PROFESSI NAL in Payroll, Pensions & Reward Issue 112 July-August 2025 Official publication of The Chartered Institute of Payroll Professionals
PAYROLL PROFESSIONAL
Payroll from A-Z The A-Z of both technical and soft skills a true payroll professional should possess
Getting the thumbs-up
Risk reduction How a business continuity payroll plan could ensure workers still get paid, even in a crisis
Tips on how to get your payroll business case approved
CIPP UPDATE | POLICY HUB | PERSONAL DEVELOPMENT
cipp.org.uk
FREE TO ATTEND
PAYR LL 2 SEPTEMBER Glazier Hall, London SERVICES 2025 SUMMIT
Join us at the must-attend event for payroll professionals working in a bureau
WORKSHOPS Hear about hot topics and get updates from industry leading experts
EXHIBITION Visit our exhibition to speak to service providers and nd solutions for your problems
NETWORKING Share stories, discuss problems, and help build your personal support network
Visit cipp.org.uk/PSS or scan the QR code to book your place today
SCAN ME
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“Well rounded: involving or having experience in a wide range of ideas or activities” Cambridge Advanced Learner’s Dictionary and Thesaurus
Editor’s comment
Wow, I cannot believe we’ve reached our summer special double header of Professional magazine. I hope many of you are looking forward to some sunshine here in the UK or have plans to head abroad to catch some rays. This issue is all about ‘The well-rounded payroll professional’, and centres on the skills outside of the technical that payroll practitioners must possess. The first one
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that springs to my mind is customer service and having the ability to speak to people about a highly emotive and sensitive topic: pay. I’m sure as you’re reading this, you’ll have your own ideas about some of the broader attributes required for working in a payroll department. Head to page 22 to hear the views of our panel of experts on exactly this. There’s also a comprehensive A-Z of both the technical and soft skills required to excel in a payroll career on page 26. Can you think of anymore? If so, I’d love to hear from you. Additionally, this time round, we’re sharing articles on some of the activities payroll professionals can find themselves involved in that they may not have expected when they first embarked on a career in the industry. Flick to page 32 to learn how you can make the most compelling business case to your senior leadership team and get your voice heard at that top table. And on page 20, hear all about why you should implement a business continuity payroll plan or BCPP, within your organisation and understand the risks in not doing so. I hope you enjoy reading this issue as much as I’ve enjoyed putting it together, and that you have a wonderful summer.
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Lora Murphy (editor@cipp.org.uk) Editor
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20 - Protecting your payroll By Russell Webb
22 - Feature article - the well-rounded payroll professional By Jerome Smail
26 - Do you have what it takes to be a well-rounded payroll professional? By Claire Warner
32 - How to build the most compelling business case By Karen Beckett
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
Chair’s message
Chief Executive officer Jason Davenport MCIPP MloD CIPP Board Of Directors Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Editor Lora Murphy editor@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Redactive
Welcome to your July / August issue of Professional . We’re over halfway through the year already and it’s great to be soaking up the sun. Vitamin D is fantastic at waking our bodies up and giving us energy to face the day ahead, and the lighter nights are perfect for relaxing in the garden when we finish our working day. As we all know there are many key skills needed to work in the payroll
department, from interpreting legislation and having compliance knowledge, to understanding complex contracts and being able to give guidance to employees. However. there are also lots of other skills required in the payroll profession. We deal with employees, managers and stakeholders in our business every day, so customer service skills are a must. Being able to talk in a way our customers understand on all levels helps to build employee confidence in the payroll department. Time management is another essential skill – we need to meet deadlines and there are lots of those for payroll professionals! This issue is full of articles focussed on how to enhance the talents of payroll professionals that are required outside of the day-to-day technical skills. I hope these articles help you to reflect on how you can enhance your skills, as well as those of your teams. Make use of your membership and remember the CIPP is here to help, so please get in touch or reach out at one of our upcoming events.
Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Lara Smart ChFCIPPdip
Brian Sparling ChFCIPPdip Michelle Sutton ChMCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s message Ensuring recognition for all who work in the pay industry is a key part of the Institute’s mission. Recognising all payroll, pension and reward professionals for the fantastic role they perform is key to our strategic goals. The most recent number published for annual collection of tax and National Insurance deductions, collected and paid across to central Government was £473.8 billion. That really is an incredible figure and one that you all contribute to. Thank you. It’s widely regarded and reported that those who embrace lifelong learning survive the challenges of change. In my own career, I’ve witnessed the evolution from printed tax tables and carbonised payslips to fully computerised systems, self-service and pay documents provided electronically rather than physically. Artificial intelligence is the next big challenge, but those who ensure they’re contributing more to a business with additional skills and value, will see their way through this challenge and embrace the opportunity. The conference season is now well underway on a global scale, and by the time you’re reading this issue, I’ll have represented the UK at both the US and Canadian payroll conferences. All those involved in the global pay professions must seek to add value and continue to enhance both technical and soft skills. There are four strategic themes which underpin all the work each of the departments within IPP Education Ltd and the CIPP work towards. Although our own internal quality, culture and governance are key foundations of how each area is measured, lifelong learning, amplifying expertise and collaborative impact are all of equal strategic importance. I’ll write to you in more detail to discuss why they’re so important and how they guide our decision-making. I look forward to explaining more of our strategy at the CIPP’s Annual Conference and Exhibition coming up in the autumn. I do look forward to meeting up with you then.
Consultancy consult@ippeducation.co.uk 0121 712 1044 IPP Education education@ippeducation.co.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 IPPE Training training@ippeducation.co.uk 0121 712 1013 cipp.org.uk @CIPP_UK
Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2025. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief Executive Officer, CIPP
Copyright This magazine is published by The Chartered Institute of Payroll
Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 2
Contents
View the online version for additional content at cipp.org.uk or scan the QR code
JULY-AUGUST 2025
Reading the magazine gives you one CPD point
REGULARS 01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP 11 Personal development BePayroll 14 Compliance Find a handy guide regarding the key actions to take in Event horizon, On your behalf, Payroll news, Advisory Q&As, Spotlight on…
FEATURES - ‘THE WELL-ROUNDED PAYROLL PROFESSIONAL’
NMW By Jeni Morris
Ensuring neuroinclusivity at all stages of the employee life cycle By Cybill Watkins The mandatory payrolling of benefits: preparing for April 2027 By Susan Ball and Charlie Barnes
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The payroll professional: the heart of the Payroll Support Network By Jody Cox Help with labour supply chain assurance – Guidelines for Compliance By David Lynas and Melissa Kelly
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Doing the right thing: building a business on authentic values By Richard Rowell
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readiness for the mandatory payrolling of benefits from April 2027 and learn about HM Revenue and Customs’ Guidelines for Compliance
Why payroll should embrace digitisation By Malachy McDermott
Demotion, dismissal, discussions By Dan Carder
22 Feature topic
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Read all about the theme of the current issue – The well- rounded payroll professional – as our panel of experts discuss the core soft skills payrollers need
26 Reward
How much could you save with a salary sacrifice pension? By Ruper Farnelo
Hot topic – putting people first: getting the best out of payroll professionals By Carina Monnelly-Owen Introducing self- service apps to allow for more efficient ways of working Daniel Savickas and Gemma McNamara
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Hear all about the Payroll Support Network, a great example of how wonderful the payroll community is, and discover the latest outcomes of recent employment law cases
40 Technology
This issue, the focus is on how embracing digitisation can benefit the payroll department and how one company is using self-service apps to help employees with tax code queries
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Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package.
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Pensions Consideration of how much a salary sacrifice pension scheme could save a business and its employees
To get involved, contact Lora, at editor@cipp.org.uk .
50 Hot topic
How do you get the best out of payroll professionals? Flick to our hot topic article to find out
52 Payroll pets
We say hello to some of your furry friends
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
CIPP UPDATE
update
NEW
MASTER PAYROLL. STEP BY STEP.
Accountex 2025 IN MAY, the team headed to the Excel London, for Accountex 2025. It was a great two-day event filled with networking and sessions, including our Policy and Advisory Lead, Samantha O’Sullivan, hosting a payroll legislative update on the first day. It was fantastic to connect with so many CIPP members at the event and to chat with delegates about the ways the CIPP can support their payroll journey.
Introducing Payroll QuickLearn – a collection of bite-sized, on-demand courses that cover key payroll topics. Learn at your own pace and equip yourself with the knowledge to stay ahead and compliant with quick, practical courses, at every level. Coming next: new statutory pay courses.
‘Wear It Green Day’ DURING MENTAL Health Awareness Week 2025, we celebrated ‘Wear It Green Day’. Colleagues dressed down in their favourite green garments to show their support for the week and shine a light on the importance of mental health and wellbeing in our lives. This coincided with our activities throughout the day, and we got the chance to have a break from our desks to reflect on our mental wellbeing.
Visit payrollquicklearn.org.uk or scan the QR to book your courses today
New Fellow member CONGRATULATIONS TO: l Dino Pistachio FCIPP, Project Partner, CSL.
Scan to book
Dino has recently gained Fellow membership status. Gaining this level of membership is a huge achievement. If you’d like to find out more, head over to our dedicated page: https://ow.ly/NTPp50V9tlU.
A subsidiary of the Chartered Institute of Payroll Professionals
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 4
Event horizon Your guide to upcoming events and training
Full details of all events can be found at cipp.org.uk/events or you can email events@cipp.org.uk for more information.
Exciting news: Payroll Services Summit (PSS) The PSS event is returning once again in 2025, and we have some amazing news to share with you: we’re thrilled to announce that the CIPP is the event’s new owner. The PSS will be held on the second day of National Payroll Week, on Tuesday 2 September, in London. The PSS is a dedicated industry event for payroll services providers, ensuring we continue to represent payroll professionals across all working environments. This was originally an Experian / Pay Dashboard event, which the CIPP has supported since first speaking at in 2020 and then acting as associate organisers in 2021. Experian / Pay Dashboard will continue their investment and support of the event, along with contributing to the agenda. They’ll also be headline sponsors. The event promises to continue the fundamental ethos of the PSS, which is threefold and was developed at the event’s inception, meaning it will: l deliver attendee-driven content, with most speakers actively working in payroll services l only showcase authentic vendors, who can bring real value and can provide a working case study l be a free event for anyone working in a payroll bureau. Registration is now open and you can secure your place here: https://ow.ly/16g450W3ovJ.
BeKnowledgeable: soft skills in payroll On 17 July, the Policy and Research Team will be delivering a BeKnowledgeable session with a bit of a difference. While payroll professionals are focussed on the fundamentals of facts, figures, compliance and of course, paying people accurately and on time every time, it’s easy to forget the impact payroll can have on people’s lives and wellbeing. Providing that support and helping to strengthen the skills of the profession and perception of the payroll department is really important. The team can’t wait to see you at this unmissable session, and you can sign up for it here: https://ow.ly/ O0JU50W4CBw.
Training courses Take a look at some of our upcoming training courses. Face-to-face courses are highlighted in orange. For a complete list of courses, dates and locations, visit http://ow.ly/iVfT50MU7yr.
09 July
Online
COURSE
DATE
LOCATION
Payroll for non-payroll professionals
06 August
Online
07 July
Online
Automatic enrolment and pensions for payroll
04 June
Online
04 August
Online
National Minimum Wage masterclass series
09 July
Online
Global mobility key payroll issues
04 August
Solihull
02 July
Online
14 July
Online
24 July
Online
Introduction to payroll
11 August
Online
17 July
London
Payroll update
12 August
Birmingham
20 August
Birmingham
28 July
Online
P11D, expenses and benefits
11 August
Online
18 August
Online
In addition to the upcoming courses above, IPPE offers a range of on-demand e-learning courses, including our brand new Payroll QuickLearn course library. Visit https://ow.ly/Woqx50VcAcL to find out more.
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
POLICY HUB
On your behalf
Welcome to the latest update on what the CIPP’s Policy and Research Team has been involved in, on behalf of you, our members, and the wider payroll profession, throughout the month of June Policy team update
The Policy and Research Team l Mathew Akrigg MCIPPdip MAAT, Policy and Research Officer l Samantha O’Sullivan ChFCIPPdip, Policy and Advisory Lead l Sarah Smith MCIPPdip, Policy and Research Officer.
the launch of the very first Payroll Live last year, it’s a pleasure for us to be attending. These events are the perfect opportunity to enhance payroll knowledge and skills. And of course, there’s the opportunity to network with the amazing payroll community – the part the Policy Team loves the most. Retrospectively, in June, Mathew was invited to sit on an expert panel at the Chartered Institute of Personnel and Development’s (CIPD’s) Festival of Work, held at the Excel in London. Along with two other experts, Mat discussed how organisations can keep employees engaged, while also balancing budgets. Consultation and call for evidence (CfE) updates The latest consultations we responded to were: l Equality (Race and Disability) Bill: mandatory ethnicity and disability pay gap reporting l Closing in on promoters of tax avoidance l Low Pay Commission (LPC) 2025. Sam was delighted to hold a Think Tank with Joseph Wilkinson from the LPC and our members to discuss their views on how best to remove the 18-20-year-old national minimum wage (NMW) age band. Thank you to all our members who contributed to the Think Tank and survey, to help shape the future of the NMW and national living wage (NLW). You can read our formal responses to consultations and CfEs at: https:// ow.ly/3Kav50QigsG. Forums and working groups The Policy Team is privileged to sit on several HM Revenue and Customs (HMRC) forums. Sam, Mathew and Sarah attend several forums every month. Following the recent news that the
mandating of payrolling benefits has been delayed to April 2027, Sam has established a new industry working group alongside The Chartered Institute of Taxation (CIOT), the Business Application Software Developers Association (BASDA) and the British Computer Society (BCS). This is to ensure we have an ‘industry voice’ regarding what we’d like to see from HMRC in terms of the next steps for payrolling benefits in kind. The team will keep you in the loop with these conversations as they progress. The team sits on these forums to ensure our members’ feedback is provided at Government level. We’ll always update you on our findings and information provided through these groups via Professional and News Online . If you have any issues you would like to raise at any of the professional forums we sit on, please reach out to the team by emailing us at Policy@cipp.org.uk . NMW – naming and shaming Just before going to press, The Department for Business and Trade published the most recent list of employers that had paid workers below the NMW and NLW, or as it’s more commonly known, the naming and shaming list. With 518 employers underpaying nearly 60,000 workers more than £7.4 million, the figures clearly show that employers are still getting the complex minimum wage calculations wrong. We strongly recommend that all employers check their minimum wage compliance as a matter of priority. Even unintentional errors could result in penalties and ending up on the naming and shaming list. You can review the latest updates and support on this important topic here: https://ow.ly/aPMr50W3fNv. n
BeKnowledgeable series The BeKnowledgeable session held in June looked at a very hot topic – the complex subject of holiday pay. This webinar was well attended, and we hope everyone managed to take something away from it. Often, our presentations and webinars centre on current and topical areas to refresh and upskill the profession. However, an area that’s not always considered has recently been brought to our attention. Yes, we all want to pay everyone correctly and on time, every time, and we strive to remain compliant, but what soft skills are also required to successfully run a payroll department? Therefore, our next BeKnowledgeable taking place on 17 July will explore soft skills. This aligns with the current issue of this magazine and the focus on ‘ The well-rounded payroll professional ’. Events At the time of going to press, the team was busy preparing for the Payroll Live North event at the Etihad Stadium. Following
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 6
MY CIPP
PAYROLL news
Research into how salary sacrifice is used for pensions HMRC COMMISSIONED IFF Research to gain an understanding of how employers currently use salary sacrifice arrangements for pensions. As part of the research, hypothetical changes to the operation of tax reliefs for salary sacrifice were put to respondents to see how they might impact their use. The scenarios were as follows: l removal of the National Insurance (NI) exemptions for both employees and employers l removal of the NI exemption for employees and employers and removal of the tax exemption for employees l removal of the NI exemption but only above a threshold of £2,000 per year. The conclusion reveals that all the scenarios posed drew negative reactions from employers to different degrees. You can read the full report and its findings here: https://ow.ly/eVwr50W5mkk.
The latest NMW naming round published AS MENTIONED in this issue’s ‘On your behalf’, the Department for Business and Trade (DBT) recently released the latest list of companies found to have underpaid staff, by failing to pay the national living wage (NLW) and national minimum wage (NMW). It was confirmed that nearly 60,000 workers were left out of pocket by their employers, with a grand total exceeding £7.4 million needing to be repaid. The businesses named were found to be non-compliant with NMW regulations during investigations carried out by HM Revenue and Customs (HMRC) between 2015 and 2022. The staff who had previously been underpaid have now been paid the money they were owed, and in addition to this, businesses would have had to pay additional financial penalties of up to 200% of any underpayments. So, when there’s non-compliance with NMW rules and regulations, there can be severe financial implications for businesses, but also massive reputational damage associated with appearing on the naming round. It’s important to note here that all businesses found to be in breach of the NMW rules are included on the list, and many of them will have inadvertently underpaid their staff. Organisations are included on the list regardless of whether the underpayments were deliberate or not. This is why it’s so key for businesses to be aware of complex NMW legislation and to ensure they upskill and train any individuals involved in ensuring NMW is paid. The DBT press release can be found here: https://ow.ly/N0XZ50W5m8A. An additional Educational Bulletin is released alongside the naming list and can be located here: https://ow.ly/I7XX50W5m7s.
Diary dates
Last day of tax month 3
5 July 6 July
First day of tax month 4
P11D submission date (to both HMRC and employees) P11D(b) submission date
6 July (This is a weekend date)
Payroll Live North - Visit cipp.org.uk/payrolllive for information
9 July
Last day for submitting a real time information employer payment summary to apply to tax month 3 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
19 July (This is a weekend date)
22 July
Last day of tax month 4 Last day of tax month 5
5 August 6 August
Last day for submitting a real time information employer payment summary to apply to tax month 4 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method
19 August
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
22 August
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 7
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Reimbursing training costs from a previous employment Q: We’ve agreed to reimburse some training costs to a new employee to repay their previous employer. The previous employer funded the training, but an agreement was in place stating that the employee would need to repay this if they were to leave the employment within a certain period. How should this payment be treated for tax purposes? A: The employee is receiving the cash by reason of their current employment. It isn’t a business-related expense or training cost, as any agreement with the previous employer cannot be carried forward into their new employment. If the company reimburses the employee in cash, the employee is free to use that cash however they wish. For these reasons, the cash payment is regarded as additional earnings under sections 7(3)(a) and 62 the Income Tax (Earnings and Pensions) Act (ITEPA) 2003 and is subject to tax and Class 1 National Insurance via the payroll. This is confirmed here: https://ow.ly/veiW50W3amP. If the employer would like the individual to receive a set sum of money to pay the training costs, they could consider grossing the amount up through the payroll.
A: For the week that started on Sunday 30/03/2025 and ran until Saturday 05/04/2025, the pay day was Friday 11/04/2025. Was this week 53 of tax year 2024/25 or week one of tax year 2025/26? The taxable pay tables (https://ow.ly/ SvO250W3aVS) show you that if a payment date falls between 6 and 12 April, that would be classed as sitting in tax week one. It’s not about the dates worked – it’s the pay date that determines the tax week. Salary advances and impacts on national minimum wage (NMW Q: Is there any HM Revenue and Customs (HMRC) guidance regarding paying someone a salary advance which is paid back over several months? Would this reduce their salary for NMW purposes? A: An employee is protected from an unlawful deduction of wages under the Employment Rights Act 1996. To make a deduction, the employee must have previously agreed to this in writing – this could be through their contract of employment or a repayment plan. An advance or loan will not reduce pay below NMW as per Regulation 12(2)(b) of The National Minimum Wage Regulations 2015 (https://ow.ly/ aYMf50W3aC3): “Deductions or payments for the employer’s own use and benefit 12.(1) Deductions made by the employer in the pay reference period, or payments due from the worker to the employer in the pay reference period, for the employer’s own use and benefit are treated as reductions except as specified in paragraph (2) and regulation 14 (deductions or payments as respects living accommodation). (2) The following deductions and payments are not treated as reductions—
(a) deductions, or payments, in respect of the worker’s conduct, or any other event, where the worker (whether together with another worker or not) is contractually liable; (b) deductions, or payments, on account of an advance under an agreement for a loan or an advance of wages; (c) deductions, or payments, as respects an accidental overpayment of wages made by the employer to the worker; (d) deductions, or payments, as respects the purchase by the worker of shares, other securities or share options,
or of a share in a partnership; (e) payments as respects the
purchase by the worker of goods or services from the employer, unless the purchase is made in order to comply with a requirement imposed by the employer in connection with the worker’s employment.”
How do you make corrections to BiKs that have been payrolled incorrectly?
Corrections to payrolled benefits in kind (BiKs)
Q: There are some instances where we we’ve processed incorrect amounts through payroll in relation to payrolled BiKs. This has happened for both current employees and leavers. How do we deal with this? A: The guidance tells you to carry forward a change to the next tax year. And if you’ve made your final full
How do you establish whether a tax year has 53 weeks?
53-week tax years Q: Did tax year 2024/25 have 53 weeks?
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 8
POLICY HUB
Reclaiming overpaid statutory maternity pay (SMP) Q: Due to a communication error, a maternity start date was processed earlier than it should have been. As a result, and in line with the March year-end process, we had to revert the payroll and resubmit the FPS and employer payment summary for March. The system now reflects the correct maternity start date, but the employee has been overpaid by £708 in net pay in March, so we would like to propose a repayment plan to recover this amount. Upon review, we found that a deduction could be made from future SMP payments, provided the employee agrees to this approach, at https://ow.ly/ CCBp50W3c0t. However, we would like to understand how to reflect this on the payslip. Assuming we obtain the employee’s formal written consent, can we process the net deduction as an ‘advanced payment’? Would it be appropriate to include an additional line on the payslip indicating the monthly deductions, bearing in mind that these deductions will be taken solely from SMP over the next seven months? A: The net amount is the most accurate method to use to recover an overpayment, and this is the value you should ask the employee to repay. Follow the company policies around naming pay elements used to recover a wages overpayment. You’ve identified the correct manual, and SMP is replacement of earnings so an overpayment of wages can be deducted from it. As confirmed in the Statutory Payments Manual, all statutory payments are a replacement of earnings, and you can make deductions from them. Although an employer should consider whether it will cause financial hardship, it will also depend on what’s stated in the employee’s contract of employment regarding the recovery of overpayments. If an employer takes a deduction without consent or without it being detailed in the contract of the employment, it’s classed as an unlawful deduction under Employment Rights Act 1996. I would suggest agreeing a repayment plan in writing. This CIPP article is very useful in confirming the steps to take when employees are overpaid: https://ow.ly/74XE50W3c59 https:// ow.ly/74XE50W3c59. n
payment submission (FPS), you can carry forward the amount that hasn’t been payrolled to the next tax year. So, you add the amount still to be payrolled to the first wage payment in the next tax year. Be mindful that Class 1A National Insurance contributions payable on the benefit cannot be carried forward to the next tax year. These are payable by 19 July after the tax year end. So, if an employee has left but there’s still part of a benefit to be taxed, you have two options, but HMRC will contact the employee for the unpaid tax whichever option you choose. Option 1: include the balance in your FPS – report the taxable amount in taxable pay to date in your FPS and notify HMRC that the employee has left if you haven’t already done so. Option 2: include the balance on form P11D – include the untaxed balance on form P11D for the period that the employee had the benefit that wasn’t included in payroll.
Are there any NMW considerations when recovering an overpayment?
Can you deduct an overpayment from SMP?
Pay as you earn (PAYE) references Q: We currently have five different company entities all with different PAYE references – one per entity where each of the separate company contracts are paid. Within one of the companies, we want to split the staff into different pay groups, all still employed by the same company. Can each of these groups have their own PAYE reference and can one employer have more than one PAYE reference? If so, how do we apply for new PAYE references? A: It’s possible to have separate PAYE schemes. This may be done for different payroll frequencies or to group different employees together as in your example. A formal election must be made to HMRC prior to the start of the tax month that it is to take effect. The following link contains further information: https://ow.ly/ actE50W3bfS.
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
MY CIPP MY CIPP
Tell us a little about your career and background so far. Before joining the CIPP as a Business Support Administrator in July 2022, I was the Senior Administrator for a logistics company, running a large team with hectic schedules for clients’ stocks in and out of the warehouse. After joining the Business Support Team, I moved over to become an administrator for the End Point Assessment (EPA) Team and became their Co-ordinator. Nearly two years later, I was lucky enough to move to the position as Training Co-ordinator and have been in the position since March 2025. What are your main priorities as a Training Co-ordinator? My main priority within the department is, and always will be, our delegates. Making sure we have their bookings processed, courses active and support available should they need it before, during and after their training course has finished. We offer such a wide and varied range of training courses including our new Payroll Quick Learn (PQL) that the days are always full of delegates at different stages of their payroll knowledge journey. It really is so rewarding to see delegates gaining so much from our courses and dedicated trainers. Our department’s goal, much like the company’s main goal, is to provide
growth and knowledge to everyone in the payroll industry.
sense of achievement, from being able to signpost to our guides for all the incredible qualifications we offer, to mental health support which can be vital for our learners. Building the foundation stones of key support is a passion I’m lucky to be able to bring with me into training. Outside of work, what are your interests or hobbies? Outside of work is just as hectic as inside most of the time! My husband and eldest son play cricket all summer to a high level, so my Saturdays are spent deciding who to watch depending on the fixtures. We’re a sports family, so evening games of paddle tend to keep us all together. I’m a huge fan of Manchester United (I can hear the laughing after this season as you read this) and Atlanta Falcons in American Football. The whole family supports different teams so on game days, you can guarantee someone is gloating. This season it has been my 22-year-old who is a devout Liverpool fan, much to our Chief Executive Officer, Jason’s amusement! Aside from sport, my youngest son is on his own journey of recovery, due to severe mental health crisis points over the last 18 months. It’s one of the reasons I’m so passionate about our learner support, and why I’m an English Cricket Board Safeguarding Officer. o
What’s a typical day like for you? The day always starts with a coffee. Black, no sugar, while I look at emails. I always start my day in the inbox, making sure any questions that have come in overnight are answered by the time people start their working day. Then I move into running courses for the day, ensuring delegates have everything they need easily accessible to them, as I understand how important our courses are to those who are on them. Next is our schedule work, where I monitor, plan, book and organise our daily courses. This allows me to ensure our incredible trainers have all they need to deliver first-rate sessions to our delegates. The Sales Team keeps me busy all afternoon with bookings so the days go quickly – you can see why it’s always a black coffee. Can you share a moment you’re particularly proud of during your time at the CIPP? Something I’m so proud of is my work with our incredible Michelle Dalloway on the Learner Hub. This is a support function we’ve built for our learners, and it really is something I can say gives me a
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
PERSONAL DEVELOPMENT
# Be Payroll Ginalyn Acosta MCIPPdip, Senior – Payroll and Client Accounting, Ecovis Wingrave Yeats, shares her payroll career story and explains how CIPP membership and IPPE qualifications have aided her journey
Can you describe your payroll journey to us so far? I began my payroll career as a Payroll Assistant, working closely with the Payroll Manager. This role allowed me to gain essential skills in payroll processing and compliance, while sparking a deep passion for the field. When the Payroll Manager left, I remained with the firm and was entrusted with managing the entire operation of their business outsourcing payroll services. This pivotal moment demonstrated the confidence my employer had in my capabilities and marked the beginning of my journey towards leadership in payroll. As I advanced through roles such as Payroll Officer, Payroll Administrator, Payroll Supervisor and Payroll Specialist,, I took on increased responsibilities. From resolving complex payroll issues to improving operational processes, I developed a strong foundation in areas like benefits in kind (BiKs) and regulatory compliance, which became cornerstones of my expertise. Now, in my senior role at Ecovis Wingrave Yeats Ltd, I play a critical role in ensuring the accuracy and efficiency of payroll delivery. I use my expertise to streamline processes and to address complex payroll, pensions, benefits and expenses. I maintain strict adherence to compliance standards. Additionally, I liaise directly with clients and collaborate across departments to uphold exceptional service delivery. My ability to combine strategic insight with technical proficiency has solidified my reputation as a reliable and knowledgeable payroll professional. My career progression has been a journey of continuous growth and learning, and each step has shaped and refined my expertise. It’s helped me become the professional I am today, allowing me to excel as a senior payroll professional who confidently contributes to the team’s success and the trust of our clients. Which CIPP member benefits would you encourage other payrollers to use and why? I highly recommend the continuous professional development resources and
with your other commitments, e.g. working / family life? Balancing work, family and studies was challenging and required a great deal of discipline, effective time management and determination. I had to prioritise tasks carefully, create a structured study schedule and seek support from my family when needed. Despite the difficulties, this experience strengthened my ability to manage multiple responsibilities simultaneously, which has been invaluable in my professional life. The challenges I faced taught me resilience and adaptability – qualities that have greatly contributed to my success in the payroll profession. How has your qualification helped you in your career? The qualification has been instrumental in boosting my career. It equipped me with strategic business skills, such as analysing payroll compliance, mitigating risks and understanding global payroll operations. It also enhanced my expertise in BiKs and employment law, which has earned the trust of clients and colleagues. What tips do you have for people considering taking IPPE qualifications? My advice for those considering taking IPPE qualifications would be to stay committed and organised. Approach your studies with a clear plan and make use of the resources provided by IPPE, such as guidance and access to tutors. Having a support system, whether at work or home, can also make a significant difference. Additionally, it’s important to stay updated with the latest industry trends and changes in legislation, as the payroll field is constantly evolving. Engaging with peers and participating in professional forums can provide valuable insights and support throughout your career. Building strong professional relationships can enhance your knowledge and skills, contributing to your overall growth and success in the payroll profession. Remember, the journey in payroll is one of continuous learning and growth, and staying proactive is key to long-term success. n
networking opportunities provided by the CIPP. These benefits allow members to stay abreast of industry trends, compliance updates and best practices. Access to webinars, publications, industry insights and the Advisory Service has been invaluable in strengthening my professional knowledge and confidence in delivering accurate payroll services. How do you think the CIPP can support its members more? How do you think the CIPP is supporting its members well now? The CIPP is doing an excellent job of keeping its members informed about industry developments and providing learning opportunities. However, I believe it could enhance support by introducing more region-specific workshops or events, allowing members to connect in-person and address localised challenges. The CIPP’s commitment to professional development and its wide array of resources, such as guidance and updates on legislation, are a strong pillar of support for members. Do you have any tips for people just entering the profession? I would advise embracing continuous learning and maintaining a detail-oriented approach. Building a strong foundation in compliance and understanding payroll systems is crucial. Joining a professional body like the CIPP early in your career is invaluable for networking and gaining access to expert resources. What qualification did you take / are you taking? I graduated from the Foundation Degree in Payroll Management in 2020. This provided me with a strong theoretical foundation and practical skills applicable to managing payroll operations effectively. My passion for payroll and my desire to further my expertise prompted me to take this qualification, as I wanted to deepen my knowledge and gain strategic business skills to advance my career and deliver excellent payroll services.
How did you manage studying
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
HEADLINE SPONSOR
CIPP’s Annual Conference and Exhibition
The biggest UK payroll conference and exhibition Taking place 1-2 October 2025 at the Celtic Manor Resort in Wales, our Annual Conference and Exhibition brings together payroll professionals, thought leaders and solution providers from across the UK. This two-day event offers a packed programme of insightful sessions covering the latest legislation, policy changes, and industry developments, alongside interactive workshops and panel discussions. Delegates will also have the opportunity to explore the largest exhibition we have ever had – featuring payroll technologies, services, and innovations from across the industry.
SPREAD THE WORD Non-members get 12 months’ Affiliate membership, VIP event access and a goody bag included with their ticket.
*Please note that accommodation at the Celtic Manor Resort will be booked on a first come first served basis, after this all delegates will be accommodated at the Manor House located within the Celtic Manor Resort.
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 12
WHY ATTEND?
Inspiring keynotes Hear from payroll leaders and industry experts on trends, legislation, compliance and best practices. Grow your skills Gain insights and updates to support your career and professional development.
Interactive workshops Join interactive sessions and discussions led by experts to deepen your knowledge. Celebrate succes Your ticket includes entry to the CIPP Annual Excellence Awards – the UK’s largest payroll awards
Explore new solutions Meet exhibitors showcasing the latest payroll tech, services and tools to improve your processes. Connect and network Meet peers, share ideas and build valuable industry connections.
FEATURED SESSIONS
How to climb the payroll career ladder Maria Mason ChMCIPPdip
Navigating legislation, guidance manuals and case law Mathew Akrigg MCIPPdip MAAT
Do payroll and reward professionals need a seat at the top table to get their voice heard? Karen Beckett BA (Hons) ChFCIPP
2025 EXHIBITORS...SO FAR
Visit cipp.org.uk/ACE or scan the QR code to book your places today
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
BEST PRACTICE IN PAYROLL
The Payroll Assurance Scheme (PAS) – the prestigious gold standard accreditation for your payroll processes and people
Developed in partnership with HM Revenue and Customs (HMRC) and launched in 2012, PAS is the prestigious gold standard to ensure your people and payroll processes are compliant and robust.
Examining over 100 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:
Portsmouth City Council (re-accreditation)
CT Accountant Advisors (new accreditation)
University Hospitals Birmingham NHS Foundation Trust (re-accreditation)
NHS National Services Scotland (new accreditation)
Moorepay Limited (re-accreditation)
“It’s a huge achievement for the NatWest payroll team to once again have successfully completed PAS accreditation. PAS has been created by the Chartered Institute of Payroll Professionals in partnership with HMRC and represents the gold standard in payroll service delivery. The rigorous assessment covers all aspects of payroll services, providing assurance around payroll controls, compliance, efficiency and people development.
“I’m delighted that NatWest UK’s payroll team has continued to demonstrate such a high quality of payroll service delivery, and that it has once again been recognised by the payroll industry body.”
Emma Hartley, Payroll Operations Lead, NatWest Bank Plc
Visit cipp.org.uk/PAS , email compliance@cipp.org.uk or scan the QR code to find out how the PAS accreditation can help you
| Professional in Payroll, Pensions and Reward | July-August 2025 | Issue 112 14
COMPLIANCE
Why your payslip tells a global story T hose people who believe payroll is just a matter of ‘pressing a button’ haven’t seen the global wage rollercoaster. As payroll professionals, we’re
Jeni Morris, IPPE Consultant, looks at how minimum wage rates are changing across the world
those “urgent” payslip queries seem a little less stressful.
you’re now juggling: ● more frequent minimum wage reviews ● diverse interpretations of the EU Directive ● local quirks in wage calculation and taxation ● rethinking labour cost comparisons between the East and West. And yet, while the Directive helps ensure wages reflect economic conditions, it still sidesteps the big question of whether these minimum wages offer a decent standard of living. Only a few countries, like Slovenia, are linking wage growth to the real cost of essentials. It’s a lot to think about for those of us knee-deep in automatic enrolment, reconciliations and national minimum wage calculations. But understanding the bigger picture adds meaning to our daily tasks. Behind every
Europe’s quiet revolution Meanwhile, Europe is having a wage revolution. Luxembourg still leads, with a monthly minimum wage of around €2,638. But Bulgaria, once one of the lowest paying, now offers €551 / month. And when you adjust for what those euros can buy, the difference between Europe’s highest and lowest minimum wages has shrunk from over 20:1 to just 2:1. The EU Minimum Wage Directive: compliance gets interesting What’s behind all this movement? The EU Minimum Wage Directive, which requires countries to regularly: ● review their minimum wages ● consult with unions and employers ● consider benchmarks like 60% of the median wage or 50% of the average. The result? Eastern Europe is racing to catch up. Romania’s minimum wage jumped nearly 23% between 2024 and 2025. Hungary, Croatia, Slovakia – they’re all on the move. Why payroll professionals should care For payroll professionals, this isn’t just trivia, it’s a compliance challenge. Wage floors are shifting quickly. If your company operates across borders,
used to juggling real time information deadlines, calculating statutory pay and fielding the eternal “Where’s my payslip?” emails. But sometimes, it’s worth stepping back and asking, how does our minimum wage stack up against the rest of the world?
The UK: £12.21 an hour and counting
Let’s start at home. As of April 2025, the UK’s National Living Wage (NLW) is £12.21 per hour for workers aged 21 and over. That’s just shy of £24,000 a year for full-time work – not quite enough for a penthouse in Mayfair, but certainly enough to keep you in Pret sandwiches and Netflix subscriptions. Bangladesh: 45p a day and that isn’t a typo! Now, let’s take a detour to Bangladesh, where the minimum wage is a jaw- dropping $13.67 per month – about 45p a day. Yes, you read that right. A UK minimum wage worker earns nearly the same in an hour as a Bangladeshi garment worker does in an entire month. Next time you grumble about the price of lunch, remember, some workers are budgeting 10p for the whole day. Around the world in 80 payslips The pattern repeats elsewhere. In Mali, the minimum wage is $57 per month. In Haiti, it’s $68. Nigeria and Ethiopia? Just over $70. Suddenly,
wage slip is a story. So, the next time someone asks if payroll is just “pressing a button,” smile and say, “Only if that button controls
the future of global income equality.” n
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| Professional in Payroll, Pensions and Reward |
Issue 112 | July-August 2025
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