CIPP update
Congratulations to the newly accredited PAS organisations
WELCOME TO the February edition. We hope January went well for you all, and that you are settling into the new routine for 2021. If you or your business are thinking of changing software provider, then our 2021 Software Directory will be included in the March issue. This supplement enables you to review and compare products at a glance, a great tool to help with your forward planning. Looking back to the end of 2020, the last activities the CIPP held before the Christmas break were two Chartered members’ events during December. One was held on 2 December and the other on 9 December. These events were scheduled as a replacement to the usual Chartered dinners held throughout the year. They were extremely well-attended and lively events and were a great opportunity to network with others in the industry; something we did not have much opportunity to do in 2020. We kick off 2021 with our new and re-branded members only ‘BeKnowledgeable’ webinar events. The first was held on 19 January and focussed on off-payroll working (also sometimes simply referred to as ‘IR35’), as we help to prepare the industry for the introduction of the reforms into the private sector. The second will be held on 10 February and will focus on the national minimum wage. The new BeKnowledgeable webinar sessions, which will be hosted by our policy team officers, Gemma Mullis and Lora Murphy, are designed to help CIPP members be at the top of their game. Keep your eyes on our website, emails and our News Online service for details of more BeKnowledgeable webinars coming up throughout the year.
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THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test your payroll processes in relation to payroll processing, compliance and the people skills and development opportunities.
One of the most important elements is ensuring business continuity plans are in place and effective should they be required. Given recent events, congratulations to all organisations that have achieved this accreditation and will have been able to put those plans into action. Special congratulations to our recently accredited organisations: ● Trident Trust Marine Services ● University Hospitals Birmingham NHS Foundation Trust Ken Pullar, CIPP chief executive officer, said: “Never has it been more important for businesses to have good payroll processes, knowledge and skills that enable them to implement new government legislation and guidance quickly. Congratulations to those organisations that have recently demonstrated just that.” The Payroll Assurance Scheme is still operating, with assessments currently operating virtually. To find out how the Payroll Assurance Scheme can benefit your organisation, email compliance@cipp.org.uk .
Aggregation of earnings
Memories of Norman Green I was sorry to hear of the death of my friend and former colleague Norman Green. I used to represent HM Revenue & Customs, formerly Inland Revenue, at payroll conferences from the late 1980s through to 1995, when I took early retirement. I met Norman through your conferences and through his work with the British Computer Society. In my role as group leader of the Employer Group on PAYE Operational Policy I valued highly the chance to work with Norman. His constructive criticism worked even-handedly with support if he felt that the departmental representative was in danger of getting an unreasonably rough time! class 1 National Insurance contributions (NICs) and hence the monthly earnings period was used. Monthly employment tended in the main to be full-time, and the nursing bank work was thus non- pensionable, being classed as ‘overtime’ for NHS Pension Scheme purposes, so being not contracted-out employ ent. Occasionally I did come across examples of weekly and monthly contracted-out employments which gave rise to the problem described in the article. Norman and I shared a friendship and personal interest in interesting cars, and it is on that account that I particularly recall the BPMA’s autumn conference of 1994, held at my beloved National Motorcycle Museum. I had addressed the conference during the afternoon and sat down with him over a cup of tea. He knew of my plan to buy a Morgan Plus 8, knew that I had not actually ever driven a V8 car, and insisted that he and I take a little trip in his Reliant Scimitar, before each setting off for home. I didn’t need to be asked twice! I bought my Morgan 22 years ago, still own her, and often think of that afternoon when setting off round Worcestershire lanes. I am sad to realise that last year’s exchange of Christmas cards was to be the end of a chapter. I shall think of you, Norman, when our postman begins this year’s deliveries. My kind regards go to any who may vaguely remember me from those halcyon days. A solution to this, which HM Revenue & Customs were quite happy with at the time, was to pay the bank work on a monthly basis but provide an advance of the bank nurse work. The bank work pay was reduced by an amount representing the tax and NICs due. A specified number of the bank weeks would then be automatically transferred within the payroll to be processed with the monthly pay and the amount advanced recovered. Not sure whether the advance pay method would be allowed now under real time information, since it is a ‘regular’ payment – well, as regular as ‘as and when work’ can be. Surprised somewhat both that it hasn’t cropped up before and that it wasn’t anticipated when the abolition of contracting-out was first mooted. Unusual for the payroll industry not to have picked up on this. Whether it’s because aggregation is a mainly public sector problem, and perhaps limited mainly to the NHS, although I’ve no evidence of this. David Toye Pages 20 and 21 of issue 66 (December 2020 – January 2021) of Professional magazine featured an article on this payroll processing problem, prompting the following welcome communication. The use of the weekly earnings period looks like an unexpected consequence of the abolition of contracting- out. This is because contracted-out employment took precedence over not-contracted-out employment for
Vince Ashall MSc FCIPP
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| Professional in Payroll, Pensions and Reward |
Issue 67 | February 2021
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