in Payroll, Pensions & Reward PROFESSI NAL Official publication of The Chartered Institute of Payroll Professionals Issue 90 May 2023
Keeping one eye on the clock
Top time tips Some handy time management pointers
Will you be ready in time? For the upcoming deadlines for P11Ds / PSAs / reporting BIKs
Time to talk How deadlines can impact mental health, and how to deal with it
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
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20
“Goals are dreams with deadlines” Diana Scharf
Editor’s
comment
28
Time. It’s something a lot of us feel we don’t have enough of. And the very same definitely rings true throughout the payroll profession. This is mainly because of the deadlines associated with ensuring individuals are paid, as they expect their money on a certain date, and failure to meet those targets means payroll isn’t performing its key function of paying people accurately and on time. That’s exactly why the theme of this issue is ‘ keeping one eye on the clock ’. Anyone who works in the industry will explain how important deadlines are and will easily reel off some of the key dates in the tax year on which certain duties need to be performed. So, this issue we look at deadlines, but also review how much the profession has changed over time, while looking towards the future, and what could potentially change over the coming months and years. The feature topic article this issue considers how payroll professionals can deal with the challenges that often arise, while always being mindful of the plethora of deadlines there are to meet (page 28). There are also some great time management tips to help keep you at the top of your game when it comes to processing payroll, on page 20. The deadlines imposed on payroll mean that we can be exposed to considerable amounts of pressure. Flick to page 34 to discover why it’s so important to speak up when going through periods of high stress. And speaking of deadlines, who can forget the all-important ones we have coming up shortly – P60s, anyone? The hot topic article this month focusses on how you can prepare for these upcoming milestones, and can be found on page 54. I hope you enjoy reading this issue of Professional . See you in June!
34
54
Lora Murphy MCIPP (editor@cipp.org.uk) Editor
20 - Effective time management By Meena Salhan
28 - Feature article – keeping one eye on the clock By Jerome Smail
34 - Time to talk By Karen Beckett
54 - Hot topic – it’s almost that time again… are you ready for P11Ds, PSA and benefit in kind reporting? By Susan Ball and Lee Knight
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
Chair’s
Chief executive officer Ken Pullar FCIPP CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA 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 0121 712 1018 | 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
We’re in May already and as time just passes by so quickly, we need to be focussed on our key deadlines. We must ensure we submit returns and process documents and payments, not just to our own internal deadlines, but also the statutory deadlines for HM Revenue and Customs. Payroll runs from period to period and works to strict deadlines all year round,
however at key times in the year we need to ensure we meet all our statutory return obligations. 31 May is the deadline for employees receiving a P60, and if you still have a manual process, you’ll need to consider delivery methods as the documents must be with employees by the deadline. As we continue to go through change, from statutory budget changes to internal changes, educating managers and the wider business on deadlines is critical for the payroll department. Being involved in change and planning implementation into the payroll calendar sets expectations and helps mitigate risk in a change project. Remember, as a valued member, the CIPP is here to help you, from training courses on year end activities to our Advisory Service. If you’re unsure of a process or deadline, please get in touch.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
CEO’s
message And suddenly this is my penultimate message as chief executive officer (CEO). This follows the successful recruitment of Jason Davenport as the CIPP’s new CEO from July 2023, which was announced in the April issue of Professional . As earlier indicated, I shall retire in autumn of this year and
Useful contacts
Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk
will support Jason as he transitions into the CEO role. I look forward to following the CIPP from a distance and continuing to see the ongoing success of this wonderful membership organisation, dedicated to payroll, pension and reward professionals. At this point, I’d like to reflect on how the CIPP and its trading subsidiary, IPP Education contribute to the membership base. Firstly, there’s a suite of topical training programmes on modern platforms as well as face-to-face delivery. This isn’t just to individuals but also to many organisations, where we prepare and present in-house sessions. Our qualifications portfolio is particularly relevant to all our professional members, including our online Level 3 Payroll Technician Certificate Advanced and Certificate in Pensions Administration. I believe our Level 4 / 5 Foundation Degree is, without question, a particular market leader. It’s gratifying to see many employers cite this qualification as a prerequisite to working for them. On top of this are our relationships with the University of Lincoln and Loughborough University, offering the Bachelor of Arts (BA) and Master of Science (MSc) respectively, to further enhance the careers of our members. And let’s not forget our role as an end point assessment organisation. We’ve become critical in taking the weighty responsibility for the apprentices’ final assessments against payroll apprenticeship requirements. There’s a robust membership structure in place with a huge range of benefits (financial and non- financial), to give members full support in their career journeys. From paying reduced rates for the key Payroll Update course through to receiving Professional magazine ten times a year, and of course, the number one benefit identified by members, access to the highly skilled Advisory Service team. The introduction of Chartered members was a real ‘feather in the cap’ for our professional members, elevating the profession to its rightful place. So, there we have a brief trip down memory lane, covering just a few aspects of life, and the CIPP and its successes. Ken Pullar FCIPP (ken.pullar@cipp.org.uk) Chief executive officer, CIPP
0121 712 1013 cipp.org.uk @CIPP_UK
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 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.
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 2
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at cipp.org.uk
Contents May 2023
REGULARS
FEATURES
If we could turn back time… By Laura Bate
Seafarers Bill sails into legislation By Jeni Morris
01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments, PAS accreditations 06 My CIPP Events horizon, On your behalf, Payroll news, Industry news, Advisory Q&As, Spotlight on, If we could turn back time… 16 Personal development BePayroll
17
15
When is a temporary workplace a permanent workplace? By Justine Riccomini
The internal payroll cut-off By Sandra Was
18
21
Payroll’s journey By Neil Tonks
The changing face of payroll By Danny Rice
22
24
Is the future four? By the CIPP’s policy and research team
The payroll time bomb By Michael Risi
26
32
17 Compliance
From temporary / permanent workplaces for tax purposes to new legislation to protect seafarers’ pay
Dismissals and discrimination By Nicola Mullineux
Time to review By Dianne Hoodless
36
38
online exclusive content
28 Feature topic
Read all about the theme of the current issue
The complexities of employment status By Danny Done
What’s next for the state pension age? By Henry Tapper
32 Reward
42
40
Learn about the four-day working week pilot programme and the latest in the world of employment law
Best person for the job: benefits of hiring implementation and project specialists By Patrick Day Do you know your RAS from your NPA? By Georgie Ward online exclusive content
Time for change?
42 Pensions
44
By Ned Mcevoy 46
The latest on the state pension age
Technology Tips for building a business case for new payroll software, and learn what ChatGPT thinks about artificial intelligence and payroll Hot topic Get prepared for some of the upcoming deadlines for payroll professionals
46 54 56
In its own words: ChatGPT’s take on AI in the payroll profession By ChatGPT
48
49
Payroll pets We say hello to some of your furry friends
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
CIPP update
Annual charity giving CIPP EMPLOYEES raised a total of £888.50 during 2022 through a combination of charity raffles and fun days, such as our annual summer sizzler BBQ and CIPP charity calendar. The total was reported to the board in February 2023, and it was agreed the CIPP would match the amount raised by employees. In March, we were delighted to therefore donate £888.50 to each of our charities, Macmillan Cancer Support and the Warwickshire Wildlife Trust. We’ll continue to raise money for both charities throughout 2023. The charities are voted
Accountex London 2023 FROM 10-11 MAY, the CIPP team will be exhibiting at Accountex at ExCel in London. We can’t wait to welcome everyone to our stand, so please come along and meet the team if you’re visiting. Policy lead, Samantha O’Sullivan MCIPPdip will be speaking at the event, delivering a legislative update and also discussing the benefits of the CIPP’s Payroll Assurance Scheme. For more information, click here: http:// ow.ly/4cBB50NFZyO. Annual General Meeting (AGM) 2023 THANK YOU to everyone who attended our AGM on Wednesday 29 March 2023, either in Birmingham or online. We’re delighted to announce that Dianne Hoodless was re-elected as the payroll / other profession representative and Brendan Mulkern was elected as the pensions representative. Huge congratulations to Brendan and Dianne. We look forward to working with both representatives to help shape the future of the industry and the CIPP. We’re also delighted to confirm we’ll be co-opting Sohail Butt to the board, with effect from 1 July 2023. Sohail has a background in accountancy and will also sit as the board member representative on the CIPP audit and risk sub-committee. Finally, as you know, Liz Lay stepped down as the CIPP’s chair, so is now the past-chair. Clare Warrington (our previous vice-chair) replaced Liz in the role on 1 April 2023.
for by CIPP employees on a biennial cycle, so we’ll be asking colleagues to vote for two new charities for 2024/25 at the end of this year.
Finance Awards Wales THIS YEAR, we’re delighted to support the Finance Awards once again, sponsoring the ‘Payroller of the Year’ award. The shortlist was announced in March and we were delighted to learn two CIPP members had been shortlisted – congratulations Karen Tebby ACIPP and Rita Baines ACIPP. The best of luck to you both and to Lisa Blaire from the BBC. We’ll be hosting a table on the evening of the awards at Cardiff City Hall on 12 May. We look forward to meeting you all. Keep an eye on our social channels on the evening, when we will announce the winner. Learn more about the awards here: http://ow.ly/ynGQ50NFYnE.
RIP, Daryl Marshall ACIPP The CIPP would like to pay tribute to Daryl Marshall, who tragically lost his life on 26 March 2023. Daryl was studying for his Foundation Degree in Payroll Management. Daryl’s husband, Ben said: “Daryl and I had been together for 14 years and married for three. Daryl was always a hard worker, but somehow, he never found his forever role and wanted to explore other roles and experiences. In 2011, Daryl stuck a pin in a map of the UK and we ended up in High Wycombe, Bucks. Daryl, at this time, was working as a shop manager for a retail home furnishings company, and although happy, he was easily bored and rarely found this a challenging position. “Fast forward to 2018, and Daryl began working in payroll at a budget hotel chain. His manager pushed him through the CIPP’s Payroll Technician Course and he would often say to me over an evening glass of wine that he wanted to run his own payroll bureau one day. He was then encouraged to study for the degree in payroll and actively supported through his first year. Due to personal circumstances, Daryl took a year out but soon found himself craving the same excitement for payroll.
“In 2021, Daryl was re-enrolled for the remainder of his degree, while working within the busy payroll department of a housing charity, Citizen Housing. His drive, passion and long-term goal to succeed really brought him on in huge leaps and bounds. Following his hard work, Daryl became the payroll manager in 2022 and he was rightfully very chuffed. I would often hear him on telephone calls giving advice to the human resources department and fellow employees regarding tax and benefits. “In January of this year, Daryl and I spoke about the potentials of moving to France in 2025, this was spurred on by several visits to the Dordogne region where Daryl loved to visit and had many very happy holidays. 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. “On 26 March 2023, Daryl was involved in a fatal road traffic collision, where he lost his life and sadly passed away. Although Daryl will never be able to realise his dream of working from his desk anywhere in the world, what we should all take from this is that you should never cease to have ambition and goals, and believe in yourself and the differences you make every day.”
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 4
MY CIPP
CIPP Payroll Assurance Scheme (PAS)
The prestigious gold standard accreditation for your payroll processes and people
Developed in partnership with HM Revenue and Customs and launched in 2012, the PAS is the only industry kitemark to ensure your payroll processes and people are compliant and robust. Examining over 60 facets of your payroll operations, the scheme is consistently evolving and not only shows that lifelong learning and development is planned and encouraged, but that you’re dedicated to compliance and best practice in payroll, a huge accolade for staff, as well as ensuring procurement is much easier.
Every issue we want to recognise and celebrate those organisations which have successfully achieved, or retained, their accreditation. This month we would like to congratulate:
l Wright Vigar Limited l Moorepay.
Our chief executive officer, Ken Pullar, said, “Congratulations to the organisations that have attained the PAS accreditation. They’ve clearly demonstrated their sound payroll processes and excellent teams. This is imperative in the payroll profession, as reacting quickly to ever-changing legislation and guidance is crucial.”
TESTIMONIALS Hear from a few of our accredited organisations, on how PAS has benefited them.
St Helen’s and Knowsley Teaching Trust Hospitals NHS Trust:
Seetec Business Technology Centre Ltd:
Bradford NHS Payroll Services:
“Being accredited since 2015, Bradford NHS Payroll Services have completed a full re-assessment and achieved again. PAS has significantly raised the profile of our business and increased our visibility in the organisations we support. “It provides our stakeholders with robust assurance we comply with all key standards and legislative requirements, and our team get a huge pat on the back and recognition for all their continued efforts. It ensures we’re incentivised to continually progress and improve. It also demonstrates our commitment to training and development of new team members and continuation of an excellent and progressive service provision.”
“St Helen’s and Knowsley Teaching Hospitals NHS Trust are delighted to have maintained our PAS accreditation following our most recent assessment in 2022. This accreditation offers our clients assurance that we’re dedicated to compliance, have robust processes, plan and encourage lifelong learning and show continuous improvements. Having maintained this accreditation since 2020 shows our clients the consistent and robust services we’re able to offer.”
“Seetec is very proud to have gained PAS accreditation for the third time. This further demonstrates our dedication to compliance and best practice in this important area of our business. “We wouldn’t have achieved this without great teamwork, so I would like to thank the Seetec payroll team for all their hard work, determination in learning and their continued support.”
Sandy Norfolk ACIPP, head of payroll and pensions
Danielle Norton, assistant director of employment services
Paula Hanson ACIPP, head of payroll and pensions
To find out more, visit our website or contact our PAS team: www.cipp.org.uk/PAS compliance@cipp.org.uk
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
Event horizon
Your guide to upcoming events and training
The clock is ticking… get your nominations in This issue of the magazine is all about deadlines, so we thought we’d remind you about submitting your nominations for the CIPP’s Annual Excellence Awards 2023, before it’s too late. The awards will be held at the beautiful Celtic Manor Resort in Wales on 5 October 2023. The awards are the longest-running independent awards in the industry, and you can nominate yourself, your team or your organisation. Further information is available here: http://ow.ly/cRcZ50NnRlB.
The early bird catches the worm There’s also still time to secure
Training courses Take a look through the training we have on offer over the next few months.
your place at the CIPP’s Annual Conference and
Course
Date
Location
Exhibition at early bird prices. The conference is definitely one of the highlights of our calendar, and we’d love to see as many of you as possible there. The event for 2023 looks set to be the biggest and best we’ve had yet, so ensure you don’t miss your opportunity to attend, and find more information here: http://ow.ly/AO9W50NnRKR.
10 May
Online
Construction industry scheme
01 June
Online
02 May
Online
Holiday pay and leave
30 May
Online
28 June
Online
Global mobility: key payroll issues
02 June
Online
15 May
Online
Introduction to payroll
05 June
Online
02 May
Online
P11D expenses and benefits
22 May
Online
12 June
Online
BeKnowledgeable: national minimum wage (NMW)
04 May
Online
11 May
Online
Join us at 11am on 14 June 2023 for a BeKnowledgeable webinar, which focusses on the intricacies of the NMW. Jeni Morris, who heads up EY’s NMW technical team, and previously worked for several years in HM Revenue and Custom’s (HMRC’s) core NMW team, will be delivering this must-see session. Jeni will be covering: l the complex NMW regulations l the technical pitfalls many businesses and organisations struggle to understand l the current NMW risks in the spotlight l the risks which HMRC may be focussing on in the near future. Sign up here: http://ow.ly/xubO50NNWgI .
Payroll update
12 May
London
24 May
Online
15 June
Online
26 May
Online
Termination payments
26 June
Online
Please visit http://ow.ly/iVfT50MU7yr for a full list of other dates and locations across our full training portfolio.
*Early bird rate for members, valid until June 30 2023
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 6
POLICY HUB
On your behalf
Happy new tax year! Spring is officially here and so is the new tax year. Below is a rundown of all the events and how the CIPP’s policy and research team kept active in the month of April Policy team update
hosted an exclusive roundtable event in Cheshire, for 12 industry experts and leaders within the payroll, pensions and reward industries. Discussions involved how professionals can collaboratively elevate the payroll career and whether payroll needs a rebrand. The CIPP is dedicated to raising the profile of payroll and this gathering allowed the team to demonstrate and share the CIPP’s vision. Additionally, Sam attended the Nest Insight’s Emergency Savings Summit 2023, in London. The context for saving has changed for everyone over the past few years, with the financial impact of the global pandemic still being felt and the rising cost of living. Since 2019, Nest Insight has been exploring the role of workplace savings through a series of real-world trials, delivered in collaboration with employers and providers. Research showed that people want to save and that workplace savings tools can support several strategies households use for managing rising costs. At the event, evidence which was gathered across the research programme was shared, and remaining challenges were highlighted. The event also saw the launch of the final report from the ‘sidecar savings’ trial. The policy and research team were invited by the Institute for Fiscal Studies (IFS) to attend the launch of a new pensions review. This is an extensive two-and-a-half-year project which assesses what pensions policy and the economic environment mean for future retirees’ living standards. The IFS believes there's now need for a major
review into the pension system and the purpose of this review will be to provide recommendations on reforms. The CIPP looks forward to the review's findings, which will be published over the following two years.
Events Editor of Professional magazine, Lora Murphy joined one of the International Association of Book-keepers’ coffee mornings to discuss her personal experiences of studying the Foundation Degree in Payroll Management, while still working a full-time job and looking after her young daughter. She provided hints and tips to attendees regarding how to best manage their time, and a few pointers for when conflicting deadlines and busy periods result in higher than usual levels of stress. Policy and research officer, Mathew Akrigg presented a legislative update at a public sector specialist interest group (SIG) alongside Ernst & Young. SIGs are designed for CIPP members to share and resolve issues, concerns or queries with other professionals within the same industry. The CIPP will provide support and answer questions, but the groups are designed to be self-serving. SIGs are a member benefit for associate, full, fellow and Chartered members only. If you would like to upgrade your membership, please email us. Policy lead, Samantha O’Sullivan
Consultations The team will be conducting a number of think tanks in May. These think tanks will be based on the Low Pay Commission (LPC) consultation for 2023, which is seeking evidence to inform recommendations on minimum wage rates in 2024 and beyond. The two think thanks will be attended by LPC officials. In addition, HM Revenue and Customs’ (HMRC’s) consultation on simplifying and modernising its income tax services consultation has opened and is welcoming views. A think tank will be held, and an HMRC official will be joining, to get involved in the interactive discussion. Feedback will be collated by the policy team to respond to the consultation in June, on behalf of payroll professionals and the wider community. This is incredibly important for the CIPP as it will help define and shape the future of payroll. Your input is vital, therefore keep a look out for the dates and joining details for the think tanks. n
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
Celebrate excellence in the payroll profession
Taking place 5 October 2023 as part of the CIPP’s Annual Conference and Exhibition; the Annual Excellence Awards are the longest running, independent awards in the industry. They celebrate the commitment and excellence of both individuals and organisations in their role of ensuring that people are paid.
2023 awards categories
Spotlight Award The CIPP Spotlight Award is open to anyone working in payroll, pensions and / or reward. This award will be presented to an individual who has shown themselves to be an outstanding professional and could be working at any level within the industry. Bright Beginnings Award The CIPP Bright Beginnings Award is aimed at those new to the payroll, pensions and reward industry, within the last two years, or who are currently completing an apprenticeship. This award recognises an individual who has made a significant impact and contribution to their organisation within that time. Luminary Award The payroll, pensions and reward industry has many leaders who use their influence to advocate for the industry and drive change. They inspire others by mentoring, empowering, and supporting those around them. The CIPP Luminary Award will celebrate and recognise an individual who has demonstrated leadership within their organisation or across the wider industry and has had a positive, inspirational impact on the career of others.
In-house Payroll Team of the Year Award
will recognise an organisation that is committed to ensuring that its software is compliant, user friendly, enables best practice and is well supported.
Teamwork is crucial to the success of any business. Employees should all be working towards one overall goal, or mission for the organisation, otherwise the organisation will fail. This award recognises the in-house payroll team that has compelled their employer to recognise the important role that the department can play in improving the overall company performance, and not just perceive the department as a cost centre. Project of the Year Award Implementation of projects in payroll, pensions and reward is commonplace, and this award recognises the work involved in implementing a successful project. Well-being and Employment Engagement Award With an increasing focus on employee health and well-being, this award will recognise organisations who have introduced initiatives to improve the general health, well-being and / or financial awareness of their employees. Software Product of the Year Award This award is aimed at software products which are sold and supplied for companies to run their own payroll in-house. It
International Payroll Service Provider of the Year Award
Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant international payroll service. Payroll Service Provider of the Year Award Organisations turn to service providers to deliver compliant and efficient payroll services within their organisation and this award will be presented to the provider proven to demonstrate commitment to customer service and an effective and compliant payroll service. Best Cost-of-Living Response Award As we all know, the cost-of-living crisis is impacting both people and organisations throughout the UK. In the last year, employers have been implementing strategies and solutions to address this, and to support their staff. This award aims to recognise payroll teams / departments who have supported staff through this turbulent time.
Visit http://ow.ly/PA9q50NpUlm to submit your nominations
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 8
How are the awards judged? Judges are selected from various industry sectors based on their skills and knowledge within payroll and pensions. All judges are members of the CIPP, so you are truly being recognised by your peers.
The judges only review the information in the nomination, they cannot, and do not, base any decision on personal opinion or prior knowledge of an individual or organisation.
“I feel incredibly honoured to have received the CIPP’s Luminary Award at last year’s Annual Excellence Awards, particularly given this is judged and awarded by my industry peers and I recognise the standard of other nominees. “I am glad that I was able to convey just how passionately I feel about elevating the payroll profession and ensuring that it is given the respect and recognition it deserves! As a firm, BDO LLP is also extremely proud to have been shortlisted in seven award categories and be ‘highly commended’ for two of these. “Payroll specialists work hard to keep up to date with the constant changes impacting their work, paying people on time and accurately, and are intrinsic in creating and managing the pivotal data that controls all areas of a business, so are key and this needs to be recognised and rewarded.”
Tips and guidance
Allow plenty of time to complete your nomination It takes time to put a nomination together, so make sure you improve your chances by allowing plenty of time. Take the time to consider how clear and concise your entry is to stay within the word limit and give your entry the best chance of standing out to the judges.
Entries must be submitted via the online platform by 31 July 2023.
Focus on the criteria and evidence Make sure you meet each of the criteria outlined for the award. Ensure you provide evidence of how you have met the criteria to attain higher scores from the judges. The winning nomination is, quite simply, the nomination with the highest score at the end of the process. You can attach up to four supporting PDF files. But be sure they add to your nomination. Avoid adding unnecessary information that the judges will need to sift through to find your point. Have a great summary statement You should write your summary statement last to be sure it covers everything contained in your nomination. It needs to be succinct. Remember, the Annual Excellence Awards get lots of nominations. Use your summary to stand out from the competition.
Maria Mason MCIPPdip, , BDO LLP
NOMINATIONS CLOSE 31 JULY 2023
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
PAYROLL NEWS
PAYROLL news
TPR authorises UK’s first CDC pension scheme THE PENSIONS Regulator (TPR) has assessed and authorised the UK’s first collective defined contribution (CDC) pension scheme. CDC schemes provide a new alternative to traditional defined benefit (DB) and defined contribution (DC) pension schemes. In CDC schemes, member and employer contributions are pooled in a collective fund from which an aspired to pension income for life is drawn. Currently, CDC schemes can be set up by single employers, for that employer only, or for employers in the same group of companies. TPR states: ‘‘The authorisation is a milestone for TPR and shows how the regulator is pursuing its strategy to embrace innovation to help meet pension savers’ needs. The pooling of longevity and investment risks makes CDC schemes more resilient to market shocks. In addition, unlike DB schemes, the pension benefits are not guaranteed in CDC schemes, so they provide employers with predictable costs. External modelling suggests that they can also provide, on average, better returns for members than traditional DC schemes.’” The following pension schemes have been granted CDC authorisation: l Royal Mail collective pension plan. Minister for Pensions, Laura Trott, said: “TPR authorising the first CDC scheme is a landmark moment, and this is just the beginning. We have seen the positive effect of these schemes in other countries and our plans to extend our CDC framework will enable more pensioner savers to achieve the retirements they want.” The Pension Schemes Act 2021 introduces new duties for those involved in running pension schemes. It also gives TPR powers to protect pension scheme members and the Pension Protection Fund. The Act introduced an authorisation and supervision regime for CDC schemes. Schemes must show they meet strict criteria including that those who run the scheme meet fitness and propriety requirements, have the right systems and processes in place, can show the scheme is financially sustainable and have robust member communications. TPR has powers to intervene when necessary. More information on CDC schemes is available here: http://ow.ly/ blES50NLK9P.
National living and minimum wage 2023 campaign THE DEPARTMENT for Business and Trade, along with other government departments and external stakeholders, is running a campaign to raise awareness of increases to the national minimum wage (NMW) and national living wage (NLW) that took place in April. This is to encourage workers to check their pay and ensure they’re receiving the pay they’re entitled to. The campaign aims to educate workers regarding their entitlement and advise what to do when they’re not being paid the correct amount. It also involves ensuring employers meet their legal responsibilities and are aware of where they can go to for help or advice on paying workers correctly. More information can be found here: http://ow.ly/v2Ro50NLLSP. Payments around May bank holidays BUSINESSES SHOULD plan their payments ahead of the three bank holidays in May to avoid disruption to staff and suppliers. Pay UK, which is responsible for Bacs Direct Credits and Direct Debits, is urging organisations to ensure they have the most up to date processing calendar available, so they don’t miss or delay important payments. Bank holidays are Bacs non-processing days, so organisations are advised to factor these into their scheduling and take advantage of the ability to submit payment files in advance. There are three bank holidays in May, including an extra one this year on 8 May, to mark the coronation of King Charles III. This will be in addition to the usual early May and spring bank holidays on 1 and 29 of the month. This means that the latest submission dates for payments due to be credited ahead of these non-processing days will be 26 April, and 3 and 24 May, respectively. To help businesses plan in advance, Pay.UK has produced an updated 2023 processing calendar (http://ow.ly/pyLA50NLJp8), reflecting the additional bank holiday for the coronation - which lists all the non-processing days for the rest of the year, together with latest payment submission dates.
Diary dates
5 June
Last day of tax month 2
6 June
First day of tax month 3
Last day for submitting a real time information employer payment summary to apply to tax month 2 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 May
22 May
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
31 May
Employees on payroll as of 5 April 2023 need to receive their P60 by this date
5 July 6 July
First day of tax month 3 First day of tax month 4
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 10
Gain a detailed overview of National Minimum Wage (NMW) & National Living Wage (NLW) including the current rates payable. Learn to identify who is eligible, the calculation steps needed, record-keeping and compliance activities required. National Minimum Wage and other worker entitlements
INDUSTRY news
Caxton payroll payments launch party THE CIPP’s business development director, Vickie Graham DipM FCIM ACIPP, attended Caxton’s glamorous Payroll Payments Launch Party in London on 23 March 2023. The event provided a unique opportunity for an exclusive selection of movers and shakers in both people and pay to come together to engage, discuss and network with one another. The main focus of the event was on the future of payments and the opportunities this creates for bureaux, with consideration of how employees can be supported. Caxton, which is a fintech payments company, also announced Payroll Payments, which will offer fast, frictionless payments for all businesses, regardless of size. Some of the benefits of the new product include: l cashflow management – no more having to close the payroll run weeks in advance l flexibility – to make last-minute payroll changes and support employees’ financial well-being l vendor agnostic – integrates with any cloud payroll provider or uses your current Bacs file l frictionless payments – which are available 24 / 7 / 365 l support for global payments – from the same centralised solution l automation – of notifications, future-dated payments and more enhanced payroll productivity, such as open banking. Caxton founder and chief executive officer (CEO), Rupert Lee-Browne said, “There are an increasing number of challenges facing payroll teams at a time when organisations are increasingly trying to help their employees through a cost-of-living crisis and many are trying to be as flexible as possible with salary payments. “Our new functionality minimises chances of payroll errors impacting staff, ensures payments go out whatever day of the week they fall on, and offers exciting new opportunities to expand the value payroll can add to any business.”
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CPD 7 points
Bob Rehill Partnership announces business name change to Cintriq THE BOB Rehill Partnership, a project consulting business
operating since 2002 specialising in human resources, payroll and finance transformation, based in London, has announced a change of business name from
Bob Rehill Partnership Network to Cintriq. The name change will be with immediate effect. The decision to change the company's name was made after careful consideration of the evolving needs of the business and the desire to better reflect its brand identity. Cintriq better represents a focus on providing project consulting on intricate projects, which are forward-thinking, and employee focussed. This truly leverages the global network of associates, consultants, partners and vendors working with Cintriq. "We are thrilled to announce our new name, Cintriq," said Bob Rehill, founder and CEO of Cintriq. "Our new name reflects our commitment to delivering transformative project outcomes that enable our clients to stay ahead of the curve. We remain dedicated to providing exceptional service and impartial industry knowledge to our clients, and this name change is an exciting step towards our future." Cintriq's rebranding efforts will include updating its website, social media channels and other marketing materials to reflect the new name and visual identity. Clients and partners won’t be affected by the change and can expect the same level of high-quality service and support. For more information, please contact Bob Rehill, founder and CEO, Cintriq, at bob@cintriq.com .
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11
| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
pension age? We would ensure they still receive payment of at least the (NMW). A: An employee has the right to join a company pension scheme up to the age of 74. From age 75, the tax benefits of being in a pension scheme fall away. As a salary sacrifice is a contractual arrangement, the employee may still wish to make use of the benefits that a salary sacrifice scheme provides. I would, however, advise they seek independent pensions advice to ensure this form of pension saving is suitable.
payroll sections often retain records for six years, plus current tax year. For further information, please view the Regulations here: http://ow.ly/WJnW50NLAIF. The Data Protection Act 2018 also allows data controllers to keep the data if a statutory requirement deems it necessary. Payments of day rates to directors and reporting requirements Q: I have a limited company, with three directors on it. To date, we’ve simply divided any net profits equally at the end of the year. However, this year, we’ve decided to pay ourselves a day rate of £123 for any ad-hoc work we do throughout the year, but this would never amount to more than £5,000 each. We also have other jobs, so this is just one element of our overall income. The annual total of the day rates will always equate to less than the National Insurance contribution (NIC) and tax thresholds, so can we simply record the day rates on our self- assessment tax returns? Or, would we still need to set up a pay as you earn (PAYE) scheme, and make monthly returns to confirm nil payments are due? A: You don’t need to register for PAYE if none of your employees are paid £123 (the lower earnings limit (LEL) for 2023/24) or more a week, get expenses and benefits, have another job or get a pension. However, you must keep payroll records. Also, note, that if any individuals receive benefits in kind, you must register for PAYE. Please see further guidance here: http://ow.ly/QC5w50NLA9G. However, if no payroll is processed, and employees earn between the LEL and the primary threshold, even though there’s no NIC liability, the following issues will arise: l a breach of PAYE regulations l the individuals won’t have a qualifying
What are the rules regarding the £8,000 qualifying relocation costs for couples?
Relocation costs for couples Q: We have a married couple who are relocating as part of their new employment. Would the couple be entitled to claim up to £8,000 qualifying relocation costs for each person, or £8,000 per couple? A: Sections 373 / 374 and Sections 272 / 273 of the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 are silent on the treatment of relocation costs for couples. Therefore, for clarity, the CIPP approached HM Revenue and Customs (HMRC) for guidance regarding this topic. HMRC’s response confirmed there’s no specific guidance in the Employment Income Manual or in ITEPA which makes specific reference to the £8,000 exemption for allowable relocation expenses being restricted to a household. But there are numerous references made to ‘the employee’, so the HMRC view is that the intention of the legislation was always towards the individual. HMRC hasn’t encountered this situation before, but on the rare occasions this does happen, it can see no reason why each individual can’t be entitled to the exemption, where the employer has agreed to reimburse allowable expenses and there’s no duplication of the expenses reimbursed. Salary sacrifice on pensions Q: Can a salary sacrifice be applied to an employee’s pension where the individual is over the state
What should organisations do when leavers ask for their records to be deleted?
Record keeping requirements Q: We’ve been contacted by one of our clients to advise that one of their staff leavers wants to ensure all their information has been deleted on both the client’s system and ours. As we’re required to keep records for six years for HMRC, where do we stand? A: Section 97(8) of the PAYE Regulations 2003 states: “For the purposes of this regulation, an employer must keep, for not less than three years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to the Inland Revenue by other provisions of these Regulations.” The advice here would be to keep records for up to no less than three years plus current tax year, however, if HMRC finds issues (for example, in a compliance check), it could go back up to six years. Where six years’ worth of records aren’t available, HMRC could estimate a charge based upon its findings during an investigation. For this reason,
year for state pension purposes l the qualifying earnings won’t be
| Professional in Payroll, Pensions and Reward | May 2023 | Issue 90 12
POLICY HUB
P11D, EXPENSES AND BENEFITS TRAINING COURSE COLLECTION
be branded) via a PAYE settlement arrangement (PSA). A: If the uniform contains the company logo and is arranged by and paid for by the employer, it’s an exempt benefit, so no reporting is required. The supply of tights and shoes, however, would need to be reported, so you would either: l include them in forms P11D, or l write to HMRC requesting those items be included in your PSA agreement. The deadline for applying for a PSA is 5 July following the first tax year it applies to. More information regarding PSAs is available here: http://ow.ly/xFeT50NLB6f. Q: A client wants employees to have the option of purchasing company merchandise via net deduction from pay. These items would be slightly discounted, therefore less than what the general public would pay, so would any benefit in kind be created here? A: We’ll have to consider marginal costs here to establish if a benefit in kind is reportable. An example within HMRC guidance states: “A brewer provides beer to its employees at a staff discount. The beer is of the same type and brewed at the same time as that the brewer sells normally. There is marginal additional expense to the brewer of providing the benefit to its employees. That additional expense is: l the cost of the malt, hops and water in each pint l the excise duty paid on the employees’ beer and l any overhead costs which would have been saved if the employees’ beer had not been brewed and distributed, such as the heating costs of boiling that much extra wort, or extra staff and transport costs in handling the brewing and distribution processes. If the total of those additional costs exceeds what the employees pay for the beer (see “making good” at Employment Income Manual 21120) then there is a chargeable benefit.” This guidance can be located here: http:// ow.ly/NYHB50NP533. You’ll need to ask the question, ‘did the costs of providing those items exceed the costs the employee paid?’ If so, there’s a benefit in kind to report. Do be mindful of NMW compliance around deductions or payments for the employer’s own use and benefit. n
included in the real time information end of year return. Therefore, as all directors have other jobs, a PAYE would need creating for this limited company. Responsibility for P60s following transfer of undertakings protection of employment (TUPE) transfers Q: A large TUPE transfer came into one of our clients on 1 April 2023. We didn’t run the payroll for the group of staff until the normal payroll run for month one of tax year 2023/24. There’s a question regarding who is responsible for producing the P60s for the staff. The previous employer and provider aren’t providing us with the relevant pay details, while also refusing to produce the P60s for the staff. Is there anything that confirms who is legally responsible for the P60s? The staff wouldn’t have received another payment in 2022/23 following month 12 had they remained with the old employer. A: The responsibility should lie with the legal employer as at the 5th April. This is why it’s so important that the receiving employer obtains all the payroll data for the previous six years, plus current from the previous employer. If you don’t have the facility to produce the P60s, then arrangements should be made for the previous payroll provider to provide the information to you. Planning for TUPE transfers months in advance is extremely important to ensure the process runs as efficiently as possible to avoid any distress to the affected employees. Please see TUPE transfer plan checklists, as they’re very helpful: http:// ow.ly/fLQ550NLCov. Tax treatment of branded and unbranded uniforms Q: Could we have some clarity regarding the tax treatment of branded uniforms? The employer is paying for the cost of the clothing, with no contribution from the employee, so I’m trying to establish if we still need to report the branded uniform to HMRC. Ideally, we want to avoid compiling any P11Ds, and would prefer to report any costs which need to be reported (e.g., tights and shoes that cannot
Duration Varies dependant chosen options
Our P11D, expenses and benefits course collection is essential whatever stage of your payroll career. With fines reaching up to £3,000 for each incorrect P11D submitted, whether you’re new to the process or just looking for a refresher, this course will cover everything you need to know.
Find out more and choose the P11D courses that are right for you at cipp.org.uk/training
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| Professional in Payroll, Pensions and Reward |
Issue 90 | May 2023
Prices correct at time of publication
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