blossoming relationships PROFESSI NAL in Payroll, Pensions & Reward Issue 107 February 2025 Official publication of The Chartered Institute of Payroll Professionals
‘NON-DOM’ REGIME CHANGES Advice for employers and internationally mobile employees
NEURODIVERSITY AT WORK Adapting attitudes and policies to meet the needs of employees
PAYROLL COMMUNICATION Telling stories to gain strategic recognition from senior leadership
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
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“The very best relationship has a gardener and a flower. The gardener nurtures and the flower blooms” Carole Radziwill
Editor’s comment
February has arrived and 2025 is well under way now. Hopefully your year has gotten off to a good start and you are feeling positive about what lies ahead. Mid-way through this month is, of course, Valentine’s Day, when people traditionally show their loved ones how much they care and value them. But it’s not just romantic or personal relationships that we need to look after. Alongside these, we must also invest our time and energy
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into our professional ones – after all, many of us spend most of our waking hours liaising with colleagues – so communication, understanding and appreciation are just as vital in our working lives. This issue’s theme is ‘blossoming relationships’, looking at how payroll nurtures associations with internal and external individuals and teams. Our feature topic article on page 24 explores how cultivating these can be critical to career progression within the profession. Open and honest communication can be particularly beneficial in establishing these connections, but we must be mindful that everyone is different and not take for granted the importance of personalisation. For example, fostering a good working relationship with a neurodiverse colleague may require an alternative approach to one that is effective with a neurotypical individual. Our roundtable on neurodiversity within the profession discussed this in more detail and you can read the full write-up of the event on page 32. Payroll should also be aware of its relationships with senior leaders and specifically how the two interact with each other. The story you tell matters and can help you achieve strategic recognition, as our feature on page 36 explains. Collaboration between payroll service lines and clients is also essential and can greatly improve the quality of data, as well as leading to more efficient and reliable payroll services. Our article on page 40 on enhancing collaboration in a bureau setting outlines the benefits of building a foundation of trust and cooperation. As this issue concentrates on blossoming relationships, now seems an ideal time for me to personally recognise the ones I’ve established during the past nine months. This is my final issue as interim editor of Professional as we welcome back Lora Murphy on her return from maternity leave. I would like to take this opportunity to thank my colleagues, the magazine’s contributors and you – our loyal readers – for the support I’ve had during this time. It’s been an absolute pleasure, and I have no doubt that in the coming months and years the magazine will continue to flourish.
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Kavitha Sivasubramaniam (editor@cipp.org.uk) Editor
24 - Feature topic – Blossoming relationships By Jerome Smail 32 - Thinking differently: neurodiversity at work By Kavitha Sivasubramaniam 36 - Storytelling and effective payroll communication By Lara Smart 40 - Enhancing collaboration in a bureau setting By Karen Thomson
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
Chair’s message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA Editor Kavitha Sivasubramaniam editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive
We’ve made it to February and thankfully the January blues are over once again. We are looking towards spring and bidding farewell to winter. This year is well underway, but have you kept your New Year’s resolutions or did the long January payday affect your willpower this time? February sees many of us mark Valentine’s Day, the month of love in which we celebrate our relationships old and new.
Relationships are an important part of our role in payroll too – from employees to internal stakeholders, external stakeholders and government bodies such as HM Revenue and Customs, it’s important that we build and grow these relationships. Through my many years in payroll, I have made lots of professional relationships that have helped me through my career journey. Attending events such as National Payroll Week celebrations and the CIPP’s Annual Conference and Exhibition are key networking opportunities for enhancing old relationships and making new ones. The articles in this issue will help share best practice on building and developing relationships, as well as good advice on how we can grow our existing relationships. There are also lots of CIPP events coming up which are excellent ways to grow your network and build relationships, so remember to check the website to find out more.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
CEO’s message Welcome to this issue of Professional magazine. As another tax year marches on, it may also be a good time to build plans with your stakeholders for the next financial year. Whether you deliver in-house, as an outsourced provider or as a payroll bureau service, taking account of your budgeted costs, plans for
Useful contacts
Consultancy consult@ippeducation.co.uk 0121 712 1044 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@ippeducation.co.uk 0121 712 1013 cipp.org.uk @CIPP_UK
the future and how best to articulate those in either an internal or an external setting is very important to overall success. This not only ensures you lay the foundations for the year well but also drives overall collaboration. Stakeholder management is such an important part of the day job for all payroll, pension and reward professionals. It ensures the businesses you serve (whether internal our outsourced) are understanding of your goals and expectations for the year. It will also mean they’re supportive of any key strategic changes you plan to make and the reasons behind those. If you have technology changes ahead or staffing and development costs to consider, better to have clear plans built with enough time to discuss them with those who you consider to be your stakeholders. Also, when thinking about planned changes, allow stakeholders to contribute to the planning process, as they may have ideas or information available to share with you that will benefit the plan. If your stakeholders feel engaged in the process, they are much more likely to support you as changes take shape and the year evolves. With the budget implications of employers’ costs increasing in the new tax year, you may also want to either enhance your reporting or ensure the current reports produced are showing the full cost of employment for broader decision making. You may also have plans for your payroll team and their own development, training and qualifications or to enhance and improve their membership category or even your own; the team here is standing by and ready to help. I plan to put in my application for Fellow soon, so fingers crossed that proceeds successfully. As always, I would be delighted to hear from you about your plans for the year ahead.
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 2025. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
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.
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 2
Contents
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk.
FEBRUARY 2025
Reading the magazine gives you one CPD point
REGULARS
FEATURES - BLOSSOMING RELATIONSHIPS
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP 13 Personal development BePayroll 14 Compliance Learn more about forging a collaborative approach to minimum wage compliance and the process for reporting benefits in kind Event horizon, On your behalf, Spotlight on…, Advisory Q&As, Consult, Payroll news, Mick Hearn tribute
Governance in business: a joint responsibility By Jeni Morris
‘Non-dom’ changes: what employers and internationally mobile employees need to know By Charlotte Hobrough
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Savings scheme breaches minimum wage rules By Justine Riccomini
Benefits reporting By Lisa Sheldon
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Payroll: from other perspectives By Julie Weighill
The value of payroll education By Emma Watson
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online exclusive content
Cheering on the profession By Leigh-Ann Hart
Taking the risk out of Valentine’s Day in the workplace By Danny Done
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24 Feature topic
Read all about the theme of the current issue – blossoming relationships – which explores how payroll can cultivate connections that help build influence and achieve lasting success
Making connections By Sarah Chasney
Dispute decisions By Nicola Mullineux
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27 Reward
A look at how payroll can best communicate with senior leadership to maximise strategic recognition and neurodiversity in the profession
Building bonds that count By Stephanie Fernando
Payroll’s integration with reward and benefits: supporting employee financial
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48 Pensions
online exclusive content
An update on the government’s pensions review and lessons to learn from UK trust and confidence in the pensions industry
wellbeing By Rachel Harte
Boosting payroll and employee relations By Paul Chamberlain
In safe hands By the payroll team at Payroll Pal Limited
56 Hot topic
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Find out more about the importance of payroll giving month and National Apprenticeship Week
online exclusive content
58 Payroll pets
We say hello to some of your furry friends
Pensions: a changing landscape By Daniel Taylor
The pensions review: the Local Government Pension Scheme angle By Jo Donnelly
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
CIPP UPDATE
update
A message of thanks from Gordon Cresswell THANK YOU for publishing the article about my 80th birthday and thanks also to Eira Hammond for writing so kindly about me. I look back on the early days with a great deal of fondness and happiness. We had no funds, just a great deal of enthusiasm to establish a professional body for payroll and everyone involved was a hero. We pay tribute elsewhere to Mick Hearn, one of the early advocates of the Association of Payroll and Superannuation Administrators, and without the input of many others we would not be where we are today. It’s difficult to name every individual, but without Trevor Lakin, Peter Blackhurst (who is sadly no longer with us) and Chris Williams, the CIPP would not be where it is today. I would especially like to mention the first tutors who volunteered to teach our first ever students as they were the backbone of the fledgling body. There are many others, and maybe we should consider compiling a history of those very early days before it’s too late! As ever, the Institute is the sum of the people who continue to make an effort and to carry the torch for the profession. Thank you to you all for continuing to enhance the body and the profession.
Gordon Cresswell, CIPP founder
CIPP Christmas celebrations CIPP STAFF got together to celebrate the festive season by wearing our favourite Christmas jumpers and raising money for our two charities on 13 December 2024. We started the day with a festive quiz, followed by an office Secret Santa and finally a Christmas raffle, with some amazing prizes. Overall, we raised more than £150 for our two charities, Acorns and Marine Conservation Society.
Graduation 2024 professional photos available AS YOU may already know, our prestigious Graduation ceremony 2024 took place at the Symphony Hall in Birmingham on 1 November. We had a great day celebrating our brilliant students who had successfully passed their IPPE, and partner, qualifications. Our professional photographer’s photos are now available on our website and can be found here: https:// ow.ly/cfZL50Ugvto.
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 4
Event horizon Your guide to upcoming events and training
Independent, impartial, tailored consultancy and support for your organisation Delivered by the Chartered body for the payroll profession
Full details of all events can be found at cipp.org.uk/events or you can email events@cipp.org.uk for more information.
Get yourself connected! We’re delighted to announce the return of our BeConnected events in February 2025. Our policy and research team will delve into upcoming changes that will inevitably impact the payroll profession and your role. It’s essential you stay up to date with frequent government and policy changes to ensure your payroll is processed compliantly and to guarantee that staff are paid accurately and on time, every time. These events are exclusive to you as a member of the CIPP. Join us at 12 noon on 26 February or attend virtually at 10am on 27 February . To learn more and book your place, visit: https://ow.ly/bAqN50UhzPz. Payroll Update With all the changes we’ve seen recently, it’s more important than ever to keep your eye on the ball. To ensure we capture all those changes for you, the Payroll Update training course is reviewed every two weeks, meaning we do the hard work of keeping up to date and notify you what you need to know in an easily digestible manner. We’re now also offering face-to-face sessions for payroll professionals who wish to attend a Payroll Update course in person in Northern Ireland, Scotland and Wales. We offer a 50% discount for our members and we thoroughly recommend you take advantage of this fantastic offer on one of our most popular training courses.
Training courses A look at some of our upcoming training courses. Face-to-face courses are highlighted in orange. For a complete list of courses, dates and locations, visit http://ow.ly/iVfT50MU7yr.
COURSE
DATE
LOCATION
17 February
Online
Holiday pay and leave
10 March
Online
19 February
Manchester
Introduction to payroll
3 March
Online
5 March
Birmingham
24 February
Online
P11D expenses and benefits
17 March
Online
12 February
Leeds
13 February
Online
24 February
London
26 February
Online
28 February
Newcastle
3 March
Birmingham
5 March
Belfast
Payroll update
11 March
Cardiff
12 March
Manchester
12 March
Glasgow
cipp.org.uk/consult
13 March
Online
20 March
London
26 March
Online
27 March
Bristol
Scan for more info
Introduction to income tax and NICs
19 February
Manchester
Essential additions to payroll basics
20 February
Manchester
Introduction to statutory payments
21 February
Manchester
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
Prices correct at time of publication
POLICY HUB
On your behalf
Find out what the CIPP’s policy and research team has been getting up during December and January on behalf of you, our members, and the wider payroll profession Policy team update
The Scottish budget The policy team tuned into the Scottish budget, which was held on 4 December. Finance secretary Shona Robison announced changes to the tax bands for the 2025/26 tax year, stating that the lower bands would be increased so that low earners would keep more of their earnings. To review the News Online
Rate name
Income range
Rate
Starter rate
*£12,571-£15,397
19%
Basic rate
£15,398-£27,491
20%
Intermediate rate
£27,492-£43,662
21%
Higher rate
£43,663-£75,000
42%
£75,001-£125,140
45%
Advanced rate
48%
Over £125,140
Top rate
article produced by the team, visit https://ow.ly/zsfC50UlsxI.
national minimum wage and national living wage enforcement, Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority. However, it will also be responsible for sick pay and holiday pay. The team responded to this CfE on 13 December with our thoughts and views. To view the policy’s team formal responses to consultations and CfEs, visit: https://ow.ly/3Kav50QigsG. Events Mathew is the CIPP representative for the AAT Payroll Panel. The panel meets twice a year to discuss payroll-related topics, troubles and changes. This panel meeting discussed: l regulation of umbrella companies l budget: key announcements and impact l late payments l employment rights reform. Mathew also delivered our last in the Winter series BeKnowledgeable on 14 January to members, on the enthralling subject of ‘Government legislation, guidance and manuals: how to use them effectively’. Mat shared his tips and tricks for navigating government guidance, legislation and manuals. This session
aimed to help professionals make the most of the resources available and set themselves up for success when collecting information from government resources. Forums The policy team is privileged to sit on a number of HMRC forums. Mathew and Sarah attended several forums between them in November, including: l Collection of Student Loans Consultation Group l Employment and Payroll Group l Employment Status and Intermediaries (IR35) l One-to-Many Compliance Advisory Board l HMRC Expert Panel l Employment and Payroll Group: subgroup meeting regarding real time information processes. The team sits on these forums to ensure our members’ feedback is provided at government level. We will always update you on our findings and information provided through these groups, via Professional and News Online . If you have any issues you would like to raise at any of the professional forums we sit on, please email policy@cipp.org.uk . n
Consultations and Calls for Evidence (CfE) updates Following on from the informative think tanks on 'Making Work Pay: Strengthening Statutory Sick Pay', held alongside representatives from the Department for Work and Pensions and the Department of Health and Social Care Joint Work and Health Directorate, the team shared your thoughts and views, and responded formally to the consultation on 2 December. Thank you to those members who attended the think tanks. The Labour Market Enforcement Strategy 2025 to 2026 CfE sets out the issues on which Margaret Beels OBE, director of labour market enforcement (DLME), seeks evidence to inform her strategy for 2025 to 2026. As part of the Employment Rights Bill, the government is introducing a Fair Work Agency (FWA) no earlier than the 2026/27 financial year. Samantha O’Sullivan, policy and advisory lead, attended a roundtable with Margaret Beels and other stakeholders, where the DLME’s office specified the scope of the FWA. The new agency will maintain responsibility for three bodies: HM Revenue and Customs (HMRC) for
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 6
MY CIPP
What are your main priorities as the CIPP’s new commercial director? My main priority is to support the Institute's mission of empowering payroll professionals to thrive in an ever-evolving industry. Payroll has always been essential, with pay being the fundamental reason we all go to work, but today, payroll is more strategic and forward-thinking than ever. My goal is to ensure the CIPP remains a leader in equipping payroll professionals to step into these vital roles confidently and with impact. With more than two decades of experience across industries in commercial roles, I’ve learned that organisations succeed when they believe in and empower their people. At the CIPP, this means providing our staff and members with the education, resources and networks they need to excel. From enhancing leadership skills to mastering the latest technology, I’m focussed on making sure we meet and exceed the needs of our members, as well as the wider payroll industry. Another key priority is fostering collaboration, both within the CIPP and across our partnership ecosystem. Building strong teams and creating opportunities for shared learning will enable us to innovate and continue delivering exceptional value to our members, who are shaping the future of the payroll industry. What excites you most about your new role? The most exciting thing about this role is the opportunity to give back to a profession that has given me so much. I’ve been passionate about payroll since I first joined the industry more than 12 years ago, and the chance to
contribute to its growth and recognition is incredibly rewarding. Payroll is more than just numbers – it’s about people! It touches every aspect of an organisation, and its influence is growing. Being part of the CIPP at this pivotal time is an honour. I’m particularly excited to work with such a talented team and a vibrant membership base, all dedicated to elevating the profile of payroll in the UK and beyond. I also see this role as a chance to inspire others, especially those who may not recognise payroll as a career choice. Payroll now offers more than 60 career pathways, making it a dynamic and rewarding field. Through my work, I hope to encourage others to explore the incredible opportunities within this profession and to help them realise the transformative impact they can have on businesses and communities. How do you see the CIPP evolving in the next few years? The CIPP has a bright future ahead. I see us continuing to lead the way in shaping the payroll profession and ensuring it’s recognised for its strategic importance. Membership, education and training will remain at the heart of what we do, but we’ll also expand to meet the changing needs of our members. As technology and automation redefine payroll, we’ll provide the tools and resources professionals need to adapt and thrive. Leadership development has and will continue to be a major focus, equipping payroll professionals to take on more strategic and influential roles within their organisations. Beyond education, I see the CIPP playing an even bigger role as an advocate for the profession. We’ll work to ensure
payroll professionals are recognised – not just as technical experts, but as vital contributors to business success. By fostering stronger collaborations between payroll, human resources and finance, we can help organisations unlock new levels of efficiency and value. What are your interests outside of work? When I’m not at work, my focus is on family and personal growth. I love spending time with my wife of 16 years, our teenage kids and energetic young Cocker Spaniel, who keeps us all active and smiling. Executive coaching and non-executive director development are other passions of mine. I’ve always been driven by the idea of helping others and organisations become the best version of themselves, and coaching at senior levels allows me to do just that. Whether it’s mentoring a team member or supporting a peer, I find great satisfaction in empowering others to reach their potential. Music is a big part of my life, and I enjoy playing the piano to relax and recharge. Staying fit is important to me too, so you’ll often find me at the gym. My faith is absolutely central to who I am, providing balance and perspective in both my personal and professional life. Everything I do, whether at work or in my personal time, is about building something meaningful. At the CIPP, that means helping shape a future where payroll is celebrated as an essential, dynamic and strategic profession. Being part of this journey is both inspiring and fulfilling, and I am thoroughly excited for what’s ahead. o
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
T codes Q: An employee on the payroll has received the tax code 1115T. How does a T code impact tax calculations, and does it give the employee a personal allowance in the same way as an L code does? A: From a pay as you earn (PAYE) tax calculation perspective, T codes operate in the same way as L codes. The only practical difference between T and L codes from a payroll perspective is that T codes aren’t automatically adjusted at the beginning of a tax year where there’s an upcoming adjustment to the personal allowance. L codes, however, would see automatic adjustments in those scenarios.
being adhered to. Further information can be found here: https://ow.ly/ ZUhB50UhrkL. Parental leave taken in individual days Q: Can an employer agree to allow an employee to use unpaid parental leave for less than one contracted week? If so, how does this impact the annual four- week limit? A: Parental leave can be taken in individual days if the employer agrees or if the individual has a disabled child. It would be up to the employer to monitor and manage the number of days taken if leave is provided in this way to ensure the annual limit of four weeks per year isn’t exceeded. Further guidance is available here: https://ow.ly/Huho50UhsfH.
“(2) The requirements are all of the following: (a) the worker is a member of the employer’s family; (b) the worker resides in the family home of the employer; (c) the worker shares in the tasks and activities of the family.” If the above criteria are met under Regulations 57(2) then the work doesn’t apply for NMW purposes. Private medical insurance family cover and salary sacrifice Q: A client is offering private medical insurance (PMI) to all staff as a benefit in kind (BiK), with the option of adding their partner / children at a cost to the employee which will be taken from their pay. Can the repayment for family members be taken as a salary sacrifice deduction or will it need to be a net deduction? If this amount is taken from net pay, can this be considered as ‘making good’ and therefore deducted from the payrolled benefit? A: The repayment for family members could be taken via salary sacrifice, but this may not be very beneficial as the arrangement would constitute an optional remuneration arrangement (OpRA) scheme. This would mean the amount sacrificed (assuming it’s the same value as the family cover) would have to be added to the taxable benefit value. The only saving which could arise is the reduction of employee NICs payable on the amount that could otherwise be sacrificed. Please see the following link for further information around OpRA: https:// ow.ly/vg4550Uhupq. Where a net payment is taken from the employee for the cost of the additional premium to add family members, this would be considered ‘made good’ by the employee. Therefore, the benefit amount would be the full premium, minus the deductions made towards it. A description of making good can be found here: https:// ow.ly/pU8P50UK4o0.
“Where vans are used to drive directly from employee homes to jobs, do they need to be reported on P11Ds?”
“Do NMW rules apply if family members are working in the same household?”
Company vans and P11Ds Q: A client has numerous company vans, all of which are assigned to specific people, but used for business purposes only. Individuals using the vans drive directly from their homes to jobs they’re carrying out, and back again. Do we need to report these vehicles on P11Ds? A: If employees are using the vans for the following purposes only, there’s no benefit to report: l business journeys l commuting l occasional and incidental private use. It would be advisable to ensure employees have a clause in their contract or a written document which confirms the limitations to the use of their vans. There should also be an internal company procedure which checks these rules are
National minimum wage (NMW) and family members Q: Please could you provide some extra help in relation to the following HM Revenue and Customs (HMRC) guidance: https://ow.ly/cRTK50UhstU? This states that the exemption rule doesn’t cover limited companies; however, would this still be the case if the limited company’s director(s) are parents and live in the same house as the worker (their child) and there are no other directors of the company? A: According to Regulation 57(2) of the National Minimum Wage Regulations 2015 (https://ow.ly/fEU050UhsOl), ‘work’ doesn’t include work relating to family members in the same household, as per below:
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 8
POLICY HUB
TAKE YOUR FIRST STEPS TO BECOMING A CERTIFIED PAYROLL PROFESSIONAL
Correcting payrolled car benefit Q: We payroll company cars. We incorrectly reported this BiK at a higher amount for one of our employees for tax year 2023/24. We need to correct this to allow them to recoup their overpaid tax, and to allow us to reclaim the Class 1A NICs we overpaid. What’s the best course of action to take? A: As an excessive BiK figure has been reported through payroll, a revised 2023/24 year end submission must be prepared. This should be submitted to HMRC via a full payment submission (FPS) detailing the revised year to date BiK figure. As the benefit is a company car, you’ll also need to amend any data concerning the car(s) if required (e.g., any dates of unavailability). This will trigger that there’s been an overpayment of tax, which HMRC will address with the employee directly. A revised P60 for tax year 2023/24 will also need to be provided to the employee and a P11D(b) for the same tax year must be resubmitted to detail the revised, lower Class 1A NICs reportable.
If earnings for the directorship are paid to a former director in the same tax year as their appointment ends: l add these earnings to the total earnings already paid l work out NICs on the total earnings using the director’s earnings period. This applies even if the director becomes an employee of the company. For the rest of the tax year any earnings paid, including those paid as an employee, should be assessed for NICs using the annual or, if the director was appointed after the beginning of the tax year, the pro rata annual earnings period.”
£1,695 + VAT
PAYROLL TECHNICIAN CERTIFICATE
Covers the core skills required to administer the payroll function including processing deductions, calculating National Insurance, pensions, student loan deductions and statutory payment considerations.
PAYROLL TECHNICIAN CERTIFICATE -ADVANCED-
£2.645 + VAT
“How do I ensure I’m reporting the correct information for GPG purposes?”
Includes the core skills from the Payroll Technician Certificate but with three extra modules covering: annual leave entitlement and holiday pay automatic enrolment and pension principles and administering salary sacrifice for payroll.
Gender pay gap reporting Q: Should backpay be included within the ordinary pay for the purposes of gender pay gap (GPG) reporting? A: Backpay shouldn’t be included in the ordinary pay figure if it was paid in the relevant period but relates to a different period. Please see an extract from the guidance (https://ow.ly/ahpv50Uhu5k). “Not included in ordinary pay Ordinary pay does not include: ● overtime pay ● allowances earned during paid overtime ● redundancy pay ● pay related to termination of employment ● payments for untaken annual leave ● repayments of authorised business expenses – for example, a taxi fare to see a client ● benefits in kind – non-cash benefits such as company cars or private medical insurance ● interest-free loans, such as season ticket loans. Only include earnings paid in the pay period that includes your snapshot date. Do not include any ordinary pay that you should have paid in a different pay period. This might include a payment to correct a previous accidental underpayment. Do not include any earnings you have not yet paid, or have already paid, even if you should have paid them in the pay period that includes your snapshot date.” n
Already done the Payroll Technician Certificate? You can book on the Payroll Technician Certificate TOP UP to complete the additional modules from the ADVANCED course for £995 + VAT
“How do you correct a company car BiK figure from a previous tax year?”
Directorship ends mid-year Q: A director processed through payroll has resigned from their director role mid- year. They will be staying on the payroll as an employee. How will this impact their NI calculation? Do we process them as an employee now, or keep them as a director until the end of the current tax year, changing to an employee from the start of the next tax year? A: A person who’s a director at the start of a tax year has an annual earnings period for that entire tax year, as per Regulation 8(3) of The Social Security (Contributions) Regulations 2001 (https://ow.ly/ fOe350UhtXl). This applies even if they cease to be a director mid-way through the tax year. The following snippet of guidance, taken from https://ow.ly/YSan50UhtPp, highlights this: “34 Earnings paid in the same tax year after appointment ends
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
MY CIPP
Natasha Taylor ACIPP, consultancy relationship lead, explores the crucial role of effective procurement support in selecting a payroll system Procurement Management
P ayroll is the backbone of any on time, promotes compliance with legal regulations and impacts overall operational efficiency. Yet, procuring a payroll system that meets an organisation’s unique needs can be challenging. The complexity of modern payroll systems, combined with rapidly evolving technology organisation. It ensures employees are compensated accurately and and regulations, underscores the need for effective support. This ensures that organisations navigate the procurement process with expertise, precision and confidence, ultimately selecting a system that delivers long-term value. The complexity of procurement Modern payroll systems are far more than tools for processing payslips. They integrate with human resources (HR), finance and time management systems, automate compliance updates and provide actionable insights through data analytics. While this technological evolution is advantageous, it also adds layers of complexity to the procurement process. Organisations must consider: l compliance requirements: adherence to payroll legislation l scalability: the ability of the system to support future growth l integration: seamless connectivity with existing tools and platforms l employee experience: user-friendly interfaces for both payroll administrators and employees. Mistakes during procurement – such as choosing a system that doesn’t align with operational needs – can have costly consequences, including compliance violations, payroll errors and employee dissatisfaction. This is where effective support becomes indispensable. Procurement support Procurement support refers to the strategic guidance and expertise offered during the selection and implementation of a new payroll system. This can come from internal procurement teams, external consultants or a combination of both. The primary goal is to ensure that the selected system meets the organisation’s operational, financial and
strategic requirements. Effective support brings many benefits.
particularly in industries with stringent payroll regulations.
In-depth needs analysis Procurement support begins with a
Cost efficiency While the upfront cost of procurement support might seem like an additional expense, it often results in significant savings. Procurement experts help organisations negotiate favourable contracts, avoid unnecessary spending and select systems that deliver long-term value. By identifying systems that streamline processes and reduce manual work, procurement support contributes to operational efficiency and cost reduction. Seamless implementation Procurement doesn’t end with selecting a system – it also involves overseeing its implementation. Effective support ensures that the system is integrated smoothly into existing workflows, minimising disruption. Procurement experts coordinate with vendors, manage timelines and address technical challenges during implementation. They also provide training and support, ensuring a successful transition. A strategic investment The importance of payroll in organisational success cannot be overstated. A well- functioning payroll system boosts employee morale, enhances compliance and drives efficiency. Conversely, a poorly chosen system can lead to errors, inefficiencies and even legal troubles. Effective procurement support acts as a safeguard against these risks, providing the expertise and strategic guidance needed to navigate the complexities of system selection. It transforms what might otherwise be a daunting process into a strategic investment in the organisation’s future. In today’s fast-paced business environment, organisations cannot afford to approach payroll procurement casually. The stakes are high, and the challenges are significant. By leveraging effective procurement support, businesses can make informed decisions, mitigate risks and ensure that their payroll systems can meet current and future demands. For organisations looking to modernise their payroll processes, support isn’t just a luxury – it’s a necessity for long- term success. n
comprehensive analysis of the organisation’s current payroll processes, challenges and goals. This step is crucial for identifying pain points and defining the features and functionalities required in a new system. Without a clear understanding of needs, organisations risk investing in systems that fail to address their challenges. Procurement experts help businesses create a detailed specification document, ensuring that potential solutions align with its priorities. Market expertise The payroll software market is vast and ever-changing, with vendors offering a range of products tailored to different industries, business sizes and regulatory environments. Effective procurement support leverages market expertise to identify the most suitable options. Procurement professionals stay updated on vendor capabilities, pricing structures and emerging technologies, enabling organisations to make informed decisions. This also helps businesses avoid being swayed by marketing gimmicks or overspending on unnecessary features. Objective vendor evaluation Choosing a payroll system often involves evaluating multiple vendors. Procurement support ensures that this evaluation process is thorough and objective. Experts conduct detailed assessments, comparing systems based on factors like functionality, user experience, data security and total cost of ownership. They also facilitate vendor trials, allowing stakeholders to test systems before committing. Compliance and risk management Payroll involves handling sensitive employee data and adhering to complex legal requirements. Effective procurement support prioritises compliance and risk mitigation, ensuring that the chosen system meets regulatory standards and includes robust security features. Compliance helps organisations avoid legal penalties and reputational damage,
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 10
MY CIPP
PAYROLL news
Spring forecast set for March CHANCELLOR OF the Exchequer, Rachel Reeves, has announced that the Office for Budget Responsibility (OBR) has been asked to produce a fiscal forecast to be published on 26 March 2025. The OBR is required to produce two such forecasts per year; however, Reeves has also confirmed that only one major fiscal event will occur each year to allow individuals and businesses certainty over tax and spending changes. For more, see: https://ow.ly/NIL750UEoqH.
Welsh rates of income tax to remain the same for 2025/26 THE WELSH draft budget, delivered on 10 December 2024, was another statement highlighting the importance of growth. Aiming to support small businesses and public services, it promised record capital spending. For payroll professionals in the UK, the key item will be the Welsh rates of income tax (WRIT), which have been confirmed to remain unchanged for the 2025/26 tax year. This means that Welsh taxpayers will remain at parity with the rest of the UK (aside from Scotland). The budget document explains how WRIT is structured. See https:// ow.ly/jv7W50UEoxV.
Living Wage Foundation releases report on the capital’s night-time economy A NEW report has been launched by the Living Wage Foundation which specifically looks at the night-time economy in London. The key findings of the report are: l one in four people who worked in London in 2024 usually worked in the evening or at night l people who work at night are more likely than those who work in the day to experience low pay and insecure work l nearly everyone working nights experienced variable hours or shift work. The majority received less than a week’s notice of their hours or shifts l four in ten workers has had shifts unexpectedly cancelled in the past 12 months l many people who work at night lack certainty and control about when they will work l nearly one in five workers who are paid less than the London living wage say they’re dissatisfied with working at night l higher hourly pay would improve the experience of working at night. To read the full report, see: //ow.ly/4A7W50UEoEe.
Diary dates
Last day of tax month 10
5 February 6 February
First day of tax month 11
National Apprenticeship Week
10 - 16 February
Last day for submitting a real time information employer payment summary to apply to tax month 10 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 February
22 February (This is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
Last day of tax month 11 First day of tax month 12
5 March 6 March
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
A true loss to the profession Mick Hearn 21 July 1947 – 29 September 2024
A tribute by Gordon Cresswell FCIPP Co-founder, CIPP
T he payroll and pensions movement lost one of its early pioneers with the passing of Mick Hearn in September 2024. In the early 1980s, when the Association of Payroll and Superannuation Administrators (APSA) was formed, which was the first ever representative body for payroll and pensions, Mick was a founder member and worked tirelessly to get things going. While we remember his hard work and precious input, it is his personality that he will be remembered for most. As ex-colleague, Susan Mann said, “Mick was friendly, approachable, loyal, straight talking, supportive and fair, and always encouraged staff to study for the APSA exams.” He brought these qualities to the early APSA development days, together with a way of getting people to do things for him because he was such a nice man.
We had no money at the time, so Mick used to persuade the man in charge of the Guildhall Committee Rooms to let us have a meeting room for free. Consequently, we met in the salubrious surroundings of the historic Committee Rooms. Ex-colleague, John Sibley remembers that Mick took an active part in the development of the Class Superannuation System, so important in its time. Before that he joined the London Borough of Newham in the pay and pensions department, then moved to the Corporation of London in 1971 as a pensions assistant and retired in 2007 as head of the department’s financial services group. John says, “In the early eighties, he became head of pay and pensions and saw the implementation of the new payroll system and later, the creditor system. It was
during this time he decided the best place for solving staff problems was a discussion in the staff bar.” In the late 1990s, Mick was active in the implementation of a new accounting system which included a new payroll and personnel system. Born in East Ham, he was an ardent West Ham supporter, and Mondays always saw an analysis of Saturday’s match. He married his lovely wife Jan in 1969 and in the 1970s they moved, together with Mick’s parents, to Margate, where his do-it-yourself skills were put to use renovating the family home. Above all, Mick was a people person and annually he hosted ex-colleagues on their visit to the seaside for a relaxing day involving a pint or two. John summarises, “There are so many tales involving Mick, but this isn’t the place to tell them. Goodbye Mick and take care.” These are thoughts echoed by all those surviving early pioneers. Susan Mann quotes one of the pensioners who, on hearing of Mick’s death said, “I had a lot of time for Mick.” There were a lot of people who had a lot of time for Mick. Well done Mick, and thanks.
“Mick was a founder member and worked tirelessly to get things going. While we remember his hard work and precious input, it is his personality that he will be remembered for most”
| Professional in Payroll, Pensions and Reward | February 2025 | Issue 107 12
PERSONAL DEVELOPMENT
# Be Payroll This National Apprenticeship Week, Curtis Sharpe MCIPP, operational design and transformation lead at Aldermore, shares details of his apprenticeship journey so far and how it is helping him achieve his longer term career goals
Congratulations on winning the Level 5 Payroll Assistant Manager Apprenticeship Award. How does it feel to be recognised for your hard work and dedication? It feels incredibly rewarding to be recognised and it validates the many hours of study, challenges faced and the perseverance required to excel through the apprenticeship. Moreover, this award has opened up new opportunities for professional growth. It has given me the drive to take on more responsibilities, take risks and aspire to apply for senior roles. I feel more motivated than ever and inspired to continue learning and developing my expertise. This recognition has not only boosted my confidence but also reinforces my commitment to pursuing excellence. What inspired you to pursue an apprenticeship in payroll? Choosing to pursue an apprenticeship in payroll was a decision driven by a combination of personal interests and professional aspirations. From a young age, I have always been fascinated by numbers and the intricate details of financial management. I started my human resources (HR) and payroll career in the British Army, which naturally led me to explore various career paths within the financial services sector after serving. Payroll always stood out as a field where I could make a tangible impact on both individuals and organisations. One of the key inspirations for my decision was witnessing the dedication and precision required in payroll management. I stepped up to support payroll and pension operations during Covid-19, and I was struck by the meticulous attention to detail and the critical roles they played in ensuring
employees were compensated accurately. This experience highlighted the importance of payroll in maintaining employee satisfaction and organisational effectiveness. What skills or knowledge have you gained through the programme that have been the most beneficial? Payroll is not just about numbers; it involves understanding and addressing the needs of employees, ensuring compliance with regulations and continuously acting as a strategic partner to the organisation. Technical and supplier selection skills were crucial learnings from the apprentice programme, helping me become particularly proficient on various payroll and benefit platforms available, and data migration tools to deliver successful change. During my apprenticeship, I’ve had the chance to support on various projects that reinforced my passion for payroll. One memorable experience was leading on the implementation of a new payroll bureau and upgrade while on the apprenticeship. The project was enormous and challenging, but it provided me with invaluable hands-on experience and a deeper understanding of the complexities involved in transformation management. The satisfaction of seeing the successful rollout and positive feedback from colleagues was incredibly rewarding. You also learn to be fearless with creativity and swallow negative feedback. Change is exciting but remember, not everybody will be on board with your ideas. What advice would you give to others considering completing an apprenticeship in payroll? Stay positive and resilient. You will prefer some modules over others where personal interests take you. But all practices are
crucially important to being a successful payroll manager, so don’t be afraid to ask your mentor or colleagues for extra help if you’re struggling. Keep remembering why you chose this path as it can be a powerful source of motivation and inspiration. Reflecting on your initial goals, passions and the reasons that drew you to this field can help you stay focussed and driven. We’re all human too, and experiencing low times is a natural part of life. I had many, from personal issues to juggling demanding work commitments. It’s inevitable that we’ll face challenges and setbacks along the way, and these difficult moments are part of the journey that allows us to build resilience and find strength to overcome hurdles. It’s important to remember that these low times don’t define us; rather, how we respond. Don’t be nervous to complement your payroll journey by taking on new adventures or opportunities. Enthused by technology, I’ve been fortunate to be seconded to the organisation’s automation team, which specialises in delivering robotic processing, intelligent automation and artificial intelligence. I will be bringing my experience back to HR, where payroll can hugely benefit from these technological advancements. Strive for excellence in your payroll apprenticeship because you only get one chance to make the most of this learning opportunity. By giving it your best effort now, you’ll build a huge friendly network and solid foundation for your future. You’ll also set yourself up for long-term success, so make every moment count and just go for it. If you could describe your apprenticeship journey in three words, what would they be? Transformative, essential and dynamic. n
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| Professional in Payroll, Pensions and Reward |
Issue 107 | February 2025
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