Payroll – the compliance enforcer in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 82 July - August 2022
You spoke, we listened What did you tell us in the CIPP’s Market Insight Survey ?
Are you ready for 6 July? It’s not just P11Ds this year – get ready for the new PT
Avert audit anxiety
Top tips for preparing for an HMRC compliance check
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
Meet us at CIPP National Payroll Week 5 th September 2022 The Fenchurch Building, London
Payroll Outsourcing Services Accurate, Compliant and Secure
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If you think compliance is expensive – try non-compliance General Paul McNulty
Editor’s
comment
Greetings, payroll professionals! Hopefully you’re all managing to enjoy some sun, as we enter the second half of 2022. (Where has the time gone?!) Compliance rarely seems to be a topic
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that fills payroll teams with joy, but it’s one of the most important elements of our roles, and the consequences of non-compliance can be far-reaching. This issue features a range of articles, which consider how to adhere to the rules in several areas of payroll, from using the correct pay as you earn reference on payments to Her Majesty’s Revenue and Customs (HMRC) (page 18) to special severance payments made in the public sector (page 20). The prospect of an HMRC compliance check may feel daunting, but there’s plenty of information regarding the areas that checks are currently being conducted in and how to prepare for them, on page 22. This issue’s panel of experts will also be discussing how payroll professionals can fulfil their roles as compliance enforcers on page 30. Finally, we’re all aware of the increase to the National Insurance primary threshold from 6 July 2022. This issue’s hot topic provides guidance relating to the changes for payroll professionals on page 50. We’ll be taking a short break for the summer period but look forward to seeing you in the next issue of Professional , in September.
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Lora Murphy ACIPP (editor@cipp.org.uk) Editor
50
By Jerome Smail
18 - Using the right PAYE reference when making payments to HMRC By Myrtle Lloyd (HMRC) 20 - Special severance payments – ‘son of the exit payment cap’ By Tim Bridgett 22 - HMRC’s employer compliance interventions By Susan Ball, Lee Knight and Julie Moore 30 - Feature – Payroll – the compliance enforcer By Jerome Smail 50 - Hot topic – Testing, testing, for the new PT By Samantha O’Sullivan
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
Chair’s
message
Editor Lora Murphy 0121 712 1018 | lora.murphy@cipp.org.uk Advertising Daniel Cull 0121 712 1021 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Warwick Printing Company Ltd
The definition of compliance from the Oxford Language Dictionary is: “The action or fact of complying with a wish or command”. Compliance is undertaken by organisations and their employees daily, as part of business as usual, with different areas having a greater level of focus than others. For payroll departments, compliance is essential to avoid fines and penalties that could be imposed for non-compliance in relation to legislation, and to ward off employment tribunals for illegal deductions of pay. The coronavirus job retention scheme (CJRS) and off-payroll working are the most recent areas of focus in which payroll departments have had to update and modify their practices. Unfortunately, CJRS fraud is a continuing headline. With Her Majesty’s Revenue and Customs (HMRC) establishing a dedicated team to review CJRS claims compliance, mistakes are now proving costly. Some larger organisations have payroll compliance officers to monitor, review and advise on company practices and processing, to ensure best practice is taking place, and for new legislation, or changes to existing legislation, to be implemented correctly. An increasing number of organisations use the CIPP’s payroll assurance scheme (PAS) to gain accreditation and evidence that the organisation is dedicated to compliance and best practice, highlighting areas for development and improvement as part of the journey. Whatever size or type of organisation you are, a regular review of company and legislative procedures and practices to demonstrate you’re taking reasonable care to get it right will help, should HMRC come knocking at the door.
Chief executive officer Ken Pullar FCIPP CIPP board of directors Louise Gray ChMCIPPdip
Stuart Hall MCIPPdip Helen Higson ACIPP
Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA(Hons) FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Katie Sharpe MCIPPdip Cliff Vidgeon BA(Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA
Liz Lay MSc FCIPPdip FHEA ACIPD (liz.lay@cipp.org.uk) Chair, CIPP
Useful contacts
Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk
CEO’s
message Well, as we enter summer, and a degree of normality returns to our lives, some good weather would be great – let’s hope so! Here’s an update on a key event within the CIPP’s calendar, which is taking place this month after an absence of three years.
This is our ‘tutor development conference’, attended by the chair, senior CIPP directors and our CIPP tutors. Our tutors continue to provide world-class service to those members undertaking our Payroll or Pension Foundation Degrees and are fundamental to our qualifications process. With circa 85 tutors invited, a comprehensive agenda is planned. This includes a welcome and induction to new tutors, before we move into workshops on topics such as: ● leadership skills ● safeguarding and student support
0121 712 1013 cipp.org.uk @CIPP_UK
● coaching and mentoring ● roundtable discussions.
It’s key that, as the Chartered body for payroll and pension professionals, we ensure our tutors continue to receive this training to ensure our members receive the very best of support as they embark upon their respective Foundation Degrees. It’s also important for their own continuing professional development. It’s noteworthy that most of our tutors have a busy day job, yet they make time to support the students making their way through their various levels of qualification. As such, they deserve a tremendous thank you for contributing to our students’ success, as well as giving back to the payroll and pensions industry. A reminder once again of our Annual Conference and Excellence Awards Ceremony at Celtic Manor in Newport on 5 and 6 of October. I look forward to seeing many of you again, in person, at this wonderful location. And, of course, our conference will continue to provide detailed and informative updates on current topics across all workshops. Enjoy your summer!
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 2022. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 2
in Payroll, Pensions & Reward PROFESSI NAL Contents July - August 2022
Also available online for members at cipp.org.uk
FEATURES
Market Insight Survey results By Vickie Graham
Did you know…? Organised
Say hello to the CIPP board members chosen by you! With Stuart Hall and Justine Riccomini
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labour fraud By HMRC’s fraud investigation service
Future national minimum wage rates: the Low Pay Commission consultation By Mathew Akrigg
Keeping the balance By Jim Woodlingfield
Salary sacrifice savings By Sophie Chapman
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Employment law latest By Nicola Mullineux
The ban on exclusivity clauses to be extended By Danny Done
Too good to be true By Justine Riccomini
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Social security systems around
How Covid-19 changed the NHS payroll function forever By Tasy Warn
Honey, I shrunk the deficit By Henry Tapper
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the world By Tim Kelsey
REGULARS
01 Editor’s comment 02 Chair’s and CEO’s message 04 CIPP update Events, news and developments 05 My CIPP On your behalf, Advisory, Market Insight Survey , Going for gold, Spotlight on…, Say hello to the CIPP board members chosen by you! 16 Personal development BePayroll
18 Compliance
42 Pensions
From national minimum wage to using correct pay as you earn reference numbers
Learn all about the shrinking deficit in defined benefit pension schemes
30 Feature topic 33 Payroll news
44 Technology
Read all about the theme of this month’s issue
How did technology help the National Health Service transition to remote working?
45 Crossword 50 Hot topic 52 Payroll pets
Catch up on the latest developments in the payroll world
Take a break with a drink and our payroll crossword
34 Reward
The latest employment law updates and an overview of social security systems around the world
Are you ready for the change to the primary threshold?
41 Industry news
CIPP staff show us their furry friends!
Update yourself on the latest industry news
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
CIPP update
Ken Pullar FCIPP recognised as knowledge and professional services leader in the Reward 300 We’re extremely proud to announce that
IPP Education gains Ofqual recognition
We’re delighted to confirm that IPP Education Ltd, a subsidiary of the CIPP, through which we deliver our training and education programmes, has gained Ofqual recognition for the Level 3 Payroll Administrator
Ken Pullar, chief executive officer (CEO), was recognised at the Reward 300 on 8 June 2022 as the knowledge and professional services leader 2022. Ken has been CEO of the CIPP since 2016 and his career spans over 30 years within the international payroll sector, working for the likes of Capita, ADP, NGA HR and Rebus over the years.
apprenticeship standard. This brings us closer to our goal of IPP Education Ltd becoming an end point assessment organisation.
The knowledge and professional services leader award recognises those leading the payroll profession through education and recognition, and those working towards raising the profile of the profession. Through his role as CEO, Ken has developed an important relationship with Her Majesty’s Revenue and Customs (HMRC), ensuring that payroll, and importantly our members, have a voice within government and at consultation forums, on key areas and legislation for the profession. Ken succeeds Vickie Graham, business development director, who won the award in 2021 and is joined in the Reward 300 by many CIPP colleagues, including: ● Clare Warrington MSc FCIPPdip AFHEA , vice chair ● Dianne Hoodless MSc ChFCIPP FHEA , board director ● Gemma Mullis MCIPPdip , end point assessment specialist ● Julie Northover ChFCIPPdip , payroll specialist ● Katie Sharpe MCIPPdip , board director ● Lora Murphy ACIPP , editor ● Lou Gray ChMCIPPdip , board director ● Sue Smith EdD MA BEd FHEA FCMI Cmgr Assoc CIPD ACIPP , education director ● Vickie Graham DipM ACIPP ACIM , business development director. We would like to congratulate everyone that made the Reward 300, especially our tutors, trainers, payroll assurance scheme (PAS) assessors, consultants and members.
It’s important to us all at the CIPP to ensure we promote and deliver best practice standards within payroll, including through the development and education of those entering the profession. We’ve supported the apprenticeship since its inception, and this recognition enables us to support the apprenticeship programme further. We shall continue to keep members informed of developments, and hope that IPP Education Ltd will be in a position to assess apprentices from October 2022. To find out more about how we support apprentices, and our Ofqual recognition, please visit ippeducation.co.uk or contact Gemma Mullis, end point assessment specialist, at EPA@ ippeducation.co.uk . CIPP tax packs have landed As a member of the CIPP, you should have now received your 2022/23 tax packs containing the Payroll Reference Book , your desktop calendar and payroll factpen. Factcards were previously sent with the May issue of Professional magazine, and you can download the Payroll
Factapp to your phone via the app store on iPhone and Google Play on Android devices.
THE CIPP’s PAS is designed to test payroll processing and compliance, along with people skills and development opportunities. One of the most crucial elements is ensuring business continuity plans are in place and effective, should they be required. Congratulations to all organisations that have achieved this accreditation and been able to put those plans into action. Special congratulations to our recently accredited organisation: ● Moore East Midlands Ken Pullar, CIPP CEO, said: “Congratulations to those organisations that have attained PAS accreditation. They’ve clearly demonstrated their sound payroll processes, knowledge and skills. This is imperative in the payroll profession, as reacting quickly to ever-changing legislation and guidance is crucial.” The PAS is still operating, with assessments currently operating virtually. To find out how the PAS can benefit your organisation, email compliance@cipp.org.uk .
4 | Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82
POLICY HUB
On your behalf
The CIPP’s policy and research team has been involved in a number of activities, including events, responding to consultations and calls for evidence and continuing to deliver important payroll updates Policy team update
Events corner Policy lead, Samantha O’Sullivan, was a panel guest at two events in June: ● Global Payroll Question Time, hosted by Reward Strategy, to discuss the issues currently impacting payroll professionals Please note this session has been rescheduled until 13 July 2022 ● Automating Payroll, organised by Midlands HR (MR). Additionally, Mathew Akrigg, policy and research officer, attended the Cintra conference, to deliver a presentation on financial well-being. This is a popular topic of discussion in payroll circles at present, as the role of payroll professionals continues to expand into new areas.
Payroll Week and the Annual Conference. The CIPP encourages all members to register for these sessions to keep up to date with the latest news. Calls for evidence / consultations The policy team has recently prepared and submitted three responses to calls for evidence and consultations from the government. The CIPP is proud to be a leader in carrying out research and providing feedback on behalf of the payroll profession. The Labour market enforcement strategy call for evidence centred around issues surrounding compliance and enforcement emerging in the UK labour market. Margaret Beels, the director of labour market enforcement, was seeking evidence from stakeholders to inform the strategy for 2023/24. The resulting report will be interesting, as the government’s manifesto included a commitment to create a single enforcement body, which will unify the three enforcement bodies currently operating, which are: ● Her Majesty’s Revenue and Customs national minimum wage / national living wage (NMW / NLW), ● Gangmasters and Labour Abuse Authority (GLAA) ● Employment Agency Standards (EAS). The CIPP also responded to the consultation: Conditions for harbour access and seafarers' pay-rates consultation: scope and compliance . Earlier this year, P&O Ferries made the news and was widely condemned, as it sacked over 800 UK staff to replace them with cheaper agency staff. In May, Prince Charles delivered the
Queen’s speech, in which he announced the introduction of a Bill to ensure fair remuneration for seafarers, to guarantee they receive an NMW equivalent while working in UK waters. The consultation sought views on the scope of the services to which this law should apply, and compliance processes / powers of enforcement. Finally, following roundtable discussions and a survey organised by the policy team in May, a response was submitted to the Low Pay Commission’s (LPC’s) call for evidence on the impacts of recent NMW / NLW increases on employers and workers. The purpose of the consultation was to gather information to help shape the LPC’s autumn’s recommendations to government for the NMW / NLW rates for April 2023.
BeKnowledgeable The policy team delivered two
BeKnowledgeable sessions in June. Roughly 1,000 members registered for the webinar covering holiday pay and leave which was delivered by Mat on 14 June. Fellow policy and research officer, Maaz Naeem, delivered a legislative update on 30 June, in a session co-hosted by CIPP and the Association of Taxation Technicians (ATT). The session included discussions on: ● recent National Insurance changes ● the tax benefits of electric cars ● trivial benefits ● the latest cases and news relating to IR35 and off-payroll working. As we enter July, only two episodes of this BeKnowledgeable series remain: benefits in kind on 19 July, and pensions and automatic enrolment for payroll on 16 August, before the team takes a break to focus on National
Professional needs you! The theme of the December / January issue of Professional is ‘ the member takeover’ . Have you ever considered writing about your passion for payroll, penning a technical article or producing a thought leadership piece? If so, then Professional needs you! Email the editor, Lora Murphy, at editor@cipp.org. uk to get involved. Don’t miss this unique opportunity to participate and have your say about the profession you love. n
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
MY CIPP
The CIPP's Advisory Service team provides answers to popular questions
Tax treatment of payments for injury to feelings Q: Our human resources department has informed us we must process a payment in respect of injury to feelings to an ex-employee. A termination payment was paid to the individual when his contract ended. Can this payment be made tax-free? A: It’s our understanding that payments for injury to feelings are taxed based on the actions that led to the payment being awarded. It can be treated as tax- free when the payment solely reflects compensation for discrimination that occurred before the termination. However, if the injury to feeling was because of the termination process itself, then the payment would have to be considered alongside any previously paid termination payment(s) for the purposes of the £30,000 exemption limit under Section 401 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003). It's also worth mentioning that payments for compensation in respect of injury to feelings should be proportionate to the ‘Vento’ guidelines as mentioned in the case of Vento v Chief Constable of West Yorkshire Police (2002), which limit the amount that can be paid for injury to feelings. For reference, see: https://bit. ly/3NcK9tM. How to treat a refund of NI for a previous tax year Q: Due to a payroll systems error, an employees’ National Insurance (NI)
liability was incorrectly calculated in March 2022, resulting in an
were applicable in tax year 2020/21 to the payment? A: The issues of pay and the Equal Pay Act 1970 were highlighted for payroll professionals in the well-publicised tribunal case, Samira Ahmed v BBC. The Equal Pay Act 1970 effectively says that an individual has a right to the same contractual pay and benefits as a person of the opposite sex in the same employment. The employer will need to report corrected figures for the tax years affected. If reporting corrected figures, they should calculate the tax due on the backdated payments as if they had been paid in week 53 of each closed tax year, using the tax code that applied in the tax year that the arrears should have been paid. With regards to the NI position, NICs will be due at the time payment is made, so the 2022/2023 rates and thresholds will apply to the payment For reference, see: https://bbc.in/3FIouHK and https://bit. ly/3yxwR7a. Record-keeping for maternity pay and leave Q: Should an original MATB1 certificate be kept by the company and, if so, for how long? A: A photocopy of the MATB1 is acceptable as HMRC guidance states that employers are required to retain: “Proof of pregnancy – usually a doctor’s note or a MATB1 certificate (a photocopy is fine)”. With regards to the retention of the document, Section 97 (8) for ITEPA 2003 advises that employers retain all payroll
overpayment. We advised the employee to contact Her Majesty’s Revenue and Customs (HMRC) to request a refund; however, HMRC has advised it’s our responsibility to ensure the refund is paid. As the overpayment related to the previous tax year, is it possible for us to make the refund in the new tax year? A: If the employee is still in employment with the company, then it would be the employer’s responsibility to correct the record and refund the overpaid NI to them in the next available pay period. HMRC guidance states: “If the mistake was in the 2021 to 2022 tax year, send an FPS with the amount you should have deducted. You’ll need to write to HMRC if both the following apply: ● the difference is negative because you deducted or reported too much National Insurance ● you still owe your employee a refund, for example because they’ve left your employment.” For reference, see: https://bit. ly/3sveJar. Q: An ex-employee has agreed to a settlement in relation to an equal pay claim. Our understanding is for tax purposes, this payment should be processed through the payroll as if it arose in the year it relates to. The person’s employment ended in 2020, so could you advise if we should also apply the NI rates and thresholds that
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 6
POLICY HUB
records for no less than three years after the end of the tax year to which they relate. For reference, see: https://bit. ly/3wkIs76 and https://bit.ly/3Ld5OAO. Correct NI categories Q: A client is employing a veteran as an apprentice. We’ve confirmed this is the veteran’s first employment since leaving the armed forces, but we’re unsure what NI table letter to apply to the payroll record. A: Although the NICs ultimately calculated for employees on categories H and V would be no different, page four of HMRC's CA38 booklet confirms that category H takes precedence over category V. For reference, see: https://bit. ly/3wqIWIz. Establishing qualifying years for state pension Q: How is a qualifying year for a state pension established? A sole director of a limited company is taking a very low salary as it’s his first year in business and he’s concerned this will affect his entitlement to a state pension. A: A qualifying year for state pension can
be made up through combining earnings, NI credits, self-employment and voluntary contributions. A qualifying year can be built up if an individual is: ● employed and earning over £190 a week (the primary threshold for NI contributions in 2022/23) from one employer and paying NI contributions (NICs) ● employed and earning between £123 and £190 a week (2022/23) from one employer and is treated as having paid NICs ● self-employed and playing class 2 NICs contributions, which are £3.15 a week for tax year 2022/23 ● making voluntary NICs, which are £15.85 per week for 2023/23 ● receiving NI credits. An individual will need 52 times the lower earnings limit (LEL) of NICable earnings and then get a qualifying year, which is 52 x £123 (for tax year 2022/23) = £6,396. Documents such as a P60 or payslips can be used as evidence that the earnings have been reached and a qualifying year for a state pension will have been achieved. For reference, see: https://bit.ly/3M8Ymb7.
How exactly is a qualifying year for the state pension established?
Mileage allowance payments Q: Can you confirm if the limit of
approved miles for privately owned cars is based on the number of miles travelled, or paid, in a tax year? A: HMRC guidance states: “Mileage allowance payments (MAPs) are what you pay your employee for using their own vehicle for business journeys. You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount'...To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle.” The period covered is the tax year itself, so the figure used in the calculation is the actual business mileage in the tax year. For reference, see: https://bit.ly/3NbGvQY and http://ow.ly/Wk9430smzUb. n
Fast-track your learning
Are you looking to progress faster through our Foundation Degrees in either payroll or pensions?
Do you have at least two years’ experience as a payroll or pensions professional?
The CIPP’s Recognition of Prior Learning online assessment uses evaluation of existing skills and knowledge to help you move straight on to year two of the Foundation Degrees.
To find out more, email enquiries@cipp.org.uk or call 0121 712 1044 .
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
MY CIPP
Market Insight Survey results How is the CIPP performing in its role of serving the payroll profession?
A s a membership organisation, it’s vital for the CIPP to monitor the level of service and relevance of the products we provide to you, our members. The main objectives of the 2022 survey were to: ● measure customer satisfaction and evaluate the customer experience ● review existing products, services and business areas to establish those the members value, and where there’s room for improvement in 2022/23 ● provide a ‘picture’ of our membership base and investigate the issues faced within the industry, to communicate more effectively ● assist the CIPP’s management team and board with collating 2022/23 business plans. Both CIPP members and non-members were invited to participate in the survey via News Online , marketing emails, social media and the CIPP website. The survey received 379 responses in total. This article will provide insight into the results from the Market Insight Survey , and our plans for improvement as a direct result of your feedback. To measure customer satisfaction and evaluate the customer experience To gain an insight into how we’re performing, we asked how likely it would be that you would recommend the CIPP to a friend or colleague, to provide us with a net promoter score (NPS). An NPS is an index ranging from -100 to 100 that measures the willingness of customers to recommend products or services. It’s generally recognised that a score of 50 or more is ‘good’. Encouragingly, the NPS for the CIPP, based on those who completed this survey, is 58. The questions throughout
the Market Insight Survey then sought to gain further insight into the score and identify the areas we excel in, as well as areas to improve. As one of our main objectives was to measure customer satisfaction and evaluate the customer experience, we also asked respondents to confirm whether they’d been in contact with the CIPP over the last 12 months, and if so, to rate that experience. It was great to see that those who’ve been in contact with us over the last 12 months rated us an impressive 4.5 out of five stars. We wanted to explore further, and specifically ask about our Advisory Service, as call volumes to the team have increased significantly over the last few years. It was pleasing to see the Advisory Service also scored highly, with an average 4.5 out of five stars. Our website is one of the main channels we use to reach our members, and therefore an important communication tool for keeping you informed of what’s available to you, and what we’re doing on your behalf. We asked how often you use the website and, encouragingly, most of you are visiting the site regularly. See Figure 1. Although News Online is sent weekly and links to news items are posted on our website, it’s worth visiting the site to find out more about benefits available to you, such as: ● the BeKnowledgeable webinars, which are free to members ● new benefits through partners, such as Croner Navigate and Totum Pro. We’ll continue to invest in our website. We’re integrating it within our customer relationship management (CRM) software and learning portals to improve member experience. More information on this will be announced in due course.
Vickie Graham DipM ACIM ACIPP, business development director at the CIPP discusses the results of the survey that asks how you rate the products and services offered by the Institute
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 8
MY CIPP
To review existing products, services and business areas to establish those members value and where there’s room for improvement in 2022/23 Of the 379 respondents, 325 stated they were members of the CIPP at various levels of membership. We were keen to understand more about what members value and how we can improve our offerings moving forward. The survey showed that the top five benefits listed are the: 1. annual tax pack, including the payroll reference book and fact card 2. Advisory Service 3. factapp, including membership card 4. Professional magazine 5. statutory payment tables and BeKnowledgeable webinars. The top five benefits are aligned with the results to the previous question confirming that the main reason for membership is to keep up to date. We’ve invested in all these areas in recent years, including recruitment into the Advisory team, introducing the BeKnowledgeable webinars into the membership benefits package and development of the tax pack and factapp. We shall continue to invest in these areas to ensure they’re of the high quality and standards expected of the CIPP. The survey also showed the lowest rated member benefits are the: 1. member offers and discounts 2. continued professional development (CPD) tool 3. specialist interest groups (SIGs) 4. MyCIPP area of the website. In response to your feedback, we’ve made the following changes: Reviewed pricing for training courses Members receive a 50% discount off the Payroll Update, and £50-£150 off all other training courses. We work with several partners to provide discounts on services which will add value to you, either personally or professionally. Members also receive discounts off the cost of attending the Annual Conference and Exhibition, taking place at the Celtic Manor, and have a range of discounts off services, which are offered by a variety of industry suppliers. Details can be found at: http://ow.ly/KAmu30skTUr. Working on our CPD strategy and expectations of members This will include development of the
CPD tool and is linked to integration of our website and other solutions with our CRM. Further communications will confirm changes shortly. Reviewing and re-launching our SIGs We’ve identified the main purpose of the SIGs, which is to act as a support channel for members working within the same sector, facing the same issues. Our public sector SIG works well, so we’re exploring why this works and planning to replicate this in other groups. SIGs are excellent communities and enable a closed, secure, online platform on which to share issues and challenges. Offering new benefits New benefits are being added to the MyCIPP area of the website and the ‘ Maximising your membership ’ emails have been introduced to increase awareness of what’s available. We asked members about their use of membership benefits. The least used membership benefits are the: 1. Payroll Manager’s Book , which was introduced in 2021. Published by Bloomsbury and available to all members online through MyCIPP, this publication provides payroll managers with a useful reference of everything they need to know 2. BeConnected: National Forums were rebranded in 2022 to better reflect the networking and connection opportunities through attending the events. Following feedback, and the changes made due to Covid, these events will continue to be hosted online so they’re more accessible to more members. We’ll also host three face-to- face events in major cities across the UK for those who can attend, and who benefit from the learning and networking opportunities of being in-person 3. Policy thinktanks are roundtable discussions regarding government consultations to support our responses. Invitations are sent to Full, Chartered Full,
Fellow and Chartered Fellow members to ask them to attend. We’re working on our communications to ensure that more members are aware of these events when they’re running so they can contribute more effectively. Finally, we asked if there was anything members wanted to add regarding membership and, specifically, the benefits available to them. Some of the popular responses are listed below: ● more support for payroll professionals working within a bureau environment. We have started work on developing a payroll bureau SIG, which you can join online at: http://ow.ly/L3Yf30skTWZ. This will provide an online forum for members working in a bureau environment to come together and support each other and will include a dedicated event for professionals working within payroll bureaux. If you would like to learn more, please contact Mathew Akrigg in the policy team, at policy@cipp.org.uk ● publications available in a digital format. We’re delighted that Professional magazine and the Payroll Reference Book are now available in digital format. We’re working with our providers to develop our system to identify those members who would prefer to receive digital-only copies of these publications and will be asking members to confirm their preferences. The payroll factcard is also available as the payroll factapp and can be accessed on Apple and Android phones. To provide a ‘picture’ of our membership base and investigate the issues faced within the industry, to communicate more effectively In the survey, we asked you to comment on the topics we cover within Professional magazine so we can communicate useful information to you. See Figure 2. This has highlighted the areas you would like more content in are:
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
MY CIPP
Technical We have recently introduced ‘ Did you know? ’ articles to support the increase in technical content and to continue ensuring we regularly provide our members, and the wider industry, with accurate and informative technical content. The policy hub within the CIPP website also contains useful factsheets and guidance on legislation to support you in your role. Membership benefits As mentioned in this article, we’ll do more to communicate the membership benefits with you. We’ve recently introduced ‘ Maximising your membership ’ emails, which provide a summary of some of the benefits available each month, in addition to promoting member benefits through social media. If you aren’t receiving the emails, please visit your profile within MyCIPP and ensure you update your email preferences.
Soft skills We’re liaising with several potential
partners to help support the development of more soft skills content for members. This will include content through articles in the magazine, as well as training and development programmes. It was great to see so many respondents confirming the magazine content is relevant to their role. See Figure 3. The survey results show the main method of communication both from and to members is email. See Figure 4. We’ll continue to notify members of things you need to know via email and social media, so please ensure you’re subscribed to these channels to get the most out of your membership. If you prefer another form of communication, please contact me directly. This particular objective also considered the ‘make-up’ of our membership base and started to collect some profiling data to support our commitment and goals with respect to equality, diversity and inclusivity (EDI). It’s important to us, as a professional body, to ensure we’re reflective of the industry, and inclusive and accessible to those working within it. If you’d like to support us in achieving our EDI goals, or have any feedback, please contact me at Vickie.graham@cipp.org.uk .
team and board with collating 2022/23 business plans As a membership organisation, it’s important that our board and senior leadership team formulate plans aligned with member and industry needs. To support some areas we’ve been considering for development, we asked some specific questions to ensure these were areas which would ultimately benefit you, our members. The first question focused on how you pay for your membership, and the results revealed that 31% of members pay for membership themselves. An additional question confirmed you would welcome more automated processes for paying membership fees (see Figure 5). Automated annual payments are currently in development
and will be communicated to you via email and your renewal communications. It’s also worth noting that we are listed on Her Majesty’s Revenue and Custom’s List 3, meaning you can claim tax relief if paying for your membership fees yourself. Find out more at: http:// ow.ly/6LMc30skTXR.
We also explored your thoughts regarding professional training and
delivery methods, and interestingly, most respondents indicated you would prefer to attend training courses online, or via self- directed e-learning. See Figure 6. To support this and ensure our training courses are accessible to all, we’ve further developed our online training platform and invested in new technology. This is to ensure those who choose to attend our online course provisions receive the same level of
Assist the CIPP management
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 10
MY CIPP
This one-day training course is essential for anyone that has to process payroll for education establishments in the UK. Payroll for educational establishments
Outline the key principles of educational establishment payrolls
Summarising the current National Minimum Wage (NMW) & National Living Wage (NLW) provisions
Administering remuneration packages for non-teachers and teachers
Administering Teachers Pension Scheme (TPS) Administering Local Government Pension Scheme (LGPS)
Summarising the maternity pay and leave rules
Sustainable food offered at all events and training
More online than face-to- face events and training
Online consultation meetings
Paper-free events
Digital only membership
Remove printed magazine from membership
Other (please specify)
Visit cipp.org.uk/training to book your place
engagement and support as those attending training at a physical face-to-face venue. To consider the inclusiveness of training, and the location of our physical face-to-face courses, this was further analysed based on the location of respondents. Within the UK, there’s a notable difference between England and other UK states, with a higher percentage of respondents in Scotland, Wales and Ireland opting for some form of online delivery. See Figure 7. As such, we shall continue to offer all training courses predominately online, with face-to-face options throughout the year in major city locations. Details of our training provision, and locations offered, can be found at: http://ow.ly/ Yuu930skYyv. During 2021, we confirmed we’ve set a net zero target for carbon emissions, which we plan to achieve by 2035. We’ll provide updates on our progress on this through magazine articles and online at:
http://ow.ly/1r8f30skYyR. We also asked what you think we should be doing to support this goal and you confirmed, as per Figure 8. As mentioned throughout this article, we’ll continue to invest and develop our online course and event offering, and we’re moving towards giving members the choice to receive the magazine, and other publications, online instead of printed. Thank you to everyone that took the time to respond to the survey, which ran during January 2022. If you missed the survey and would like to provide feedback on any of our products and services, please email me directly at vickie. graham@cipp.org.uk. Prize draw winner We’re delighted to announce that Emma Shufflebotham of Warwick Independent Schools Foundation was the lucky recipient of the £100 Amazon voucher. Well done, Emma! n
CPD 7 points
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July - August 2022
MY CIPP
One hour skills boosting courses One hour e-learning courses for only £99 +VAT
Going for gold
One CPD point per course
Congratulations to Cait Butler ACIPP, account lead at the CIPP , on achieving the incredible accolade of a gold Duke of Edinburgh award
Calculating income tax
C ait Butler describes how it felt to complete the gold Duke of Edinburgh award and to attend Buckingham Palace gardens to celebrate the amazing achievement: “After I started my Duke of Edinburgh award in 2014, I never thought I’d push myself enough to complete gold. I remember my Mum picking me up after my first bronze camp and I was crying like a baby because my back and feet hurt after only two days. Fast forward to completing gold in 2019, and they were tears of joy and pride (in the least cringey way possible!). Waking up at 5am in the middle of nowhere with cramp in both calves, a strapped-up knee and fully blistered feet, mentally preparing to walk another 25km wasn’t exactly fun. However, opening the tent and seeing the sun rise over miles and miles of fields and mountains really made me realise this was one of the best experiences I had ever, and will ever, have. It wasn’t just the pretty views that made this worth it, it was the teamwork too. Going through an experience like that with a group of people will certainly mould you together. Seeing each other at your lowest points and still finding something to laugh about is a skill that you don’t learn anywhere else, that’s for sure. I made some of my best memories, and I pushed myself to limits I never thought I could reach. As we came to the finish line after five years of volunteering, expeditions and terrible inside jokes, I had never been prouder of myself and my friends. We got blistered, broken and sunburnt over the six expeditions. We nearly gave up so many times, we cried and argued
Calculating Statutory Sick Pay (SSP)
Calculating National Insurance Contributions
and snapped at each other. But we also saw the sunset in the Yorkshire dales, battled Snowdon in 28 degrees, woke up to sheep gnawing at our tent guide- ropes, had lunch in abandoned cottages in the middle of nowhere and sang Sean Kingston as loud as we possibly could to boost morale (it worked!). Going to Buckingham Palace gardens to celebrate my award was an amazing way to end my Duke of Edinburgh adventure. After this was delayed for two years because of Covid, myself and my friends finally attended a garden party and celebrated what we’d achieved. Prince Edward made a speech and congratulated us all on our hard work and we all reflected on what we had achieved.” n
Paying Statutory Maternity Pay (SMP)
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 12
MY CIPP
Spotlight on...
Joanne Leather
Tell us a little about your career and background? My background before joining the CIPP was in finance, balancing the accounts for a branch of a family-run financial services organisation. It was very different to how these things happen now – I didn’t have a computer and it was all handwritten in big ledgers with colour coded pens. I also ran a very small payroll there – that was very different too. Although the manager had a computer that I was allowed to use to run the payroll and print the payslips from, I had to count out the wages in cash and pack it all into small brown envelopes each week. The staff would then come to a small window in my office wall to collect and sign for their pay packets. I joined the CIPP as a qualifications administrator in March 2013 and have never looked back. Over the years, I have taken every opportunity the CIPP has offered me to undertake qualifications and training, to work my way to my current role of education manager, which I started in January 2021. What are your day-to-day duties at the CIPP? My work varies so much that I don’t have a typical day, week, or even month. I am line manager to our 84 fabulous tutors, the education services manager, Vicky Hilton and the end point assessment organisation specialist, Gemma Mullis. Supporting my direct reports is vital as this, in turn, enables them to fulfil their roles in supporting students and all our other learners. I work alongside all other departments within the CIPP to enable the successful
Tell us about the future for CIPP’s education department? My plans are to work with the wider CIPP team to continually improve our service and products. We already have a portfolio of industry valued qualifications, but industry evolves, and we’re working towards expanding this offering to provide a wider selection at all levels. Technology is enabling us to explore new ideas and delivery methods. The Payroll Technician Certificate has undergone an excellent refresh, and, in April 2022, we launched the Payroll Technician Certificate Advanced, which offers key additional areas essential for any payroll department. Both qualifications are far more interactive and engaging for students and successfully embrace the format of online delivery, making them accessible from any location. We have some exciting endeavours on the horizon that I’m unable to discuss at present but watch this space! What do you think you and your team can bring to the future strategy of the CIPP? Through the improvement of our current products and the development of new qualifications, I believe we can further raise the profile of the payroll and pensions professions. The education department works alongside our amazing tutors to provide students with all the tools they need to achieve their professional goals. With our dedication, commitment and passion, we will continue to support, challenge and educate our students, to lead their professions. n
delivery of our qualifications. For example, I work closely with the material updates team to schedule content changes, and the marketing team to discuss priorities with campaigns and new product releases. Teamwork is important to us all to maintain the CIPP standard. I also collaborate and maintain strong professional relationships with our academic and professional partners, along with industry specialists, to continually improve our products, ensuring they remain industry relevant. Our other top priorities are to continually develop both our tutors and staff, improve systems and develop exciting new products. What does your current role mean to you? I love my role within education – it’s challenging, thought provoking, and often demanding. In return, the rewards are seeing so many students graduate each year and achieving their goals within the payroll and pensions professions. It’s amazing hearing from past students and members about how gaining qualifications in these fields has boosted their confidence in their own abilities, and helped them to develop both personally and professionally. My passion is elevating the future of these professions by continuing to ensure the content of our qualifications is hitting the very core of what employers need their employees to know. By providing qualifications at every level and by working to raise the profile of these industries, this makes them firm choices for the younger generation, and not professions that are ‘fallen’ into.
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| Professional in Payroll, Pensions and Reward |
Issue 82 | July / August 2022
MY CIPP
Say hello to the CIPP board members chosen by you!
Lora Murphy ACIPP, editor at the CIPP , catches up with newly elected board member, Justine Riccomini FFTA AIPA Chartered MCIPD ChFCIPP and Stuart Hall MA PGMdip MCIPPdip , who was recently re-elected to the CIPP board
Q: Why did you want to become a member of the CIPP’s board? Because I respect the organisation and I want to influence its future direction. The CIPP is at the forefront of payroll, pensions and reward strategy, and this ceased long ago to be a ‘back-office function’. Keeping the UK paid is, as we’ve seen during the pandemic, a key worker operation. Pay and reward strategy features heavily in any business’s income statement and financial and budgetary planning for accounting purposes. Now, this needs even more careful handling than ever before when
has to be launching PaySuite – the UK’s first cloud-based payroll solution. It became recommended by Xero and also Quickbooks, who then bought it. Q: What’s the area you would most like to influence during your time on the board? I would suggest ‘thinking’. Over the years I’ve found that, although sometimes decisions need to be made quickly, having time to think before you speak should be actively encouraged. Q: Rumour has it you’re a keen musician. What’s your favourite score? I like a cross section of music: military bands, brass bands, jazz, orchestral and opera. Each one has a place in my life depending on what mood I’m in. If I’m relaxing, I like a bit of jazz from Oscar Peterson. When I’m working at my desk, I like listening to Wagner. For me, nothing beats a good brass band. Nimrod from Enigma Variations by Elgar is something really special.
Stuart Hall
Stuart joined the CIPP board of directors in 2017. After the sale of Employer Services in October 2015, Stuart took a break from business life, travelling, catching up on hobbies, pursuing new interests and spending time with his family. Currently, he works as an independent payroll consultant and is involved as a non-executive director on several boards. Q: Why did you want to become a member of the CIPP’s board? Having retired, I looked around for something to keep me occupied. When a position for the board became available, I was delighted to apply. With over 30 years’ experience in payroll and human resources, as well as setting up and running my own payroll bureau, I wanted to give something back to the profession, and to help those pursuing a career in payroll. Q: Why are you passionate about payroll as a profession? Ever since I started working in payroll, I’ve been passionate about promoting our profession. There’s been so many changes over the last 30 years, and as each year passes, more legislation is added. This makes me even more passionate about telling everyone why making payroll their chosen profession is exciting and rewarding. Q: What is your proudest achievement? I’ve lots to look back on, for example, playing in a military band for the royal family. Of course, my own family, and recently, my two grandchildren. In business life, my most memorable achievement
taking the labour market, Brexit and inflationary pressures into account.
As all payroll professionals know, payroll is more complicated now than it has ever been, and the UK government is expecting more from employers, who now need to be technically tax, pension and payroll savvy about an increasing number of complex subjects, such as off-payroll working and national minimum wage to avoid bear traps. It’s up to the Institute to ensure its members are fully equipped to deal with everything their vital role throws at them. I believe the CIPP is very well placed to do this, but of course, we must always strive to be bigger and better than before, without losing the human touch. Q: Why are you passionate about payroll as a profession? Payroll can be an extremely rewarding profession… if that’s not too much of a pun. It’s something you can do as a school leaver or as a postgrad, and you can progress through the ranks, starting with zero knowledge and working your way up, obtaining the qualifications which dovetail with your level of seniority along the way. There are also numerous types of payroll work environments, from being an independent small payroll bureau, if self- employment is your thing, to working for a
Justine Riccomini
Justine joined the CIPP board in April 2022. Over the last 30 or so years, she’s managed payroll teams, carried out payroll / employer compliance inspections, undertaken several CIPP payroll accreditation reviews and worked for Her Majesty’s Revenue and Customs. Justine understands the relative challenges in delivering agency payroll at accounting firms as well as in-house payroll.
| Professional in Payroll, Pensions and Reward | July - August 2022 | Issue 82 14
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