PROFESSI NAL in Payroll, Pensions & Reward Issue 96 December 2023 - January 2024 Official publication of The Chartered Institute of Payroll Professionals
New year, new you
Statement summary How will Jeremy Hunt’s autumn statement impact payroll professionals? Holiday pay / entitlement updates Read about recent developments which could impact how you process holiday entitlement and pay
See the new year in, in style As we see in the new year, could you review your payroll processes?
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Graduation Ceremony 2023
“If you always do what you’ve always done, you’ll always get what you’ve always got” Henry Ford
Editor’s
comment
30
Guess who’s back, back again (for the purposes of holiday entitlement) : 12.07%
Hello, Professional readers, and welcome to the final instalment of the magazine for 2023. Hopefully by the time you receive this issue, you’ll be getting into the festive spirit and looking forward to spending time with loved ones.
It’s important, as we look to the new year, to reflect on all our successes from the previous year. So, ensure you set aside some time to do just that, and to celebrate those wins. As we move into 2024, you may also be considering new challenges to set the new year off in style. From a payroll perspective, it could be the opportune time to review the processes you carry out in the department and to consider the bigger part the payroll function could play in the wider organisation. That’s why this issue’s quote from Henry Ford felt so apt - if you don’t continually assess things and look for improvements, you’ll never change your results. If you’d like to hear the views of a panel of experts on process improvements, be sure to check out our feature article, on page 38. With the year drawing to a close, you would have been forgiven for thinking things would quieten down, but this is the payroll world, so who were you kidding?! We had the King’s speech and the autumn budget in November, and you can read about all the updates which impact payroll in our hot topic article, on page 56. We also had the responses to not one, but two, meaty consultations which affect the way holiday pay and entitlement are calculated. Flick to page 30 to read more on that. Please also join us in celebrating the success of our graduates who attended the CIPP’s graduation ceremony at Birmingham’s Symphony Hall on 24 November. You can see coverage of the event from page 12 of the magazine. What better way to end the year than on such a high! See you next year, fellow payroll, pensions and reward professionals!
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
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12 - The CIPP’s graduation ceremony 2023
30 - Guess who’s back, back again (for the purposes of holiday entitlement): 12.07% By Fiona Smith
What the autumn statement means for you – the payroll professionals
38 - Feature article – new year, new review By Jerome Smail
56 - What the autumn statement means for you – the payroll professionals By Lora Murphy
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
Chair’s
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA (Hons) FCIPP Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Editor Lora Murphy 07920 787221 | lora.murphy@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd
message
The end of the year is in sight, which means it’s particularly busy for payroll with even tighter than normal deadlines as many pay days are brought forward. Decorations are up and it’s great to see the buzz of Christmas parties returning after a quiet couple of years following the Covid pandemic and the aftermath of the associated restrictions. As we look forward to starting a new year, what will your resolution be? Will you be back to the gym or starting the next new diet? We all love a new challenge to start the new year. And payroll is no different as thoughts turn to improvements, and potentially a review of current structures or changes / developments to processes and systems. How can we make this year better and face the challenges of the previous year head on? If it’s a new and improved system you’re planning on implementing, it’s important to understand what you need – a detailed statement of work is always a good starting point. This will help you to reduce the list of potential suppliers down, as there are now so many to choose from, often offering cutting edge technology. Look out for our software directory in the April issue if you need a place to start. Remember, the CIPP is here to support you. So if you need any assistance from us, please get in touch to discuss how we can help. Finally, I would like to wish you all a very merry Christmas and a happy, healthy new year. Hopefully, I will see you at one of our many events in 2024, so please do come and say hello. Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts Consult compliance@cipp.org.uk 0121 712 1023 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 0121 712 1013 cipp.org.uk @CIPP_UK
CEO’s
message As this issue lands through your letterbox / in your inbox, I hope that you have December’s payrolls completed, or in-hand, as I appreciate some payrolls still pay
on the last working day, regardless of the time of year. I have been with the Institute for five months now, and I’m thoroughly enjoying working with the team, the tutors and the trainers. I’ve also relished meeting many of the businesses who contribute to our success via training and education of their own teams. Thank you to all who have given time to meet with me, to discuss the future and what challenges and opportunities lie ahead. The last issue reflected on the impact payroll data can have in an organisation, and one of the recent courses made available, through partnering with our colleagues at Payroll Org, is all about payroll data analysis and the positive impact this can have on an organisation. Having worked in-house delivering payrolls within the construction industry, but also in outsourced businesses delivering to both UK public and private sector clients (as well as global clients), I’ve seen how the successful articulation of payroll data can elevate a team from a key operational requirement to a strategic business partner. This is an area for in-house teams, external bureaux and fully managed payroll teams to consider. Alignment with both finance teams and those responsible for human resources can add significant value when reviewing peaks and troughs for business in the calendar year. Turning to our current issue and the theme of ‘ new year, new review ’, for those in payroll management, reviewing trends across previous periods and forecasting for the future can help: l determine the availability of colleagues l assess the considered impacts in terms of costs l to highlight broader considerations, available to determine the right course of action for a business. This, combined with other operational reviews, can demonstrate value to the business beyond the function itself. Season’s greetings to you all. I do hope you get to enjoy some down time following this short processing period, ahead of stepping into 2024’s responsibilities and the final quarter of the 2023/24 tax year.
Articles Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2023. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 2
in Payroll, Pensions & Reward PROFESSI NAL
Reading the magazine gives you one CPD point
Contents December 2023 - January 2024 FEATURES REGULARS
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP Q&As, The CIPP’s graduation ceremony, The Level 4 Payroll Specialist Certificate (PSC) 19 Personal development BePayroll Events horizon, On your behalf, Spotlight on…, Payroll news, Climate change update, Advisory
It’s here: the CIPP’s Benchmarking Survey
Equity incentives and payroll By David Yewdall “I’m gonna get myself, I’m gonna get myself, I’m gonna get myself connected” By Samantha O’Sullivan Important update: the reporting of salary advances By the CIPP’s policy and research team
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Report 2023 By Meena Salhan
Holiday pay: the PSNI case that could cost the employer £40 million By Justine Riccomini
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24
Payroll: a continuous improvement journey By Sandra Was Settling disputes with both HMRC and employees By Sue Ollerenshaw and Paul Chamberlain
28
26
The Payroll Services Summit 2023 By Mathew Akrigg
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32
20 Compliance
online exclusive content
From the different stages of tribunal when dealing with HM Revenue and Customs or employees to all the latest in the holiday pay / entitlement space Feature topic Read all about the theme of the current issue Reward From what employers should be thinking about in relation to recruitment and retention for 2024 to considerations for businesses who have staff carrying out overtime
The cost of using the company car (global payroll article) By Ronald L. Moser
Navigating payroll recruitment and retention in 2024 By Nick Day
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38 42
online exclusive content
Anything is possible By Charlie Fogarty
Is your brain up to the challenge of payroll? Part 2: brain training and memory
46
44
online exclusive content
techniques By Lindsey Byrne
Reasonable adjustments, refusal to wear a mask and redundancy payments By Nicola Mullineux
56 Hot topic
Investing in payroll excellence By OSV’s UK payroll services team online exclusive content
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48
What did the autumn statement on 22 November contain to impact payroll professionals?
58 Payroll pets
We say hello to some of your furry friends
Considerations when staff are clocking up the overtime By Danny Done
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
CIPP UPDATE
CIPP update
Association Excellence Awards 2023 WE’RE DELIGHTED to share that Professional magazine won the bronze award for the Best Association Newsletter or Magazine (Circulation 6,000-25,000) at the GCN Events Association Excellence Awards 2023! James Bartlett, Daniel Cull, Lora Murphy, Sarah Winnett and Nicole Davis (as pictured) travelled to the Grand Connaught Rooms in London and collected our bronze award. Thank you to all our members who have supported us and the magazine over the years!
Best Companies Awards 2023 WE ALSO attended the Best Companies Awards 2023 in Watford, where we received: l 60th position in the top 75 best small companies to work for l 8th in best companies to work for in the not-for-profit body’s sector l 55th in best companies to work for in the West Midlands. We’re extremely proud of receiving these awards and would like to thank all those who have helped us to achieve them. We strive for excellence and want to provide the best customer service experience for all our members. This is where our employees come in; they’re regarded as family. Our employees come first and have created a strong work culture and a fun work environment.
Christmas closures THE CIPP offices and the Advisory Service will be closing for Christmas on Friday 22 December 2023 at 3:00pm and will reopen on Tuesday 2 January 2024. If you contact us during this time, we’ll get back to you in the new year.
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 4
Scan to book
Event horizon Your guide to upcoming events and training
Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.
Remain BeKnowledgeable: payroll company fraud Join HM Revenue and Customs’ payroll company fraud threat lead, Andrew Bradley, as he discusses payroll company fraud. In this session, you will find out all about: l what payroll company fraud is l how to spot payroll company fraud l how to mitigate against the risk of payroll company fraud. The event will take place, online, on 16 January 2024.
It’s good to BeConnected The CIPP’s policy and research team is really looking forward to seeing you all at the next set of BeConnected events, coming to you in early 2024! As we round off another tax year, we now have lots of information regarding the changes to prepare for, for tax year 2024/25. Let us talk these through with you, while also inviting you to have your say in discussion groups and to network with your peers. Turn to page 23 to hear about precisely why you should attend from our policy lead, Samantha O’Sullivan.
The CIPP’s graduation ceremony 2023 Our final big event of the year has now taken place, and wow, what a way to end 2023! Flick to page 12 to read all about this year’s amazing graduation ceremony.
Graduation Ceremony 2023
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to-face are highlighted in orange. Please note, there are other dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr
Course
Date
Location
Course
Date
Location
15 February
Birmingham
22 January
Online
Automatic enrolment and pensions for payroll
22 February
Online
28 February
Online
27 February
Bristol
20 March
Online
01 March
Newcastle
16 January
Online
04 March
Online
Construction industry scheme
26 February
Online
08 March
London
12 March
Online
Payroll update
11 March
Birmingham
Foundations of payroll analytics
29 February
Online
13 March
Manchester
Global mobility key payroll issues
12 February
London
14 March
Online
11 January
Online
20 March
Leeds
Holiday pay and leave
07 February
Online
25 March
London
04 March
Online
26 March
Online
08 January
Online
07 February
Glasgow
24 January
London
08 February
Aberdeen
05 February
Online
Introduction to payroll
14 February
Edinburgh
19 February
Manchester
21 February
Glasgow
06 March
Birmingham
28 February
Newport
11 March
Online
The payroll and HR update
05 March
Edinburgh
08 January
Online
06 March
Cardiff
10 January
Manchester
06 March
Glasgow
22 January
Online
Payroll update
14 March
Aberdeen
29 January
Birmingham
14 March
Swansea
01 February
London
08 February
Online
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
POLICY HUB
On your behalf
Remember, remember, the month of November…read on to find out what the CIPP’s policy and research team were up to last month, and learn about some of the team's upcoming activities Policy team update
Conveying the voice of you, the payroll professionals at Parliamentary level
everything you need to be aware of as a payroll professional. Mathew Akrigg, one of our policy and research officers, was in London at the start of November at the Payroll Services Summit, which the CIPP organises in association with PayDashboard and Experian. The event caters specifically to those in payroll bureaux, practice and software, but no payroll professional is turned away. You can read more about the event within this issue and find out how to get involved in future payroll services specialist interest group activities. Policy and research officer, Meena Salhan attended the DeHavilland online event, ‘Road to the 2024 general election’. The session addressed what’s on the horizon for British politics and highlighted what we can expect from upcoming major fiscal events, including discussion of: l the key takeaways from the conference season l what to expect from the autumn statement l the legislation likely to be featured in the King’s speech l how to prepare for the 2024 general election. Samantha presented at the Zellis User Summit 2023, providing a payroll and legislation update. This was an in-person conference event in London, which brought hundreds of payroll and human resources (HR) professionals together for a full day including: l thought-provoking content on the future of the industry l insights from senior Zellis executives l valuable Zellis product knowledge
l dedicated breakout sessions focussing on payroll, HR and IT l ample networking time with industry colleagues. Lora was delighted to attend the CIPP’s graduation ceremony at Symphony Hall on 24 November. This is a lovely event, as it’s an opportunity for those who have studied hard to celebrate all their successes with their family and friends. Lora was also graduating herself this year, having completed the Foundation Degree in Payroll Management.
On 20 November, policy lead, Samantha O'Sullivan attended Parliament to give oral evidence in relation to the impact of HM Revenue and Customs' (HMRC's) intentions to collect more granular data on employee hours worked through payroll. Samantha was asked specifically what the impact would be on payroll providers, given that the CIPP hosted two separate think tanks with HMRC to show how different the effects would be for payroll departments working in-house and those providing payroll as a service. This was a great opportunity for the CIPP to represent the voice of payroll professionals working across all environments, directly to government. Events November saw the first King’s speech followed by the autumn statement 2023. The team were kept busy ensuring both CIPP members and the wider payroll community were aware of the important changes announced that could impact the payroll industry. Updates were shared live via our news page and social media platforms. The team also put together an informative webcast. Our hot topic article this issue also provides a rundown of
Be in the know (BeKnowledgeable!) and get connecting (BeConnected!) Lora kicked off the latest BeKnowledgable series last month, focussing on the ‘policy team’s key findings’. This session discussed the key findings from 2023, shedding light on some interesting facts and areas to concentrate on from our Payslip Statistics Survey 2023 and Benchmarking Survey 2023 reports. The session was designed to help members upskill on the key areas in which non- compliance can occur. It's also that time of year where you should prepare to BeConnected! These special events kick-off in Birmingham on 7 February 2024, so don’t miss out and book your place now: https:// ow.ly/8bEq50Q50YY. n
l practical sessions on software enhancements and processes
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 6
MY CIPP
Spotlight on...
Sarah Jones BA (Hons) ACIPP, events manager Rachel Wheeler ACIPP, events and training executive Capr é ce Johnson ACIPP, events and training co-ordinator Nell Dare BA (Hons) ACIPP, events and training administrator The events team
Can you describe the events team for us, so who are they, what do they do and what are their backgrounds? Sarah Jones is the events manager and is responsible for delivering all the CIPP events with the support of the events and training team: Rachel Wheeler, Capréce Johnson and Nell Dare. Rachel is our events and training executive and works with our sponsors for online and face-to-face events. She also works closely with our trainers on the training courses the CIPP delivers. Capréce, our events and training co- ordinator leads on booking venues for the education services department, as well as coordinating the speakers for our Annual Conference and Exhibition. Nell, our events and training administrator works within the training team and processes bookings and invoices, while handling day-to-day enquiries. For events, Nell leads on the administration, as well as liaising with
external suppliers to order merchandise and putting the finishing touches to events, such as ordering decorative table centres and chairs. What are the main priorities of your roles and how do they fit together? We’re a small but busy team. We all have our areas to lead on: l Sarah on strategy and scheduling l Rachel on training and sponsorship l Capréce and Nell on day-to-day co-ordination and administration. However, we all work closely together and help one another. Overall, our priority as a team is to ensure that anyone who attends a CIPP event or training course has a great and enjoyable experience. What skills does an events team member need? What skills doesn’t an events team member need is probably an easier question to answer! There are a variety
of qualities we need to possess, but the most important ones are probably that we must be extremely organised, have great attention to detail and must work together collaboratively, both as a team and with the wider organisation. We’re essentially the face of the CIPP at events, so we must be resilient and prepared to resolve any issues that could arise. With the CIPP hosting events throughout the year, which is each of your favourites to run and attend? A unanimous vote on this one: the Annual Conference and Exhibition, and the Annual Excellence Awards! Although they are the hardest to organise, the buzz at the events and seeing everyone enjoying all the hard work we have put in makes all that hard work more than worthwhile. The glitz and glamour of the Annual Excellence Awards is unparalleled, and along with the great atmosphere of the evening, this makes us all really proud of the work we do. n
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
PAYROLL news
HM Revenue and Customs (HMRC) update on the National Insurance contributions (NICs) treatment of relevant motoring expenditure (RME) IN ISSUE 114 of HMRC’s Agent Update , there was an update on the NICs treatment of RME, following the outcome of a recent Upper Tribunal decision. The update can be accessed here: https://ow.ly/ kEmh50Q8hU5. This is a subject that was discussed in the ‘hot topic’ article seen in the November issue of Professional magazine: ow.ly/RqZa50Q8iO8.
Where employees drive their own vehicle for work, relief from tax and a disregard from class 1 NICs can be applied to any business miles which have been driven. To qualify for the NICs disregard, the use of the vehicle must be classed as RME. In the case of Wilmott Dixon and Laing O’Rourke (which HMRC lost), it was determined that the type of payments which can be deemed as coming under the definition of RME is much broader than previously proposed by HMRC. It was found that it’s not just payments which relate to the actual use of the car but also those associated with the potential use of the car too. This has a subsequent impact on those in receipt of fixed sum car allowances, which centre on anticipated use of a qualifying vehicle. These types of payment could potentially benefit from a higher amount of disregard as the amounts classed as RME could be higher. We now see the following situation arising – where NICs have been applied to car allowance payments for previous periods, where they shouldn’t have been, a refund of those overpaid NICs can be claimed. All existing rules apply in terms of making a successful claim, and evidence must be provided to demonstrated quantified and evidenced business miles driven. Please note, there’s no disregard available on payments made within the definition of RME if salary has been sacrificed from an individual’s pay. HMRC guidance on this topic is currently being updated. The Agent Update contains additional information regarding how to claim refunds for both employers and employees.
Prepare for Transfer of Undertakings (Protection of Employment) (TUPE) changes WITHIN THE Department for Business and Trade’s response to the EU Retained Law consultation was an update on changes to how we deal with TUPE for small businesses and very small transfers. See the response here: https://ow.ly/xKuy50Q8ifJ. The draft regulations propose that these new rules would impact transfers taking place on or after 1 July 2024. Find the regulations here: https://ow.ly/UFRG50Q8igV.
“The government will proceed with the planned reforms to the TUPE consultation requirements. These reforms will allow small businesses (with fewer than 50 employees) and businesses of any size undertaking a small transfer (of fewer than 10 employees) to consult directly with their employees if there are no existing worker representatives in place.” These changes are permissive only; businesses will still have the choice to elect and consult with a worker representative if they would prefer to do so. All existing protections for discrimination stay in place and so employers must still conduct individual consultations with the same care and consideration as normal.
Diary dates
Last day for submitting a real time information employer payment summary to apply to tax month 8 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 December
22 December 25 December
Merry Christmas! Happy new year!
1 January 5 January 6 January
Last day of tax month 9 First day of tax month 10
Last day for submitting a real time information employer payment summary to apply to tax month 9 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 January
22 January 5 February 6 February
Last day of tax month 10 First day of tax month 11
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 8
MY CIPP
Step into a sustainable Christmas
Laura Bate ACIPP, business support executive, the CIPP, provides information on how we can all do our part to help to save our planet this festive season
T his time of year can be challenging for all of us. Gifting eco-friendly items and cooking organically may not be a priority. However, there are small but wonderful changes you could make to help our planet.
reduces your carbon emissions by emitting less pollution into the atmosphere. Many small businesses may sell handmade items and sometimes these can be personalised upon request, an extra magical touch for Christmas. “Gifting eco-friendly items and cooking organically may not be a priority. However, there are small but wonderful changes you could make to help our planet” Get creative this Christmas and make eco-friendly cards and decorations. Try to avoid using tinsel as it’s made from plastic. Alternatively, use the same tinsel annually to save it from being disposed of incorrectly, as marine life is already suffering from plastic particles being dumped into our seas. Creating paper chains, snowflakes or origami can bring families together and get them into the festive spirit, and can be recycled or saved for next year. Make sure your wrapping paper is recyclable. This is usually the paper without any shiny patterns or glitter. Try the scrunch test – if it scrunches, it’s recyclable! Consider saving your Christmas cards and reuse them to make gift tags. Attempt to avoid sticky tape, as this is made of plastic which can take years to decompose. There are alternative reusable options
to secure your wrapping paper, such as ribbon or string. You could use eco-friendly brown paper tape instead or reuse a box or bag from an item gifted to you. Remember to reuse your fake Christmas tree annually. If you need a new tree, consider buying a pre-loved one from an online marketplace. If you prefer a real Christmas tree, find a way to repurpose it. How to repurpose your real Christmas tree: l many councils run schemes for your tree to be turned into wood chippings, which are then used in local parks and green spaces l bind your tree’s branches and trunk together to place in your garden. With the sticks and branches bunched together, this makes a great spot for invertebrates to shelter l use your tree’s needles for blueberries, rhododendrons, azaleas, camelias and heathers l use your tree’s trunk to support climbing plants in spring l charity recycling schemes – tree collections in exchange for a donation l garden waste recycling bins – carefully cut down your tree to fit in your garden waste bin. CIPP update We’re continuously researching and finding ways to reduce our carbon emissions by educating employees to improve their practices. This month, we will find out who has made the most improvement from March 2023 for their own, individual carbon emissions. Have a fantastic Christmas and see what adjustments you could make for a more sustainable season. n
Just how could you make a difference this year?
Look for gifts presented in recyclable materials or with less packaging. Many retailers are thinking of greener alternatives and some packaging can be planted. It may also contain seeds to improve our biodiversity. Lots of food is wasted over Christmas, so plan your meals and understand the quantity of each product before you shop. Buying local will make a positive impact on your food miles. At local markets, you can usually avoid plastic-wrapped fruit and vegetables. Another option is arranging a local delivery of plastic-free goods, including wonky-looking vegetables which haven’t made the supermarket shelves. Try to purchase organic produce as fewer chemicals have been used. Making a couple of switches could make a big impact on our wildlife. Stay sustainable and consider quality over quantity or buy items with multiple uses. A trip to your local charity shop may not be on your Christmas list. However, buying second hand will help, not only by giving something back to the community but also by reducing the amount of waste being thrown into landfill. You could purchase a second-hand high-quality product to be upcycled and gifted as ‘new’ again. Buy from local sellers as they’re less likely to produce excessive waste, which is damaging to our environment. Buying local
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
How do you treat e-vouchers and NI purposes?
Rules surrounding making deductions from tax refunds Q: An employee has gone absent without leave, with office equipment. Can I deduct the value from a tax refund? A: Yes, you can as tax refunds aren’t considered wages under the unlawful deduction of wages section of the Employment Rights Act 1996. Therefore, you wouldn’t need the employee’s written permission to make the deduction. But of course, it would be wise to write to the employee informing them of what has happened.
September 2023 and has been overpaid for the period of 26-30 September, due to late notification. They have an electric vehicle, processed as a BIK and the vehicle hasn’t been picked up yet. Should the reporting of the BIK of the car have stopped on 25 September since they left employment, or it will continue until the vehicle is picked up in October? I need the information to complete the reversal of the September payslip. A: The BIK actually continues until the vehicle is picked up by your organisation or is otherwise returned by the employee. It’s quite common for BIKs to continue for a while after an employee’s leaving date. The end date for the BIK is when the benefit is no longer made available to the employee. Reporting a BIK for a hire care Q: An employee unfortunately had their company car stolen, so it was therefore unavailable for a period of time. The employee believes there should be no reportable benefit for that period, but they did have the use of a hire car while the company car was unavailable. A: The employee still had the use of a company car; even if it was just a hire vehicle. The hire vehicle should be reported for the duration of time it was in use. If the hire car has a lesser value for tax, the
employee may be taxed less, but it will still need reporting as a company car for the period the company car was out of action.
Are there rules around processing employees on payroll when they haven’t provided an NI number?
Employees who haven’t provided National Insurance (NI) numbers Q: There are employees on the payroll who haven’t provided their NI numbers. They’ve been contacted to ask for their NI numbers several times as they have been working with the company for just over a year, but they haven’t responded. What’s the next step? Is there any legal stance on employees working who haven’t provided an NI number? A: It’s not actually compulsory for an employer to record the NI numbers of their employees. However, do record them if
Should you report a BIK if an employee has left but still has use of an electric vehicle?
Reporting of benefits in kind (BIKs) once an employee has left Q: One of our employees left on 25
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 10
ONLINE LEARNING
POLICY HUB
Holiday pay and leave
you have them. HM Revenue and Customs (HMRC) can map their employee records to the corresponding taxpayer records so long as the following details are held: l employee’s full name l employee’s date of birth l the first two lines of the employee’s address. Qualifying years for the state pension Q: It’s my understanding that if you’ve been paid at 52 weeks x the lower earnings limit (LEL) over the year from one job, you’ll get a qualifying year for state pension. Directors pay their National Insurance contributions (NICs) on an annual earnings basis. So, for them, I assume they don’t need to be paid every month to qualify if over the course of the year, they’ve been paid at least the annual LEL? A: Yes, that’s essentially how it works for directors. So long as their annual NICable earnings are at or above the annual LEL, they’ll earn enough to get a qualifying year. Handling P45s when there’s been an overpayment to a leaver Q: A former employee was identified as having been overpaid after they left. We have calculated the amount of the overpayment and advised them; however, they have requested we send an amended P45 detailing what should have been paid. To date, they haven’t repaid the overpayment and subsequently, the P45 is currently correct. In situations such as this, should we wait to issue a corrected P45 until the overpayment has been repaid? A: HMRC has changed rules regarding overpayment recovery, as originally nothing could be corrected until the funds were repaid. However, if it’s an unintentional overpayment and there’s a recovery plan in place, the year-to-date (YTD) figures can What happens when a leaver has been overpaid, and incorrect figures have been provided on the P45?
be updated and a revised full payment submission (FPS) sent, even if the money hasn’t been paid back. A statement of earnings would then be issued or an adjusted payslip to reflect the correct payment figures. Once a P45 has been issued, it can’t be reprinted or amended, as the details will be sent to HMRC via the FPS. If the employee already has a P45 which has been given to a new employer, there’s no need to worry, as HMRC will send revised information to the new employer with the correct YTD details. This is unless the employee returns the original printed P45, but this is hard these days, as most P45s are on copied paper and not printed on HMRC stationery anymore. The statement of earnings shows the same information but cannot be used to reduce tax liability. Incorrect student loan plan type recorded Q: A new employee recently selected that they had a postgraduate loan, and that deductions were due to be taken through the payroll on their New Starter Checklist. Following the first deduction, a start notice from HMRC was received for a student loan plan type 2. The employee has contacted the Student Loans Company, and they should be repaying the student loan plan type 2, and not making repayments for a postgraduate loan, which the employee selected in error. Can we stop the postgraduate loan deductions before receiving the HMRC stop notice, and are we able to refund those deductions directly to the employee through the payroll? A: Once the New Starter Checklist has been completed, you’re obliged to continue operating any student loan or postgraduate loan deductions indicated as due by the employee until HMRC tells you otherwise. So, although it may seem silly, you must continue operating these postgraduate loan deductions until you receive a PGL2 notice from HMRC. Do implore your employee to contact HMRC to issue one. You cannot refund any postgraduate loan deductions without a written instruction from HMRC to do so. Such instructions can be issued, but they’re not common. What’s far more likely is that the Student Loans Company will refund the erroneous deductions directly back to the employee. n
Duration One half day
CPD 3 points
Case law continually produces changes to employees’ statutory holiday leave and pay entitlement, which are covered in this informative course, along with the various types of leave and the calculation of pay.
Visit cipp.org.uk/training to book your place
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
GRADUATION
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| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 86 12
GRADUATION
Congratulations to our 2023 graduates
FOUNDATION DEGREE IN PAYROLL MANAGEMENT
Katy Adams Akeem Akinkunmi Samuel Alabaster Kirsteen Algie Ana Andronie Jasmine Ayres Andrew Baines Caroline Ball Alexandra Baugh
Lauren Ferguson Agnieszka Fox Karina Furmanek
Magdalena Kordiaka Ewelina Kordyaczny Kapil Kumar
Wendy Robinson Tammy Robinson Emma Russell Rebecca Russell Danielle Sharpe
Kyra George Amanda Goff
Katarzyna Kurek Karolina Kurkus Leanne Leech Wiktoria Lis Sona Maharjan Kamila Marik Emma Marshall Sally Mason Stephanie Massingham Jane McDaid Alida McLaughlin Alison McLean Sandra Mosquera Rodriguez
Chrystal Green Katharine Green
Kevin Sheath Mark Shipton Eleanor Kim Simpson Sion Smith Joanna Sprules
John Gregson Kim Harcombe Caroline Harris Danielle Harris Kevin Hart Bryony Harvey-Woodworth Emily Hatch Sara Hawkins
Melissa Bayley Luke Beaumont George Bellars Sarah Bellis Rachel Beswick Dirceu Bernardes Filho Terri Bethel Sianah Bland Jessica Briggs Matt Burnett Michaela Burton Tanya Burton Audrey Campbell Tyler Carridge Sam Carruthers Luann Charles-Sononga
Sarah Steers Robert Stent
Ashleigh Strong Natalie Summers Clare Thornborough Ben Trivette Nicola Turner Deimante Tyleniene Aiman Umme Anna Uniwersal-Mrozek
Margaret Hayde Molly Heselton Ian Hinchley Joshua Holbrough Jessica Holland Melissa Howard Steven Howes Carla Hudson Amy Hughes Chelsea Hughes Lorraine Hughes Terri Hutchinson Ioana Iorga Anna Isherwood Alexandra Jackson Julie Anne Jackson Patrice Jean-Charles Mark Jenkins Emma John Rhiannon Jones Zara Jordan
Lora Murphy Ellie Murphy Laura Nairn Stephen Newnes Yuen Ng Malin Nordstrom Sophie Northfield Tabitha O’Brart Megan O’Neill Holly O’Toole Dominik Ostasz James Palmer Rochelle Pamplin Donald Patterson Nicola Peña Debbie Perry Thomas Pick Holly Powell Sandra Prosper Joshua Raxworthy Helen Richmond
Gemma Walker Hayley Walker Ian Warburton Louise Ward Frances Warren Emma Watson Francesca Watts Lorna Williams
Natalie Cox Jenny Craigs Rochelle Crisp Benjamin Crowe Emma Cudmore Kajal D’Souza Samantha Day
Samantha Wilson Maisie Wiseman Gemma Leigh Wood Holly Wright
Kerry Dee Amy Dent Kimberley Dunthorne Danielle Dutton
Keisha Wright Linda Wright
Posthumous award Daryl Marshall
Rachel Fawke Megan Fenn Ashley Fennell
Emma Keech Sumbal Khan Lingyi Kong
Lucy Roberts Amy Roberts
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
GRADUATION
Congratulations to our 2023 graduates
FOUNDATION DEGREE IN PENSIONS ADMINISTRATION AND MANAGEMENT
Xaviah Bailey-Bell Joanne Berry Sean Morland Ezra Payne
Toni Pickering Richard Quinn Alexandra Ridgway Fay Parsons
Georgia Taylor Lesley Thomas Laura Tilley Angharad Williams
BA (HONS) BUSINESS MANAGEMENT
Kerrie Given
Melanie McGrory
MSC IN STRATEGIC LEADERSHIP
Lisa Woolford
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 14
GRADUATION
2023 award winners
Foundation Degree in Payroll Management Student of the year award 2023
Awarded to: Karolina Kurkus
Nominated by: Julie Aghanti-Akinremi, CIPP tutor, MBA BSc FCIPPdip FCMI MGPA MInstLM AFHEA
For the Foundation Degree in Payroll Management student of the year award, tutors are asked to nominate one of their students whom, in their opinion, warrants the award.
The student does not have to be an straight A-grade student, but they might have overcome work or personal issues to continue their studies. It was a great privilege for the nomination committee to read the nominations and they were simultaneously enlightened and humbled by each one. They have no doubt in their minds that each nominated person will go on to great things and will exceed even their own expectations. “Graduating from the course felt like a great accomplishment in itself, but being recognised as the student of the year is an honour I did not even dare dreaming of. I feel humbled by this award, and I am very grateful for the opportunities it stands for. I am incredibly appreciative of my tutors and the education team at CIPP who supported me throughout this journey.”
Foundation Degree in Payroll Management Best work-based project award 2023
Awarded to: Emma Keech
Nominated by: Ray Ronnpage, CIPP tutor, MCIPPdip
Over the years, Foundation Degree students have produced work-based projects with great enthusiasm and dedication. And this year was no exception.
The student work-based project is based on real life issues faced by their organisations and is probably the biggest piece of written work the students have ever done. It is designed to challenge them. The project requires a great deal of academic research, studying, time and determination to manage that task.
Foundation Degree in Pensions Administration and Management Student of the year award 2023
Awarded to: Toni Pickering Nominated by: Mike Hollingsworth, CIPP tutor, MCIPPdip
The recipient of this year’s award participated knowledgably, throughout the course, applying themselves extremely well and delivering consistently high-quality work. They showed commitment to their studies with excellent attendance at module review days and tutorials, and always provided valuable contributions.
“I was very surprised but very pleased at the same time. As I just had a baby, I didn’t want to defer so I am proud of myself for completing.”
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
GRADUATION
2023 award winners
Foundation Degree in Pensions Administration and Management Best work-based project award 2023
Awarded to: Xaviah Bailey-Bell
Nominated by: Mike Hollingsworth MCIPPdip, CIPP tutor
Numerous work-based projects have been submitted by pension students over the years which display passion and clear aptitude. And this year was no exception,
with students producing some excellent work. The work-based project highlights the pivotal role the pensions professional plays in the effective administration of a scheme and furthermore, how the management of sound administration leads to effective member engagement. “Firstly, I was very surprised to have received this award. I’d like to thank my family, friends, tutors and of course my colleagues for all the support throughout this project. Overall, I thought the course was very useful and came at the right time as I was promoted at the beginning of the course and completing it has given me the confirmation that I can do my job effectively.”
BA (Hons) Business Management Best independent research project award 2023
Awarded to: Melanie McGrory
Nominated by: Brenda Pearson, University of Lincoln
The independent research project provides students the opportunity to apply, integrate and deepen the knowledge, insights and skills learnt throughout their programme of study, demonstrating their capacity to work on a major project, through real-world issues.
(Collected on behalf of Melanie McGrory)
MSc in Strategic Leadership Michelle Crook award for best dissertation
Awarded to: Lisa Woolford
Nominated by: Kate Broadhurst, Loughborough University
The Master of Science (MSc) in Strategic Leadership is a challenging three year-course, which covers the areas of leading change, decision making, managing and leading people, governance and transparency, enterprise and innovation and managing risk.
(Collected on behalf of Lisa Woolford)
Delivering the business project in the final year of study is a demanding and in-depth piece of work which requires extensive commitment, and this award recognise the extensive work and effort the winner put into this.
| Professional in Payroll, Pensions and Reward | December 2023 - January 2024 | Issue 96 16
GRADUATION
Posthumous award Daryl Marshall started the CIPP Foundation Degree in spring 2019 and entered his final year in autumn 2022. Daryl had a real passion and excitement for payroll. In the May issue of Professional magazine, Daryl’s husband, Ben wrote: “His goals for the coming year were to be fluent in French and gain experience of international payroll. This would enable him to live his dream of working from his desk anywhere in the world.” Daryl was a determined and committed student who was admired and respected by his tutors and fellow students. Sadly, Daryl passed away on 26 March 2023. His husband, Ben applied for this award to be granted, and the CIPP is honoured to award this posthumous Foundation Degree in Payroll Management in Daryl’s name in recognition of the commitment and passion he had for this industry.
Thank you to our CIPP tutors, invidulators and moderators
Sunmola Adeyemo MCIPPdip Julie Aghanti-Akinremi MBA FCIPPdip MCMI MGPA MInstLM AFHEA Rachel Akister ChFCIPPdip Mike Aldous MCIPPdip AFHEA Amanda Anastacio MCIPPdip Anne Anderson MCIPPdip Mark Astill MCIPP Alister Baldwin MCIPPdip Denise Brown MCIPPdip Diana Bruce MCIPPdip Lee Clayburn MCIPPdip Patricia Conway MSc, FCIPP Paul Cooper MCIPPdip Donna Day MCIPPdip Sarel Daysh MSc ChFCIPP Dawn Gibbons MCIPPdip Sonia Grant MCIPPdip Toni Green MCIPPdip Steve Harford MSc FCIPP Ros Hendren MSc, CMgr FCMI dip, FCIPPdip, FHEA Stephen Hendren MCIPPdip
Michael Hollingsworth MCIPPdip (pensions) Dianne Hoodless MSc ChFCIPP FHEA Diane Humphrey MCIPPdip Samantha Johnson LLB (Hons) ChMCIPPdip Ana Laiu MSc FCIPPdip Christine Lane BA (Hons) FCIPPdip Sandra Lingwood MCIPPdip AFHEA Jacqueline Milward MCIPPdip
Linda Shotton MSc FCIPPdip Assoc CIPD Lesley Sinclair MCIPPdip Polly Sinclair MSc FCIPPdip MSET
Cathy Smith MSc FCIPP Fiona Smith MCIPPdip Stacy Standen MCIPPdip Pete Statham MSc FCIPP Diane Stevenson MCIPP Michelle Sutton MCIPPdip Lisa Thomas MCIPPdip
Michael Mullen MCIPPdip Andrea Musson MCIPPdip Julie Northover ChFCIPPdip Steve O’Reilly MSc FCIPP Vivien Piper MCIPPdip Dino Pistacchio MCIPPdip Denise Pursey MCIPPdip
Theresa Waddingham MCIPPdip Ian Walters MSc ChFCIPP FHEA
Alison Ward MSc FCIPP Tracy Ward MCIPPdip
Vicky Ward FCIPPdip Zsofia Ward MCIPPdip Clare Warrington MSc FCIPPdip AFHEA Julia Watkin MSc FCIPPdip Karl White MCIPPdip (pensions)
Devila Rabadia BA (Hons) FCIPPdip Andrea Roe MCIPPdip (pensions) Raymond Rönnpage MCIPPdip Jim Ross MSc FCIPP Hayley Ryder BA (Hons) FCIPPdip Jake Shergold MCIPPdip
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| Professional in Payroll, Pensions and Reward |
Issue 96 | December 2023 - January 2024
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