PROFESSI NAL in Payroll, Pensions & Reward Issue 99 April 2024 Official publication of The Chartered Institute of Payroll Professionals
Time to talk tech
But how does tech affect payroll? Insight from the experts on how technology is changing the profession
Spring budget update We bring you a summary of those all-important budget announcements for payroll
A new direction for AE? Read about the latest developments regarding automatic enrolment
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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Editor’s
comment
Welcome to April, payroll, pensions and reward professionals, and happy new tax year. I hope 2024/25 is kind to you all. This month, we’re looking at technology. Specifically, how it has drastically improved payroll
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processes and how it will inevitably continue to change things for the future. While we accept that ever-changing technology has brought significant benefits, we must balance this with consideration of the fact that it does also introduce new risks and challenges. This issue seeks to celebrate technology, but to remind you to ensure it’s handled in the right way. We have a whole chunk of the magazine dedicated solely to tech, and you’ll see pieces from a range of experts in the field within the later pages of this issue. Whether that be discussion of cybersecurity (page 32), how artificial programming interfaces or ‘APIs’ could enhance the profession in the future (page 38) or how artificial intelligence (AI) might work to aid the pay as you earn settlement agreement (PSA) process (page 36). Some of these more technological terms may just seem like buzzwords to you right now but over the coming months and years, they may just have more of an impact on you in your role, so be sure to read up on them now and get ahead of the game. Our feature topic this issue (page 24) also includes the views of industry experts on the impacts technology could have. Alongside this issue, you will also find your 2024 Software Directory . If you’re looking at changing your payroll software, please make use of this amazing tool to help you on your procurement journey. We hope you find it beneficial and would love to hear of any success stories which started with our supplement. Of course, I couldn’t say goodbye for now without mentioning the latest big event in our calendars, which was the spring budget 2024. Our hot topic article, on page 50, covers all the announcements which will impact our industries, so you can be certain you’re as up to date as possible, and ensure compliance with ever-changing rules.
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
24 - Feature topic – time to talk tech By Jerome Smail 38 - Balancing the advancement of technology in payroll services with the threat of cyber risk By Jim Steven and Oliver Price 42 - AI – the future of PSA compliance? By Rob De La Rue and Joe Pickering 44 - How could APIs help the payroll, pensions and reward industries? By Pauline Green 66 - Hot topic - spring budget update By Lora Murphy
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
Chair’s
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
message
And just like that, it’s April. As we welcome in the next season, we’re also thinking about the end of one tax year and the start of another. I’ve experienced year end processes for many years and gone are the days when it was a long-drawn-out activity, which consisted of manual
adjustments and many hours spent reconciling the payroll. The sight of piles of new tax code notifications filling the office are now a distant memory. This is all thanks to developments and changes in technology, enabling more electronic sharing of data and the ability to reconcile on a period-by-period basis. Technology is a welcome benefit in payroll, which helps teams to simplify and streamline. However, as we have seen in the news recently, this unfortunately heightens the risk of cyber- attacks. As we increase our use of technology, it’s critical we educate our staff on what to look for and to educate them on the latest scams. This education is now forming part of the mandatory training requirements in many organisations. At the CIPP, we’re developing training in cybersecurity. Our ‘Cybersecurity essentials for payroll’ course is now available to book via our website, along with many more courses to enhance the knowledge in your team. I’m looking forward to seeing you all at the events we have planned in the coming months, so please come over for a chat and say hello.
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
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’s to a new tax year and to finalising 2023/24. I hope all of you involved in the hands-on delivery of payroll are being supported by colleagues in the business and have been given the space and time required to complete year end returns and other duties. This is especially relevant to those involved in bureau delivery, where you will have multiple tasks to complete for a variety of clients. It’s great to confirm that, following the Annual General Meeting held in February, the CIPP has three new board members joining this month: l Ana Laiu l Lara Smart l Brian Sparling. I look forward to working with you and would like to thank everyone who took the time to cast a vote for new board members and for the accounts review. Collaboration is a key term often alluded to in conversations I’m having with many other Institutes, and I wanted to reflect on that for a moment. It is, of course, correct that we get the best from each other with teamwork, and that spending time ensuring our relationships work well is time invested wisely. To be able to co-operate and create an effective approach as a group is an indicator of success, and as many of you know, I’m keen to receive constructive feedback on any items you think are missing from our day-to-day communications, the offerings available through membership or the approach taken to represent the industry at government forums and events. Please share your thoughts. I’m here to serve you, and this is a partnership between us all. The theme of this issue of Professional is technology. I have spent 40 years in the industry and have witnessed the move from wholly manual calculations completed with tax tables, to carbonised paper to create outputs and onto computer systems / integrated software with apps available on demand. Throughout that journey, the experienced and qualified professional has always been essential, and is required to ensure compliance and to provide an expert opinion and view. Technology is an enabler to the profession, so my advice to you is to embrace the opportunity.
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 | April 2024 | Issue 99 2
Contents APRIL 2024
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 04 CIPP update News and developments 05 My CIPP
FEATURES
Reforming statutory sick pay: representing the views of the payroll industry By Samantha O’Sullivan and Mathew Akrigg
The Horder case By Justine Riccomini
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16
online exclusive content
National minimum wage governance – whose job is
What will the looming tipping legislation
22
20
it anyway? By Jeni Morris
mean for payroll? By Katie Linstead
online exclusive content
Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll News, Movers and shakers, We’ve got mail, Say hello to our new CIPP board members
Service desks in pay and reward By Ian Hodson and Ana Laiu
Flexible pay: lessons learnt By Katie Duxbury
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30
14 Personal development BePayroll
Claim delays, context, constructive unfair dismissals By Nicola Mullineux
The secret to excellence in payroll By Richard Hattersley
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15 Compliance
Hear about how the CIPP is representing the industry’s
online exclusive content
views on statutory sick pay and consider where the responsibility for compliance with national minimum wage sits Feature topic Read all about the theme of the current issue Reward Discussion of the importance of payroll professionals providing good customer service and one organisation’s experience of implementing earned wage access
Not all flexible working requests have to be accepted By Danny Done
Using technology to advance the payroll industry By Lara Smart
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24 28
Payroll reimagined: how AI and technology are changing the way we get paid By Brian Sparling
Pushing boundaries using technology in the hospitality industry By Jon Dawson
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online exclusive content
38 Technology
Analysing AI applications By Mathew Akrigg
The case for AI By Jaspal Randhawa
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This issue, we focus on how technology is changing, and could continue to change, the industry and the processes payroll carries out
online exclusive content
online exclusive content
58 Pensions
We consider the role artificial intelligence could play in the pensions guidance space and the future direction of automatic enrolment
AI considerations for employers By Paul Chamberlain
What are the positives of technology? By Christine Robinson
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online exclusive content
online exclusive content
66 Hot topic
Read all the updates from the spring budget 2024 for payroll professionals to be aware of
Pensions update – a new direction for automatic enrolment? By Brendan Mulkern
Is there room for AI in the pensions guidance space? By Andy Coles
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68 Payroll pets
We say hello to some of your furry friends
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
CIPP UPDATE
CIPP update
Payroll year end THE 2023/24 TAX year ends on 6 April, with payroll professionals needing to meet stringent year end reporting deadlines. If you’d like support on this to ensure you have a smooth year end, the CIPP offers a short e-learning course which will take you through the entire process and ensure you stay compliant. There are multiple online training dates coming up, so head to the CIPP website for more information: https://ow.ly/z04n50QJWgp.
BeConnected: National Forums SINCE THE start of February, the CIPP has hosted multiple online and face-to- face BeConnected: National Forum events. Hosted by our policy and research team, they delivered updates on the legislation changes for the year ahead. We had 1,157 members attend both the online and in-person events in Birmingham, London and Manchester. We would like to thank everyone who joined us, we hope you found the sessions useful.
CIPP charity work WE’RE DELIGHTED to share that, since 2022, the CIPP has raised a total of £1,823.50 split between our two charities: l Macmillan Cancer Support l The Warwickshire Wildlife Trust. We raised this money through multiple fundraiser events such as our summer sizzler, raffles, cake sales and dress down days.
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 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.
The 2024 Annual Excellence Awards are open! Do you know someone in payroll, pensions or reward who you think deserves to be recognised for their performance with a prestigious CIPP Annual Excellence Award? Or maybe a team or individual has done an amazing job on a payroll, pensions or reward project and you feel this needs to be highlighted? If so, why not nominate them now? You can see the full awards list and submit your nominations here: https://ow.ly/WVsh50QNntx. The closing date will be sightly earlier this year, and falls on 30 June , to allow us to release the highly anticipated awards shortlist sooner! 2024 THE CIPP
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 additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
Course
Date
Location
04 April 23 May 24 June 03 June 22 April 24 April 07 May 13 May 10 June 26 June 03 April 01 May 14 June 28 June 16 April
Online Online Online Online Online London
Automatic enrolment and pensions for payroll
Global mobility key payroll issues
Manchester
Introduction to payroll
Online Online
Birmingham
Online Online Online Online Online Online Online Online London Online
Off payroll working (IR35) and other employment status considerations
07 May
P11D expenses and benefits
28 May 17 June 10 April 10 April 15 April 29 April 02 May 21 May 05 June 13 June
Birmingham
Online London
Payroll update
Online
Manchester
Online
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
POLICY HUB
On your behalf
Happy new tax year, payroll, pensions and reward professionals! While you’ve all been preparing for 2024/25, the CIPP’s policy and research team has also been kept busy, and you can read more below... Policy team update
for the survey report in early May. To see previous reports (and the current year’s report, once released), please go here: https://ow.ly/8cPE50QFi4J.
leading on this technical consultation, who’ve confirmed they wish to run think tanks with our full, fellow and Chartered members, to discuss the draft regulations in more detail. Forums The policy team is privileged to sit on several HMRC forums. Sam, Mathew Akrigg (policy and research officer) and Sarah attended several forums between them in March, including the: l collection of student loans consultation group l one-to-many compliance advisory board (OCAB) l employment and payroll group (EPG) l HMRC expert panel forum l employment status and intermediaries (ESI) forum l construction forum. 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 through these groups, via 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 . n
Consultation and call for evidence (CfE) updates
HM Revenue and Customs (HMRC) has published a new technical consultation, which will require businesses to change the information they provide to HMRC through both pay as you earn (PAYE) real time information (RTI) returns completed by employers, and income tax self-assessment returns. For payroll professionals, whether working in-house or as a service provider, this means from April 2025, employers will be required to provide more detailed information on employees’ hours paid via RTI. This may mean a change in the data gathered from your or your clients’ employees, in order to meet the new reporting requirements. You can see the technical consultation here: https://ow.ly/xAoM50QTteR. HMRC has confirmed the measure will not come into force any earlier than the start of the tax year 2025 to 2026. Keep an eye on your emails, as the policy team has already spoken to HMRC officials
BeConnected events Samantha O’Sullivan, policy and advisory lead, and Sarah Smith, policy and research officer, delivered tax year updates at the final two BeConnected events in the current tax year. The penultimate event was online on 12 March, and we finished this year’s BeConnected series face-to-face in Manchester on 13 March. Both sessions were well attended and included coverage of the updates announced in the spring budget. To view more budget details, head on over to the budget hub at https:// ow.ly/ycKh50QFi27, and flick to our hot topic article in this issue. Payslip Statistics Survey This year’s Payslip Statistics Survey was successfully rolled out and available for completion during February and March. It has now closed, and the policy team is analysing the data. Keep your eyes peeled
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 6
MY CIPP
Sarah Smith MCIPPdip Policy and research officer
Tell us, how did your career in payroll start? I was working part-time in a book shop on a low wage with no career prospects and my son had just settled into school, so I had more time and flexibility. I knew I wanted a successful career and to provide for my family, but I had no direction. I was positive I could get my foot in the door somewhere with opportunities and I could prove myself through hard work. I applied for a work-based learning course, where I would study an NVQ in college while volunteering in the workplace to gain experience. I decided I wanted to work for the local council, which I was told wasn’t an option, as they didn’t accept volunteer work placements any more. So, I contacted various departments at the council’s head office myself, asking them to give me the opportunity. One manager agreed to let me volunteer in the human resources team. I also persuaded the finance manager to let me help in my free time and when there was no college. At the end of the course, the payroll manager asked if I’d like to interview for an internal data entry position they were recruiting for. I got the job, which involved entering thousands of mileage claims onto the payroll system each month. A few months later, I was approached by my manager, asking if I would be interested in a payroll administrator position which was about to become available. I had zero knowledge of payroll, but she supported me up until the interview and opened my eyes to the world of payroll. Needless to say, I was completely hooked, and had found my career path. How did you then move into the CIPP’s policy team? I had a little career break after having my
two youngest children. They’re only 12 months apart. I wanted to get back to work but wasn’t sure what the best option was, with having such a young family. Operational payroll has many time restrictions and commitments which would restrict the work-life balance I need while my children are so young. But I wasn’t prepared to leave payroll after working so hard to get to where I am now. During my job search, I was contacted by an agency asking if I would be interested in a different type of payroll position. I was intrigued, so I agreed to apply. Before the interview, I did a lot of research into working for the CIPP and what was involved in the role. After an initial informal chat with Samantha O’Sullivan, I knew that this was the role I wanted. I retracted all the job applications I had made and cancelled the interviews I already had lined up. Two interviews, an hour of competency- based questions, a presentation and written article later, I was offered the job. What skills does a policy team member need to have? The role requires knowledge of operational payroll and an understanding of legislation and the processes around it. I would say the most important part is to have a passion for payroll and a strong willingness to learn. The world of payroll is continuously progressing; it never stands still. There will always be room for developing knowledge and areas to upskill on. It’s a privilege to be in a role which allows me to do that while helping to inform our members of what they need to know through articles, news posts and presentations. Did you study a specific course to help you enter this career? At the start of my payroll journey, and for
many years, I had no formal training on payroll. It was a ‘learn-as-you-go’ exercise and with each role and new company I worked for, I found that I would learn something new. When I discovered the CIPP, it became my goal to complete the Foundation Degree in Payroll Management. After years of trying to convince employers to fund the course, I eventually started working for a company that supported staff and committed to the growth of their employees. I enrolled for the autumn 2019 intake and three years, two babies and a global pandemic later, I graduated and got to walk across the stage of the Symphony Hall in Birmingham. I have found recently that there are increasingly more recruiting employers who are looking for payroll professionals who hold the CIPP qualification, or who are at least working towards it. This definitely wasn’t the case when I started in payroll.
What advice would you give to someone who is just at the start
of their payroll career? Take advantage of every learning
opportunity. Whether it be with free bite- size webinars, payroll update courses or full study for qualifications. There have been points in my career at which I thought I knew all things payroll, but I was very wrong. This may sound like it’s because I work for the CIPP but, honestly, one of my biggest mistakes was not taking full advantage of my CIPP membership for years. The organisation provides so much help and support, which is available at your fingertips. I was too busy trying to figure it out by myself. Working in payroll is an exciting and rewarding career - enjoy it. n
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Amending an incorrect start date on payroll Q: If an employee started a job on a date later than the one provided to payroll, and this was identified after the relevant payroll run was completed and information sent to HM Revenue and Customs (HMRC), would you amend that employee’s start date or make them a leaver on the system and add them as a new joiner with a revised start date? Currently, we would enter unpaid absence for the period in which the employee wasn’t actually employed, as our software doesn’t allow us to change the start date once the payroll run has been completed. A: You would need to update your payroll records to reflect the correct start date. However, this amendment should not be submitted on a full payment submission (FPS), as it could create a duplicate record with HMRC. Please see the following guidance, taken from https://ow.ly/ k3Jh50QLpYZ: “Correct an employee’s start or leaving date Update your payroll records with the correct date if you put the wrong start or leaving date for an employee in your FPS. Do not report the amendment in your next FPS as this may create a duplicate record for the employee.”
refund of childcare vouchers. How can this be handled correctly? A: Guidance from HMRC states that childcare vouchers can be refunded but tax and National Insurance (NI) contributions must be deducted. If the childcare vouchers relate to a previous tax year, the refund would still be made in the current year, as tax and NI is due when the payment is made available to the employee. This applies to both current and former employees. Please see this HMRC guidance for further information: https://ow.ly/ FMlJ50QLqbv: “Refunding childcare vouchers You need to deduct PAYE tax and National Insurance contributions before making the refund to employees. This applies to both current and former employees. If your company no longer exists, the voucher provider may refund the employee directly. This will depend on the contract between your company and the voucher provider.” Additionally, as this employee is a leaver, the voucher refund must be processed using the payment after leaving rules, which will collect tax at the basic rate and will use the weekly earnings thresholds for NI contributions. Statutory sick pay (SSP) and the three waiting days rule Q: I have an employee who is off sick and has received company sick pay (CSP) for some time. They exhaust their entitlement to that CSP mid-month and will go onto SSP following that. My question is, would I pay them SSP from the day the CSP entitlement ceases, or do they need to serve three waiting days prior to the payment of SSP? A: HMRC states that SSP is only payable within a period of entitlement which starts on the first day of incapacity, therefore SSP should have started from the first day of sickness with payment from the fourth day.
You can top the SSP up with CSP as per your company policy and the contract of employment. Therefore, your suggestion to start SSP after several months’ sickness would not be allowable. The qualifying conditions for SSP can be found here: https://ow.ly/RArh50QLpes. In summary, the employee doesn’t have to serve three more waiting days and the outstanding balance of SSP entitlement would continue once the CSP top-up has ceased.
What’s the three waiting days rule when it comes to payment of SSP?
Are there tax implications when employees charge their cars at their place of work? Q: We offer a salary sacrifice lease car scheme and have installed charging points on site. We’re charging a subsidised rate of £0.25 per kW. Would there be any tax implications of this? A: Our understanding is that there’s no tax implication e.g., no benefit in kind (BiK), if an employer allows an employee to charge their own car or company car at their place of work. Please see the following link for further information: https://ow.ly/BelX50QLs23. Stopping BiKs mid-year Q: We have an employee who has opted out of their private medical benefit mid-year, and we don’t currently payroll our BiKs. What’s the best way for the employee to have the benefit removed from their tax code? A: The employee can log in to their personal tax account (PTA) and remove any company
How do you amend an incorrect start date on the payroll correctly?
Refund of childcare vouchers to a leaver Q: An employee who left our organisation seven years ago requires a
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 8
POLICY HUB
Gender pay gap (GPG) reporting requirements Q: We operate as part of a group of companies, with each legal entity having its own PAYE reference and company registration. Some of the companies within the group have over 250 employees and others have less. Do we only need to complete GPG reports for those companies with more than 250 employees, or, as we’re part of a group which has combined employees of more than 250, do we need to complete the reporting for all companies within the group? A: The first paragraph within the following guidance provides directions on this: https://ow.ly/XKeT50QLqxX. Please see the below: “You must do this for: l each year that you have 250 or more employees on your snapshot date l each separate ‘legal entity’, if you are part of an organisation or group with more than one legal entity.” The section titled ‘If your organisation is part of a group’ also provides further information. n
benefits showing there that they’re not currently in receipt of. This can be done by selecting the ‘Pay As You Earn (PAYE)’ box, then clicking ‘Check current tax year’, and finally ‘View or update employment details’. The PTA can be accessed here: https:// ow.ly/z3GC50QLrag. Please also note that payrolling of BiKs will be mandatory from April 2026. See more information here and ensure you’re prepared: https://ow.ly/4jpe50QLrhR. What happens during a Transfer of Undertaking (Protection of Employment) (TUPE) transfer for the purposes of SSP? Q: Our company has recently split into two, with half of our employees transferring under a TUPE arrangement to a new company with a new pay as you earn (PAYE) reference. One of the transferring employees is on long-term sick and their entitlement to SSP is due to run out shortly. Are they entitled to any SSP from the new company? A: TUPE protection means that where an employee has transferred to another company, their employment terms and
conditions also transfer from the old company to the new, so continuity of employment is maintained. Therefore, if the employee was eligible to receive SSP under the old company, their right to this would continue. As the employee was receiving SSP when the business split, it must continue to be paid until their entitlement to SSP is exhausted. When the entitlement to SSP ceases, you should review the situation as per these HMRC guidelines: https://ow.ly/ ALZt50QLu2u. Please also see a link to HMRC information regarding TUPE transfers: https://ow.ly/67py50QLu6j and the Statutory Payments Manual to provide further details regarding SSP: https://ow.ly/LXR850QLu9S.
How do you treat e-vouchers for tax and NI purposes?
Let’s take a look at GPG reporting requirements.
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
PAYROLL news
NMW naming and shaming list released THE DEPARTMENT for Business and Trade (DBT) recently released the latest list of companies which fell afoul of national minimum wage (NMW) regulations and were found to have underpaid staff. The list can be viewed in full here: https://ow.ly/JBBL50QKFsv. This round of naming included over 500 businesses affecting more than 172,000 workers. The top three reported errors were as follows:
l reductions / deductions: 183 employers l unpaid working time: 160 employers l failure to pay the correct rate to apprentices: 82 employers.
Companies who undergo a compliance check from HM Revenue and Customs (HMRC) can find themselves on this list if they are found to have breached NMW rules. The list shows the number of employees affected, as well as a total underpayment found by HMRC. These underpayments can also be accompanied by a fine for 200% of their value. But bigger than that, the reputational damage of being named on the list can’t be overlooked. The CIPP urges careful interpretation of the list, as initially, the size of the underpayment may seem large. However, when portioned out between the number of employees, it can actually be relatively small. This isn’t to underplay the severity of NMW breaches by any means, as compliance should be the first thing to consider. But payroll professionals are well aware of the small errors that can result in a breach, for example, a manager requiring a certain colour of shirt to be worn for work, resulting in a deduction for NMW purposes. Additionally, a policy paper, jointly from DBT and HMRC, has been updated, detailing the government’s approach to NMW enforcement, including the naming and shaming scheme. You can read this here: https://ow.ly/8BW850QKFwK. You can find more guidance and information on NMW at the following links: https://ow.ly/2qvj50QKFNS, https://ow.ly/BSxS50QKFPA and https://ow.ly/kluT50QKFR6.
Payroll assistant paid themselves an additional £84,848 A PAYROLL assistant for Northern Divers Ltd, Angela Hunter, paid herself an extra £84,848 because she said she was “paid a pittance”. During the pandemic, the team switched from paying employees cash for accommodation costs to using bank transfers. At this point, Hunter added her own name to a list used as part of the process and made more than 200 separate transfers to herself over the course of three years. Hunter was convicted of theft by employee at Hull Magistrates in January and ordered to carry out an unpaid work requirement of 150 hours with a 12-month suspended sentence. The pandemic brought a lot of changes in very quick time frames, and it seems that some processes may have been changed at Northern Divers Ltd without the required oversight and due diligence to prevent fraudulent actors from taking advantage. This should be a lesson that, even during the toughest of times, new processes must have adequate prevention or detection methods in place for improper use. Hunter’s justification concerning the actions were that the managing director, “had been rich and only paid her and the other girls a pittance and when she previously asked for a pay rise gave her one of three per cent, £45 a month.”
Diary dates
5 May 6 May
Last day of tax month 1
First day of tax month 2
Last day for submitting a real time information employer payment summary to apply to tax month 12 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 April
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| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 10
enrol for spring now
Jobsborad The CIPP’s Foundation Degree in Payroll Management (FdA) is for current or aspiring payroll managers seeking to become qualified professionals. FOUNDATION DEGREE IN PAYROLL MANAGEMENT
WE’RE HAPPY to announce that, on 1 February 2024, we welcomed Sam Jones to the CIPP as payroll advisory team leader, to oversee our amazing Advisory Service team. Sam joins us fresh from his role as payroll tutor at MBKB Training and has over a decade of payroll experience under his belt. On the appointment, Sam commented, “I’m extremely excited to be starting my role as the team leader in the CIPP’s
Advisory Service team. After spending 17 years in various payroll-related roles, I’m looking forward to helping the payroll community and playing a part in maintaining high standards in our industry. I completed studying for the CIPP’s Foundation Degree in Payroll Management in 2019 and have a passion for learning new things. I can’t wait to see what challenges there are and I hope to also pick up some new skills. “I live on the south coast of England with my two dogs, a Jack Russell called Layla and a Jackapoo named Pip.”
Visit www.cipp.org.uk/study for details and to enrol
We received a letter from a long-standing member of the CIPP, who wanted to provide some details regarding his career in payroll. Tony Walker writes: “I oversaw payroll and various other functions at the London borough of Redbridge up to my retirement towards the end
SPRING ENROLMENTS OPEN UNTIL 19 APRIL
of the 90s. My old governor, Berkley Meredith (who retired in 1983), like myself and our staff, was very keen to provide a good service to all the authority employees. We liked to promote our services whenever we were able to. “Our view was that an employee might query their pay just once in a decade, but we wanted them to know that their query was important to us. We tried to have good relationships with all the different service managers, headteachers, councillors etc. That relationship extended to the local union leaders, who would come to us if there were any problems relating to our area of work. “Berkley Meredith also attended the first meeting of the Association of Payroll and Superannuation Administrators (APSA) in 1980. We were all very proud of the payroll service we delivered. Payroll and pensions moved under the umbrella of personnel in the mid- 90s, and Redbridge retained our payroll services but made their own provision for human resources. When I retired, we had some excellent payroll staff, and at this time, both payroll and pensions were on a commercial software pay system with the personnel side still being performed manually. “Since retirement from Redbridge, I helped a friend with looking after a company payroll up to around 2012. I still help any family members or friends if they have any problems or don’t understand their pay. Admittedly, though, I’m now rather out of touch in the areas of tax benefits and company cars.”
Scan to book
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
MY CIPP
Say hello to our new CIPP board members
Lora Murphy MCIPPdip, CIPP editor, interviews the CIPP's three new board members, who, following their election, take up their roles on 1 April 2024
T he CIPP’s board is the governing body of the Institute and is responsible (among other things) for establishing strategy, monitoring the Institute's finances and ensuring objectives Ana Laiu MSc FCIPPdip Ana is a passionate payroll advocate with over 20 years’ experience. She’s committed to elevating the profile of the profession to the highest level. As the director of pay and
are achieved. The board directors report to the chair of the CIPP board, currently Clare Warrington MSc FCIPPdip AFHEA. We wanted to introduce you to the new board directors so you can see who will
be responsible for influencing the future of your membership organisation. We caught up with them all to discuss why they wanted to join the board and to learn about their passion for the payroll industry.
is a key player in ensuring legislative compliance for the employer. Payroll also collects and processes vast amounts of data, which can generate useful insights and support people-related business decisions. Q: What’s your proudest achievement? My career spans over 20 years and I have many achievements to be proud of. However, the one closest to my heart is becoming a CIPP tutor. I remember my student days and how much I relied on the experience of my tutors to explain how to apply the learning in practice. I really looked forward to tutorials and learning from the experiences of other students. It’s such a great privilege to now share my knowledge and experiences with my students, to shape them into the payroll experts who will drive the profession into the future. Q: What’s the area you would most like to influence during your time on the board? The payroll industry is unique in the way it touches everyone, and payroll is a fantastic career, which continues to bring me immense satisfaction. I hope to influence the role the CIPP plays in elevating the profile of our profession and attracting new generations to this wonderful industry. I don’t know anyone in payroll who doesn’t understand and appreciate the important role we play. However, I want to support the CIPP to drive the same understanding and appreciation outside the industry, among those who don’t live and breathe payroll every day.
reward for PPHE Hotel Group, she has raised the profile of the payroll function to elevate it to C-suite level and highlight the vital contribution this critical business function plays in the achievement of organisational objectives. Why did you want to become a member of the CIPP’s board? Throughout my payroll career, the CIPP has been a constant source of support and guidance, whether through formal study, training, events or networking opportunities. Now it’s my chance to give something back to this amazing organisation. Our industry is going through a period of unprecedented change with constant legislative updates, along with the emergence of artificial intelligence and new technologies, generations and ways of working. The CIPP leads from the front on all of this, supporting its members and the wider payroll community in keeping their employers compliant. Over the years, I have invested a lot of time and effort in building my knowledge, experience and personal brand. I’m very passionate about continuous learning and the opportunities opened up by automation. I’m a strong believer that change always starts with ourselves, and am excited to contribute to the continued success of the CIPP. Q: Why are you passionate about payroll as a profession? Payroll impacts every single employee in any organisation and pay is always so emotive. For many, pay is the main motivator behind their performance at work. But the work we do in payroll touches more than just the employee – it can touch their family and their ability to pay for their livelihoods. My passion for payroll developed early in my career, as I quickly realised its importance and the implications when it goes wrong. Payroll carries a significant responsibility. I want to channel this passion, to support the profession to position itself as a strategic business partner because, in addition to the responsibility it carries towards employees, payroll
Q: We know you like going to the gym and keeping fit. What’s your favourite form of exercise and why? I enjoy most exercise routines. However, my favourite is high- intensity interval training – sprint intervals, in particular. The combination of intense bursts of activity followed by brief recovery periods is incredibly effective for cardiovascular health. It’s also beneficial for helping me keep up with my young children!
| Professional in Payroll, Pensions and Reward | April 2024 | Issue 99 12
MY CIPP
Lara Smart ChFCIPPdip Lara is a recognised expert and leader within the global payroll and human resource
Brian Sparling ChFCIPPdip Brian is an experienced payroll leader with over 20 years’ experience and he’s also a Chartered Fellow of the CIPP. He has worked with a variety of employers including Bosch, National Galleries of Scotland, Sky Television, JD Wetherspoon, TSB Bank and has also delivered outsourced payroll services globally with Dayforce. Q: Why did you want to become a member of the CIPP’s board? I have been supported by the CIPP throughout my payroll career, and wanted to give something back to an organisation that has the interests of every payroll and pensions professional at its heart. Q: Why are you passionate about payroll as a profession? Payroll touches everyone from working age through to retirement, and we’re the engine that keeps economies moving. People work to live, and we give them the opportunity to live their best lives and reach their dreams. Q: What’s your proudest achievement? I've had a lot of great achievements professionally, whether that be in outsourcing, in-housing or implementing large payrolls. But my proudest achievement was gaining Chartered status with the CIPP. It felt like my hard work throughout the years had finally paid off. Being part of a small but growing population of Chartered members is great recognition and I’d encourage anyone who has the strategic payroll experience to try it too. Q: What’s the area you would most like to influence during your time on the board? Getting Rachel Riley to present the Annual Excellence Awards! But seriously, I want to help with ensuring payroll is taught from a young age. Too many people leave school / college and go into jobs with no idea that these things called tax, National Insurance and pension are going to be taken from their pay. If they don’t know about them, they have no way of knowing whether they’re right or wrong.
transformation space. She helps business leaders understand how to use core strategic pillars across technology, process, people, data, controls and service to drive transformational change, strategy and governance. Lara is a member of several payroll bodies globally and delivers an integral approach to delivery and quality. She has spoken at many conferences, panels and on webinars / podcasts. She’s also a regular contributor to global publications. Q: Why did you want to become a member of the CIPP’s board? To add value and to support others. Also to be involved at a strategic level to see change in the industry and the community being created for the future. Q: Why are you passionate about payroll as a profession? It's complex and interesting. From data to process to technology and integrations, controls, governance, metrics, people and the service, there’s something for everyone. I love to find solutions, and a business function which sits across multiple business areas provides broad and transferable skills. Q: What’s your proudest achievement? Being able to fly round mountains under a parachute! And always having resilience – never giving up, even when you really want to. Q: What’s the area you would most like to influence during your time on the board? I’d like to foster international relationships with existing affiliates and new countries to extend best practice, as payroll professionals see operating international payroll fall under their remit more and more. The CIPP leads the UK by example. Additionally, I’d like to assist with the continued growth strategy, to reach more businesses and professionals, and to gain recognition.
Q: We’ve heard you’re a bit of a globetrotter. Where’s your favourite holiday destination and why? This is so hard! I like different places for different things: l Peru / Colombia for the jungles, trekking, people and culture l Switzerland for the mountains, paragliding and cow bells l the Arctic for the wilderness and northern lights l South France for its food, wine, weather and lifestyle l Yosemite in the US is a really enchanting place and has amazing hikes and wildlife l you can't beat the coffee in Australia and New Zealand!
Q: Rumour has it you’re a Dunfermline Athletic fan. How old were you when you started watching football and do you have a favourite memory of your team? I was 12 years old when I went to my first game and was hooked from an early age. It’s never an easy time being a fan of a small, provincial football team and you need to learn to accept the lows and celebrate the highs when they happen. It’s a bit like working in payroll! My favourite memory is the 1995/96 football season, when despite a catalogue of setbacks, including the tragic death mid-season of our captain, we gained promotion to the Scottish Premier League!
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| Professional in Payroll, Pensions and Reward |
Issue 99 | April 2024
PERSONAL DEVELOPMENT
# Be Payroll Ellis Rees ChFCIPPdip, strategic account director – UK and Ireland, ADP, shares his personal experiences of membership and study with the CIPP
Can you describe your payroll journey to us so far? I left school unsure of what I wanted to do. I was sitting in a local employment agency discussing what options were open to me as a school leaver, when I was approached by their managing director who suggested I work in their finance department. I accepted this and my day-one job was to manually calculate a payroll on an old manual system. I had intended to build a career specifically in finance, not payroll. After two years there, I went on to work in a large service company, as a payroll manager. Unfortunately, it had a fairly ‘low ceiling’ in terms of career development. I felt working in a software house would help develop my career. I applied for, and got the role of, payroll specialist at ADP (Automatic Data Processing) in their new managed service department. At the time, there was only one client and my job involved data keying and dealing with client queries. Although this felt like a step back, in hindsight it was a key step in my development into the role I have now. Roll forward thirty years, and I’m now a strategic account director with ADP, who have allowed me to develop my career and to undertake qualifications, such as the CIPP Diploma, in 1995. Why did you choose to become a member of the CIPP? I joined the CIPP when it was called the BPMA (British Payroll Managers Association). This was when I was payroll manager in the service organisation. This was before the time of Google and there was a lack of good payroll / legislation updates available. I needed somewhere to help me work my way through the mounds of payroll legislation and the BPMA offered this. How has your membership helped in your career? It’s been invaluable as a resource to support my work through the qualifications, online and in-person events, the policy groups and the Advisory Service. It means that when clients talk to me, they know I have the knowledge and support to help them. What membership benefits have you used or enjoyed the most and how have they helped you? Recently, the BeConnected and Annual Conference and Exhibition (ACE) events. I had the opportunity to present at the ACE 2023 event, and although I was a bit nervous, I was honoured to speak to my peers. Following each of these events, I have presented back to my organisation, and ADP has valued my insight as well as the added narrative that this gives.
What are your hopes for your future career? For me, moving towards the twilight of my career, I want to spend more time promoting the industry within my organisation as well as outside it. I feel 40 years of payroll has given me so much, it’s time to give back. What advice would you give to those new to the payroll profession, just starting out in their careers? Not to always look at payroll as a linear career. Moving up in a career is fine, so from payroll specialist to senior to manager, but be aware there are other career options available which are less linear, such as project management, consultancy, implementation, etc. As Sarah Ellis and Helen Tupper of the Amazing If said at the ACE 2023 conference, “The best career advice is not always a straight line.” How would you describe your experience of studying with the CIPP? I studied the CIPP (BPMA at the time) Diploma in Payroll Management a while ago, but I felt the course was really helpful as it didn’t cover solely payroll, it also included very useful management skills and tips on how to interact across departments. This is still as relevant today as it was in 1995 when I passed my Diploma. I also valued the interaction with other payroll professionals and our tutor during my studies.
Why was it important to you to gain this qualification?
It really helped me to springboard my career. It was recognised in our industry and employers knew a certain level of qualification had been obtained. What advice do you have for someone thinking of studying a qualification with us? Really, for anyone who has been out of education for some time, not to worry too much. Speak with others who have also undertaken study and when you qualify, promote this in your organisation. What does working in payroll mean to you? I see the big difference we make in people’s lives, particularly during the current financial turmoil. Payroll has changed so much over the years, and more responsibility has been devolved to us, which has made our industry integral to the success of our organisations. n
14 | Professional in Payroll, Pensions and Reward | April 2024 | Issue 99
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