in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 93 September 2023
Cyber-security How can payroll professionals prepare for growing threats in this space?
Get involved How can you use your voice to elevate the status of our amazing industry?
Look to the future What’s the government currently consulting on that could impact the future of payroll?
Use your voice
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
Meet us at CIPP ACE 4th - 5th October 2023 The Celtic Manor Resort, South Wales
Payroll Outsourcing Services Accurate, Compliant and Secure
01276 456902 sales@frontiersoftware.com www.frontiersoftware.com
OFFICES IN AUSTRALIA, INDIA, MALAYSIA, NEW ZEALAND, PHILIPPINES, SINGAPORE AND UNITED KINGDOM
24
The only way to find your voice is to use it Jen Mueller
Editor’s
comment
32
September is here, and it’s one of my favourite months, because we get to shout about how amazing payroll is, as National Payroll Week takes place from 4-8 September. (Who am I kidding? I rave about how brilliant payroll is to anyone
who’ll listen literally all year round!) This issue focusses on how payroll
professionals can use their invaluable voices to raise the profile of the industry and to shape the future of payroll policy. Flick to our feature topic article on page 32 to discover top tips from a panel of experts on how best to elevate the status of the profession and make others aware of just how important payroll is, both inside and outside your organisation. There’s also information from the policy team on page 45 about the numerous ways you can get involved with the work they carry out on your behalf, and how to best use them as one of your membership benefits. I’m sure you’ll all have read about cyber-attacks on the payroll industry over the last few weeks and months, as it becomes something we must keep at the forefront of our minds. The CIPP held a roundtable discussion on this, to consider how to protect payroll systems / data, the questions payroll should be posing to its supply chain and how payroll should respond in the event of an attack. Ensure you familiarise yourself with this important topic, by reading through the article on page 24. Our hot topic this issue centres on the latest raft of consultations / calls for evidence released by the government, for payroll professionals to keep on their radars. There’s a handy summary of those which could have the biggest impact on the industry, on page 58.
45
I hope this issue of Professional allows you to reflect on all the amazing work you do, and on the diversity and brilliance of the payroll industry. Don’t forget a career in payroll can take you down so many different pathways and offer so many opportunities. You might even get to meet your idols, as I did when I got the opportunity to meet the one and only editor in chief of Vogue , Anna Wintour. Who says a job in payroll is boring?
58
Hot topic – consultation central
Lora Murphy MCIPP (editor@cipp.org.uk) Editor
24 - Let’s talk cyber-security By Vickie Graham 32 - Feature article – use your voice By Jerome Smail 45 - What the policy team does for you By the CIPP’s policy and research team 58 - Hot topic – consultation central By the CIPP’s policy and research team
1
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
Chair’s
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA 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 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
September is upon us, and this year is flying by. I hope you’ve all enjoyed the summer and taken some well-deserved time off to rest and recuperate. So, it’s time to celebrate National Payroll Week (NPW) again – the prestigious week of the year when we celebrate the payroll profession. I hope you’ve all downloaded your NPW packs and have plans to celebrate and raise the profile of your payroll department. As we celebrate, we see the first of our ‘breakfast club meetings’ taking place for students and apprentices, and we celebrate the launch of NPW at the Sky Garden again this year. This is followed by many webinars available for our members and non-members to join. Please make sure you take lots of photos and keep us updated on how you’re celebrating and raising the profile of your payroll department. And remember, shouting about the great work we do in payroll and promoting the profession is not just for NPW, but for all year round. I look forward to catching up with those attending events during NPW and at our Annual Conference and Exhibition in October. Please come and say hello if you see me.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s
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
message At the time of writing this, I’m in my second week in post with the CIPP and having a fantastic time getting to know the operational teams. Meeting the tutors at both the virtual and the face-to-face training events gave me a great insight into the challenges faced, along with the camaraderie and support for team
working which exists within such a fantastic group. I’ve also met with our Audit and Risk Committee to review both the current financial year progress, and the proposed budgets for the year ahead. The first week allowed me the opportunity to attend this year’s Chartered Members’ dinner also, where thoughts and ideas where shared on the present and future challenges to be considered by the profession. As this issue hits your mailboxes, I hope you have plans in place with your teams to celebrate NPW, and to promote the industry within your own workplaces. I look forward to meeting with many of you during the planned events. This is a celebration of the payroll, pensions and reward professions. Please don’t be shy and use the collateral available to download within the NPW packs to promote and celebrate everything the profession does for the industry and central government. As we draw closer to the conference and awards season, our very own Ken Pullar is up for Memcom’s Chief Executive Officer Leadership Award and the CIPP is also short-listed for the Best Professional Membership Organisation Award. Good luck, Ken, and fingers crossed for the right result. Ken continues to support my induction and understanding of the business, while creating introductions to key stakeholders as my first few months in the role continue. I hope all of you have managed to take some well-earned rest during the summer or have plans for an autumnal break if the heatwave weather isn’t for you. It’s incredible to think we’re almost halfway through the tax year already. I hope you enjoy all the articles contained within this issue and please do feel free to connect with me and share your points of view.
0121 712 1013 cipp.org.uk @CIPP_UK
Articles 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. 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 2023. 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 | September 2023 | Issue 93 2
in Payroll, Pensions & Reward PROFESSI NAL
Contents September 2023
REGULARS
FEATURES
Director’s social media posts invalidate CJRS claim By Justine Riccomini A day in the life of… the CIPP’s board members By Dianne Hoodless, Liz Lay and Brendan Mulkern
01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update / Message from HM Revenue and Customs (HMRC)
The value of PAS By Samantha O’Sullivan
14
20
When is a bonus not a bonus? By Ian Thomas
22
23
News and developments and a thank you message from HMRC
In praise of payroll By Christine Robinson
Getting payroll right first time By Helen Hargreaves
online exclusive content
05 My CIPP Events horizon, On your behalf, IPP Education Limited tutor and assessor conference, Payroll news, Advisory Q&As, A day in the life of…, Spotlight on 18 Personal development BePayroll 19 Compliance From cyber-security to CJRS claims, ensure you’re up to date with the latest in compliance
28
30
Love your hearing By Andy Shanks
Payroll perks By Lora Murphy
online exclusive content
36
35
Our payroll academy By Kathryn Wright and Aimee Wolfenden
It’s time to talk about neurodiversity By Cybill Watkins
online exclusive content
40
38
32 Feature topic
Read all about the theme of the current issue
My Chartered journey By Elaine Gibson
Want to be more productive? Never touch things twice By Dr Travis Bradberry
35 Reward
43
44
Consider the perks of working in payroll and manage your time more effectively with this productivity hack
51 Pensions
It’s all change By Danny Done
Employment law latest By Nicola Mullineux
Explore what’s driving pensions consolidation
48
46
52 Technology
What role can technology pay as positioning payroll as a rewarding career?
UK workplace pensions set for more consolidation By Henry Tapper
The power of payroll By Louise Connah
51
49
58 Hot topic
Read about the latest flurry of consultations and calls for evidence which could impact payroll
60 Payroll pets
How technology can boost payroll as an attractive career By Caroline Gammon
online exclusive content
We say hello to some of your furry friends
52
3
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
A message from HMRC
This issue, we deliver an important message from Myrtle Lloyd, director general, customer services group, HM Revenue and Customs (HMRC) P ayroll professionals play a vital role, which benefits all UK citizens, by facilitating the You’ll also know that we’ve recently updated the P2 coding explanation tool on GOV.UK, and we’re currently working to reduce P2 paper outputs and move more information online.
overestimate the importance of flagging any security concerns you may have with us as early as possible; especially should you see attacks in your own systems. The information you send in about the employees you manage flows right through the HMRC systems. My ask is that you continue to offer me and my colleagues the highest quality data. For a profession known for your accuracy, I’ve no doubt that the quality of your submissions will continue to be of the highest order. I’d like to personally thank you all for your role as the unsung heroes of the economy. My colleagues and I at HMRC are extremely grateful for your continuing support and partnership, and I look forward to a continued closeness in our relationship for years to come. n
smooth administration of pay as you earn (PAYE) and National Insurance for 40 million employees. PAYE has operated since 1944 and remains a cornerstone of our 21st century tax system, but it has drastically increased in complexity since its introduction. Payroll professionals have always risen to the challenges and opportunities this presents. This year, we mandated the digital submission of P11D forms, and I’d like to thank you for your support through this transition. HMRC is increasingly moving towards a future of digital by default and P11Ds represent the start of that journey for our payroll professional colleagues.
Employers and payroll professionals are major players in HMRC’s digital strategy. While increased digitalisation is the future, it also presents us with a shared security challenge. I can’t “I’d like to personally thank you all for your role as the unsung heroes of the economy”
CIPP update
Congratulations to Laura and Mathew WE’RE DELIGHTED to announce that two of our CIPP employees, Laura Bate, business support executive, and Mathew Akrigg, policy and research officer, have been shortlisted for the Greater Birmingham Young Professional of the Year (GBYPY) awards 2023, Future Faces Chamber of Commerce. Laura has been shortlisted for GBYPY – Change and Sustainability Award and Mathew for GBYPY – Training and Education Award. Congratulations to you both from everyone at the CIPP, what a great achievement. Best of luck with the next round, and at the awards evening in September.
Association Excellence Awards 2023 THE ASSOCIATION Excellence Awards have been running annually since 2015. They were founded to recognise the essential work associations, trade bodies, professional organisations and Chartered Institutes do for, and on behalf of, their members to ensure their voices are heard and their causes are championed. The CIPP is thrilled to be shortlisted as a finalist for two awards again this year: l Best Association Newsletter or Magazine (circulation 6,000 – 25,000) l UK Association of the Year (over 1,000 members). A huge thank you to everyone who has supported the CIPP and Professional magazine over the last year. We’ll have everything crossed for some wins on Friday 3 November 2023 at the Grand Connaught Rooms in London.
4 | Professional in Payroll, Pensions and Reward | September 2023 | Issue 93
Scan to book
Become a qualified professional at the forefront of your industry
Event horizon Your guide to upcoming events and training
The CIPP’s Foundation Degree in Payroll Management is the industry benchmark qualification for individuals looking to progress their career, and gain an in- depth understanding of payroll processing and legislation. FOUNDATION DEGREE IN PAYROLL MANAGEMENT
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.
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to-face are highlighted.. Please note, there are other dates and locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
Course
Date
Location
05 September
Online
Automatic enrolment and pensions for payroll
19 October
Online
27 November
Online
23 October
Birmingham
Global mobility key payroll issues
23 November
Online
11 September
Online
Holiday pay and leave
10 October
Online
07 November
Online
12 September
Birmingham
Visit www.cipp.org.uk/study for details and to enrol
18 September
Online
9 October
London
Introduction to payroll
23 October
Online
13 November
Online
27 November
Manchester
25 September
Online
Overpayment recovery workshop
1 November
Online
30 November
Online
7 September
Manchester
11 September
Online
12 October
Online
Payroll update
20 October
Birmingham
30 October
Online
2 November
London
23 November
Online
The wait is nearly over for the CIPP’s prestigious Annual Conference and Exhibition (ACE) and Annual Excellence Awards 2023
Here at the CIPP, we can hardly contain our excitement, as two of our favourite events will soon be upen us: ACE and the Annual Excellence Awards. The final preparations are being made, and we’re pleased to see so many people showing interest, enquiring about the events and signing up to attend. We want to see as many of you there as possible. For further information on ACE or to book tickets to attend, please visit our website here: https://ow.ly/U4fW50Py0FJ.
Scan to book
5
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
POLICY HUB
On your behalf
We’re back! We hope you haven’t missed us too much over the summer. Whether you’re returning to work from a holiday or it’s just a normal day of the week, we have a complete round- up of what the CIPP’s policy and research team have been up to in July and August for you… Policy team update
Events, events, events! Policy lead, Samantha O’Sullivan began July by attending the DeHavilland event, ‘How to engage with the Conservative Party's manifesto process’. This session explored a range of topics, including: l the Conservative party’s general election manifesto process l the key engagement points for inputting into Conservative policy l effective ways for public affairs teams to engage with the party. Sam also joined a panel at the Nest Insight conference 2023, which brought together academics, policy makers and senior industry figures to consider, ‘Beyond pay and pensions: what role can employers play in supporting financial well-being?’ Sam (joined by the CIPP’s education manager, Joanne Leather) then attended an event to discuss taking a collaborative approach to careers education in a way that supports both students and businesses. This was held at Arden Academy in Solihull, not too far away from the CIPP’s head office. In August, Sam travelled to London for a Pensions and Lifetime Savings Association event. This introduced a new research report into low earners, which explored various elements of automatic enrolment (AE). The research, commissioned by the Pension Policy Institute focussed on the impact of the AE earnings trigger on those earning under £10,000, and examined how potential reforms could impact their retirement outcomes. Discussions included how to better understand different groups within the low earning population and their varied motivations, circumstances and needs. Finally, at the end of the month, Sam and Fiona Smith (the CIPP’s training manager) delivered a payroll update to
Association of Accounting Technician (AAT) members. The webinar ended with an interactive Q&A session. In July, our editor, Lora Murphy, joined Payroll Forum’s ‘Client Payroll Expo 2023’, to participate in a panel and discuss how truly diverse a career in payroll can be. Lora chatted to industry experts, to explore all the different career paths available in payroll, many of which aren’t necessarily obvious to those outside of the profession. Lora also joined the Association of Taxation Technicians (ATT) in early August, to deliver an update on payroll policy making. The online session explained how payroll professionals can get involved in activities to help shape the future of payroll policy. Emma Rawson from ATT provided a comprehensive employment taxes update, to cover: l P11Ds / payrolling benefits l benefit in kind hot topics l the consultation on modernising and simplifying income tax services l off payroll working. In July, policy and research officer, Mathew Akrigg attended the Freelancer and Contractor Services Association (FCSA) forum in Manchester. This event was packed with presentations, roundtable discussions and the opportunity to network with FCSA members and partners, to hear about freelancer / contractor issues. Mat then hosted our latest BeKnowledgeable event on taking control of payroll risk. Maria Mason, partner at BDO LLP, talked through why payroll can be seen as a high-risk activity for a firm. Maria discussed how you can control the risk elements while ensuring both the team and payroll operations aren’t constrained, enabling you to deliver and grow a successful and valued service. Policy and research officer, Meena
Salhan was invited to Parliament in July, for the exclusive launch of a new report by WPI Economics on the economic and business benefits of sick pay reform. The Thames Pavilion held a meaningful morning with a full room of politicians, workers, economists and businesses, discussing why sick pay reforms make sense for working families, businesses, the Treasury and the wider economy. Consultation central The policy team is working around the clock to respond to as many consultations as possible. Keep a look out for News Online updates on consultations. Additionally, the CIPP’s formal responses to these documents can be accessed from the policy hub.
National Payroll Week (NPW) NPW is taking place between 4th and 8th September 2023.This is our chance to come together as one and celebrate all things payroll. So, go on, shine that spotlight on yourself or someone you know who deserves a special mention, and get involved. n
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 6
MY CIPP
Joanne Leather MCIPPdip, education manager, the CIPP, gives the lowdown on this year’s all-important event for the CIPP’s tutors, moderators and assessors IPP Education Limited tutor and assessor conference
E ach year, IPP Education Limited (IPPE) brings together its amazing tutors, moderators and assessors for a conference of guidance, training, networking and most importantly, teamwork / collaboration. The content is designed to underpin the ethos of education with IPPE and reflects our company values of: ● teamwork ● trust and honesty ● communication ● professionalism ● striving for excellence. This year’s event was held in July, both online and face-to-face to allow for accessibility. We had a combination of internal speakers such as Dr Sue Smith, delivering guidance on how to navigate difficult or disruptive individuals when teaching and our highly experienced tutors Steve Harford and Ian Walters, who shared their knowledge by delivering sessions on effective feedback and marking guidance. We also saw external speakers: ● Ursula Cameron enlightening us on workplace resilience and well-being (WRAW)
Ten years’ service ● Margaret Brown MCIPPdip ● Carolyn McGowan MCIPPdip ● Hayley Ryder BA (Hons) FCIPPdip. 20 years’ service ● Ros Hendren MSc, CMgr FCMI dip, FCIPPdip, FHEA ● Lesley Sinclair MCIPPdip. 30 years’ service ● Sandra Lingwood MCIPPdip AFHEA. On receiving the award, Sandra said, “I feel proud to be a tutor, and that I’m helping the next generation of payroll professionals to succeed in their careers.” Tutor of the quarter (March – May 2023) ● Pete Statham MSc FCIPP. Pete has received excellent feedback from students he’s supported through their studies and also from his work colleagues. His students praised him for having a positive approach, which made his sessions enjoyable and worthwhile, while also showing them unwavering support, patience and guidance. Congratulations, Pete! n
● Eric Moore speaking about recognising the need to support our own well-being, enabling us to effectively support our students. To promote teamwork and communication, the events included problem-solving group activities, courtesy of BrightVision events. This allowed for some fun and entertainment, from investigations into unsolved murders, to building an impressive giraffe with a few sheets of paper and some masking tape. Both events concluded with awards for long service and Tutor of the Quarter, to recognise the dedication and commitment our tutors and assessors have to IPPE and to the payroll and pensions professions. Both the online and face-to-face events were incredible days and it’s a pleasure to know and work with such wonderful people.
Awards Five years’ service
● Sunmola Adeyemo MCIPPdip ● Amanda Anastacio MCIPPdip ● Debbie Kurs MCIPPdip ● Ana Laiu MSc FCIPPdip ● Theresa Waddingham MCIPPdip.
Pictured left to right: Carolyn McGowan; Sunmola Adeyemo; Ana Laiu; Sandra Lingwood; Amanda Anastacio; Theresa Waddingham, Lesley Sinclair; Margaret Brown
7
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
Educate, collaborate and celebrate at the UK’s largest independent payroll conference and exhibition
4-5 October 2023 Celtic Manor Resort, Wales
The CIPP’s Annual Conference and Exhibition is the largest independent payroll conference in the UK, and brings together payroll professionals, thought leaders and solution providers from across the UK.
Whether you’re a seasoned payroll expert or just starting your journey, the Annual Conference is designed to empower and elevate your payroll skills and knowledge.
REASONS TO ATTEND
Enlightening keynote sessions Gain insights from leading payroll practitioners, industry experts and HM Revenue and Customs (HMRC) officials who will share their knowledge and experiences. Dive deep into the latest payroll trends, legislation updates, compliance strategies and best practices. Interactive workshop sessions Participate in a wide range of interactive workshops and thought- provoking discussion groups led by industry experts.
Personal and professional development Develop new skills and explore new perspectives, and gain valuable updates to boost your professional development and career prospects. Celebrate excellence Attendance at the full conference includes a ticket to attend the CIPP’s Annual Excellence Awards 2023; the largest UK payroll awards ceremony celebrating excellence in the profession. Networking Engage with professionals sharing similar interests and expand your network for personal growth and professional connections.
Discover new solutions Discover the latest payroll technologies, services and products from our diverse range of exhibitors. Engage with providers from across the industry to find solutions that will transform the way you manage your payroll.
DONT MISS OUT - BOOK NOW Bookings close 15 September so secure your place today at cipp.org.uk/ACE .
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 8
FEATURED SESSIONS
What’s in the toolbox to enhance your payroll career? Karen Thomson MSc ChFCIPPdip FHEA, UK payroll director Anderson Anderson & Brown LLP Maria Mason MCIPPdip, partner at BDO LLP
Karen and Maria will share their experiences on how they have supported those looking to join payroll or wanting to enhance their career, perhaps with progression.
More often now, school leavers are looking for a career in payroll, rather than historically falling into payroll. As an employer do you know what you could include in the toolkit to enable them to achieve their aspirations and or objectives?
The session will cover: ● What tools could you include in the toolbox? ● How can you link your career pathways to CIPP’s Payroll Assurance Scheme and ACT? ● Example of a competency framework ● Sharing a career path video including company competencies.
Looking after the payroll and reward professional
Karen Beckett BA (Hons) ChFCIPP, head of payroll and benefits, Dorset HealthCare University NHS Foundation Trust Stress and mental wellness can still be seen as taboo subjects by some but will affect us all at some point and we’ll all deal with them differently. This session will discuss the impact of stress on the payroll professional, both work-related and personal, by exploring: ● possible triggers
● signs of stress ● support tools.
Pensions top tips
Shaun Tetley FCIPP, Payroll and Pension manager, Portsmouth City Council A ‘must attend’ and always popular pensions workshop covering pension top tips. Nothing stands still in the world of pensions and this session will bring you up to date on all you need to know. This fast-paced session will cover: ● state pensions ● DB/DC pensions ● AE ● pension dashboards ● and much more.
We’ll also check whether you have completed your critical pension actions.
This years sponsors and exhibitors
IDEAS | PEOPLE | TRUST
HEADLINE SPONSOR
9
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
PAYROLL news
CHANGES TO statutory paternity pay and leave are due to take effect from 6 April 2024. Amendments to existing entitlements will introduce greater flexibility for fathers to create a more equal system of parental leave and pay, to promote gender equality. The changes come following a consultation which was held in 2019, Good work plan: proposals to support families, which can be found here: https:// ow.ly/5VLl50Py0Jo. They will apply in Great Britain, and are as follows: l notice requirements will be changed so they’re more proportionate to the amount of time taken off l an employed father will be able to take paternity leave in two non-consecutive periods of one week or a two-week block within 52 weeks of the birth of the child / placement for adoption l payroll software, basic pay as you earn (PAYE) tools and the online paternity leave calculator on GOV.UK will be updated so an employer can calculate the pay for paternity leave taken in non-consecutive weeks. HM Revenue and Customs (HMRC) is estimating that updated guidance will be available in line with the changes to legislation by 8 March 2024. Statutory paternity pay and leave changes
Investment zones employer National Insurance contributions (NICs) relief FURTHER INFORMATION regarding the reporting of secondary (employer) NICs for businesses located in investment zone tax sites has been published by HMRC. A reduction in the rate of employer NICs payable will be available for investment zone tax site-based businesses, which are located within a prescribed geographic area, for employees working in that area only (where the conditions to claim the relief are met). A zero-secondary rate of employer NICs will apply from employees’ earnings above the secondary threshold (£9,100 per year) up to, and including, an upper secondary threshold (£25,000 per year) equivalent to the freeport upper
secondary threshold. The balance of earnings above this upper secondary threshold will be charged at 13.8%. The relief will be available from the date the first investment zone tax site is operational. New NIC category letters Four new investment zone NIC category letters will be available from 6 April 2024, to implement the NIC relief: ● N – (standard category letter) ● E – (married women and widows entitled to pay reduced NICs) ● K – (employees over the state pension age) ● D – (employees who can defer paying 12% NICs and pay only 2% because they are already paying it in another job). If an investment zone tax site becomes operational before 6 April 2024, employers will be able to claim the relief using the existing freeport NIC category letters instead. This is a temporary arrangement until the investment zone NIC category letters become available. All investment zone employer NICs relief claims made from 6 April 2024 onwards (including if the employer has made a claim in relation to the employee prior to 6 April 2024) must be made using the NIC category letters N, E, K or D.
Eligibility To be eligible, employers based in Great Britain must have business premises in an investment zone tax site. Additionally, employees must: ● be new hires with employment start dates on or after 6 April 2022 and before the applicable sunset date ● not have worked for that employer (or an employer connected to the employer) in the previous 24 months ● spend a minimum 60% of their working time in the investment zone tax site (at the start of the qualifying period, the employer must reasonably expect this to be the case). Eligibility to claim will expire 36 months from the employee’s start date of their employment and there’s no limit on the number of employees an employer can claim for. Details supporting investment zone employers based in Northern Ireland will be released as soon as they’re available.
Diary dates
National Payroll Week! Last day of tax month 5 First day of tax month 6
4-8 September 5 September 6 September
Last day for submitting a real time information employer payment summary to apply to tax month 5 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 September
22 September
5 October 6 October
Last day of tax month 6 Last day of tax month 7
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 10
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Payrolling benefits Q: We payroll benefits and have submitted the P11D(b) online using HM Revenue and Customs’ (HMRC’s) Government Gateway. Do I also need to send a paper version of the form P11Db to HMRC? A: As you payroll your benefits, there’s no requirement for P11Ds to be completed and so your online submission of P11D(b) is all that’s required. Can you report agency worker costs on a pay as you earn (PAYE) settlement agreement (PSA)? Q: Our business invited agency workers to a staff event. We report these costs in our PSA. Can we include the agency workers (who aren’t employees) in the PSA calculation? A: The employer organising the PSA for direct staff may want to also include
third-party employees in the PSA, for example, where they’re invited with direct staff to a function not covered by the exemption at Section 264 of the Income Tax (Earnings and Pensions) Act (ITEPA) (see Employment Income Manual (EIM) 21690). No objection should be raised if the employer includes these third-party employees in the PSA being made for direct staff. So, yes, an employer may include non-employees within their PSA computation if they so wish. Please see here for clarification: https://ow.ly/ uPes50Pu7nT. Employees who pay no tax and PSAs Q: Please could you advise whether expenses and benefits (staff entertainment and gifts) for employees earning below the personal tax allowance must be reported in the PSA submission? A: HMRC guidance states, “Where an employee pays no tax with the employer, they should be included as being liable at their first chargeable rate of tax, the basic rate if England, Northern Ireland, and Wales, and starter rate if resident in Scotland, for the PAYE Settlement Agreement calculation purposes. For example, if an employee in England pays no tax on their earnings with an employer — because their earnings are lower than
How should the reimbursement of eye tests and glasses be treated for payroll purposes?
their personal allowance, and they have a benefit included in a PAYE Settlement Agreement — the rate applied would be the basic rate (20% in 2022 to 2023).” Please see the guidance here: https:// ow.ly/14H950PvYQJ. Exceeding HMRC’s approved mileage rates (AMRs) Q: We have a situation where a staff member has claimed their mileage at the incorrect rate for their company car, resulting in an overpayment. How should I report the excess payment above HMRC’s mileage rates? A: If you haven’t agreed with HMRC to pay above the AMRs, you won’t hold an exemption, so the amounts exceeding the AMRs are treated as cash earnings. Therefore, they must be processed via
Do you include expenses and benefits for employees earning below the personal tax allowance on a PSA?
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 12
POLICY HUB
payroll for class 1 National Insurance contributions (NICs). There are two options to report the tax, and the process will depend on whether you’re registered to payroll benefits or not. If you are registered, you would add the value to the employee’s taxable pay. If you’re not registered to payroll benefits, you would report the value on the P11D. Please see here for further information: https:// ow.ly/4oXg50PtWbJ. If you wish to cover the cost of the tax and NICs on the employee’s behalf, you would process the grossed up total value through the payroll. Reimbursement for eye tests and glasses Q: If an employee has a display screen equipment (DSE) eye test and / or glasses, and pays for the treatment but is then reimbursed by the company, how is this treated? A: An employer cannot reimburse the cost of the eye tests or glasses / contact lenses, as this would lead to a pecuniary liability. Section 320A of ITEPA 2003 specifically states, “No liability to income tax arises in respect of the provision for an employee of – (a) an eye and eyesight test, or (b) special corrective appliances that an eye and eyesight test shows are necessary, if conditions A and B are met. Condition A is that the provision of the test and appliances is required by regulations made under the Health and Safety at Work Act 1974. Condition B is that the tests and appliances mentioned in condition A are made available to those employees of the employer in question for whom they are required to be provided under the regulations.” An employer can arrange the provision of an eyesight test and cover the cost of glasses / contact lenses without a benefit in kind (BIK) arising, providing the employee is required to use a visual display unit (VDU) as part of the normal duties of their employment. If an employer were to pay for glasses for general use (including use of a VDU), which don’t require a special prescription, the cost must be split to demonstrate the cost of the use of a VDU against the cost for general use to avoid a BIK. So, it’s advisable to keep itemised receipts for both an eye test and a prescription, should HMRC conduct a review. If an eye test identifies a need for both
general and VDU use, and the employer settles the entire bill, a pecuniary liability will arise on the amount which excludes the VDU prescription. This is because an employer can only cover the cost of the VDU element of the eye test and prescription. Anything more will incur a pecuniary liability. Relevant information can be accessed in the following locations: Section 320A ITEPA (2003): https://ow.ly/ WiNE50PtZfB EIM 21765: https://ow.ly/I1OL50PtZsZ National Insurance Manual (NIM) 02145: https://ow.ly/Wbgk50Pu2mb EIM00580: https://ow.ly/CI2e50PtZPl.
If employers help employees with the cost of childcare when attending work- related evening events, what are the associated tax implications?
Tax implications of reimbursing employees for childcare costs Q: Can we offer our employees financial support if they need to pay for carers / babysitters when they’re invited / expected to attend a work event in the evening? Could you advise how we would treat this? Are you aware of any significant tax implications if we offered this option to our employees? This would be a separate arrangement to our childcare voucher scheme. A : If the employees pay for their own childminding arrangements and the company reimbursed the costs of this, a pecuniary liability will arise and tax and class 1 NICs would become due via the payroll. If you wish to cover the cost of the tax and NICs on the employee’s behalf, you would process the grossed up total value through the payroll. Tax-free childcare provision has been scaled back in recent years, as the government introduced free childcare. Unless you have an employer-provided nursery, then the costs incurred will be liable to tax and class 1 NICs. Please see here for further information: https://ow.ly/ tHGz50Pu5t8. n
13
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
MY CIPP
A day in the life of a CIPP board member In the final instalment in our series of summer articles, we introduce you to some more of the CIPP’s board members, and invite you to take a glimpse into a typical day in each of their lives…
I first qualified many years ago with the Association of Payroll and Superannuation Administrators (APSA), one of the CIPP’s predecessors. The qualification has been good for me, as I’ve built a career in pensions in both the public (local government) and private sector. Like many of the board directors, I have other roles in the pensions / payroll world which run alongside – I’m mainly involved in pensions in higher education – but the CIPP role is special. I have lots to learn and hope I can do it justice, by further developing the pensions offering at the CIPP for payroll and pensions professionals. three times a week and on those days, I’ll always try to park away from the office so I can get my steps in, as well as climbing the stairs to the second floor. We have a great office environment and I love being in the office to spend time with the various teams – all of which work exceptionally well together and are always happy to help each other out. Meetings generally start at 9.00am and are very varied, other than my direct leader meetings which are planned for Mondays and Tuesdays. Prior to that, I always like to make sure all emails have been responded to. The first hour is very much the teams sending through their quick queries or me responding to queries from the previous day. As for the rest of my day, each day, however planned and organised, often brings unexpected elements to it that require addressing as a priority. As you
I now work mainly from home, having spent many years (and nights) working away. I cherish the working time I have in my small home office (that’s a grand title but it’s the smallest room in the house, our old box bedroom). It’s gym first thing; nothing strenuous but it’s a good start to the day and I like to keep up the routine. The first few hours of the day are usually about catching up: reading and responding to emails from yesterday, reviewing overnight updates and checking the morning’s pensions news. Pensions are newsworthy these days – in both the general media and the specialist press sure I have a break and get some fresh air, whether that is a walk around the woodland route we have next to the office, or a short walk with the dogs if I’m at home. Often the end of the day then comes around quickly. If I’m at home, my husband Pete and I like to go for a six-mile run through the local park, or it’s a short drive home from the office if I’m there. can imagine, working for the UK’s fourth- largest supermarket means there’s always something going on! We all have those days when you look at your to-do list and wonder what has happened, but you’ve still managed to achieve things. It’s also rare that a meeting finishes without actions being taken away, but this suits me as I love to be busy and thrive on challenges. I work best when there’s a tight deadline. When lunchtime comes, I make
Liz Lay MSc FCIPPdip FHEA ACIPD My day normally starts at 5.00am when I am heading to the office, or 5.30am when I am working from home. The first job of the day is to let the dogs out and give them their breakfast – including Fifi, our Boxer/Staffordshire Bull Terrier cross and Milo, our Boxer who, like my sons, is a mummy’s boy. Next is getting myself breakfast, then ready to head to work. I’m in the office
Brendan Mulkern FCIPP I’m lucky to have a working day which usually brings a range of different tasks and challenges. I’m pleased to say this extended in spring of this year, as I became a board member of the CIPP.
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 14
MY CIPP
– and there’s always lots going on with workplace pensions. Currently, there’s a financial evaluation of the main pension scheme for universities. The outlook looks better than it has done for a decade, so we could see favourable changes to contributions and / or benefits. This is the area I spend most of my day on, reviewing the financial position of schemes and / or other regulatory influences, and looking at impacts / changes to scheme design and policy. There’s always a backstory and historic detail you must understand to plan any future pensions options wisely – and most important of all is thinking
herself, Bonnie the Shish Tzu. I use my morning walk to help me plan the day ahead and have a bit of fun with my three fur babies. Work starts with me checking my emails. As I lead a team who run international payrolls, I could have emails from any of these countries which needs my urgent attention, from anything concerning opening a new store to international taxation. I contact my UK and International teams to ensure they have no issues that they need to discuss with me first thing. Working in retail is fast paced so you never know what could be coming your way. Then I move on to meetings I have scheduled, in an average day I’ll attend around five. They’ll mainly be with human resources, the senior leadership team or audit. They can also be with the chief executive officer, looking at ways to make an employee’s time with TFG rewarding and satisfying by launching new incentives and ensuring we’re compliant, and meeting our obligations to about how that can be communicated. Writing policy papers is a major part of my role – finding creative ways to explain the details while identifying the key headlines and decisions is at the heart of my work. I also really enjoy speaking to scheme members and other interested groups about pensions. I always have done. At some point, nearly everyone needs to think about their pension, so a large part of my day involves preparing presentations – and how you can show and explain your pension effectively, with clarity but also with care. Knowing what you can and (most importantly) can’t say, being accurate, stimulating interest and
our South African owners. I also oversee the processing of the final payroll for the UK and the Republic of Ireland to ensure it’s completed and ready for the chief financial officer to sign off. Once my day job is complete (which on a normal day is around 6.30pm), just like many payroll professionals, I review any actions, return any missed phone calls and list the challenges for the next day. Then it’s time to move onto my CIPP inbox to review any emails: these could be from students who need my support, the education team kindly asking me to lead a module workshop or the CIPP board. I’ve been a tutor for 20 years and have supported hundreds of students in completing their Foundation Degree. It’s so satisfying to give back to the profession and I would highly recommend it. Being a CIPP board member is a real privilege. When I was voted on to the board by the CIPP membership, I was truly honoured. I take the role and the responsibilities that come with it very seriously. encouraging questions are all important. My afternoon is often dedicated to these presentations and communications, also meeting with colleagues to draw on their knowledge and to consider all parts of an issue. Often (in my case anyway), there are better approaches to take than the one you were thinking of. These are the most interesting discussions, which undoubtedly improve outputs, and it’s something very apparent already within the CIPP (rarely have I seen people with such a strong sense of purpose and openness to learn and improve). It’s very motivating to see, and I hope I can play even a small part in it.
Dianne Hoodless MSc ChFCIPP FHEA I’ve been a payroll professional for 36 years, and like many payroll professionals, I fell into the position. I recall going for my first interview for a position in finance, where I was asked, “do you like maths?” I replied yes and that’s how my career and passion for payroll started. Today, I’m the head of group payroll for The Foschini Group (TFG) (London), as well as a tutor and, of course, a board member of the CIPP. My day starts with a walk with my three dogs, Broadie the Bearded Collie, Barney the Tibetan Terrier and the diva
15
| Professional in Payroll, Pensions and Reward |
Issue 93 | September 2023
MY CIPP
Spotlight on...
Dipesh Pankhania ACIPP , marketing co-ordinator
Tell us a little about your career and background so far. Before being employed by the CIPP, I worked in several customer service-based roles, including sales assistant, waiter and customer service advisor. Although I never saw them as being my future career, these roles really helped develop my character and the person I am today. I learned how to work well as part of a team, meet deadlines, communicate effectively and,
What are your main priorities as marketing co-ordinator at the CIPP? Some of my priorities include: l supporting my team l creating communications for the CIPP and our external clients, through email and social media l ensuring the CIPP website is kept up to date l working with the wider team and other departments to achieve our business goals and objectives. Every day at the CIPP is different and marketing has its own challenges. Therefore, staying up to date with current marketing trends (as well as those in payroll) is key, because it helps towards the growth of my career and role at the CIPP. What does your role mean to you? My role as marketing co-ordinator is very important to me and my team, but also to the wider business. Without a marketing co-ordinator, the team would struggle with workload, which would increase their responsibilities and overall tasks. For instance, I deal with email and social media marketing, as well as website updates. If this were passed on to other team members, it would affect their day-to-day roles, and it would cause a decline in performance, subsequently impacting the business overall. I’m still new to marketing, and although I’ve had previous experience as a social media marketing assistant, I’m continuously learning and developing my skills at the CIPP. This has really helped me to make a difference in my team and other departments.
With lots of CIPP events coming up, which are you most looking forward to? I’m looking forward to National Payroll Week (NPW) this month and our Annual Conference and Exhibition (ACE) in October. NPW is dedicated to celebrating the profession and all the hard-working payroll professionals who ensure people get paid on time and accurately. It’s one of my favourite events as it gives everyone the opportunity to get involved, learn more about payroll and celebrate. ACE is also another one of my favourite CIPP events, as it provides an invaluable opportunity for professionals to educate, collaborate and celebrate all things payroll, pensions and reward. I get full first-hand experience of the exhibition as I’m there helping to set-up and supporting the events team. What do you think your role can bring to the future strategy of the CIPP? As part of our marketing strategy, we want to ensure everyone who works in payroll or hears the word ‘payroll’ knows about us. My role as the marketing co-ordinator, dealing with email and social media communications goes hand in hand with achieving this, as I produce content to promote our membership, training, qualifications and events. Everyone has their own style and way of doing things and I do too. I like to be creative and think of new ways to make our emails and socials stand out and capture the target audience’s attention. I ensure the messages are clear, concise and easily understandable. As such, I would say my role is important, as it indirectly helps the CIPP in its strategy. n
most importantly, to work hard. My career truly began when I
studied at Coventry University for my BA (Hons) in Business Management. This degree shaped me as an individual and developed my knowledge, also sparking my interest and passion for marketing. Marketing was a career I wanted to pursue, but coming out of university I had no real marketing experience. I found myself being rejected by employers as they wanted at least a year or two of marketing experience or a marketing degree. I set myself a goal to keep searching for opportunities which would help fill in any gaps and build my experience. During this time, I found the chance to work as a social media marketing assistant. In this role, I managed the business’s social media channels: l creating fun and engaging content l communicating and collaborating with other businesses and influencers l working as part of a team to execute the business’s marketing strategy and plan. Two years later, I now work at the CIPP as a marketing co-ordinator, and I couldn’t be happier. I’m continuously learning something new and developing my marketing knowledge / skills, while gaining experience within this field.
| Professional in Payroll, Pensions and Reward | September 2023 | Issue 93 16
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64Made with FlippingBook - Online magazine maker