PROFESSI NAL in Payroll, Pensions & Reward Issue 111 June 2025 Official publication of The Chartered Institute of Payroll Professionals
MODERN THE
WORKPLACE
FASHIONABLY LATE Learn what we know so far about the delay to the mandating of payrolling benefits
JOIN THE PAYROLL PARTY Let’s get excited about our fabulous industry and financial awareness
GET SOCIAL SAVVY How social media can elevate the payroll sector and attract younger generations
SCAN FOR MESSAGE
Leon Juice CEO , Duvet Flip
Payroll Outsourcing Service Accurate, Compliant and Secure
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“Workplace flexibility is a bridge to take us to fundamentally better ways of working. Work is something that we do, not somewhere we go.” Eleanor Brown
Editor’s comment
Welcome to the June issue of Professional . This issue is particularly special, as we’re collaborating with the amazing Duvet Flip team, who you can hear from on page four. We’re super excited to have them on board and really admire the ethos behind what they do as we’re also passionate about inspiring young people,
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particularly when it comes to payroll. It felt important for us to dedicate an issue of the magazine to looking at the way people work in contemporary society, as the traditional perspectives of working patterns and practices are no longer the ‘norm’ for most. Read on to learn all about different ways in which payroll professionals are now working, and how this can be used as a tool for attraction and retention, and how it can help to get the best out of your payroll team. It’s also imperative to consider this in conjunction with how we entice new generations to the industry.
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33 - Feature article – the modern workplace By Jerome Smail 36 - Let’s get excited about payroll By Leon Juice and Liam McCarthy 46 - Leveraging social media to expand your payroll network and inspire future generations By Jack Chinnery 66 - Hot topic – delayed but still en route: exploring the new mandatory payrolling of benefits timeline By Lora Murphy
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June 2025 | Issue 111
Chair’s message
Chief Executive officer Jason Davenport MCIPP MloD CIPP Board Of Directors Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Editor Lora Murphy editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive
Hello June, I just love the summer months with warm sunshine and long light days. Already halfway through 2025, time ticks so fast, just like the pace of change we face in our day-to-day working lives. As we look back, we’ve seen many changes in our workplaces. When I first started work in a payroll office in 1989, it was a paper-based manual operation
to get a payroll processed. Then the first computers came in and they were huge pieces of equipment taking up most of the desk, to today’s desk, where we see smaller laptops and the use of screens giving more space in the office. Today, we also see a change in where we work, with many offices now operating a hybrid working arrangement. This gives flexibility to the employee and gives employers a wider geography for recruitment.
Getting the younger generation to choose payroll as a profession is critical in ensuring we maintain knowledge and understanding of legislation and compliance. In this issue, the articles will help guide you on how best to attract and retain top payroll talent, as well as highlighting how to get the younger generation excited about the profession. I hope you enjoy the articles in this issue, and remember, the CIPP is here to help, so please get in touch or reach out at one of our upcoming events.
Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Lara Smart ChFCIPPdip
Brian Sparling ChFCIPPdip Michelle Sutton ChMCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts General enquiries enquiries@cipp.org.uk 0121 712 1000 Membership membership@cipp.org.uk 0121 712 1073 IPPE Qualifications education@ippeducation.co.uk 0121 712 1023 IPPE Training training@ippeducation.co.uk 0121 712 1013 Events events@cipp.org.uk 0121 712 1013 Consultancy consult@ippeducation.co.uk 0121 712 1044 Marketing marketing@cipp.org.uk 0121 712 1033
CEO’s message This issue is produced in collaboration with Duvet Flip. You’ll hopefully have seen the YouTube podcasts, hosted by Jack Parsons including Natasha Taylor, Bella Cox and me, and the collaboration with Leon Juice and the team is one we’re pleased to support. I do hope you enjoy the layout and content of this issue.
Demonstrating that payroll is a career choice is one of our objectives within the overall strategy for the Institute. Payroll Live is a key event in the calendar to support this and offers an insight into all the facets of payroll, pensions and reward that are all part of pay and its importance. Ensuring careers in payroll are seen as dynamic and varied and highlighting the fact they provide opportunity for continued growth, is why we shine a spotlight on so many in the industry and ask individuals to tell their story. Amplifying all our voices is incredibly important for that message to land with those considering their career direction. Payroll Live South was very well attended, with fabulous feedback received regarding the content and the speakers. And as this issue lands with you, Payroll Live North will be only weeks away. Individuals learn from each other. With technology, systems and processes continuing to evolve at such pace, and the breadth of offerings and international reach also expanding, it’s often understanding
that others have been through such a journey that provides assurance. Do contact me if you would like your own career story highlighted. I recall working with a client’s international team when I was consulting. After group-wide introductions, a member of the team in Australia contacted me who’d never been through parallel processing before as part of a switch over in systems. Being able to talk through the approach and assuring the individual that testing the system and finding fault was all part of the journey, helped them to truly understand the process and expectations. Learning every day and giving back to the community around us is all part of why everyone at the Institute is here to serve all our members.
cipp.org.uk @CIPP_UK
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 2025. 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) CEO, CIPP
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Contents JUNE 2025
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk.
Reading the magazine gives you one CPD point
REGULARS 01 Editor’s comment 02 Chair and CEO messages
FEATURES - ‘THE MODERN WORKPLACE’
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online exclusive content
The modern workplace: labour supply chains and the use of umbrella companies By Susan Ball and Charlie Barnes
Wider considerations regarding statutory neonatal care leave and pay By Shaista Ali and Holly Richards
05 CIPP update
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online exclusive content
online exclusive content
News and developments
06 My CIPP On your behalf, Event horizon, Advisory Q&As, Joining forces to ensure NMW compliance, Spotlight on…, Climate change update, Payroll news 19 Personal development BePayroll
Planning is paramount: ways to meet your payroll procurement goals By Reuben Hughes
The future of gender pay gap reporting By Cybill Watkins
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online exclusive content
Caring for carers: introducing paid carer’s leave By Katherine Wilson
The Employment Rights Bill latest updates By Paul Chamberlain
22 Compliance
Read all about the theme of the current issue – The modern workplace – and consider how the payroll industry has changed, and how we must adapt and evolve alongside it Considering how we get younger generations interested in the payroll profession, whether that be through flexibility or the use of social media Explore some of the labour supply chains used in the modern working world and the use of umbrella companies, while reading about what’s changing in this space
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33 Feature topic
How modern working practices are changing what it means to be a payroll professional By Julie Lally
Balancing payroll with flexibility and talent retention By Emily Sivey
36 Reward
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Employment law latest By Dan Carder
How payroll’s changed – and so have I By Maria Mason
58 Pensions
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online exclusive content
online exclusive content
An all-import update on the progress in the pensions dashboards space and a review of automatic enrolment as it currently stands
How to attract and retain the best talent By Phil Pepper
The skills vital for new leaders By Danny Done
66 Hot topic
Along with the news that the mandatory payrolling of benefits was to be delayed by a year, we also got much more information regarding how it will all work – find out all about it here
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AE pensions in the UK: a good start, but more to do By Ian Bell
Pensions dashboards: what are the latest updates and how do they impact employers and payroll? By Richard Smith
68 Payroll pets
We say hello to some of your furry friends
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AE pensions in the UK: a good start,
Pensions dashboards: what are the latest updates and how do they impact
Hello from
D uvet Flip is the life-at-work youth employment champion, Jack Parsons and led by Chief Executive Officer (CEO), Leon Juice, Duvet Flip began as a bold idea rooted in a viral moment – and has since evolved into a full-scale media and experience company. company helping people wake up to what matters. Founded by That moment was “My Duvet Flip” – a career show on YouTube that that quickly rose to become the UK’s leading career series, with 247,000 subscribers, connecting with millions across social media, workplaces and campuses. Through honest, inspiring stories of ambition and reinvention, My Duvet Flip proved that people are hungry for more meaning in their work lives. The phrase “duvet flip” represents a pivotal decision: the moment you choose to throw back the covers and face your day with energy, ambition and purpose. For too many, work feels like something to endure, but Duvet Flip believes it can and should be a space for growth, impact and fulfilment. To bring this idea to life at scale, the company has built a powerful and integrated model called FACES – an acronym for Faces, Apps, Collections, Experiences and Shows. Together, these five pillars create a dynamic ecosystem that moves people from passive viewers to active career-changers. Faces Faces are at the heart of everything Duvet Flip does. These are trusted, full-time creators who live the flip every day. They
Collections Collections turn philosophy into tangible tools. From books and guides to digital kits and co-branded resources, collections are practical assets that people can use, gift or integrate into their development journeys. They also offer brands the opportunity to align their values with real impact. Experiences Experiences are designed to create transformation through learning. These include workshops, leadership accelerators, brand-sponsored growth programmes and in-person events, all aimed at helping people flip faster, grow faster and lead smarter. Experiences give partners a meaningful way to invest in the next generation of talent. Shows Shows are where Duvet Flip’s storytelling comes to life. From the flagship My Duvet Flip on Youtube, to upcoming formats, these shows feature powerful, real-life stories of people making radical change. Shows entertain, inspire and drive large-scale awareness for the movement, while offering high-trust media environments for partners. With a mission to build a £100 million business, reach 1 billion people and help 100 million individuals make the flip, Duvet Flip isn’t just a company – it’s a cultural shift. Underpinned by a values-led approach – Be More Elephant, Be Super Coachable and Be Ruthlessly Kind – the company blends commercial performance with purpose at every level. Whether through a story, a product or a career-defining experience, Duvet Flip is helping people across the world rise with intent and stay awake to what really matters.
lead communities, inspire action and create authentic content that resonates deeply with audiences. Faces are not part-time influencers, they’re supported by dedicated “square squads” (a brand manager, social media lead, personal assistant and videographer) and backed by Duvet Flip’s infrastructure. Through Faces, Duvet Flip builds trust, extends reach, validates new products and delivers measurable value to partners. Apps Apps extend the relationship between Duvet Flip and its audience into digital environments. These are platforms for learning, mentorship and productivity, designed to help people grow, stay connected and take consistent action towards career fulfilment. Each app is a doorway into deeper engagement and more personalised value.
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POLICY HUB
update
Launch of new Level 5 qualification IN APRIL, IPP Education (a subsidiary of the CIPP), were delighted to launch a brand new Level 5 qualification, the Payroll Management Diploma . Available from autumn, this qualification is perfect for those who are looking to take the next step in their career as a payroll manager. While studying, you will master critical thinking, problem-solving and the management of projects in context, with realistic workplace situations. Want to find out more? Head over to our website here: https:// ow.ly/zzk450VOAKI.
Mental Health Awareness Week 2025 HOSTED BY our mental health first aiders, on Monday 12 May 2025, we raised awareness of mental health. Throughout the day, we hosted multiple activities for colleagues to get involved in, which included: l an online mental health quiz l a Hitlist music quiz
l a scavenger hunt around the office l sports day themed games outside.
The day was closed out with an online discussion around mental health, hosted by two of our mental health first aiders – Adrian Goddard, CIPP Commercial Director and Caitlin Butler, CIPP Account Lead, to revisit the meaning of the week and break the stigma around mental health.
John Stanley FCIPP WE ARE deeply saddened to announce that one of our Fellow members, John Stanley, has passed away. His wife, Gerri, has provided a tribute to John below: “It is with deep sadness that we confirm the passing of John Stanley, who died on 14 April 2025. John began his career in pensions in the early 1980s with Merseyside County Council, where he started as a ‘late vocation’ trainee! He moved to Wirral Council in 1987 to become the pensions manager and deputy payroll manager. “He then moved to Sefton Metropolitan Borough Council around 1989/90 to become its employee counsellor. This predominantly involved dealing with its Compulsory Competitive Tendering initiative, providing help and support for all affected employees, including retraining possibilities, plus calculating estimated pensions and lump sums. “Following a quadruple heart bypass in 1991 (the necessity of which was discovered as he trained for his third consecutive London Marathon!), John sadly had to retire in 1992 aged 47 on ill-health grounds. He always kept in touch with his old colleagues from both councils.
“Because of his very early membership of the Association of Payroll and Superannuation Administrators (APSA), he was awarded an Honorary Fellowship of the Institute of Payroll and Pensions Management (IPPM) on 17 May 2002, followed by an Honorary Fellowship of the CIPP. “He’ll be sadly missed by all who knew him.”
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MY CIPP
Payroll help when you need it join our supportive member community
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June 2025 | Issue 111
MY CIPP
WHY are they members?
WHO are the CIPP members?
Finance Managers
value
knowledge
learning
Accountants
advice
Bookkeepers
development
Human Resources
networking
upskilling
keeping up to date
Office Managers
IPPE Students
passionate about the profession
advocacy
industry insights
Software Developers
signposting
Business Owners
support
Government representation
guidance
resources
news
In-house Payrollers
recognition
community
expertise
Pension Professionals
relatability
Consultants
information
discounts on CIPP events
a voice for payroll
Payroll Service Providers
backed by a Chartered body
relatability
networking
WHAT* the CIPP offers to meet these needs?
online content
specialist interest groups
continuing professional development (CPD)
Professional magazine News Online
Think Tanks
voting rights
roundtables
professional letters
digital membership card
the Policy and Research Team
Payroll Factcard
Payroll Reference Book
digital membership card
Payroll Factcard
membership certificate
Advisory Service
BeKnowledgeable webinars
BeConnected event
discounts on IPPE training courses
HOW to join?
Less than 1 year in the profession? - Affiliate - £99 + £50 joining fee *** More than 1 year in the profession? - Associate - £175 + £50 joining fee ***
*** Joining fee waived when quoting the offer code on p6.
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MY CIPP
#NPW25 #C 1-5 SEPTE
The week all payroll professionals look forward to every year will soon be here. So, what better time than now for us to start looking at how National Payroll Week (NPW) 2025 is shaping up?
WEBINARS The CIPP will be offering five free webinars over the course of the week, each of which will explore an important element of payroll and how the CIPP can help you in your role. Here are just a few of the topics we’ll cover, to give you a flavour of the week’s events and remember, all the webinars during NPW are free for anyone to attend! This week is all about you This year is sure to be bigger and better than ever before, and we want to ensure as many of you get involved and reflect on the amazing work you all do in getting people paid accurately and on time, every time.
How can the CIPP help you in your payroll career?
CIPP Payroll Insights Reports 2025 – results and key takeaways from the Policy Team The results are in! The CIPP’s Policy and Research Team will be delivering a run through of the CIPP Payroll Insights Reports 2025 following the completion of the Payroll Insights Surveys . The session will cover key data points, insights and benchmarking you can use in your payroll team and for your own personal development.
Kicking the week off in style will be the CIPP’s Membership Manager, Dawn Baxter, who will dive into how membership of the CIPP can help you in your payroll journey. Whether it be through representation at Government level, access to our number one membership benefit – the Advisory Service or our amazing free member events, there’s something to support you at every stage of your payroll career.
Bitesize training: statutory maternity pay (SMP) This essential session is a return to the core principles every payroll professional should master. Fiona Smith, IPPE’s Training Manager, will guide attendees through the key aspects of SMP, including an overview of the legislation, eligibility criteria, the relevant period and how to calculate and pay SMP correctly. The session will also feature a Q&A segment and a quick quiz to reinforce learning. Whether you’re new to payroll or looking to refresh your foundational knowledge, this webinar is not to be missed.
Booking for these must-see webinars will open on 6 June, here: https://ow.ly/FTvo50W0nS0. Don’t delay and secure your space now! There’ll also be five sponsored webinars throughout the week, including an unmissable session from our headline sponsor, Portfolio Payroll.
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MY CIPP
ChoosePayroll MBER 2025
WIN TICKETS TO THE SKY GARDEN LAUNCH EVENT Our exciting competition opens on Friday 6 June and runs until Friday 8 August.
Refer a friend or colleague to join as a member, and if they sign up using the code NPWComp , you’ll be entered into a prize draw for a chance to attend the VIP National Payroll Week Launch Event. This will be held at the stunning Sky Garden in London on Monday 1 September.
There are five chances to win, and each winner will receive two tickets to this unforgettable event.
“NPW is more than a celebration, it’s a moment to shine a spotlight on the professionals at the very heart of every organisation. At the CIPP, we proudly recognise that payroll isn’t just about numbers; it’s about trust, accuracy and the wellbeing of millions of workers across the UK. The £473.8 billion collected last year through income tax and National Insurance is testament to this profession’s contribution to both our economy and our communities. “#ChoosePayroll perfectly reflects why people enter, and stay in, this dynamic industry. Whether you’re helping drive innovation, supporting financial wellbeing or ensuring compliance in a constantly evolving landscape, your role matters. “Let’s come together from 1–5 September to amplify our collective impact, celebrate the dedication of payroll professionals and keep pushing our profession forward. I’m incredibly proud to stand with the payroll community as we make NPW 2025 the biggest and most impactful yet.”
Adrian Goddard ACIPP, Commercial Director, the CIPP
Want to sponsor the only week-long event dedicated to celebrating payroll? Join us in applauding and recognising the professionals who keep the UK paid. This is your exclusive opportunity to connect with thousands of
payroll leaders during the only event of its kind – a full week of recognition, learning and industry celebration. For more information regarding NPW sponsorship, please head here: https://ow.ly/u1yz50VZa65.
THANK YOU TO OUR NATIONAL PAYROLL WEEK SPONSORS
GOLD SPONSORS
HEADLINE SPONSOR
SILVER SPONSOR
Register your interest on our website and be first to receive updates on the week’s events and when the 2025 digital packs launch
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June 2025 | Issue 111
POLICY HUB
On your behalf
Welcome to the latest update on what the CIPP's Policy and Research Team has recently been involved in, on behalf of you, our members, and the wider payroll profession Policy team update
Meet the Policy and Research Team l Mathew Akrigg MCIPPdip , Policy and Research Officer l Samantha O’Sullivan ChFCIPPdip , Policy and Advisory Lead l Sarah Smith MCIPPdip , Policy and Research Officer.
mandating of payrolling benefits. Along with a technical note to outline what to expect in the coming months, it was announced that the mandating would be delayed until April 2027 to allow software providers, employers and payroll professionals additional time to prepare for the changes. The Policy Team will: l be staying on top of all the progress in this space l respond to the promised technical consultation on draft legislation and draft guidance when it’s published in the autumn l continue to report any news and updates as they’re released. You can review the team’s news stories on this important topic here: https://ow.ly/ b6gm50VOhTO. Flick to the hot topic feature article this issue to find out more of what we know at this stage. Consultations and calls for evidence (CfEs) There are currently several open consultations the Policy Team is compiling responses for, including the recently released Low Pay Commission (LPC) annual consultation, which can be found at: https://ow.ly/lPP650VNyqK. Again this year, we’ll run Think Tanks for the LPC, to assist in building our response on behalf of our members. Full members and above, keep your
eyes peeled for your Think Tank invitation. The Policy Team will continue to respond to all consultations and CfEs that are relevant to the profession. You can see our formal responses to consultations and CfEs at: https://ow.ly/3Kav50QigsG. Forums The Policy Team is privileged to sit on several HM Revenue and Customs forums. Sam, Mathew and Sarah attend several forums every month. The team sits on these forums to ensure our members’ feedback is provided at Government level. We’ll always update you on our findings and information provided through these groups via Professional and News Online . If you have any issues you would like to raise at any of the professional forums we sit on, please reach out to the team by emailing us at policy@cipp.org.uk .
CIPP Payroll Insights Surveys and reports Again, we would like to say a big thank you to all of you who responded to the surveys and shared with your networks. At the time of Professional going to press, the team was busy reviewing the findings and during May, we started to create the reports. The finalised reports will be released during National Payroll Week 2025 (1-5 September) and we’re looking forward to sharing the results with you. Payrolling benefits update Just before going to press, the Government published updates on the
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Event horizon Your guide to upcoming events and training
Full details of all events can be found at cipp.org.uk/events or you can email events@cipp.org.uk for more information.
NEW
MASTER PAYROLL. STEP BY STEP.
Essential BeKnowledgeable webinar: Holiday update Following a successful first session in May, June will bring with it the second instalment in our current BeKnowledgeable series. Join the Policy and Research Team on 17 June as they discuss the all-important topics of holiday pay and entitlement. This is a highly complex area, and due care and attention must be given to ensure workers get the holiday allowance and pay they’re legally entitled to. Don’t miss out and make sure you’re compliant in this space by signing up here: https://ow.ly/bAJP50VTK1R.
NORTH
Wednesday 9 July will see the return of our prestigious Payroll Live event, but this time we’re heading up North. Join us at the Etihad Stadium in Manchester for a day of informative speaker sessions, amazing networking opportunities and a celebration of all things payroll. You can secure your place here: https:// ow.ly/6LG850VGpIV. 9 July 2025 | Etihad Stadium, Manchester City F.C.
Introducing Payroll QuickLearn – a collection of bite-sized, on-demand courses that cover key payroll topics. Learn at your own pace and equip yourself with the knowledge to stay ahead and compliant with quick, practical courses, at every level. Coming next: new statutory pay courses.
Training courses Take a look at some of our upcoming training courses. Face-to-face courses are highlighted in orange. For a complete list of courses, dates and locations, visit http://ow.ly/iVfT50MU7yr.
COURSE
DATE
LOCATION
24 June
Online
Construction industry scheme
17 July
Online
Foundations of payroll analytics
14 July
Online
02 June
Online
04 June
Birmingham
Introduction to payroll
14 July
Online
22 July
London
16 June
Online
Visit payrollquicklearn.org.uk or scan the QR to book your courses today
P11D, expenses and benefits
28 July
Online
Payroll for educational establishments
19 June
Online
04 June
Online
National Minimum Wage masterclass series
09 July
Online
09 June
Online
Scan to book
16 June
Manchester
Payroll update
17 July
London
24 July
Online
A subsidiary of the Chartered Institute of Payroll Professionals
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MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Payments to staff working from home Q: Can a net payment of £26 still be made to employees who work from home most of the time? Many do have an office they can attend but they have no fixed desks and there’s no expectation for them to come into the office. A: This will depend on what the contract of employment states. Under Section 316A of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003, employers can make tax-free payments to employees of up to £6 per week, to meet or reimburse additional household costs incurred by employees under a home working arrangement – for example – if there are hybrid working arrangements in place and employees work from home two days per week. Further information is available here: https://ow.ly/ QXo450VCxOZ.
travelling to their normal place of work and the accommodation and food is provided outside of business time. This is being done so the new employee can stay closer to work rather than having a lengthy commute every day. Are these payments subject to tax and NI? A: All the payments mentioned here would be subject to tax and NI, as they’re earnings derived from employment and payments for home to work commuting costs, which aren’t exempt.
What are the tax and NI implications if an employer reimburses an employee’s holiday deposit?
Reimbursement of a holiday deposit Q: An employee has booked a holiday and paid a deposit of several hundred pounds. There’s been an unexpected delay to our new payroll system ‘go live’ date, and this now clashes with the employee’s holiday dates. We would therefore like to cover the total cost of the payment they’ve already made, as the employee has agreed to take the holiday at a later date as long as they aren’t left out of pocket. What would the tax and NI implications of reimbursing the cost to the employee be? Would it be best for the employee to claim this as an expense or for an ad hoc grossed-up amount to be paid to them through the payroll? A: As this payment has not been incurred wholly and exclusively in the performance of the duties of the employment, this will result in the payment being subject to income tax and NI. As the employee is being given cash, this is classed as extra income under ITEPA 2003 Section 62 (https://ow.ly/ G5FI50VGZUP). This payment would need to be paid via the payroll to ensure the income tax and NI is deducted. You’re able to gross-up the payment should you wish to, and further information on that can be found here: https://ow.ly/2T9K50VGZW5. Expense payments to a new starter Q: A new starter is being paid per day worked. They don’t live locally so they’re reimbursed for their accommodation, travel and food each week. They’re
Can SMP be paid in days to align with OMP?
Can statutory maternity pay (SMP) be paid in days? Q: A client of ours would like to process SMP in days rather than weeks. We know that occupational maternity pay (OMP) can be processed in days. However, our understanding is that SMP should be processed in full weeks only. Could you advise on whether it would be legally compliant to process SMP in days? A: SMP can be processed in days in order to align it to a company’s pay period. The only thing to remember is that only full weeks of payment (not payment for part-weeks) can be made and this needs to be considered when an employee returns to work. Please see the following excerpt taken from https:// ow.ly/27Mk50VH1gi, below: “Statutory Maternity Pay paid part weekly You can pay Statutory Maternity Pay in part weeks if it helps to align the payments to your employee’s normal pay period. Divide the weekly rate by 7 and multiply by the number of days for which Statutory Maternity Pay is due in the week or month. For example, if the pay period covers the end of one month and the beginning of the next (2
Are homeworkers still entitled to receive tax-free payments of £6 per week from their employers?
Eligibility for National Insurance (NI) relief in UK freeport or investment zone special tax sites Q: We supply agency workers to various client sites throughout the country, and some of those sites are based in freeport and investment zones. Our head office is based in Nottingham. Does this mean we can claim the employer’s NI relief on the pay of the workers we place at the sites within freeport and investment zones?
A: The business needs to have an establishment within the freeport or
investment area. If the workers are sent into the area but the company doesn’t have a business presence there, the company can’t apply the relief. Further information can be found here: https://ow.ly/E5I050VCyG1.
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
POLICY HUB
days in April and 5 days at the beginning of May) then pay two-sevenths in one month and five-sevenths at the beginning of the next month.” Covering travel and hotel costs for a Board member through a pay as you earn settlement agreement (PSA) Q: We pay Board members a monthly salary. One of them travels a long way to meetings so we pay their travel and hotel costs outside of payroll. We acknowledge this to be substantially ordinary commuting. Our governance team wants this to be at zero cost to the Board member and is therefore asking us to cover the tax and NI. Could this be covered by a PSA? A: Unfortunately, HM Revenue and Customs wouldn’t grant a PSA for this as it’s classed as having a personal element to it and of giving an advantage to the employee. The whole amount would be subject to tax and NI. Expenses or benefits included in a PSA must be minor, irregular or impracticable. Minor is with regards to the sums paid or
What’s your duvet flip? “There are some universal experiences within the team that keep us motivated and allow us to help our members to the best of our ability. These are the pursuit of learning and the satisfaction of helping others. Whether it’s finding a regulation that clearly defines the rules for a situation in the member’s workplace, or helping with some backup information for a payroll professional to approach their business leaders with a potential compliance issue, the feeling of helping someone get their payroll right gives great satisfaction. “Our role is a unique one – we take some incredibly complex topics and convert the information into digestible pieces for our members to apply in the workplace. The first step is generally to work out what the person is trying to ask – it may sound silly, but with such complexity in the queries coming to us, the member may not even be asking the right line of questions. We may not always know the answer straightaway, but our drive to help our members and do the best we can means we’ll leave no stone unturned in the pursuit of assisting each and every member that contacts us.”
the type of benefit provided. The employer must use their judgment when deciding whether this is minor. Please see: https://ow.ly/t5zA50VH2yk. The current scenario doesn’t meet this test. Irregular considers the nature of the item, the frequency of the payment to the workforce and how often it’s paid or given to employees. Please see: https:// ow.ly/835n50VH2Bg. This scenario doesn’t meet the test as the payments are made
every time the Board member travels. Impracticable is where the employer doesn’t want to set up a new pay as you earn scheme or it’s hard to identify the individual value of the shared benefit when provided to a group of employees. Please see: https://ow.ly/IIP850VH2GC. This scenario fails this test. You could instead pay a grossed-up figure through the payroll, so the Board member sees no impact to their net pay.
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PROFESSI NAL in Payroll, Pensions and Reward
13
June 2025 | Issue 111
MY CIPP
Joining forces to ensure NMW compliance
We sat down with Jeni Morris, IPPE Consultant, to discuss the exciting new ways she’ll be working with the CIPP and IPPE going forward
T he collaboration between Professional magazine and Duvet Flip isn’t the only exciting joining of forces taking place across the payroll industry this June. To learn more, we sat down from Jeni Morris (who you may recognise as being a regular contributor to this magazine’s very pages) to discuss how she’ll be working with the CIPP and IPPE across the Consult service and IPPE’s training courses. Q: Could you talk us through the ways in which you’ll be working with IPPE Consult? This is an exciting opportunity to support payroll professionals with their numerous national minimum wage (NMW) queries and challenges. It could be that their business is currently embedded in an HM Revenue and Customs (HMRC) NMW investigation and so they want a little support to bring the case to a swift conclusion, or maybe payroll just want a little light touch to help show senior leadership the best route through the labyrinth of NMW legislation. If your query touches on NMW then
“I wanted to use my expertise to simplify the intricate world of legislation and empower companies to thrive while staying compliant”
I’m happy to support in any way required.
encouraged me to explore consulting to share my insights more broadly, while helping businesses and organisations achieve their goals. Ultimately, it was the alignment between my skills, passion for problem- solving and the opportunity to make a meaningful impact that solidified my decision to pursue this collaborative consulting role. Q: Which elements of the consultancy role are you looking forward to most, and where do you think you can bring the most value? As cliché as this sounds, I thrive on helping people. If my knowledge and experience can relieve someone from sleepless nights and show them how to mitigate NMW risks within their organisation, I know I have succeeded.
Q: What sparked the initial discussions around you coming to work as a consultant for IPPE? This seed of curiosity was initially planted during various conversations at CIPP’s Annual Conference and Exhibition in 2024. Working in the corporate world leading a ‘Big 4’ NMW team for the past eight years, my typical client base was large multinational businesses with thousands of employees. I recognised the value I could bring to other small and medium organisations facing complex NMW challenges by sharing my unique NMW knowledge. Additionally, I’ve noticed a growing demand for specialised NMW knowledge and fresh perspectives in the areas I’ve developed significant experience in. This
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
MY CIPP
Q: On a personal note, what prompted you to make the move to working as a consultant for IPPE? The initial discussions regarding me becoming a consultant were initially sparked by my time at HMRC, where I gained firsthand insight into the complexities of UK legislation and its impact on businesses. During my tenure, I saw how challenging it could be for organisations to navigate these regulations effectively, and I developed a strong drive to help bridge that gap. When I left HMRC, this passion for educating and supporting UK businesses became my focus. I wanted to use my expertise to simplify the intricate world of legislation and empower companies to thrive while staying compliant. Consulting felt like the natural next step – a way to turn my knowledge into actionable guidance for businesses that need it most. Plus, it’s been incredibly rewarding to work alongside organisations and see the difference clear, practical advice can make. “The national minimum wage regulations are complex, and there’s a whole plethora of risks that can easily trip up even the most well-intentioned employers”
What’s your duvet flip? “For me, like many others, motivation comes from feeling like I’m making a difference. Whether it’s through providing unique insight into the world of NMW, creating innovative solutions to mitigate ongoing NMW risks or simply being a supportive help to businesses who are struggling to find their way around the labyrinth of NMW legislation. I find my energy peaks when I know my work is positively impacting businesses and organisations.”
Q: We understand you’ll also be delivering some IPPE training regarding NMW. Could you provide a little more detail on what this will look like? My early conversations with Fiona Smith, IPPE Training Manager and Adrian Goddard, CIPP Commercial Director, highlighted the fact my experience could be invaluable in helping organisations not just understand the what of legislation, but also the how. So, how to: l implement compliant processes l avoid common pitfalls
One of the most common misconceptions among employers is that simply paying employees above the NMW / NLW rates automatically ensures compliance. Unfortunately, this isn’t the case. The NMW regulations are complex, and there’s a whole plethora of risks that can easily trip up even the most well- intentioned employers. There are just too many pitfalls which can catch employers off guard, and I have a mountain of examples and case studies to share. To make matters more challenging, the rules and enforcement activity surrounding NMW are constantly evolving. HMRC has become increasingly proactive in identifying and addressing non- compliance, and penalties for breaches can be significant – not just financially but also reputationally. In payroll, it’s fair to say that every day is a school day; staying informed is essential to avoiding unpleasant surprises. If you haven’t recently undertaken any NMW training or reviewed your processes and practices, now is the time to do so.
l confidently manage obligations. The demand for straightforward
guidance, like the NMW training I now deliver, really solidified the idea that I could make a meaningful impact as a consultant. It’s incredibly rewarding to see businesses thrive when they have clear, actionable advice at their fingertips. Q: If you could provide one key piece of training advice to anyone who has to consider NMW in their role, what would it be?
Leon’s thoughts “I was 16 when I had my first job, and I was being paid £4 an hour. I quickly realised that older colleagues doing the exact same job were earning more. “That moment shaped my belief: same role, same pay, no matter your age. I’ve always said we should focus on stage not age. “One of the biggest challenges with fair pay is perception. Employers often assume young people bring less experience or value. But that misses the point – young people bring energy, ideas and a fresh perspective. They’re radiators, not drains. “At Duvet Flip, we help tackle this from both ends. For brands,
we match them with “Duvet Flip Faces”– young role models who help brands build trust, connect deeply and move audiences. “For our audience, we provide daily motivation
and share the journeys of leaders who’ve been where they are now. It’s about showing that where you start doesn’t define where you end up. “Ultimately, paying people fairly isn’t just a legal obligation – it’s a statement of values. If you want young people to take pride in their work, show them that their time and contributions matter. “The payslip should reflect respect.”
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
MY CIPP
Both Jason and Natasha have shared their 'duvet flips' with Jack Parsons at the Duvet Flip team. Read some of the highlights from their films below and view the full shows via the QR codes and links.
What would you say to young Jason? Some of the key pieces I’d be saying to myself are to believe in yourself. Always back yourself and trust your instincts. Be prepared to go the extra mile. A lot of people have said to me going through my career that I’ve been lucky. I think luck has an element to it for everybody but actually being prepared to step forward is a big part of that. When opportunities come your way, lots of people shrink back and don’t know how to take it. For me, it was always about stepping forward and saying, “Yeah, I’ll have a go at that.” How did payroll used to work? We used to have tin templates, and everybody’s name would be pressed
Why don’t some people know how to read their payslip? I think it’s because financial awareness should start at school, and throughout that period we ought to be doing so much more to help new generations understand their payslip as one element of work. Understanding banking arrangements, credit facilities, the big things that happen when you leave school, and you start work... That education and that financial awareness should start a lot sooner than it does. I feel I have a duty to drive that forward, as part of a number of different projects to try and bring that awareness to as many students as we can.
into the tin, then their works number pressed. We’d run those plates through a machine that had carbonised paper, and that would create the payslip, so you’d end up with three copies of the payslip. You’d have that starting point with name and works number and then you’d handwrite the hours that they’d worked, the different agreements that they might be getting paid extra allowances for, etc. Then you’d build out the tax tables, you’d build out the National Insurance due, and anything else like pension deductions. That would go off to a comptometer then come back to us. We’d then fill the payslips with cash, so you’d actually be putting notes and pence for handing out.
See Jason’s video in full here: https://ow.ly/7PYn50VNHZi.
What was the first job you had that paid you a bit of money? Working in Primark. I was only doing it for about a month before I got my first full-time apprenticeship. First ever job, working in Primark, on a Saturday, just four hours a week. I did it for the independence after finishing school and just wanted to do something. I didn’t want to sit around and it’s always nice to have a little bit of pocket money. What is the payroll industry? It’s the silent industry. Everyone knows that you go to work to get paid but so many people don’t understand how you get paid. They think that it’s just a case of someone transferring you some money on payday but there’s so much more to it than that. For me, it’s the silent industry that’s
very misunderstood, even for those that directly work with payroll but don’t know the intricacies. What does your job role look like on a day-to-day basis? I look after the CIPP’s consultancy service and our Payroll Assurance Scheme (PAS). So, I don’t process payroll myself or get involved at that granular level but what I do is help organisations make sure that they are compliant, that their payroll departments are doing what they should be doing, and I support the departments with any changes or transitions they need to make. So, making sure that the organisation is doing it correctly for their employees. With the PAS, we award organisations with a gold standard, to show they’re doing everything correctly.
Ensuring organisations are doing what they should, to be compliant so that the employees ultimately get paid what they should, and organisations are making the correct payments to HM Revenue and Customs is why both PAS and Consult are important. What’s your favourite thing about payroll and your job? The passion within the industry, which sounds really cheesy, but everyone in the payroll industry is so passionate about what they do and about getting it right. So many people I talk to outside of payroll don’t have that same level of passion, that same level of care that those within the payroll industry have.
See Natasha’s video in full here: https://ow.ly/1QuO50VNI6P.
PROFESSI NAL in Payroll, Pensions and Reward
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June 2025 | Issue 111
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