Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 54 October 2019
National Payroll Week 2019
Going global Viewpoints
IR35 and the CEST tool Engaging
Outsourcing: relationship management Stakeholders
CIPP update | Policy hub | Career development
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“Life is too short not to celebrate nice moments!” Jurgen Klopp (1967–) (http://bit.ly/2kmLlmH)
This issue is a tad longer than usual because of the amazing content and support for National Payroll Week (pages 15–23). (More content can be found in the online version.) I draw your attention to the article ‘Payroll company fraud’ (pages 22/23) within
stages of the magazine beginning with the launch edition in 1994. (It would be four years later when NPW launched in the UK.) I recall receiving that issue with excitement, partly because at the time I was editor of the monthly newsletter Payroll Manager’s Review , which later evolved into a magazine, but also because it was a marvellous development for the Institute and members. As a payroll veteran, I am proud and very happy to see payroll celebrated and recognised. I hope you are, too.
the NPW section, which, amongst other things, records HMRC’s recognition of the important role CIPP plays in achieving compliance. This issue’s contents provide further confirmation of the fundamental importance of payroll. See, for example, ‘The impact of late or inaccurate payment’ (page 23), ‘On your bike’ (pages 26/27), and ‘It may be equal but is it fair’ (pages 33/35). This issue’s front cover depicts covers from three important
Mike Nicholas MCIPP AMBCS (editor@cipp.org.uk) Editor
Chair’s message
The globalisation of industry means many who only expected to look after domestic payrolls are faced with taking on payrolls for different countries by virtue of mergers and acquisitions that happen so frequently nowadays. For advantages gained in serving a
deliver well is an essential part of any discovery exercise when taking on new country responsibility. In the USA now, the gig economy is driving same-day payments for those who want immediate reward for a job done. We may well see a form of this being taken up as retailers and other industries look to differentiate themselves in the marketplace in the search for talent. Whilst this is effectively an advance payment from whichever pay-cycle you may be running, I think it should also come with a health warning to ensure that the individual requesting the same day payment is not taking themselves into a financially unstable position by not budgeting and planning appropriately. This may be an area where payroll professionals are asked for their input by their board of directors for consideration of application and approach within the business. The above health warning should be flagged as part of employee well-being, so that if required it is used appropriately. As always, I look forward to any feedback.
broader client base, it is imperative that those needing to service multiple countries take the time and diligence to be trained professionally in any new countries that are added to a service portfolio. Many individuals will have the opportunity in their careers to take on additional responsibility for other countries. Having worked globally earlier in my career, I would wholeheartedly support and encourage anyone with such aspirations. Not only does it provide opportunity for continued professional development – undoubtedly stretching and challenging you professionally – your own growth in understanding of different cultures and values will be enhanced personally; just as travelling broadens the mind. I recall in days of reviewing HR policy and payroll practices, an adage was used when reviewing processes that you should be global where you can and local where you must. The devil is in the detail and ensuring all steps are understood to be compliant and
Jason Davenport MCIPP MIoD (jason.davenport3@cipp.org.uk) Chair, CIPP
It was a real pleasure to have celebrated the 21st anniversary of National Payroll Week at The Savoy. We had an excellent turn out with many distinguished guests, including support from our chair, Jason Davenport and our Chartered and fellow CIPP members. CEO’s message
outstanding number of quality submissions (way in excess of a 100) for our awards. I was able to thank the judges during the summer with a fine meal to express our gratitude for their time in supporting the profession for adjudicating these prestigious awards – and can testify to their independence in doing so! In November, we hold our graduation ceremony for those who have successfully completed our university-approved qualifications. It’s a time of great celebration, particularly so for the years of time and effort that have gone into successfully graduating. I never tire of seeing such a prestigious event supported by the friends and families of those successful.
It was great to celebrate the payroll profession with the Global Payroll Association, Reward Strategy and The Payroll Centre all playing an active part in promoting and educating payroll professionals. All of us recognise the need for ably taught and educated payrollers and it was great to share this vision through roundtable discussions and hosted events, including our very well- attended Scottish National Conference. We now look forward to a highlight of our year with Annual Conference and Excellence Awards ceremony at the Celtic Manor Resort on 2–3 October. We have a high calibre agenda with some excellent workshops to ensure the continuous professional development of our professionals and we continue to have an
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
October 2019
43
Going global
Jerome Smail presents
Features
22
26
24
IR35 and the CEST tool – the sage continues Peter Minchinton reveals
Payroll company fraud HMRC’s Fraud Investigation Service confirms
On your bike Diana Bruce races through
28
30
33
Outsourcing: relationship management Jason Davenport discusses
It may be equal but is it fair? Helen Hargreaves discusses
The parent problem AndrewWeir identifies
| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54 2
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36
Chief executive officer Ken Pullar FCIPP CIPP board of directors Jason Davenport MCIPP MIoD Stuart Hall MCIPPdip Ros Hendren MSc FCIPPdip CMgr FCMIdip FHEA Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip Karen Thomson MSc ChFCIPP FHEA Cliff Vidgeon BA (Hons) FCIPP CMA ACIS Ian Whyteside MCIPP FMAAT ATT Editor Mike Nicholas 0121 712 1000 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd
Voluntary overtime and holiday pay calculations Danny Done discusses
Comparators, addiction, trust Nicola Mullineux outlines
41
40
Are pension dashboards ready? Henry Tapper decries
The tapered annual allowance Ian Neale argues
47
48
Communicating pay to remote workers Glyn King discusses
Powering payroll with transformational technology Steven Watmore explains
Useful contacts
Regulars
Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1063 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries info@cipp.org.uk 0121 712 1000
01 Editor’s comment, Chair’s andCEO’s messag e
32 Reward insight 40 Pensions insight 42 Industry news 43 Feature article Going global
Events, news and developments
04 Membership insight On your behalf, Advisory 08 Events horizon 09 Career development insight PAS case study, Diary of a student, CPD 12 Movers and shakers 14 CIPP update 15 National Payroll Week
47 Technology insight 50 Aweek in the life of Michelle Shepherd 56 Confessions of a payroll manager
cipp.org.uk @CIPP_UK
Articles Please support this magazine so that it can continue to be a part of your membership package. 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 2019. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 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 retreival 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.
Additional online content 30 Processing future payments in USA when an employee dies 31 Are employers choosing wisely when selecting workplace perks to attract top talent?
24 Payroll insight 29 Payroll news
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
MEMBERSHIP INSIGHT
On your behalf
Policy team update
SamanthaMannMAATMCIPPdip, CIPP senior policy and research officer, reports on several think tank events and encourages your participation
T he September issue’s On your behalf report discussed the plethora of consultation documents published by government before the summer recess. The policy team has continued to canvas and gather members’ views on the proposals and changes to processes that these consultations might bring. Stakeholder involvement is important. Policy authors for government know their policy – we know payroll – and it is vital that everyone who has a view can express it. Your expert knowledge is invaluable in bringing about change to government proposals – after all, there are so many – and many (if not all) of them will impact payroll calculations, processes and workload in the coming years. After our most recent think tank roundtable which was held on Tuesday 20 August, the team received the following comment from one of the officials who had attended: “I know I found it really helpful to hear first- hand the thoughts and concerns of the delegates. It really helped me understand these and has greatly increased my appreciation of how changes may affect payroll providers and employers. It was clear to see the benefits an event like this can bring to the consultation process.” The Think Tank, which was held in Leeds and attended by representatives from the Department for Business, Energy and Industrial Strategy, Department for Work and Pensions, and HM Revenue & Customs, discussed three of the summer consultations, as follows. The discussions throughout the day were lively and interesting and the opinions expressed will be included in the consultation responses which will be submitted in October.
Health is everyone’s business: proposals to reduce ill health- related job loss This consultation sought views on different ways in which government and employers can take action to reduce ill-health-related job loss. Disabled people and people with long-term health conditions are at greater risk of falling out of work. The proposals aim to support and encourage early action by employers for their employees with long-term health conditions, and improve access to quality, cost-effective occupational health. Statutory sick pay (SSP) reforms are part of this consultation. A cornerstone of this consultation is considering how employers can do more to support workers with ill-health, rather than simply paying them. Enabling a gradual return to work after illness would be one way to support workers, but the existing SSP rules don’t allow for this. During the discussion it was clear that whilst all could see the benefits of a phased return to work, the administrative burden would perhaps be greater for those who pay occupational sick pay (OSP) than for those who only pay SSP due to the differing durations between OSP and SSP. ...the benefits would outweigh the burden It was also highlighted that complications could arise for workers who have multiple posts within the same organisation, especially if they were fit to work in one job but not the other. Despite all the complexity there was an acknowledgement that the benefits would outweigh the burden. The discussion turned to the possibility
of widening eligibility to SSP to those earning below the National Insurance lower earnings level (LEL). Acknowledging that there would be little incentive for workers earning just below the LEL to return to work as their earnings would be on a par with the SSP, the suggestion was that perhaps a percentage of SSP would be paid. This seemed to strike the right balance between supporting those on sickness absence, whilst also encouraging them to return to work when they were fit to do so. All in the room agreed that it is right to remove the LEL link but as with any change to payroll processes, there was unanimous agreement that payroll software was the key to managing the administrative burdens. Developers must be involved at the earliest stage i.e. when scenarios are being considered and are evolving so as to ensure that all relevant permutations are factored into payroll software. Transparency of flexibleworking and family related leave and pay policies The discussion then turned to the consultation looking at the way in which employers can support families. The consultation has three main strands: ● ● whether job adverts should say whether jobs can be done flexibly ● ● whether employers should publish their family related policies online so new applicants know what that company is like to work for, and ● ● whether this approach would make a difference. After an interesting discussion considering all angles, the attendees concluded that whilst well-meaning, it was unlikely that these suggestions would bring any real benefits to either employers or potential employees.
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| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54
Policy hub
Neonatal leave and pay Parents of premature, sick and multiple babies can experience significant challenges, particularly in cases where their baby or babies need neonatal care for a number of weeks or months. Evidence suggests that current leave and pay entitlements do not adequately support parents in these circumstances. In response, the government is seeking views on a proposed new entitlement to neonatal leave and pay (NLP) for parents of babies who require neonatal care following birth; this would give parents one week of NLP for every week that their baby is in neonatal care, up to a maximum number of weeks. This would apply to parents of babies who had spent a minimum of two continuous weeks in neonatal care immediately after birth. The intention is that NLP would be taken after other types of leave such as maternity or paternity leave. ...the benefits to parents far outweighed any burden... All agreed with the suggestion that eligibility criteria for NPL should mirror those for maternity pay and leave, but that guidance should be made much clearer regarding premature births, which would be much more common when NPL requests were received, and notice periods may on occasions be shorter than usual. There was general agreement with the suggestion that NPL should be capped at twelve weeks; however, the interaction with other parental leave, particularly shared parental leave and pay, could be complicated if not well-thought through, particularly as they relate to notice periods that affect each period of leave. Despite a lengthy discussion, there was no resolution to the question of what evidence would be required, particularly for partners, as this leave would be claimed after the two-week paternity leave period had ended. Given that the length of the baby’s stay in neonatal care would be unknown, this leave is likely to be claimed as the absence continues, but it would
bring additional burden to the NHS if they were asked to provide evidence throughout the duration of the baby’s stay. There was the suggestion that perhaps the parents complete a self- declaration, but this was not met with unanimous agreement. It was acknowledged that administration of NPL could be complex; however, there was unanimous agreement that the benefits to parents far outweighed any burden this would bring for employers. n Get involved The policy and research team canvas your views in several ways: ● ● direct 1-2-1 communications i.e. face to face at forums and annual conferences as well as through email and telephone calls ● ● surveys, which provide valuable quantitative and statistical data as well as views and commentary ● ● think tank roundtables which provide an opportunity for CIPP full, fellow and chartered members to meet with government officials to discuss policy proposals. These provide valuable qualitative data which allows us to delve deeper to respond to questions raised in the consultation. Each year we see an increase in the number of think tanks being held – which demonstrates the value they provide – not only to members and the policy team but also to government officials. Full, fellow and chartered members are sent an invitation directly where a think tank has been arranged; however, please also look out for ways of getting involved through News Online , email and social media. If you aren’t currently receiving these emails email policy@cipp.org.uk as we may need colleagues in the membership team to correct your preferences so that you receive the invitations. If you are currently an associate member who simply has not yet found the time to upgrade your membership to that of full member – even though you will easily fulfil the criteria – please give this some thought as we look forward to inviting you to these roundtable events. However, your comments, opinions and experiences are always welcome; please send them to policy@cipp.org.uk .
Viewouronline prospectusnow
Viewonline today at cipp.org.uk/prospectus
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
MEMBERSHIP INSIGHT
A: Class 1A NICs are excluded from the calculation to determine whether an employer is classed as a small employer for SMP purposes. A small employer is defined as being one which has total class 1 primary and secondary NICs below the annual threshold. The qualifying year is defined as the last complete tax year before the employee’s qualifying week. Q: I process a pension payroll with private medical insurance. Should the values be reported in a P11D return? A: No. Regulations 85 to 96 of the Income Tax (Pay as You Earn) Regulations 2003 determine what an employer must report in a P11D. But regulation 11(2), which applies to pensioners and pension payers, states that regulations 85 to 89 do not apply to pensioners and pension payers. Therefore, a P11D is not appropriate for pensioners. It would be best practice to inform HM Revenue & Customs (HMRC) that the pensioner is receiving this benefit, but the pensioner should also inform HMRC as there could be a tax liability for them. Q: We have a new director who is coming to the UK for twelve board meetings. Will NICs be applicable? A: As the visits for board meetings are more than ten in a tax year director class 1A NICs must be applied. The administrative concession for directors of a UK/NI company who are not UK resident only apply if: ● ● the director only attends board meetings in the UK or Northern Ireland ● ● the maximum board meetings are ten in a tax year ● ● the duration of the meetings are no more than two days, or if only one meeting is held in a tax year the duration of that meeting is no more than two weeks. Q: If an eligible jobholder wants to opt out of automatic enrolment does the opt-out period start from the date of re-enrolment or when the pension provider is notified? A: The opt-out period is from the start of re-enrolment into the pension scheme (i.e. it is from the moment the employee is re-enrolled into a pension scheme). It is the same period that you used originally for automatic enrolment, so the processes in place for enrolment could be also utilised for re-enrolment.
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m. to 4.30p.m. on Fridays * . Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk to live chat.
Advisory
*please see summary at cippmembership.org.uk for details.
Q: None of our employees were advised about the annual tapered allowance changes which came into effect in April 2016. So, as the employer, we wish to support employees who now have a substantial tax liability and have incurred fees for pension advice. Are we allowed to provide £500 worth of pension advice free of income tax and National Insurance contributions (NICs)? A: The statutory exemption of pension advice will only apply to employees who meet specific criteria and to the first £500-worth of pension advice provided in a single tax year. The criteria are: ● ● Condition A – availability – The relevant pensions advice or reimbursement or payment is provided under a scheme that is open to all of an employer’s employees generally or generally to an employer’s employees at a particular location. ● ● Condition B – age, ill-health – The relevant pensions advice or reimbursement or payment is provided under a scheme that is open to all an employer’s employees, or all the employees at a location where the employees: have reached the minimum qualifying age (with respect to the employer’s registered pension scheme); meet the ill-health condition. Employers can, therefore, provide advice to specific employees who are nearing retirement or are about to retire on ill-health grounds, if the advice is available to all employees in the same situation. ‘Minimum qualifying age’ means the employee’s relevant pension age, less five years. ‘Relevant pension age’ is usually the normal minimum protected pension age, or their
normal minimum pension age as defined by section 279(1) of Finance Act 2004. From 6 April 2010, the normal minimum pension age has been 55, although some pension scheme members may have protected rights to a different age (see the Pensions Tax Manual at PTM062210 (http://bit. ly/2jZYe68). For example, if the employee’s normal minimum pension age is 55 the minimum qualifying age is 50. The ‘ill-health condition’ is met by an employee if the employer is satisfied, based on evidence provided by a registered medical practitioner, that the employee is (and will continue to be) incapable of carrying out their occupation because of their physical or mental impairment. Q: We are transferring employees between entities that have different pay as you earn (PAYE) schemes. The employment will be deemed as continuous and not subject to the Transfer of Undertakings (Protection of Employment) Regulations 1981 (TUPE). Will the employees who are transferring be able to continue receiving childcare vouchers under the current salary sacrifice scheme? A: If there is a merger or acquisition or TUPE situation then yes, they can remain in the scheme. If this situation is not a merger or acquisition or TUPE situation they cannot remain in the scheme. Guidance can be found at page 9 at http://bit.ly/2jS0Rqq. Q: When calculating the total NICs for a company do you include class 1A NICs when determining whether you are a ‘small’ employer for purposes of statutory maternity pay (SMP)?
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| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54
Policy hub
Q: Our organisation payrolls our benefits instead of completing P11D returns each year. We have a new employee who has chosen to take a company car over a car allowance. How would we process the car on our system for payrolling purposes? A: Your first point of call would be to look at the annual P11D value of the vehicle and compare it to the annual amount of cash ‘forgone’ under the optional remuneration rules. Once you have the annualised figures for both, you will need to pro rata the values by the days in the year (365) and calculate the number of days left in the tax year to confirm the days available and the cost of the benefit for the remainder of the tax year. Both figures will need to be entered into your system and sent to HMRC via real time information. (You would not send a P46Car return as you currently payroll this benefit.) The payrolled amount will be the higher of the two values when pro-rated for either the cash forgone or the P11D value of the vehicle for the remainder of the tax year or available days if this is lower. This value will then need to be divided by the amount of pay periods left in the tax year and added to the employee’s taxable pay for each of these pay periods. Q: One of our employees wishes to purchase some old office furniture (chairs). Could you please confirm how this should be reported to HMRC? A: If the employee pays the full second- hand value of the item to the employer, there will be nothing to report in the P11D return. If you give the asset to the employee this will be a reportable benefit in kind in the P11D under box A, ‘assets transferred’. Q: As part of our termination package we offer employees the opportunity of a retraining package which would also include accommodation and travel costs. Would such provision be deemed as a reportable benefit? A: An employer can offer retraining packages to employees who are being terminated as long as the following criteria has been met: ● ● The employee must be about to leave or has left within the previous year. ● ● The course must be to enable to assist the employee in getting another job. ● ● The course starts before the employee leaves employment or within one year of the leave date.
● ● The exemption will be withdrawn if they are re-employed within two years by the same employer. ● ● The employee must have had two year’s employment with the employer. ● ● Duration of the course is no longer than two years. ● ● Must be open to all employees in the same position. If the conditions have been fulfilled, the employer can also reimburse accommodation and travel costs in the form of the actual travel or by payment of mileage allowance payments. If the conditions are not met, any cost incurred or reimbursed to the employee will be fully taxable and NICable and should be processed through PAYE as a gross payment. Q: A company director has requested that his November bonus payment be paid into his pension scheme via salary sacrifice. Is this possible? A: Yes, it is possible, as one-off payments, such as a bonus, can be sacrificed (http:// bit.ly/2lM9QKk). There are, however, complications and implications that must be understood. Entitlement to future remuneration must be given up before it is treated as received for employment income purposes. Once earnings have been ‘received’ for employment income purposes they are taxable (http://bit.ly/2kENSJd). ‘Received’ is not always the same as actually ‘paid’. In respect of company directors, money earnings are treated as received for assessment purposes, and paid for PAYE purposes, on the earliest of the following: ● ● the date when earnings are credited in the company’s accounts or records, or ● ● where the amount of the earnings is determined before the end of the period to which they relate, the date that period ends, or ● ● where the amount of the earnings is determined after the end of the period to which they relate, the date the amount is determined. A slightly different set of rules apply to employees: money earnings are treated as received for assessment purposes, and paid for PAYE purposes, on the earlier of: ● ● when a payment of earnings is actually made or when a payment on account of earnings is made, or
Payroll Assurance Scheme Don’t wait until it’s too late
With penalties for non- compliance of up to £10,000 per day * , can your business afford not to be CIPP Payroll Assurance Scheme accredited.
For more information: Visit: cipp.org.uk/PAS Email compliance@cipp.org.uk Call: 0121 712 1000 Live chat with us
● ● the time when a person becomes entitled to payment of earnings or a payment on account of earnings. n
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
*correct at time of publication
Events Horizon
Full details of events and training courses can be found at cipp.org.uk or you can email info@cipp.org.uk for more information.
Training courses
Course
Date *
Location
Course
Date *
Location
Glasgow
6 November
Manchester
22 October
Automatic enrolment and pensions for payroll
Essential additions to payroll basics
Leeds
8 November
London
5 November
Manchester
24 October
Newcastle
14 November
Payroll and HR legislation update (50% off for members)
Salary sacrifice and other optional remuneration arrangements
Birmingham
25 October
Cardiff
7 November
Newcastle
28 October
Newcastle
17 December
Accuracy skills – delivered by Scott Bradbury
London
4 December
Dates are subject to change. More dates are available at www.cipp.org.uk/payroll- training-listing
Manchester
21 October
Introduction to income tax and NICs
Have you considered in-house delivery of training courses?
London
4 November
Newcastle
13 November
Can’t find a date or location to suit your needs? Let us know by visiting cipp.org.uk/trainingreg . New dates and locations may be added if there is enough interest.
CIPP and AAT hot topics 50% off for members Birmingham– 3 December London – 5 December
This is your opportunity to take part in educational and interactive sessions, where you will learn all the latest payroll and pension legislation changes, including recent changes to the apprenticeship levy and salary sacrifice. You will have the opportunity to achieve your CPD, as well as discuss your CPD objectives with a member of the CIPP team.
National forums 2020 Exclusive to CIPP members*, the national forums are a perfect opportunity to hear from the policy team, as well as other key speakers, on developments in payroll, pension and reward legislation. These events also provide an excellent chance for you to network with other CIPP members. The national forums for 2020 will take place between January to March to ensure we can give you all an update following the budget. Bookings are opening in October with dates being released soon.
*applicable levels of membership only. Please be aware that lunch will not be provided.
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| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54
Career development insight
PAS – case study
Bishop Fleming Payroll Services (part of Bishop Fleming LLP and Kreston International)
The Payroll Assurance Scheme – an accreditation available from the CIPP – provides payroll departments with assurance that: ● their payroll and associated processes are fit for purpose and comply with government legislation ● they have the right payroll activities in place, and ● they have suitable processes in place for picking up and preparing for legislative changes. Very. PAS gives our clients the peace of mind that we really do know what we are doing; and Bishop Fleming have been audited by the official chartered body that has looked at our processes, procedures, staff training and development, and are more than happy with the way we are approaching both areas. Imparting that evidence via the accreditation is highly valuable, for existing clients and for prospects. It’s great assurance to have. What advice would you give to organisations considering in investing in the PAS programme? Several partners from within the Kreston Group have asked about PAS. We’ve How beneficial has the PAS assessment been for your organisation?
enjoyed telling them the benefits and how PAS can help them grow their businesses and win more new clients. If you are comparing two payroll providers, one has the scheme and another does not, it’s a no brainer who you would select. How has the CIPP, as an organisation, added value to your organisation and, in particular, payroll department over the years? It’s through education – the fact that CIPP are the premier payroll body in the country, the brand means so much more. Four staff in my team have the diploma or Foundation Degree, as it is now, and for those looking to progress their careers, CIPP is an aid to success. Bishop Fleming are engaging with the CIPP to provide regular training, and now all payroll staff are required to have the Payroll Technician Certificate as standard. Formerly staff were with Payroll Alliance (previously Learn), but we switched to the CIPP as this is the best place to go if you wish to progress in your payroll career. Why do you feel the PAS was the best resource available to help with your company objectives? Bishop Fleming were accredited with ISO 9001. Whilst this is a highly valuable kitemark to carry, we found much of it
was not valid for payroll. Having looked at the market, the best fit-for-purpose accreditation in our opinion is PAS as it is payroll specific. Where did you learn about the CIPP PAS accreditation? Personal membership of CIPP meant that PAS was always visible. We felt it was very reasonably priced for a full payroll audit so it was the obvious choice. What would you recommend about the PAS to other organisations that may be considering engaging in the scheme? What do you do with the existing client base: how do you retain them, and offer piece of mind? Having the accreditation is valuable, plus having the tools to go to market gives strong advantage. How important do you feel the payroll department is to your organisation? Very important. We are a classic case of an accountancy firm that has grown and grown via payroll services. Kreston International recognises that payroll services are growing, and payroll is a highly regarded business unit in its own right. We are an important part of Bishop Fleming’s services and our status is ever growing. n
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
CAREER DEVELOPMENT INSIGHT
Diary of a student…
Ruvena DeyMCIPPdip Payroll manager, Great Western Railway
For me graduation was one of the proudest moments in my life. I graduated in November 2017, age 34. Studying towards a qualification alongside a full-time job is no easy feat. Howdid you cope with the pressure as, like a qualification, payroll is very deadline driven? Advance planning is key. You will receive your CIPP timetable at the start of the year and you will also know your payroll deadlines. Speak with your employer if the dates overlap and ensure there is adequate cover in place. Also remember make time for yourself. It is extremely important to look after your wellbeing because otherwise you will not be able to give your all to your studies or your job. The pressure a student can put on themselves is immense, as everyone wants to ensure they are successful – but success is also knowing when to take a break, reset and then revisit with fresh eyes. How important would you rate qualifications to the payroll profession? Everyone has experience within their chosen field, but a qualification shows an employer you are driven, have a passion and are willing to dedicate time to enhance your skills. It also gives you a sense of pride and a recognised qualification is always a good addition to any CV. n
Why did you decide to study the CIPP’s Foundation Degree in Payroll Management? Though I’ve had several different roles, I never really found my true passion. I fell into payroll – as most people do – when at age 30 I offered to cover maternity leave. It was then I realised that I wanted to focus my career in payroll. I love the fact it is black or white, right or wrong. As I knew this was my chosen career, I wanted to enhance my skills and educate myself in my new chosen field. What have you gained from studying the qualification? I have gained incredible knowledge and understanding, self-worth, confidence and the career I have always desired. How has it helped you in your career and how you manage payroll? My employer has recognised I am dedicated and passionate about payroll and with my latest promotion I am now the youngest payroll manager on record in my current organisation. I manage my payrolls in a methodical,
practical approach, forward planning and ensuring contingency plans are in place.
For someone who is thinking about studying for a CIPP qualification what would your advice be to them? This will be a hard commitment, so speak with friends and family and your employer to ensure you have additional support. When you meet your tutor group, get to know everyone and exchange numbers – these friends will also understand any concerns you may have as they are going through the same life experience. You are all trying to enhance your skillset to further your career with the pressure of modern-day life. On the days when you feel like giving up – and, trust me, there will be a few as it is tough to juggle studying, home life, developing your career, and trying to have some kind of social life – just remember that when you walk across the stage in your cap and gown in front of family and friends you will feel a sense of self-accomplishment which you could never imagine, and a smile to match. At that point you will know all your hard work paid off.
| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54 10
Payroll and HR legislation update 50% DISCOUNT FOR CIPP MEMBERS Payroll legislation is constantly changing, and this essential update course covers the latest legislation, case law and all the proposed future changes, with the course material constantly updated to reflect the changes to payroll and HR in the UK.
Career development insight
Continuing Professional Development (CPD) is essential to all payroll, pensions and reward professionals to ensure they are keeping up to date with the continuous changes in the industry. Logging your CPDwith the CIPP has never been easier.
Follow the three simple steps below to track all your learning and development
other objectives you would like to set.
Step 3 – Log your activity Now you have set your objectives, go to ‘Add/Edit CPD’ from the sidebar. To make logging your CPD easier, we have created a set of CPD activity types which sit within six overall categories; writing, reading, speaking, listening, doing, and structured learning. For more information on these, view our CPD frequently asked questions on our website. To log your activity, start by selecting a category for your CPD. For example, if you have attended a CIPP training course, then select ‘Structured learning’ from the drop- down menu. This will filter the activity types where, from the second drop-down menu, you can select the appropriate option. Further down the page you can then confirm more details, add a date in which you completed it, provide evidence of CPD (e.g. a certificate of attendance), and go into specifics of what you learned. Once you have filled out all the appropriate information, click ‘Continue’ at the bottom of the page and your activity will be logged, along with your CPD points total for your subscription year, which would have been updated. You have now successfully logged your CPD activity! Keep this updated and keep earning CPD points. o
Step one – Login to your My CIPP account Head over to www.cipp.org.uk and click ‘Login to My CIPP’ on the main menu at the top of the page. You can log in using either your membership number or your registered email. Log into your account, click ‘My CIPP’ and then head over to ‘My CPD’ to add a learning objective. Step two – Identify your learning objectives It is recommended that you set your objectives for the year following an appraisal or annual review. This will help you get the most from the learning as you can tailor your activities based on your and your organisation’s objectives. Your learning objectives can be long-term or short-term; but they should be reviewed regularly and marked as complete once done. To add a new objective, click ‘My CPD learning objectives’ and then ‘Add a new record’. Here, you can add a title in the field provided. This is a new objective and therefore you should leave ‘Has this objective been achieved?’ as ‘No’. Repeat this for any
Updated every seven days
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For more information: Visit: cipp.org.uk/training Email training@cipp.org.uk Call: 0121 712 1000 Live chat with us
cipp.org.uk @CIPP_UK
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
*correct at time of publication
CAREER DEVELOPMENT INSIGHT
MOOREPAYAPPOINTS ANTHONY VOLLMERASMD FORMER VIRGIN Media executive director Anthony Vollmer has been appointed as managing director at Moorepay. Moorepay, which currently processes 500,000 payslips and handles 12,500 HR enquiries for its 10,000-strong small- to medium-size businesses (SMBs) client base every month, is growing its revenues at 10% year on year and sees an opportunity to accelerate its growth. After new investment, the Manchester-based firm is going to
significantly enhance its proposition into a best-in-class payroll and HR software experience complemented with always-on-call advice and service provision – giving SMBs access to a platform that rivals those of larger companies which have dedicated HR departments but at a fraction of the cost. Anthony stated: “Whilst it’s critical [SMBs] have accurate, secure and compliant systems in place to manage payroll and HR, it is equally important that their employees can access their payroll and HR information anywhere and at any time they choose. In the past, the employee experience of these solutions has perhaps too often been a secondary concern. Our services help employers recognise, reward and motivate their employees across all levels. “Like open banking and the great strides taken in personal finance software, payroll is on the brink of a new generation of software that will offer managers and employees consumer grade apps, that seamlessly integrate into HR, ultimately giving people the tools to manage their overall ‘financial wellness’ – which is a key driver to everyone’s overall wellbeing. team based in London. Returning to RSM after an eight-year gap, Susan will be helping a broad portfolio of clients with complex UK employment tax related issues including areas such as off-payroll working, salary sacrifice, national minimum wage advice, risk reviews and pay and benefit structures. Susan’s rapidly growing team designs and implements tax-efficient share schemes, plans and manages the tax compliance of employees on international secondments as well as developing cost-effective reward strategies for companies of all sizes. Susan commented: “I am happy to be back at such a large and well-regarded firm as RSM. The breadth and depth of RSM’s services around the country lured me back, as I can see the real value of offering holistic services to clients, as opposed to them using multiple advisers in isolation. “One of the main areas that organisations are struggling with at the moment are their responsibilities with off-payroll workers and IR35. Many in the private sector are looking to put policies in place while the public sector are having to adapt what they already have ahead of the changes from April 2020. Working alongside RSM’s HR consultancy business and our client legal practice, means that as an employment tax adviser, I can provide a better and more efficient service to clients.” RSM APPOINTS SUSAN BALL AS PARTNER THE AUDIT, tax and consulting firm RSM has appointed Susan as partner in its Employer Solutions national
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| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54 12
Career development insight
To appear on this page contact editor@cipp.org.uk
KOBE VERDONCKAPPOINTEDCEOOF SDWORXGROUP WITH EFFECT 3 September 2019, Kobe Verdonck succeeded Steven Van Hoorebeke as chief executive officer of SD Worx Group NV, the company’s largest business segment. Kobe commented: “I am excited to have been appointed CEO of SD Worx Group and to work together with the more than 4,150 colleagues. SD Worx has a clear growth plan for the future, the financial track record and, not least, the people to execute the plan. “The HR world is transforming rapidly, and with SD Worx we will work relentlessly on developing better HR solutions so that companies and staff can give even greater focus to their customers. “Steven has taken SD Worx to an unprecedented level during his tenure, and I am looking forward to working with him and the teams to guarantee a smooth transition over the coming months with continued focus on the customers, innovation and further expansion.” Steven Van Hoorebeke remains available for special assignments until the annual shareholders’
meeting in June 2020, and then will continue to serve as non-executive board member of SD Worx Group NV and SD Worx Holding NV for the coming years. Steven said “Kobe’s broad international experience and proven track record in the HR and payroll service and software industry make him the ideal candidate for the position. I am confident that he has the talent, the drive, the experience and the strategic vision to take our organisation to the next level.” Filip Dierckx, chairman of the board of directors, praised Steven, saying his “track record in our organisation has been truly outstanding. We owe him a tremendous debt of gratitude for his relentless dedication to the success of our company.”
PAYSTREAMAPPOINTSMICHELLE SHEPHERDACIPP ON 10 June 2019, MicheIle began work in the new role of payroll and expenses manager at PayStream, a payroll and accountancy services company offering a range of services including umbrella company and limited company services. Reporting to the head of operations, Michelle manages a team of twenty in an exciting period of growth. Michelle said: “The opportunity to work for a company in an industry that I was unfamiliar with was very exciting and the company core values – especially empowerment – are among the reasons I accepted the role. This new challenge will allow me to utilise my 25+ years of payroll experience managing teams, delivering excellent customer service and working on payroll implementation projects. “I want to support the team whilst preparing for future growth. My main focus initially is to fully understand the business whilst reviewing processes, identifying areas for improvement and nurturing the team. “This year’s National Payroll Week is an opportunity to celebrate with my new payroller colleagues.” (See ‘A week in the life’ of for further insight to Michelle’s role.)
PAUL RAINSMCIPP ACIPDRETIRES
NORMANSCHOLES, DECEASED IT IS with sadness that the CIPP reports the recent passing of Norman Scholes, a former public sector payroll and pension industry stalwart who played a significant role with the Association of Payroll and Superannuation Administrators (a forerunner of the CIPP). Norman was in contact with the CIPP in 2017 when he wrote somewhat portentously that “at 72 and with Making Tax Digital on the horizon I’ll probably pack up if that comes in for small businesses” (see ‘We’ve got mail’, Issue 36). The Institute extends condolences to Norman’s family.
AFTER MANY years in the industry, Paul recently announced his official retirement via a post on LinkedIn (http://bit.ly/2kqtGe0): “At last the day has come. I have officially retired. Thanks to everyone I have worked with over the years for putting up
with me. I will be writing a blog about my memories of payroll in the near future.” Paul, a former CIPP board director and chair, received many kind comments and best wishes from friends and colleagues.
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
CIPP update
New Chartered member FOLLOWING THE meeting of the
Payroll Assurance Scheme THE INSTITUTE is pleased to announce that two organisations have
Chartered member assessment panel in August 2019, we are delighted to announce that Anju Puri ChFCIPPdip is the latest individual to be awarded Chartered member status. A full list of Chartered members can be found on the CIPP website at: www. cipp.org.uk/charteredmembers/ . Chartered member status
successfully achieved the prestigious Payroll Assurance Scheme accreditation. They are: ● The Payroll Service Company Ltd, and ● Bradford NHS Payroll Services. Ken Pullar, CIPP chief executive officer, said: “We are thrilled that these organisations have embarked on the journey to achieve this respected accreditation. It is imperative that organisations comply with government legislation and the Payroll Assurance Scheme is designed to help companies do just that.” Visit payrollcompliance.org.uk or email info@cipp.org.uk to find out more about the Payroll Assurance Scheme.
demonstrates the highest level of professional membership in the industry and recognises those individuals who have worked hard to raise the profile of payroll and their professional standing through education and continuing professional development. It demonstrates to employers that you are committed to keeping up to date and raising the standards of best practice within the industry. To become a Chartered member, or find out more, visit cipp.org.uk or email membership@cipp.org.uk .
50% off calculating payslip course for CIPP members HOW RELIANT on your payroll software are you? Can you manually calculate a payslip?
The CIPP has introduced this new revision course designed to use your existing knowledge and pull together all calculations that result in a complete payslip. You will do this by recapping basic manual payroll calculations, data gathering, and payslip production. The day is designed as a workshop where extensive practice with support from an experienced trainer builds delegates’
competence and confidence to understand and calculate a manual payroll. To book this essential refresher, or find out more, visit cipp.org.uk/training .
25 years of our membership magazine THIS ISSUE’S front cover displays three editions of our membership magazine, each reflecting significant and important developments. The PAYadvice image reveals the bold move to magazine publishing by the then Institute of British Payroll Management, in October 1994. The editorial commentary in that issue was made by Philip Bird, editor. The contents of the October 1994 issue
included all-too-familiar topics such as amendments to deduction from earnings orders (DEOs), rights during maternity leave, year-end returns, proposals to amend statutory sick pay, and class 1A National Insurance contributions. The two other membership magazine editions depicted on the cover confirm changes to the Institute’s name, granting of Chartered status, and the introduction of individual Chartered membership.
| Professional in Payroll, Pensions and Reward | October 2019 | Issue 54 14
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