative improvements to processes and ways of working. CIPP Consult provides payroll, reward, benefits and human resources advice, which is completely independent of all relevant software and service suppliers. All our recommendations are entirely independent, based on our excellent research and knowledge base. Our consultancy work falls under four main areas: l strategy l transformation l optimisation l remediation. Whether you need support in making strategic decisions, streamlining and improving your payroll operation, system review and implementation assistance or expertise to fix a specific issue, CIPP Consult can support you. Each of our projects are entirely bespoke, so you can be assured the project will be of incredible value to your organisation. Consultancy process Each consultancy project follows a four- step process, which the consultant will take you through. Although each engagement varies in nature, the structure of each project remains the same, as follows.
Discovery During the discovery phase, the consultant conducts a requirement gathering workshop and
support themselves. Either offering comes with a detailed report covering the discovery, analysis and solution shaping the consultant has worked on throughout the project. n PAYE health check The pay as you earn (PAYE) health check has been developed to support payroll departments in reviewing their payroll operations and identifying risk areas. Following an extensive review of the payroll processing procedures, you receive a report outlining any risk areas identified, along with any recommendations. This is all broken down into legislative issues, contractual issues and areas of best practice. Natasha Taylor is the consultancy relationship lead responsible for the development, growth and leadership of the consultancy department. With a background in change and transformation management, Natasha’s expertise centres around implementing large scale process and systems change, focussing on minimising disruption in day-to-day operations, looking at identifying opportunities for improvement and best practice, helping organisations navigate change seamlessly. Natasha will take you through from initial enquiry right up to the end of your consultancy work, being the familiar face throughout the project. She’s dedicated to the consistent delivery of client- focussed results by handpicking the consultants and placing them with the clients based on their requirements. For any further information on what CIPP Consult can do for you and your organisation, please contact Natasha directly, at natasha.taylor@cipp.org.uk .
provides you with the opportunity to share greater detail regarding what it is you’re looking for from the consultancy work. The purpose of this phase is to define what success looks like for you and to gather all the information necessary to get there.
Analysis This is where the consultant reviews your processes, people / structure and governance / compliance. The
consultant analyses the current situation and digests the information needed to produce the desired outcome of the project.
Solution shaping This is where the consultant defines what
the solution is, using the analysis they have conducted, outlaying how and why this would benefit your organisation.
Delivery strategy The consultant provides recommendations and produces
an action plan following their analysis and proposed solution. The delivery strategy can result in the consultant offering guidance and actionable solutions for your organisation to digest and implement yourselves, or through providing implementation and training
13
| Professional in Payroll, Pensions and Reward |
Issue 97 | February 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: ● Aldi Stores Ltd (new accreditation) ● PwC LLP (new accreditation) ● Thomson Cooper (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 them.
Broadwing Accountancy Services Ltd “At Broadwing Accountancy Services
MHA Moore and Smalley “With the encouragement and support of the managing partners at MHA Moore and Smalley, we registered for PAS accreditation. Although initially apprehensive on assessment day, I was delighted to demonstrate the policies and procedures we have in place to
Liberty Shared Services “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.”
Limited, we’re delighted to have received this recognition. As a business we strive to provide the best service delivery to our clients, while ensuring we remain compliant with legislation. We’re dedicated to continuous improvement and delivering a high-quality payroll service. “Being awarded the PAS accreditation has confirmed to the team that they’re providing a trusted and compliant service to our clients. I’m very proud of the Broadwing team for their hard work and dedication in achieving this.”
provide an excellent payroll service. “In attaining recognition and PAS
accreditation, our payroll department provides existing clients with reassurance that our high- quality service, compliance and dedication meets the CIPP’s requirements and enables prospective clients to make a more informed decision when choosing an outsourced payroll provider. We’re proud to have received this accreditation and will continue to build on our success.”
Julie Greensmith ChMCIPPdip, payroll manager
Rachel Hurst MCIPPdip, payroll manager
Tracey Simpson MCIPPdip, director – payroll services
www.cipp.org.uk/PAS compliance@cipp.org.uk
To find out more, visit our website or contact our PAS team:
| Professional in Payroll, Pensions and Reward | December 2021 – January 2022 | Issue 76 14 February 2024 | Issue 97
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