MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Director roles and automatic enrolment Q: Are non-executive directors excluded from automatic enrolment (AE)? A: Whether a director is considered a worker for AE purposes or not will depend on the presence of a contract. Where there’s no contract, the person isn’t considered a worker. The following guidance has been taken from The Pensions Regulator’s (TPR’s) website (https://ow.ly/xKX350Voiru): “If a director does not have an employment contract, they cannot be a worker and are therefore always exempt from automatic enrolment.”
Electronic P60s Q: If P60s are issued electronically, is there a requirement to state on the document that it’s an electronic version? A: Yes, there’s a requirement to state on the P60 that it’s an electronic version. The Pay As You Earn (PAYE) regulations were changed, so that from tax year 2010/11 onwards, employers were able to provide P60 details to employees electronically. The electronic P60 must state, “This is a printed copy of an eP60” at the top of the form next to its title. This must be in a clearly visible font size, no smaller than size 10. Further details can be found in the following links, which also include specifications and examples: https:// ow.ly/ZyPm50VojHQ and https://ow.ly/ GcTt50VojLt.
and any other deductions taken in the current pay period for a higher priority order. The relevant legislation can be found at: https://ow.ly/OHp250VokA1. Payroll record keeping requirements Q: How long do you need to retain payroll and pension records for? A: The Income Tax (Pay As You Earn) Regulations 2023 state you must keep PAYE records for three tax years after the end of the tax year they relate to, but HM Revenue and Customs (HMRC) can ask to go back six tax years. This applies to all PAYE records. Please see here for further information: https://ow.ly/1s6g50Vrvh4. There are slightly different rules for records regarding national minimum wage (NMW), which must be kept for six years, as per the guidance here: https://ow.ly/ HSPZ50Vrvm3. TPR states that pension records regarding contributions paid to the pension scheme must be kept for at least six years. However, other types of records must be kept for as long as they remain relevant and for the pension scheme to operate. Some pension providers will require employers to keep records for longer periods under the terms of that scheme, as they’ll quite often revisit past years to calculate their benefits. You’ll need to check with your specific pension provider to ascertain whether they need you to retain records for longer periods. The relevant guidance regarding this can be found here: https://ow.ly/Pn7C50Vrvva. The below is an except from the guidance from TPR: “Types of records to keep You need to keep records relating to: l your meetings and decisions l scheme documents including trust deed and rules, and any deeds of amendment or rule changes l member information – this includes common data and scheme-specific data
What are the rules around non- executive directors and AE?
Multiple adoptions in the same period Q: What happens with statutory adoption pay (SAP) when an employee who’s already on adoption leave adopts a second child during that period of leave? Would they still receive the SAP they were entitled to in relation to the adoption of the first child, as well as the SAP in relation to the adoption of the second child during the same period? A: An employee could be entitled to two lots of SAP at the same time if the second adoption qualifies too. If a separate matching certificate has been issued, it should be treated as a separate arrangement and will run concurrently until the first period of SAP ceases. There’s further information available within SPM130600, which can be located here: https://ow.ly/JIef50VoiV2.
When you provide an eP60, do you need to stipulate on the form that it’s an electronic version?
Attachment of earnings deductions
Q: For a standard attachment of earnings deduction, do you use the attachable pay or the net pay? A: All types of attachment orders have a common starting point, so employers must calculate the earnings from which deductions are to be taken first. These earnings are commonly referred to as being the attachable pay but may also be referred to as being net pay. The attachable pay is the employee’s gross pay less deductions such as pay as you earn (PAYE) tax, National Insurance (NI) contributions, pension scheme contributions
| Professional in Payroll, Pensions and Reward | May 2025 | Issue 110 8
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