This issue contains a bonus 4 pages in the online edition. This issue focuses on time and attendance including articles such as how to take advantage of T&A, managing T&A in a global workplace and why it pays to have T&A software. Samantha Mann outlines key aspects of the apprenticeship levy whilst Jason Clark provides an insight into how to take advantage of these apprenticeship reforms.
in Payroll, Pensions & Reward PROFESSI NAL Issue 27 February 2017 Official publication of The Chartered Institute of Payroll Professionals
A time to relax?
Re-enrolment Steps to take
Autumn Statement 2016 Stay ahead of change
What will Brexit mean for workplace equality issues? Support falls away
CIPP update | Policy hub | Professional development
This is not the future of HR. We are.
Recently, you may have heard rumours about an HR robot named HARRI. HARRI – Human Advisory Resource: Robotic Interface – is in fact, fiction. Something we created to get HR professionals thinking about the true future face of HR. Of course, in reality a robot couldn’t address core issues that demand human empathy. You just can’t take the human out of human resources. But if you really want to see how cutting edge technology can support a company’s greatest asset – its people – talk to us. www.sdworx.co.uk/future
#MeetSDWorx 0800 0482 737
“We need diversity of thought in the world to face the new challenges.” Tim Berners-Lee (1955–)
Editor’s comment
It was in 1992 when I moved away from payroll processing and began a new career editing the successful monthly eight-page newsletter Payroll Manager’s Review . I’m saddened that the latest incarnation of that esteemed periodical, which (as its
to possess the usual ingredients for confusion and error; namely, Government’s reliance on technology/software to deliver a key policy programme (pages 12, 18). Another example is maintaining accurate taxpayer addresses held by HMRC (page 17) with consequential impacts for the levy and Scottish rate of income tax. Of course, technology and software are essential instruments today. Time and attendance systems are I believe almost obligatory now for many organisations (pages 38 to 40). I’m also pleased that this issue has the first of a series of regular articles on the Local Government Pension Scheme (page 35). Good luck in 2017.
title implies) focused solely on payroll, has folded (page 41). Though there may be time for some to relax (page 23), in my view there are many challenges ahead for those working in payroll, pensions and reward. The 2016 Autumn Statement report (page 20) is essential reading. Will the changes to salary sacrifice from April 2017 be a source of problems going forward? The challenges of Brexit continue to emerge. An aspect perhaps not yet fully recognised is the potential effect on workplace equality law (page 27). The apprenticeship levy which launches in April seems to me
Mike Nicholas MCIPP AMBCS Editor
Chair’s message
Every year at this time we all tend to look back and see what we’ve achieved in the previous year, which then prompts us to consider what we might want to challenge ourselves with in the year ahead. At long last my knee surgery went ahead as
how you are going to challenge yourself this year? If you’re thinking of changing your job, what new skills might you require to push your CV up to even greater heights and get to the top of the pile for that dream role? Talk to our team and find out how we can help you get those specific skills, even if it’s something not in the brochure. So, whatever your challenge for 2017, I wish you well.
planned at the end of December. Having completed my first walk on the beautiful Lincoln West Common this morning, with a lot less pain than I’ve been experiencing, I’m looking forward to a ‘hobble’ free 2017, and hopefully a much fitter one. Work-wise, there’s always new challenges to look forward to, and, as Ken mentions, the CIPP is always there to support with your learning, whether through training or formal qualifications. Is that
Eira Hammond FCIPPdip Chair, CIPP
CEO’s message
So the Christmas and new year celebrations are in the past and here we are a month into 2017 already. Resolutions? Broken or still in place? One resolution I hope we can all continue is to maintain our personal continuing professional development, which you should be logging within My CIPP on the CIPP website. As usual, a new year brings challenges, new and ongoing. The apprenticeship levy, Brexit, salary sacrifice changes, Scottish income tax rates and IR35 reform legislation, just to name a few, is where we as professionals, be it payroll, pensions or reward, will in organisations across the UK and globally have some part to play. The CIPP will continue to support all members in these areas through our calendar of training events, national forums,
special interest groups, consultancy, advisory service and suite of qualifications to make sure we proudly represent our industry. Not a member but ‘borrowed’ this magazine? View the CIPP website for membership benefits and see how you can develop your skills and knowledge to ensure you are up to date on the latest developments and changes to help keep your organisation compliant and in making you a valuable asset. I wish you all a successful and prosperous 2017.
Ken Pullar FCIPP Chief executive officer, CIPP
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| Professional in Payroll, Pensions and Reward |
Issue 27 | February 2017
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Contents
February 2017
41
Time to take advantage of T&A
Lisa Gillespie outlines what they offer and why they are increasingly used
Features
20
12
18
Taking advantage of apprenticeship reforms Jason Clark provides details and actions employers will need to take
The apprenticeship levy Samantha Mann outlines key aspects and offers advice and guidance
Autumn Statement 2016 CIPP’s policy team provide a summary of key announcements
23
27
28
A time to relax? Stuart Price argues that now is the time to act
The future of financial bonuses Nicola Britovsek comments
What will Brexit mean for workplace equality issues? Suzanne Horne reveals the implications
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 2
36
37
Editor Mike Nicholas 01273 412 836 | editor@cipp.org.uk Advertising Jill Bonehill 0121 712 1033 | advertising@cipp.org.uk Design James Bartlett and Nicole Gumery design@cipp.org.uk Printing Warwick Printing Company Ltd
The peril of pensions Henry Tapper offers a word in payroll’s ear
The LGPS and pensionable pay Cornelius Hargrave provides advice
40
36 8
Chief executive Ken Pullar FCIPP CIPP board of directors
Managing T&A in a global workplace Annabel Jones outlines how T&A systems are increasingly important
Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT
Taxing times for high-earners Alan Morahan analyses research and suggests measures
42
44
Useful contacts Membership membership@cipp.org.uk 0121 712 1073 Education education@cipp.org.uk 0121 712 1023 Training admin@cipp.org.uk 0121 712 1013 Events events@cipp.org.uk 0121 712 1013 Marketing and sales marketing@cipp.org.uk 0121 712 1033 General enquiries
Why it pays to have T&A software John Ovington explores the benefits that new technologies bring
Is your business ready for a HMRC inspection? Adam Reynolds explains importance of digital expenses management systems
Regulars
01 Editor’s comment,
34 Pensions insight 40 Feature articles Time and attendance
and Chair’s and CEO’s messages Events, news and developments
The Pensions Regulator: Re- enrolment
04 Membership focus On your behalf, Advisory, Five minutes with 11 Professional development Diary of a student, Taking advantage of apprenticeship reforms 15 CIPP update New vice chair, CIPP strikes gold 16 Payroll news 26 Reward insight Employment law cases, Employee shareholder status to be abolished
43 Industry news 44 Technology insight 47 Confessions of a payroll manager Plus bonus content: 26 Employment law post-Brexit 29 First round to the drivers 45 GDPR and the payroll industry 46 Your best payroller has just resigned
0121 712 1000 info@cipp.org.uk
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 2017. 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.
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Issue 27 | February 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer , provides an update
Annual allowance calculator The annual allowance (AA) calculator was launched as a beta version on 28 September 2016 at the October meeting of the Pension Industry Stakeholder Forum at which HM Revenue & Customs (HMRC) thanked all stakeholders who had participated in the user research. The version will enable HMRC to make further developments and improvements to the calculator as a result of user feedback and evidence of user needs from customers and stakeholders. Changes have been made which include addition of the 2012–13 tax year as a priority. Further planned changes include: ● inclusion of tax years 2009–10, 2010–11 and 2011–12 to enable pension scheme members to work out the unused AA available to carry forward to 2012–13 (which feeds into their calculations for 2015/16) ● changes to the AA calculator results page to make the results easier to follow so that customers will be able to see how the money purchase and alternative AA have been applied to their pension savings. These changes comprise: ❍ clarification around AA charges arising because of the money purchase AA rules ❍ identifying when the AA (or alternative AA) has been capped for period two in the 2015–16 tax year ❍ identifying when the earlier year unused AA is not included in the carry forward amount for the final year shown because it’s out of time.
● ignoring an order to operate a court attachment ● operating the attachment but failing to pay over the deductions ● operating and paying over but using incorrect references for either single or combined payments/employees. For employers and the payroll industry the issues can be summed up rather neatly in one word: guidance. We are unlikely to see a commitment from Government for the current handbook, which is an aging document, to be updated in its current format. Steps (albeit small steps) have begun to persuade the Cabinet office (owner of GOV.UK) to allow space on GOV.UK for updated and comprehensive guidance on the subject of pay attachments. In other words, watch this space. Thank you for the volunteers who have come forward to be involved in future working group meetings. Employer prompts v GNS messages Shortly after the 2016–17 tax year began, employers began to receive employer prompts issued in the event that a student loan SL1 notice had been issued but the full payment submission did not report student loan deductions. As the tax year progressed the number of employer prompts being issued diminished. December 2016 saw an update to the Student loan repayments: guidance for employers page on GOV.UK, which began to provide an explanation as to the reason these prompts would be issued via the
An area of concern highlighted at the October meeting was around cases where earlier years do matter within calculations, as without amendments the calculator may give an incorrect tax charge. Changes will be made to the landing page to caveat any issues with the calculator. ...the issues can be summed up rather neatly in one word: guidance If you have any other changes that you’d like HMRC to consider, please email them to pensions.businessdelivery@ hmrc.gsi.gov.uk and put ‘annual allowance calculator’ in the subject line of the email. External stakeholder work together with HMCTS A meeting of external stakeholders came together with HM Courts and Tribunal Service (HMCTS) on 1 December 2016 to take forward work that began in summer, the aspiration being that at the conclusion of our collaborative working we will see improved guidance for employers and improved employer compliance with the administration of court attachment orders. The aim of this meeting was to clarify what the most significant issues were for HMCTS and for employers and the payroll industry and see what steps can be taken to improve our combined experiences. Employer non-compliance can occur in many ways, including:
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 4
Policy hub
...the levy depends on the type of maintained school ...
cost of the levy in their individual budgets, in the same way as other payroll costs e.g. National Insurance etc. DfE does not intend to allow the schools budget to be top-sliced by the council at the LA level for the levy; and the operational guidance for schools’ revenue funding in 2017–18 does not make any provision for dedicated school grant to be top-sliced in this way. As a result, all community/VC schools (and VA/foundation schools with payrolls over £3m) will need to ensure they have taken account of this additional cost when they set their budgets for 2017–18. Non-maintained schools Whilst an authority administering the payroll for a non-maintained school may actually pay over the levy to HMRC, as part of its payroll admin role, this would have to be funded by the school but the non-maintained school’s payroll would not count in the LA’s calculation of its own liability. Again, if the LA administers the payroll, the LA and the school will need to ensure that the school is set up as a separate employer in HMRC’s systems. for sharing information through the Local Authority CIPP specialist interest group. In response to queries received in recent weeks about the way in which the apprenticeship levy applies to maintained schools, the Local Government Association’s finance team prepared the following (edited) information (see box below), after discussions with the Department for Education (DfE) and HMRC. Please note this information is intended to help local authorities in planning for the levy and does not represent definitive guidance. Jackie asked if we could discuss this information with HMRC, specifically whether the requirement with regard to voluntary aided (VA) schools has been made clear in guidance to software developers and when more information is expected to be published by HMRC/DfE. Though more information is expected to be published by HMRC/DfE, no timescale for publication is yet available. The CIPP policy team continue to lobby HMRC for the provision of timely guidance, particularly to software developers who we rely upon so much in our line of work. n
Maintained schools Liability for the levy depends on the type of maintained school of which there are two categories: ● Community and voluntary controlled (VC) schools – In these schools the local authority (LA) is the employer and therefore all staff in community/VC schools are added on to the paybill of the council, with the levy equivalent to 0.5% of the overall paybill for the LA. All community/VC schools paybills will need to be included in the LA’s calculation, regardless of whether the school uses the council for payroll services. ● VA and foundation schools – In these schools (as in academies) the governing body is considered to be the employer, rather than the LA. Therefore, each VA/foundation school’s liability for the levy will be based on its own paybill. In practice the council is likely to administer the payroll for many VA/ foundation schools and the school may not have its own HMRC payroll reference number, separate from the LA. HMRC has stated that only VA/ foundation schools with a paybill of over £3 million need to be set up on a team have been talking to the Software Developer Support Team (SDST) which then approaches the software developer. Regardless as to the terminology used to describe these nudges from HMRC to the employer, be aware that April 2017 is likely to see a spike of GNS notifications generic notification service (GNS). The aim is to start student loan deductions, where no action seems to have been taken by the employer. The process will see two GNS prompts issued through the employers’ online communications tool; where neither results in action being taken, a follow up phone call will be made by HMRC. So far, reasons given for not making student loan deductions include: ● SL1 start notice not received ● forgot the log in and passwords so missed all coding notices etc ● no known reason. Where the software has been identified to be at fault HMRC’s student loan
new HMRC payroll reference number. Employers who need to set up a new reference number with HMRC will need to do so between 6 February and the end of February 2017. Those VA/foundation schools with paybills under £3 million, with the same payroll reference number as the LA, do not have to split out with a separate payroll reference number. However, local authorities, in reporting the amount of levy due, will need to find a way of excluding the pay of the small VA schools from the calculation of the authority’s liability for the levy. We understand software houses are working on a development to ensure those VA schools with paybills under the threshold that remain on the main council payroll reference number, will be excluded from the levy calculation. A community/VC school, where payroll is not provided by the LA, will need to liaise with its payroll provider and the LA on this to ensure the correct payment is made. For VA/foundation schools, the school will have to calculate its own liability and make arrangements. Community/VC schools will have to make provision for the relevant September 2017). If this is something you are considering then please contact the GEO by email at closingthegap@geo.gov. uk using the subject line ‘early adopter’. Apprenticeship levy and maintained schools Thank you to member Jackie Standring as it is the key month for student loan SL1 start notices to begin. Gender pay gap reporting In December 2016, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 were published to bring into force the mandatory gender pay gap reporting requirements for private and voluntary sector employers with over 250 employees. The Government Equalities Office (GEO) is keen to identify and reward leading employers in key sectors that want to be early adopters (i.e. publishing in the first or second reporting quarter April–
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| Professional in Payroll, Pensions and Reward |
Issue 27 | February 2017
MEMBERSHIP INSIGHT
A: If the employee does not operate their right to take paid statutory leave (5.6 weeks entitlement which equals 28 days for a five-day week worker), the employer can allow the carryover of 1.6 weeks’ leave into the new holiday year (which equates to eight days for a five-day week worker). An employer should only pay holiday pay for one of three reasons: the employee is taking holiday; the employee is sick and wants to be paid holiday; the employee has taken 5.6 weeks’ holiday and has contractual holiday outstanding. The following links to GOV.UK provide additional information: ● https://goo.gl/PhlfiL – provides general information on holiday calculations and on carrying over leave ● http://bit.ly/1picPiR– a holiday entitlement calculator ● http://bit.ly/2iDIa7K – explains about paying for statutory holiday when the employee leaves. Q: What level/value of childcare vouchers can we allow an employee who is a higher rate income tax payer? A: An employee who is a higher rate taxpayer will only be entitled to £28.00 in childcare vouchers per week (£110.00 monthly) tax free. This amount is derived from the statutory tax-free amount of £55 for basic rate taxpayers (i.e. £55 × 20% = £11 ÷ 40%, rounded up). For additional rate income tax payers, the tax-free amount is £25 (i.e. £ £11 ÷ 45%, rounded up). Employers can provide childcare vouchers above these amounts, but the excess would be taxable and liable to Class 1 NICs. Q: If it is possible to pay for an employee’s health visa, what are the reporting requirements? A: If a visa application is made whilst the employee is outside the UK and the health visa is part of the process then it could be classed as part of the extra cost of foreign travel. However, the following conditions have to be satisfied: ● The employee was not resident in the UK in either of the two tax years which ended before the tax year in which he or she came to the UK to work. ● The employee has not been in the UK, for any reason, at any time in the two years ending on the day immediately before he or she came to the UK to work. If the above conditions apply, HMRC may regard this as part of the travel cost to the UK
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m.
to 4.30p.m. on Fridays. It is free to all CIPP members * , students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099 , email advisory.service@cipp.org.uk or visit cipp.org.uk for frequently asked questions.
Advisory
*please see summary at cippmembership.org.uk for details.
Q: An ex-employee has asked whether it would be possible to issue a duplicate P45 form as she has lost the original. Are we able to do this? A: The employer cannot issue a duplicate P45 to an ex-employee under any circumstances. Unlike the P11D return and P60 certificate which can be duplicated a P45 can never be. For further information, use this direct link to the GOV.UK website – https://goo.gl/8VyJj7 – which confirms that an employee or ex-employee cannot get a replacement P45. Q: An employee has requested reimbursement for a congestion charge. Can this be processed through the payroll? A: It will depend on whether the car belongs to the employer or the employee as to whether there is a benefit. Where the employee has the use of a company car there would be no benefit to the employee when this is reimbursed. Where the car actually belongs to the employee then there will be a benefit. It also depends on how the congestion charge has been paid as to how it should be reported or whether it would be paid through the payroll. Where the employer pays the relevant authority directly then it should be reported in the P11D return for income tax purposes, but Class 1 National Insurance contributions (NICs) applied through the payroll. However, when the employee pays the congestion charge and the employer reimburses the employee this amount then it should be processed via the payroll so both pay as you earn (PAYE) and NICs can be operated. This link – https://goo.gl/b3LU3t – to GOV.UK explains that if the employee is using a company car there would be no
reporting requirements. It also confirms that if the employer meets the cost of the congestion charge when the employee is using their own car it will be classed as a benefit. Q: We have an ex-employee who has been overpaid for the last nine years. The former employee wants to pay back the net amount from his private company pension. Should we ask the ex-employee for the net overpayment rather than the gross overpayment? A: The employer should request the net amount rather than a gross amount, as the overpayment arises from a previous tax year. As this is an ex-employee the employer may have difficulty in recovering this overpayment as there is no longer a contract between the parties anymore. The employer should consider the court case Keenan v Barclays Bank where the employee was overpaid about £20,000.00 over a two-year period. The court found in Mrs Keenan’s favour and she stayed on her new salary plus did not have to repay the overpayment. There is also estoppel by representation that could be applicable in this situation as the employee may state that he did not know he had been overpaid; had spent the money; and it wasn’t his fault the overpayment had occurred. Q: When an employee has an entitlement to 28 days’ annual leave, but does not wish to take all this entitlement within the current holiday year, can the employer pay the employee for any untaken holiday at the end of the holiday year if both the employee and employer are in agreement?
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 6
Policy hub
that applies under special tax exemptions. This link – https://goo.gl/xrsR9L – is to HM Revenue & Customs’ 490 Employee travel – A tax and NICs guide for the employer on GOV.UK. Please refer to paragraph 7.10 which explains that if it is part of travel to or from the UK and meets the above conditions it is exempt. If the application is made from inside the UK it will be classed as a benefit that would need to be reported in a P11D return. This is because it would not be classed as part of the cost of travelling to the UK. Q: When assessing an employee on statutory maternity leave (SML) for automatic enrolment, should she be assessed on the statutory maternity pay (SMP) she currently receives each month or would it be the contractual pay she would normally receive? A: When checking whether an employee should be automatically enrolled or not the relevant earnings to be used in the assessment would be what is actually paid during the relevant pay reference period. In this case she would be assessed on the SMP she is receving. If the earnings reach or exceed the trigger point she would be automatically enrolled. Q: Can you explain what happens to pension contributions to an automatic enrolment pension scheme during SML? A: Where an employee is already in an automatic enrolment pension scheme and is taking SML, the contributions are based on the actual pay received (whether SMP or contractual maternity pay) in the pay reference period. However, an employee in this situation could choose to pay pension contributions at the pre-maternity leave level to receive any future pension benefits where the pension scheme is a final salary scheme.
Employer contributions would be based on earnings prior to maternity leave as if the employee was working and earning normally for ordinary SML (weeks 1–26) whether the employee receives pay or not. For the additional SML (weeks 27–39) employer contributions can cease when the paid leave ends. Q: Is SMP calculated on gross pay or NIC- able earnings; for example, gross earnings are £3,075.00 but NIC-able pay is £2,403? A: Please refer to the guidance on GOV.UK – https://goo.gl/4NXmqvn – which confirms that the average weekly earnings should be based on earnings which attract Class 1 NICs. The NIC-able pay in your question is the portion of pay that is above the primary threshold. However, all the pay in the period subject to NICs would be used to identify whether or not the employee has earned at or above the lower threshold (currently, £112.00 per week), because if her earnings were below this figure then she would not qualify for SMP. Q: An employee’s record was setup with the incorrect start date in error last month and this was reported in the full payment submission (FPS). How can this be rectified? A: The employer will need to amend the payroll and human resources record, but cannot amend the FPS because it may create a duplicate record in HMRC’s systems Guidance on how to amend errors that have occurred in a FPS can be referenced at https://goo.gl/Thw3qI. Q: Can you explain whether payments for renting accommodation are exempt under the relocation exemption and confirm where this guidance can be found? A: The exemption for relocation expenses must be related to the disposal or/and acquisition of a new home which can include travel and subsistence. It is also possible to reimburse rent for temporary accommodation, whilst searching for a new permanent residence as a qualifying relocation expense; however, if the employee rents a property instead of buying one, this would not be exempt. Guidance in regard to relocation qualifying cost can be found in appendix 7 of HMRC’s 480 Expenses and benefits – A tax guide , which can be accessed via this link: https:// goo.gl/wwbvSj. n
Are you new to payroll or use a payroll system and need to know how it works to answer employee questions? Then this is the course for you. The online delivery makes this certificate ideal for those requiring a certificate in payroll who do not have the time to attend face to face classes. It also provides direct entry into year two of the Foundation Degree in Payroll Management for those looking to develop their career at a later date. To enrol, or find out more, visit cipp.org.uk or email education@cipp.org.uk Advanced Payroll Technician Certificate Enrolments now open
cipp.org.uk
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Issue 27 | February 2017
| Professional in Payroll, Pensions and Reward |
MEMBERSHIP INSIGHT
5
minutes with…
Elaine Gibson MSc FCIPP, MCMI, FHEA Education director, CIPP
time information, automatic enrolment and payrolling of benefits to name a few. The future of education for the industry is being driven by technology and we are seeing changes in demographics and increase in the younger age group. The CIPP educational provision is pro-active to these. We recognise that online learning is becoming a flexible method. Access to continuing professional development (CPD) tools is particularly important so we have developed and continually develop the ability to access educational resources via computers and electronic devices and use of apps. In terms of qualifications, last autumn we launched the Advanced Payroll Technician Certificate with both face to face and online interaction thereby providing students with choice. This provision builds on: ● the existing and extremely popular Payroll Technician Certificate, enabling a smooth transition into the Foundation Degree in Payroll Management (pensions is in the process of development), or ● payroll skills with the addition of team leadership skills and knowledge. (Watch this space as there is more to come.) Why is CPD so important? Government legislation is ever changing and so for payroll, pension or reward professionals it is important to keep knowledge up to date and demonstrate to a potential employer that you are on top of your game. For payroll professionals aspiring to achieve the CIPP Individual Chartered Status it’s imperative as CPD is a key qualifying criterion. Ultimately, CPD will demonstrate that you are compliant. As an employer this would be my first consideration. What do you do in your spare time to unwind? Spare time, is there such a thing?! On a serious note, work-life balance is important and I like nothing better than socialising down my local, retail therapy and spending time with my family and dogs. n
You started a new role as education director on 1 October 2016. Can you tell us about the role and why it has been created? This is an exciting opportunity for both the CIPP and me. We are a membership organisation and education underpins the support we provide to members for keeping up to date whether by: reading the CIPP magazine Professional in Payroll, Pensions and Reward and/ or the daily/weekly news letter News On Line ; making a call to the CIPP Advisory Service; directly liaising with the CIPP policy research and membership team; attending a training course; or by engaging in a professional qualification. Due to the nature of the payroll and pension professions and the significant amount of legislation-related compliance and deadlines that impacts all that we do, the CIPP always aims to deliver the best opportunities for upskilling and closing skills gaps. The education director role has been created to maximise existing service provisions; importantly, with my education leadership team we are in the process of developing further educational opportunities for our members and ‘UK PLC’. The aim is to support a flexible path for those who wish to progress in their payroll or pensions careers. We already provide education to the highest level via our MSc in Business and Reward Management – and engagement is increasing significantly but we recognise that not all industry professionals will aim for this level at this time; therefore, flexibility is essential to fit with both individual and employer needs. It is my role as education director to ensure the opportunities are provided.
Can you give us an insight into your background? I have worked within the payroll industry for some thirty years. I started in a firm of accountants and embarked on accountancy qualifications, until one day I was asked to pick up the payroll. I was both daunted and excited at this prospect – it was a baptism of fire but I have never looked back. I progressed taking on more responsibility by moving jobs and, prior to the CIPP, I was the payroll specialist for Carlsberg Tetley in Leeds, which also provided international payroll experience. I commenced my CIPP career as a trainer, moving onto senior policy and research officer, followed by associate director of qualifications and, for an interim period, heading up the policy and research area. The payroll profession has opened many doors for me. Becoming qualified at MSc level definitely prepared me for the challenges I have faced and will face. I have been with the CIPP for over fourteen years and the opportunities for progression have been amazing to date. Who would have thought that I would also become a qualified lecturer in professional development and work- based learning which is a bonus given my latest role. The Institute is a fantastic place to work enabling me to have the opportunity to make a difference and give something back to the payroll profession. What does the future hold for the future of education, specifically relating to payroll, pensions and reward? Exciting times are ahead. Government continually throw challenges our way which we catch, embracing change. We’ve realised massive changes: real
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 8
4–5 October Celtic Manor Resort, Wales
The CIPP’s Annual Conference & Exhibition 2017
#cippace17
Bookings are now open for the CIPP’s Annual Conference taking place on 4–5 October at the prestigious Celtic Manor Resort in Wales. Accommodation sold out in 2016 so make sure that you book early to avoid disappointment.
What’s new? We have changed the format of the days and the workshops will now start on the Wednesday afternoon, meaning the Awards night will also be the close of conference on Thursday evening. The full programme is available online at cipp.org.uk or you can email events@cipp.org.uk for details.
Book your place
Book and pay for your place before the 30 June 2017 and get the early bird rates:
Why should I attend? 1 Learn about the forthcoming changes to payroll and pensions legislation 2 Have the opportunity to hear from, and ask questions of, industry ‘experts’ 3 Network with other payroll and pension professionals 4 Find out what the CIPP is working on and how you can benefit as a member – what new services can we offer and which consultations we are attending on your behalf
*
Member rate £800 +VAT
Non-member rate £1,000 +VAT
Rates above are for two night’s accommodation on 4 and 5 October. Visit cipp.org.uk or email events@cipp.org.uk for more information.
Attended in 2016? See the website for your special loyalty rate. For full details of member and non-member prices please visit cipp.org.uk .
*associate, full and fellow members only.
Category details will be announced, and nominations will open, for the only non-commercial payroll and pension awards in March 2017.
Email events@cipp.org.uk for more information.
Follow @CIPP_UK on Twitter for the latest announcements relating to the annual conference.
Thank you to our conference and award sponsors
Main conference sponsor
For details on the sponsorship opportunities still available please contact advertising@cipp.org.uk .
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Issue 27 | February 2017
| Professional in Payroll, Pensions and Reward |
NGA HR has won both the Payroll Software Product of the Year Award and the Payroll Service Provider of the Year Award at the recent CIPP Annual Excellence Awards. NGA ResourceLink puts the software user experience front and centre - providing intuitive and time-saving tools for HR and Payroll professionals, as well as managers and employees. Our Payroll Service Provider of the Year entry demonstrated that NGA has a robust induction and ongoing training programme which ensures that we are able to deliver excellent customer service as well as ensuring compliance for clients. We are delighted to have received these prestigious awards for services and solutions that our customers can be really proud of.
To find out how you can access our Award winning services and solutions please call 0800 035 0545 or email us at hrsolutions@ngahr.com
www.ngahr.co.uk
Professional development insight
Kirsty Gilliburn MCIPPdip Payroll training specialist, The Co-op Diary of a student…
How do you cope with the work life balance and include your study? I was supported by both work and family, and I relied heavily on David, my fiancé, who picked up the majority of things at home to give me the chance to focus on my studies. Without that I don’t know how I would have managed. The Co-op were great at providing the right level of support throughout the three-year course. Having colleagues who either had been through the Foundation Degree or were studying at the same time as me meant I always had someone to turn to. That support helped me succeed. Which has been your favourite module throughout the course? My favourite module was ‘Leading the team’, as I enjoyed looking at team working and leading theories and seeing how I could apply these in my current role. It made me think about leading a team through change, as these are skills I will use as I progress throughout my career. For someone who is thinking about studying for a CIPP qualification what would your advice be to them? Do it. Without the course I definitely wouldn’t have gained all of the knowledge I have today and I don’t think I would have been able to progress as quickly as I did. It has given me the start I needed to build my own future. n
Can you give us an insight into your career and qualifications background?
Why did you choose to study the Foundation Degree? Starting with The Co-op was like starting again – it was a completely different environment and there was a lot to learn. I received a lot of training and support from colleagues and managers and it was great to be welcomed into such a great team. My manager discussed the Foundation Degree with me, and it seemed like the perfect opportunity to gain the skills and knowledge I needed to progress. How important is this degree in relation to your future career? The degree has already helped me immensely in my career, aiding my progressions from payroll administrator to payroll specialist, followed by payroll technician and finally to today as payroll training specialist. Without the Foundation Degree course I wouldn’t have got as far as I have; I know that it is going to help me progress further throughout my career. It’s given the initial knowledge I needed to understand my job and the legislation required, and helped me to build on the management knowledge I had from working in retail and to apply that to my day to day role.
I never set out to work in payroll. Having studied history, art and
photography at A-level I always wanted to work in a creative field. I continued my creative studies at Manchester School of Art and gained a BA Hons in design and art direction. I enjoyed my course but preferred what I was doing as a hobby more than a career. Whilst at university I worked at French Connection and, on finishing my course, went to work there full-time, progressing from sales associate to supervisor helping to manage people and the business. It was here I got my first taste of payroll as I covered the store’s human resources (HR) and payroll administrator whilst she was on maternity leave. I stayed at French Connection for six years before moving to Links of London in Selfridges; retail was great but I still didn’t feel like I was making the most of my skills. I then found a role as an HR and payroll administrator with Forever 21, where I began to understand the beginning aspects of payroll and HR. Wanting to develop my skills and progress and concentrate solely on payroll, I applied to work for The Co-op in their payroll department.
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| Professional in Payroll, Pensions and Reward |
Issue 27 | February 2017
PROFESSIONAL DEVELOPMENT INSIGHT
Taking advantage of apprenticeship reforms
Jason Clark, CIPP operations manager for the professional careers academy, provides details of the reforms and actions employers will need to take
I n 2004, Sandy Leitch was tasked by the Government to consider the UK’s long-term skills needs. In December 2006, the Leitch review’s Skills, prosperity for all in the global economy – world class skills (http://bit.ly/2hjQEAK) was published. The report identified that to become a world leader, the skills agenda must be shared by the Government, employers and individuals. In November 2012, the Department for Business Innovation and Skills (BIS) published The Richard review of apprenticeships (http://bit.ly/1SoWaZB). This report detailed the requirement to revisit not only the look and feel of apprenticeships (and their delivery) but how they are funded too. The National Apprenticeship Service (NAS) explain in A Guide to Apprenticeships (http://bit.ly/2fK2gLj) that “An apprenticeship is a real job with training which would allow the learner to earn while they learn, whilst gaining a nationally recognised qualification”. This definition of course takes into account that an apprentice must complete a number of learning activities that also include English language, mathematics, information, communication and technology, as well as knowledge based and technical activities all focussed on gaining a qualification. However, a key component in the apprenticeship reform is that there is no longer a need for a recognised qualification but there is the need for operational competence. The report acknowledged that there needs to be a recognition of industry and not individual company standards and that independent assessment of competence is
required. This will be delivered separately to the training provider using an end-point assessment organisation. Another acknowledgement in the report is that the purchasing power for investment for apprenticeship training should be in the hands of the employer. This provides the freedom to discuss training needs and negotiate the cost of delivery therefore providing better value for money. By implementing these two recommendations, BIS – now the Department for Business, Energy and Industrial Strategy (BEIS) – has departed from the traditional learner, training provider and employer relationships where decisions would be made based on the funding available to support apprentices, to a partnership, delivering a good quality product with the right level of investment from both employers and the government. With the introduction of new standard apprenticeships that replaced the existing specification of apprenticeship standards for England (SASE) frameworks, employer groups develop these programmes with both employer and the wider sector in mind. For many apprenticeship programmes, this work is continuing in earnest and new programmes are introduced on a regular basis. At the time of writing this article, there were 260 new standards approved for delivery and 180 new standards in development (which includes payroll). The Skills Funding Agency (SFA) regularly publish a list of apprenticeship standards available for employers and training organisations (http://bit.ly/2a87bBR). The list identifies their stage of development, including whether they are ready for delivery.
The CIPP is working with/for a group of employers in the payroll sector, to create the new standard apprenticeship called ‘Payroll administrator apprenticeship’. The group (represented by both small and large companies that deliver a number of differing payrolls) identified that being able to complete the tasks presented in their role is equally important, as is the need for more technical knowledge usually provided at advanced apprenticeship levels. The existing payroll SASE frameworks detail both intermediate and advanced levels separately that can take the learner between twelve and eighteen months to complete each level. The new programme when signed off by the Department for Education (DfE) will be at advanced level with a delivery expectation of 21 months to two years. To ensure that quality of apprenticeships is continued and remains a high priority, a new independent body led by employers will be introduced in 2017. The Institute for Apprenticeships will be responsible for a number of areas in apprenticeship reforms, as follows: ● Undertake quality and approval of new apprenticeships at both standard and assessment plan level. As part of this, they will ensure an apprentice is enrolled on a Government-approved apprenticeship programme that can be evidenced through the entire programme. They will also ensure that the learner and employer have signed the legal documentation associated with the programme. ● Quality assurance of both training delivery and end point assessment. ● Advise the DfE on the allocation of apprenticeship levy funding for each apprenticeship standard. ● Maintain employer engagement in the apprenticeships for both existing and new programmes.
...work is continuing in earnest and new programmes are introduced on a regular basis
| Professional in Payroll, Pensions and Reward | February 2017 | Issue 27 12
Professional development insight
The biggest change for employers to consider is the new funding regime for both SASE and trailblazer apprenticeships which places apprenticeship funding in the hands of the employer. This begins with the introduction of the apprenticeship levy in April 2017. Further details about eligibility and paying the levy is provided in the article on page 18. Alongside this, the SFA are introducing on 1 May 2017 a new set of apprenticeship funding rules that detail a number of things that include: accessing the levy, what the levy can be spent on and how to choose not only the right training provider but also the right end-point assessment organisation for the employer. Of course, the questions every employer wants answered are: how they are going to be paying the levy; and how do they draw down the funding available and pay for apprenticeships. By the end of January 2017, HM Revenue & Customs (HMRC) should have contacted all employers eligible to pay the apprenticeship levy to declare that they are levy-paying and to set up a digital apprenticeship service (DAS) account. Once the employer has declared the levy, they will be able to access the funding available using their DAS account via their Government Gateway ID and pay as you earn scheme details. Though the Internet is awash with information about the apprenticeship levy, the Government’s guidance – Apprenticeship funding: how it will work (http://bit.ly/1SYtZ88) – details evolving policy and changes prior to the introduction of the levy. The NAS has also published a
useful fact sheet – Apprenticeship reforms and key information for employers (http:// bit.ly/2hjTTs1) – which provides more detail. Once the employer has access to their DAS account, they will be able to do a number of things which is demonstrated in An employer’s guide to the digital apprenticeship service (http://bit. ly/2h9unAw) published by the DfE (see chart below). ...enable employers to make an informed choice and engage the right training provider... The five steps are more fully explained as follows: 1. Plan the apprenticeship programme you wish to undertake, from both financial and skills analysis points of view. Think about the skills you need for the future and if you have enough funding in the levy pot. It may be helpful to consider conducting a training needs analysis with your local training provider. 2. Choose the apprenticeship programme, training provider and end-point assessment organisation to deliver the programmes. All training providers that wish to deliver apprenticeship provision will have uploaded their course information to the directories in DAS, to enable employers to make an informed choice and engage the right
training provider for them. It is crucial to note that only approved Government apprenticeship programmes can be funded using the apprenticeship levy and not in-house training programmes or other qualifications. It’s important to consider the training that the employer already delivers to their staff and identify if an apprenticeship could replace this activity. 3. Many training providers offer a service to advertise a vacancy on behalf of the employer. Unless the employer has already recruited an apprentice, the training provider will advertise the vacancy on the Recruit an apprentice pages (http://bit. ly/2i0aVs7), which will now be accessed through DAS. 4. Once the apprenticeship levy enters the DAS account, the employer will be able to manage the funds in their account to do a number of things. For example, check apprenticeship levy payments entering the account and outgoing payments to training providers. It will help you forecast levy spend and assist you in gaining support should you not have enough funds in your account. 5. Finally, the employer will be able to engage with their chosen training provider and end-point assessment organisation, agree payment schedules and, if intervention is required, suspend payments to training providers. Training providers are not able to see funds in the employer’s DAS account so the employer will need to discuss their DAS account with them. And… There is still much to learn about accessing apprenticeship levy funding but there are a few things that employers can do to prepare themselves: ● ensure they are up to date with evolving policy and documentation by regularly reviewing Apprenticeship funding: how it will work (http://bit.ly/1SYtZ88) ● review their staff training strategy and identify if an apprenticeship would be a suitable alternative to courses for which they would not be able to use the levy ● if they have not been contacted by HMRC by the end of January contact HMRC to ensure they are declared that they will be an apprenticeship levy payer ● call the National Apprenticeship Service (0800 015 0600) for advice and guidance on apprenticeships and suitability for their organisation; CIPP members can also utilise our advisory service on 0121 712 1099. n
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Issue 27 | February 2017
| Professional in Payroll, Pensions and Reward |
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