Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 35 November 2017
Individual Chartered Status is here
Following the rules Professional embodiment of compliance
CCV v TFC – Who wins? It’s in your hands
CIPP 2017 survey Institute embraces membership’s views
CIPP update | Policy hub | Professional development
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“You are remembered for the rules you break.” Douglas Macarthur (1880-1964)
The feature article topic this issue is compliance, which is a subject that
‘C’). Searching online (see http://bit.ly/2gmJx88) reminded me that ‘compliance’ is “the factor of structure, detail and fact, and those displaying high levels are interested in precision and accuracy… [and] because of their inherent desire for fact and detail, it is also common to find that compliant styles have a relatively broad general knowledge, or specific knowledge or skills. This interest in the way things work means that compliant individuals are often drawn to technical work, or jobs involving the organisation of information, situations in which their personal talents can come to the fore.” Does this describe you? Is high compliance typical and essential in payroll and pension professionals?
fascinates and probably propels me. In the pages ahead, you’ll find many articles covering compliance. Surely, compliance rules our personal and
professional lives? It’s impossible to imagine payroll or pensions work without rules. The source of these rules is, for example, legislation, terms and conditions of employment, memoranda, trusts, agreements and so on. Are payroll and pensions professionals subject to more rules than those engaged in other fields? Indeed, I’ve often wondered whether the ‘compliance’ aspect of the payroll and pensions profession attracts those with a particular personality quality. When mentally sketching this piece, I remembered taking a personality test some years ago (which, incidentally, proved positive) and learning that I have a high compliance factor (a big
Mike Nicholas MCIPP AMBCS Editor
What an exciting few weeks we’ve had recently with our Annual Conference at the Celtic Manor Resort where we learned and shared with hundreds of payroll and pensions professionals from
members the importance of logging and maintaining your credits for your continuing professional development (CPD) to maintain your membership, whatever the level. It’s an exciting time for the CIPP and its members, and I’m asking that all our members continue to get involved, continue to take interest and help shape and drive our Chartered Institute over the coming months. I look forward to seeing a record number of votes for the annual general meeting taking place on 5 December and, following on from that, welcoming the new members to the CIPP board.
around the world. I was absolutely privileged to honour some of the best payroll and pensions colleagues in our awards ceremony with honorary fellowships and lifetime achievements, including a posthumous award to our late colleague, Michelle Crook. Her husband Rob was presented with the Lifetime Achievement Award for payroll on her behalf. It was Michelle’s drive and passion during her tenure on the CIPP board of directors that helped us realise the potential of our Royal Charter, and it was an honour to be able to launch ‘Individual Chartered Status’ (ICS) at this years conference. Applications are now open and I’d like to stress to all our
Eira Hammond FCIPPdip Chair, CIPP
Our very busy autumn season continues after a very successful Annual Conference and Excellence Awards ceremony at the Celtic Manor Resort. If you attended I hope you took full advantage CEO’s message
members meeting the necessary criteria. During the summer, this has been promoted during our National Forums, attended by close to 1,000 members, and was very positively received. Applications are now being taken and full details can be found on the CIPP website. We look forward to welcoming our first Chartered Members over the coming months, and this is a real step forward for our industry. And last, but not least, November is a further time for celebration as we hold our Graduation Ceremony for those who have successfully completed our university approved qualifications.
of all the workshops and plenary sessions and took away some knowledge and information to help in the ‘day job’. We continue to keep abreast of legislative changes so keep an eye online and in the prospectus for training courses you can attend to ensure your knowledge and skills are maintained and reflected in your CPD log. As usual, an excellent Awards ceremony took place and the CIPP congratulates all the worthy winners – how good it is to celebrate their success! A supplement from the Annual Conference and Excellence Awards is provided as an insert in this month’s magazine. An exciting announcement was made at our Annual Conference regarding the launch of Individual Chartered Status (ICS) for
Ken Pullar FCIPP Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward |
Issue 35 | November 2017
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
CCV v TFC – Who wins?
Jonathan Watts-Lay provides examples and calculations
Private use of assets (revisited) Peter Minchinton revisits use of vehicles by the emergency services
Rounding reminder Terri Bethel explains why rounding is important and reviews rules
Caught in the Act Jonathan P Preshaw outlines new challenges and a criminal offence
Achieving good pension outcomes Alan Morahan looks at achievement of retirement dreams
‘Pension reshaping’ Henry Tapper contends that proposals spell trouble
Irish PAYE modernisation Rachel Mapleston discusses changes to emulate the UK’s RTI
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 2
Editor Mike Nicholas 01273 412 836 | email@example.com Advertising Jill Bonehill 0121 712 1033 | firstname.lastname@example.org Design James Bartlett and Nicole Gumery email@example.com Printing Warwick Printing Company Ltd
Employees with premature or sick babies Danny Done reviews some of the proposals
Burnout – fire you need to put out Iain McMath discusses the issues and advises best practice
Chief executive officer Ken Pullar FCIPP CIPP board of directors
Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT
Ignorantia juris non excusat – Excuse me!? Lisa Gillespie reveals extent and costs of non-compliance
Following the rules Kavitha Sivasubramaniam discusses the important issue of compliance
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NMW compliance Jeni Morris reveals HMRC is targeting large companies
01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight 11 CIPP update 12 Professional development Diary of a student, Individual Chartered Status is here Events, news and developments On your behalf, Advisory, Five minutes with, CIPP 2017 survey
27 Pensions news 28 Events Horizon 29 Reward news 30 Reward insight 40 Feature articles Compliance 54 Confessions of a payroll manager
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14 Payroll news 15 Payroll insight 22 Industry news 23 Pensions insight
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2017. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Additional online content 20 Payroll treatment of back-pay 38 Does passive resistance stand in the way of payroll giving? 46 It's all about compliance
| Professional in Payroll, Pensions and Reward |
Issue 35 | November 2017
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update on OpRA and HMRC’s EPG consultation forum
Optional remuneration arrangements
accommodation. For the purposes of the benefits code, a benefit is provided under an OpRA if it is provided under an arrangement of either type A or B; so, it isn’t just salary sacrifice that is captured. The benefits code has been revised so that the employee is taxed on whichever value is the higher of the cash or the benefit. However, where an employee receives, say, a car allowance but there is no option to receive a company car, the employee is taxed on the car allowance; cash is cash, and you process as you would have pre- April 2017. There are four specific exemptions where the rules haven’t changed: ● pensions ● childcare ● cycle to work ● ultra-low emission vehicles. These are the politically astute exceptions so employees get to keep the tax and NICs breaks on those. Transitional provisions (also known as ‘grandfathering’) were brought in for arrangements in place before 6 April 2017, which means the new rules for
these arrangements will take effect from 6 April 2018 for all benefits except cars with CO2 emissions of 76 grams per kilometre and above, employer-provided living accommodation, and school fees. The old rules will continue to apply for these three types of benefit until 6 April 2021. Payrolling A few months ago, we were made aware of an issue regarding OpRAs when combined with voluntary payrolling. This emerged during a HM Revenue & Customs (HMRC) webinar for agents on employee expenses and benefits. The presenter simply stated that benefits provided via an OpRA could not be payrolled from 6 April 2017, even if the employer was registered to do so, and the benefits had been payrolled for the previous year. Research uncovered that this was due to defects in the legislation that introduced payrolling. The law does not refer to the appropriate calculation, introduced from 6 April 2017, for some benefits and some individuals who receive BiKs from their employer via type A or type B OpRAs. Because of the glitch in the regulations, employers who were payrolling benefits covered by OpRA were still required to submit a P11D return, which of course defeats one of the benefits of voluntary payrolling – i.e. no P11D submission.
The legislation on optional remuneration arrangements (OpRA), which came into effect from 6 April 2017, is essentially the government’s way of trying to remove some of the previous tax and National Insurance contributions (NICs) breaks which came about when salary sacrifice was used to pay for benefits in kind (BiKs). Although the legislation has been in place since April there are still payroll professionals among us who do not think the changes apply to them as they don’t operate salary sacrifice schemes. If this applies to you, please read on because, although salary sacrifice is very much still with us, there are two types of ‘arrangement’ that come under OpRA legislation: ● Type A – this is where an employee gives up cash earnings in exchange for a BiK, which is what employers have regarded as typical salary sacrifices ● Type B – this is where an employee chooses a benefit rather than a cash allowance, such as a car or living
...the new rules for these arrangements will take effect from 6 April 2018...
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 4
Employment and Payroll Group The Employment and Payroll Group (EPG) is HMRC’s principal formal consultation forum for employers, employment taxes and wider payroll obligations and is co-chaired by the Chartered Institute of Payroll Professionals, namely Helen Hargreaves, associate director of policy & membership. ...designed with customer input, and explained so that customers understand what is required... The forum members work with HMRC to help identify issues and concerns and it provides the opportunity for early review of guidance, policies and processes to ensure they are designed with customer input, and explained so that customers understand what is required of them. Though the EPG meet on a quarterly basis, the June meeting was cancelled due to the general election and purdah
Due to this issue, HMRC introduced a concession for those payrolling during 2017/18 whereby, as long as the employer has payrolled the correct cash equivalent value of the benefits (according to 2017/18 rules), the employer will not have to provide a P11D return in respect of these BiKs in July 2018. Guidance and forms HMRC has provided lots of examples in its Employment Income Manual at EIM44000 (http://bit.ly/2xTFxX9). There is also HMRC’s Booklet 480 – Expenses and benefits tax guide (http:// bit.ly/1JJUdUs) and online guidance ‘Salary sacrifice for employers’ (http:// bit.ly/1UPWLs3) which have both been updated to reflect the changes under OpRA. HMRC has not updated the P46(Car) return for in-year reporting and you should continue to use the existing form. Employees who need to pay more tax can either contact HMRC or wait for the normal P11D return process to pick up any corrections after the end of the tax year. The P11D return for 2017/18 will include the ‘relevant amount’ which is the greater of value and amount foregone.
restrictions. The group met early in September and topics under discussion included: ● off-payroll working in the public sector ● optional remuneration arrangements and payrolling of benefits ● taxation of employee expenses – call for evidence ● making tax digital for business ● making tax digital for individuals ● simple assessment ● dynamic coding ● PAYE (pay as you earn) settlement agreement simplification ● agent authorisation. The detail of what is discussed within EPG is confidential until the minutes are formally published. We will let you know through News On Line as soon as the minutes become available. Minutes of previous meetings are available on GOV.UK at https:// goo.gl/8aSWi6. n The next EPG meeting is scheduled for 6 December 2017. If you have any agenda items, or any issues you would like us to raise on your behalf, then please email details to us at firstname.lastname@example.org with ‘EPG’ in the subject box.
General data protection regulation
Covering the EU’s General Data Protection Regulation (GDPR), which will be implemented in the UK in May 2018, updates the provisions of the Data Protection Act 1998 (DPA).
This course covers: ● The Data Protection Act ● The General Data Protection Regulation ● Definition differences ● Lawful processing ● Implications for payroll and HR ● Preparing for the GDPR ● Plus much more
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| Professional in Payroll, Pensions and Reward |
Issue 35 | November 2017
tax purposes. There would be a reporting requirement if the loan (together with any other loans the employee has with the employer) was above £10,000.00. GOV.UK provides guidance regarding an employer paying their employee’s company credit card debt which can be found here: https://goo.gl/FWyp3W. Q: A new employee is relocating their home which will be closer to the workplace. The total distance they will be relocating is 17.6 miles and the employee has requested the company pay some of the cost of relocating. Is there a minimum distance that an employee has to move so that an employer can pay an employee relocation costs which would be exempt from tax and NICs? A: It is up to the employer to decide whether they want to assist an employee financially to relocate nearer the workplace. However, the employer has to ensure that they comply with the benefits code set out in the Income Tax (Earnings and Pensions) Act 2003 and treat any financial assistance in the correct manner. Unfortunately, there is nothing in legislation which categorically states a set distance when it comes to the exemption for relocation when an employee moves to a new home nearer to a new work location. It is what would be deemed as unreasonable daily travelling distance between the new workplace and the new residence; as compared to the daily travelling between the new workplace and the old residence. If the employer decides to give the package to the employee, but believes that the distance would not be considered exempt, then it should be reported in a P11D return. Guidance can be found in HMRC’s Employment Income Manual at https://goo.gl/VdCW4X. Q: An employee has said he has more than one job with different companies. As the collective earnings are well over the threshold for Class 1 NICs he believes that he has paid too much primary (employee) NICs and is due a refund from us for the previous (i.e. 2016/17) tax year. He wants the company to repay the excess Class NICs to him. Is he correct? A: From the information provided the employee is referring to deferment of
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Q: We have an employee who was made redundant on 13 April. On 23 April, he put in a statutory paternity leave request to take two weeks of paternity leave from 1 August. As he is no longer employed, does he still have a right to payment for time off and do we still need to pay this as a payment after leaving? A: One of the conditions of taking statutory paternity leave (SPL) and statutory paternity (SPP) is that the person is still employed by the same employer up to and into the time of taking SPL. So, as the employment ceased in April there is no entitlement to SPP or SPL now. GOV. UK has links to HM Revenue & Customs’ (HMRC’s) Statutory Payments Manual . This link confirms that the individual would need to be employed by the company to be eligible for SPL and SPP: https://goo. gl/k7SNQ5. Q: I have a query relating to the BACS hash in the full payment submission. We capture the employees’ net pay from a payroll report and process net amounts as bulk for over a thousand employees. Our bank credits the net amount to the individual’s bank account. Please can you tell me whether there is a compulsory requirement for BACS hash? A: You would only have to generate a hash cross-reference if the employer was paying the employees from the employer’s company bank account which has a BACS Service User Number (SUN). Additionally, employers who use extended transmission service or SwiftNet
transmission service, would also generate a hash cross-reference. If the employer uses another method of payment (other than those mentioned previously), then as the guidance suggests, you don’t generate a hash. GOV.UK guidance, which can be accessed using the links below, relate directly to HMRC’s requirements regarding the hash cross-reference and the data item guide for real time information (RTI): ● https://goo.gl/pVmZn7 – this provides general information and gives guidance on when to use the hash cross-reference ● https://goo.gl/cY3Vgs – this is a list of the data items used in RTI; please view item 118. Q: An employee has a corporate credit card bill consisting of personal items that he is currently repaying to the credit card company in instalments. Due to internal company year-end, the finance team are keen to get this credit card debt paid in full. The plan is for the employer to pay the balance on his behalf and set up a loan repayment plan with the employee. What are the ramifications in regard to tax implications? Would this be deemed as a benefit in kind and should the payment be grossed up or reported in a P11D return? A: Paying off the credit card bill that the employee has run up will mean the employee has had a benefit, and one that would attract Class 1 National Insurance contributions (NICs) liability so you would need to process that part through the payroll, and record in a P11D return for
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 6
The ex-employee is requesting a P60 certificate for the 2016/17 tax year, but should we provide one? A: The employer cannot issue a P60 certificate to this ex-employee as they received a P45 in November 2015. Indeed, the employer could not issue a P60 certificate for either the 2015/16 or 2016/17 tax years. The reason is because one of the conditions to issue the P60 is that the employee is still in the employment on 5 April. As the payments of bonuses were made after the form P45 was issued the employer should have operated tax code 0T on a non-cumulative basis, and reported in the FPS that payments were being made after leaving. If a pay slip was sent to the ex-employee that should suffice as notification of earnings; however, the employer could provide the employee with a statement of earnings on company-headed notepaper as well. Q: If an employee is engaged under an apprenticeship contract would they be paid at the minimum rate of £3.40 regardless of their age? At the end of the apprenticeship would the national minimum wage (NMW) be paid until the employee reaches the age of 25 and then the national living wage (NLW) would kick in? A: It is up to the employer to decide what rate of pay they will pay the apprentice, but there is the minimum apprenticeship rate which they should not go below. If the apprentice is age nineteen or over in the first year of the apprenticeship they can be paid the national minimum apprenticeship rate, but after that first year the employer has to pay the apprentice the same NMW/NLW rate that is applicable to employees; i.e. if they are over 25 the NLW rate would be paid (which is £7.50 currently). This link to GOV.UK explains what rate should be paid: https://goo.gl/ tY5qbR. n
NICs. This is where the employee earns more than the upper earnings threshold (UET) in at least one of the jobs. The employee must apply for a form CA2700 from HMRC so that he will pay 2% on all earnings in the other employments. Where HMRC allow an employee to defer they will send form CA2700 to the relevant employer(s) – there could be more than one employer if the employee has several employments. If you do not hold a CA2700 for this employee then you cannot apply the deferment at this time. HMRC provide a guide for employees applying for a deferment, and on page two of the document it states that an employee would be too late to apply for a deferment if they were applying for a closed tax year. Therefore the employee would not be able to get a refund for tax refund from HMRC by writing to: National Insurance Contributions and Employers Office, HM Revenue and Customs, BX9 1BX. Guidance notes for employees who want to apply for deferment can be found at https://goo.gl/3tXVZ3. Q: Could you please advise me if a female partner is entitled to SPP and SPL if they don’t qualify for statutory adoption pay or leave because they are the egg donor? A: SPP and SPL is open to mixed or same sex couples. However, the partner would need to satisfy all conditions for SPP and SPL: ● she would need to be employed for at least twenty-six weeks up to and into the qualifying week ● be employed by the company up to date the child is born ● satisfy the earnings test of at least £113 per week in the relevant period and ● give the correct notice to take SPL. You can find guidance on the GOV.UK website here: https://goo.gl/k7SNQ5, to establish if your employee is eligible for SPP and SPL. Q: We have had an enquiry from a former employee who left the business in November 2015. They were given a form P45, but had bonus payments made to them over a twelve-month period ending in November 2016. year 2016/17 from the employer. The employee could apply for a
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Issue 35 | November 2017
| Professional in Payroll, Pensions and Reward |
CIPP 2017 survey
This article outlines some of the results of the membership survey the CIPP conducted earlier this year
A s a membership organisation, it is vital for the CIPP to monitor the level of service, and relevance of products that we provide our members. We are constantly asking for and responding to feedback throughout the year as you know, but once a year we conduct a nationwide survey to make sure that we capture your thoughts and ideas. Objectives Our main objectives of the 2017 survey were to measure customer satisfaction and evaluate the customer experience, review existing products, services and business areas to establish which the members value and where there is room for improvement in 2017/18. We use it to provide a ‘picture’ of our membership base and look in to the issues being faced within the industry in order to communicate more effectively, and to assist the CIPP management team and board with putting together 2017/18 business plans. Both CIPP members and non-members were invited to participate in the survey via multiple channels such as: News On Line , marketing emails, social media and the CIPP website. We are encouraged by the response with over 500 responses gathered, and we’ve seen a continued rise in the level of responses throughout the years. Demographics etc Of the respondents, 27% were male and 73% female, which is in keeping with previous years and the gender profiling typical of the industry. There was no bearing on positions in the organisation based on gender as both had a 35% majority in payroll manager roles. When asked about length of membership, 82% have been members for more than a year, with 17% having been members for three to four years. Of those who responded:
● payrolling and benefits in kind in general ● salary sacrifice ● implementing a new system ● working time regulations
● 95% are employed by an organisation ● 4% are self-employed ● 1% are split between unemployed, looking for work and retired. Consistent with previous surveys, 75% are working for organisations within which payroll is completed entirely in-house. As regards size of payrolls, there has been a growth in members with between 101 and 1,000 employees, making it overall similar to the largest sector of between 1,001 and 10,000 employees. (See Chart 1.) Growth in the lower end of the market seems to be a direct result of the introduction of complexities, especially with automatic enrolment and that we have been able to provide support in this area. When asked how many were in the payroll team, 74% stated between one and five individuals. Though 66% of respondents have job titles which are purely payroll, the response to indicate their primary profession were: ● 46% payroll ● 15% payroll and pensions (8% have ‘pensions’ in their job title) ● 13% payroll and human resources ● 10% payroll and finance ● 2% payroll and reward Some 15% of respondents stated that they are responsible for international payroll. There has been no notable change in the geographical split of respondents in our survey. (See Chart 2.) Key findings Many took the time to answer the questionnaire thoroughly, which enables us to gain a better understanding to the activities we can do to improve and enhance our service to members. We asked about the major issues that worry our members this year, and the key issues raised included: ● apprenticeship levy ● gender pay gap reporting ● automatic enrolment and re-enrolment
● real time information ● shared parental leave ● overpayments ● IR35 (intermediaries legislation). It is important to note, but not
unsurprising, that some of the top reasons for joining were keeping up to date with the latest happenings in the world of payroll and the advice and guidance our dedicated people within the CIPP can give. The quality of advice and guidance is something that the CIPP prides itself on and it is important to us that this is highly valued amongst our members. We heavily invest in this area of the CIPP to make sure that we remain current for our members. There were a few things that we did stop based on feedback from members. One item that was decided upon by members was the physical diaries. The people asking and using the diaries have been diminishing over the years; because of the reliance on electronic diaries nowadays has meant that the cost, environmental impact of printing and posting have been taken into consideration. Instead we can invest in better ways to improve our service to you. Because our main focus has always been the UK, we are also looking to work with other country membership bodies regarding international payroll. The relationship will be reciprocal as we will help them similarly with UK payroll matters. Other factors to mention include the friends of automatic enrolment has now been integrated into the special interest groups (SIGs). In response to the question “should payroll be a regulated profession”, three in four (75%) said yes. Comments here included the following: ● “I believe the importance and nature of the data payroll has to deal with should lead to regulation and formal standards.”
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 8
Are you new to payroll or use a payroll system and need to know how it works to be able to answer employee questions?
● “It is often part of the business that is paid little attention to by management but is so important a function that it should be regulated as the business will have to pay the cost if it goes wrong.” ● “As payroll is a very important part of any business only the best should be employed for such an exacting job.” Networking is important When it comes to our SIGs and our Linkedin community members forum on social networking, then it is important to note that people wanting to join these groups are pre-vetted by the CIPP before being allowed to join. We understand that being sold to on forums where people want to open-up and work through challenges as a professional community, is not good etiquette. So, we will always keep a watchful eye on threads to make sure that the Institute keeps a professional standard for the peace of mind of members. In reality, it is a close-knit community and we find that it is self-policing to a certain point, so any bad practice can be bought to our attention. Keeping up with change As we evolve to meet the demands of the payroll community, it is important we invest
in the latest forms of technology and keep up with the way people want to learn or consume information. For this reason, there is a big push on digital assets based on feedback from the respondents. We have already enhanced our online resource library as a result, so that members can access a whole wealth of information efficiently. Closing observations A huge thank you to all those who took the time to complete the membership questionnaire as we constantly review the results throughout the year to make sure that we are acting on your suggestions. I hope you’ll continue to support this yearly survey for the direct benefit for you and your fellow members. If you know someone who is working in and around the subject of payroll or indeed is considering entering a career then please encourage them to become a member. Supporting your profession directly helps you as a member, but is also helping aspiring payroll professionals of the future. As a growing community, our members are at the heart of everything we do and the CIPP can invest in the future of educating, training and supporting its members. So, please keep giving us feedback throughout the year, as we listen to every request. n
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Issue 35 | November 2017
| Professional in Payroll, Pensions and Reward |
5 minutes with…
Aleisha Spencer Events team leader
How healthy is your payroll?
Tell us about your career and background I joined the CIPP in February 2015 as a senior event coordinator having previously spent some time working as the events executive with a small employee benefits specialist. I started my career working as an administration apprentice within the events and training team for a Chamber of Commerce. Over the course of four years I worked my way up to a combined events management and advisor role where I supported members with advice at the events that the team and I delivered. I became the events team leader at CIPP in December 2016. Describe your role My role focuses on providing an events programme that allows CIPP members to network with other likeminded professionals along with learning about forthcoming industry changes. We work very closely with the CIPP’s policy and research team, to ensure we provide relevant and current content at our events. The events team plan, coordinate and manage all CIPP events including the member-only national forums, the graduation ceremony, budget update events and the prestigious Annual Conference and Excellence Awards Ceremony. I’m very passionate about providing CIPP members with the support they need to achieve their goals. Working in events is fantastic as I get to witness first-hand our members developing their knowledge, meet new people and gain new ideas and skills at our events. What does the role mean to you? I have always loved working in events, but there is something really special about working with payroll and pension professionals. It’s incredible to see our members benefit from the CIPP’s services,
but also to watch people discover CIPP and the benefits it can offer at our non-member events. What do you think you can bring to the future strategy of the CIPP? I strongly believe that the best way of improving future events at CIPP is by listening to our members. We constantly look at new ideas and ways to make each event better than the last and we pay attention to event feedback from delegates. This year we changed the format of the Annual Conference following delegates’ feedback, and have developed our Scottish National Conference to include a second workshop stream – small but constant improvements like these are what you should look out for in future. How do CIPP events support members? The industry is constantly changing and there are always impending legislative changes to contend with. The CIPP’s events programme is designed to support our members by providing them with legislation updates, delivered by industry experts who are there to answer questions and share experiences. The events provide a great opportunity to network and share ideas with other payroll and pension professionals. The National Forums are free-of-charge member-only events that run throughout the summer months. They are a great membership benefit for those holding an associate level membership and above. What do you do in your available time to unwind? I live in the countryside, so I love spending time with my family and walking my lovely (but often naughty) working cocker spaniel Ollie. I’ve also recently taken up baking and cake decorating, so I spend time practising and thinking of new ideas. n
Payroll Assurance Scheme
For more information visit cipp,org.uk or email email@example.com .
| Professional in Payroll, Pensions and Reward | XX
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 10
The CIPP’s Annual Excellence Awards 2017 – and the winners are... The CIPP’s Annual Excellence Awards recognise individuals and organisations in the industry who demonstrate payroll and/or pensions excellence, and their positive impact on the UK economy. This year’s Annual Excellence Awards took place at the Celtic Manor Resort, Newport, in the evening of Thursday 5 October. It was an emotional event, culminating in a moving tribute to Michelle Crook, deceased, delivered by the Institute’s chair Eira Hammond.
THE CIPP PAYROLL TEMP OF THE YEAR AWARD 2017 – AWARDED BY PORTFOLIO PAYROLL Patrick Lynch, Duff Lynch Ltd – has been truly outstanding in his role and exceeded employer expectations. THE CIPP PAYROLL PROFESSIONAL OF THE YEAR AWARD 2017 Madeleine Duplock ACIPP, the NEC Group – made exceptional progress in her professional development as well as embracing change, introducing efficiencies for the organisation and taking on new tasks with real enthusiasm, drive and minimal support. Her nomination described her as having a “passion for payroll” because of her determination and efforts. THE CIPP PAYROLL SOFTWARE PRODUCT OF THE YEAR AWARD 2017 NGA Human Resources, ResourceLink – stood out due to their innovations within software over the last twelve months. THE CIPP PROJECT OF THE YEAR AWARD 2017 Rotherham Doncaster and South Humber NHS Foundation Trust – for looking beyond the day to day operations of payroll and pensions with this bespoke solution created to be free to deliver, maintain and use, fit within the organisation’s paper light strategy and efficiency programmes and ultimately deliver outstanding care. THE CIPP IN-HOUSE PAYROLL TEAM OF THE YEAR AWARD 2017 JCB – have demonstrated that they have successfully delivered record results, raised the payroll profile within the organisation and developed effective business change. THE CIPP EMPLOYER OF THE YEAR AWARD 2017 SD Worx – demonstrated how their health and wellbeing strategy linked to the overall strategy and success of the organisation. THE CIPP MY BIGGEST INFLUENCER OF THE YEAR AWARD 2017 Yvette Lamidey FCIPP – had a huge influence and impact on the nominator, offering great guidance through the years. THE CIPP INTERNATIONAL PAYROLL PROVIDER OF THE YEAR AWARD 2017 activpayroll – effectively demonstrated investment commitment to customer service and effective, efficient and complaint international payroll service within their organisation. THE CIPP PAYROLL SERVICE PROVIDER OF THE YEAR AWARD 2017 – FEWER THAN 250 CLIENTS Liberata – providing a seamless payroll service that ensures staff are paid the right amount at the right time.
The judges This year’s winners were chosen by five judges from across the payroll and pensions industry: ● John Nolan MCIPPdip , payroll and benefits manager, Schroder Investment Management Ltd ● Pete Statham MSc FCIPP , payroll manager, Verastar Ltd. ● Colin Tregunna MCIPP , finance manager, John Lewis Partnership Services ● Jerome Smail , editor, Shard Media Group ● Kerrie Lucas MCIPPdip , senior manager payroll, Prime Chartered Accountants Further details can be found in the Awards supplement accompanying this issue of Professional in Payroll, Pensions and Reward. THE CIPP LIFETIME ACHIEVEMENT AWARD 2017 – PAYROLL – AWARDED BY THE CIPP BOARD OF DIRECTORS Michelle Crook MSc FCIPPdip – as previous chair to the board, the legacy Michelle has left the CIPP and the payroll industry will make a long-lasting difference to the Institute, as well as to the membership. THE CIPP PAYROLL SERVICE PROVIDER OF THE YEAR AWARD 2017 – 250+ CLIENTS NGA Human Resources – have been described as forward thinking and continuously developing. Their focus and commitment is to their customers who are ‘at the heart of everything they do’. HONORARY FELLOW AWARD 2017 Mary Lambe FCIPP – has made major contributions to two of the UK’s largest pensions schemes and rose to become a highly regarded pension’s advisor with the Local Government Association. Arthur Elstone ACIPP – described as a genuine, honest, dedicated professional who has raised the standard of the payroll industry and has always been keen to share his knowledge. THE CIPP LIFETIME ACHIEVEMENT AWARD 2017 – PENSIONS – AWARDED BY THE CIPP BOARD OF DIRECTORS Henry Tapper – has helped both employers and their agents in the pensions industry especially through automatic enrolment and aims to restore people’s confidence in pensions and as such, is an outspoken advocate for best practice.
Nominations for the 15th Annual Excellence Awards, taking place on 11 October 2018, will open in March 2018.
| Professional in Payroll, Pensions and Reward |
Issue 35 | November 2017
PROFESSIONAL DEVELOPMENT INSIGHT
Diary of a student… Jason Mallory MCIPPdip Payroll team leader, Biffa
the wrong job. The most beneficial aspect for me was to have an excellent support network, from my wife and son through to my employer. Even if you are on your own, the support from the CIPP via the tutors and fellow colleagues is what will help you through. Ultimately, the short-term sacrifices made are already turning into the long-term gains from having completed the degree. Did the fact that the CIPP is Chartered or recognised within the industry influence your decision to enrol with the CIPP? And were there any particular modules which were of interest prior to enrolling? This was a big draw towards choosing to study through the CIPP. Being a professionally recognised body adds to the prestige of the qualification and is a certain door opener for your future career within payroll and even beyond. In order to further my career, I was looking for that extra incentive. The year-two module ‘Define and manage systems, security and risk’ as well as year-three modules ‘Improving services and operations’ and ‘Understanding customers and clients’, were of particular interest as they are not only covered from a payroll business perspective, but that they are also transferable skills into human resources and shared services. For someone who is thinking about studying for a CIPP qualification what would your advice be to them? Studying through the CIPP has been one of the best decisions that I have made. The repayment for the three years of hard work spent studying the Foundation Degree in Payroll Management is endless. Take the leap, don’t hold back on effort and you will succeed. n
Can you give us a brief background into your life
Why did you choose to study the Foundation Degree? I decided to study through the CIPP as they are the market leader in payroll qualifications and the depth and breadth of course material offered gives more than just payroll knowledge. It also gives sound business knowledge and provides a solid foundation for career progression within the payroll industry. How important is this degree in relation to your career? Completing the Foundation Degree in Payroll Management has been the springboard in my career within payroll. From starting my career as a lone payroller I am now leading a team of seven payroll administrators and managing the entire payroll function for a dynamic and ever-expanding listed company. This degree has given me the knowledge and understanding that has enabled me to take on this role and has also empowered me to develop my role further. Having this solid foundation has allowed me to progress in my career as a payroll professional and will continue to do so well into the future. How did you cope with the work life balance and your study? Though I have never let work dictate my life, that is not to say that I have not put in a late shift here and there – my wife can testify to that. But it is important to enjoy life whether it be at home or at work. If you are not enjoying your work, then you are in
I grew up in South Africa where I married my best friend. In 2001, we moved to the UK and have never looked back. We are celebrating our twentieth anniversary later this year and have a thirteen-year old son. I continue to play hockey since starting at age fourteen, and have played at national league level for my local club. I am currently also playing for and running a badminton club as well as enjoying a round of golf now and then. Can you give us an insight into your career and qualifications background? Having moved to the UK with a business commerce degree I found myself working as a finance manager in a secondary school. I believed that becoming a school business manager would be the career path that I would follow; however, through a change in circumstances I found myself spearheading a newly formed payroll bureau for schools and academies. It was then that I decided a career in payroll was the right path for me and after two years moved to an established national payroll bureau to further my career. It was here that I completed year two of the Foundation Degree in Payroll Management. Eager for more growth in my career I took hold of an opportunity offered to me at Biffa and have since completed my third year of the degree and have never looked back.
| Professional in Payroll, Pensions and Reward | November 2017 | Issue 35 12
Professional development insight
Individual Chartered Status is here
Helen Hargreaves MSc FCIPPdip, CIPP’s associate director of policy and membership , sets out details of this historically important development for CIPP members and the profession
T he opening address at this year’s CIPP Annual Conference and Exhibition had a celebratory feel to it when CIPP chair Eira Hammond launched a new and prestigious level of CIPP membership. From October 2017, not only is the Institute itself Chartered, but members themselves can apply for Individual Chartered Status (ICS). What will ICS mean for you? By gaining Individual Chartered Status, you will be recognised within the industry as achieving the highest level in our profession committed to compliance and best practice within payroll and pensions administration and management. ICS – also referred to as being a ‘Chartered Member’ – is a unique level of membership within the payroll profession and is available only to individuals who meet the challenging and stringent eligibility criteria. Chartered member status is by application only. You do not have to apply if you don’t want to or are not in a position to do so. Benefits of ICS include: ● New designatory letters and use of the title Chartered Member in full after your name ● Use of a CIPP Chartered Member logo in a personal context and a digital badge for use on email and social media ● Listed as a Chartered Member on the CIPP website ● Recognition for achieving the highest level in the profession by demonstrating individual payroll professionalism ● The opportunity to raise the standards of the payroll profession, putting CIPP members on a more equal footing with members of other Chartered bodies Who can apply? Applications are welcomed from any payroll
Subscription fees The annual subscription fee for ICS is £240 plus an assessment fee of £195. Continuing professional development (CPD) CPD is encouraged for CIPP members at all levels, but in accordance with the CIPP code of conduct, all associate, full and fellow members are required to record their CPD in order to renew their membership. This requirement is heightened for ICS members who will need to record a minimum of 40 points of relevant CPD activities per membership year, at least one of which should be categorised as structured learning or through attendance at a CIPP event. Because the application form and the subsequent assessment process are detailed and thorough, individuals do not need to have logged 40 CPD points before applying for ICS, however the points will be required at the time of membership renewal to retain Chartered Member status. The requirement to record at least 40 points of CPD activity in order to maintain ICS applies to all Chartered Members, including those whose organisation has attained a Payroll Assurance Scheme or Payroll Quality Partnership award. The CIPP continuously spot-checks CPD activity so make sure you take the time to set your learning objectives and log any form of learning or development on your record to ensure your membership level is maintained. n You can find much more information about Individual Chartered Status, including full criteria, the application form and how to log your CPD on the CIPP website, or call the membership team on 0121 712 1073.
professional who has demonstrated a commitment to the profession through qualifications and experience. Applicants must hold, as a minimum, a level five qualification in payroll, pensions or reward. In addition to the qualification achieved applicants must also have sufficient experience in the industry at a strategic level to evidence their skills and abilities as a qualified Chartered member of the CIPP. ...you will be recognised within the industry as achieving the highest level in our profession... How to apply If you have the necessary qualifications and experience you can apply for ICS by completing an application form, available from the ‘Join CIPP’ page of the CIPP website and providing evidence of achievement of your formal qualifications, along with an up to date copy of your curriculum vitae. The application form is an opportunity to provide examples of how you have used your experience for the benefit of the profession and of course your organisation. The assessment process is rigorous and it could take up to three months to complete. Accordingly, existing members wishing to upgrade to ICS can do so up to three months before their usual annual renewal date. The upgrade will take effect from the annual renewal date. Those with an annual renewal date between October 2017 and January 2018 can apply immediately though again it may take up to three months to undertake the assessment process.
| Professional in Payroll, Pensions and Reward |
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