PROFESSI NAL in Payroll, Pensions & Reward Issue 101 June 2024 Official publication of The Chartered Institute of Payroll Professionals
ARE YOU READY FOR MANDATORY PAYROLLING? Some considerations ahead of the April 2026 change coming your way
THE GREAT DEBATE Is a truly rewarding career in payroll enhanced by education, experience or a mixture of both?
MULTI-GENERATIONAL WORKFORCES Exploring how employers can accommodate multiple generations working in payroll
EducatioN, experience or both?
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
# 1 RECRUITMENT AGENCY ON
Bas
www. portfoliopayroll .com
Secure exceptional payroll talent with the largest and longest established payroll recruitment agency in the UK.
• Our clients benefit from access to our extensive candidate network UK & global talented payroll professionals at all levels of the market • Supporting SMEs, FTSE 500 & global entities with one-off vacancies to on-going consultancy for building your recruitment strategy & succession planning
• Tailored Executive search solutions from permanent Senior Management & Director level appointments to interim assignments for payroll Consultancy & software implementation projects • Benchmarking services on salaries & benefits plus sector trends through our industry-leading Payroll Salary survey - providing insightful market intelligence to aid your recruitment & retention strategy
Secure exceptional talent in the market right now by contacting one of our specialist Recruitment Consultants today.
LONDON 020 7247 9455 1 FINSBURY SQUARE, 3 RD FLOOR, LONDON EC2A 1AE MANCHESTER 0161 523 5585 THE PENINSULA, VICTORIA PLACE, MANCHESTER M4 4FB
www. portfoliopayroll .com recruitment@ portfoliopayroll .com
20
“The interaction of knowledge and skills with experience is key to learning.” John Dewey
Editor’s message
28
Hello, payroll, pensions and reward professionals, and welcome to the June issue of Professional magazine.
....... As I write this, the sun is shining, and it feels like summer is just around the corner. Everything is so much better when it’s warm outside! This issue of the magazine considers a very important debate we often see across many professions, and one that’s certainly growing in the payroll world, which is whether you need education or experience to succeed in your career. You’ll note that the cover page also asks if it’s a combination of both, and I think you’ll all agree (especially after reading this issue, hopefully!) that education and experience complement each other beautifully in our industry. Our feature article, on page 28, asks a panel of experts to provide their thoughts on this important topic, and there are a variety of articles (pages 36, 38 and 42) which will prompt you to form your own thoughts and reflections on the subject. We also consider how there could potentially be multiple different generations all working together within contemporary society. These individuals may have different educational backgrounds and experiences, so our article on page 20 considers how this can be managed and the benefits truly realised, specifically in the payroll industry. I wanted to take this opportunity to let readers know that I’ll be taking a period of maternity leave shortly, so I won’t be here to edit Professional magazine for a few months! I’m really going to miss putting this amazing publication together and speaking to all of you during this time. However, I’m leaving the magazine in the very capable hands of Kavitha Sivasubramaniam, who some of you may already be familiar with due to her previous experience in editing for other payroll publications. Do feel free to reach out to Kavitha by emailing editor@cipp.org.uk .
36
38
Lora Murphy MCIPP (editor@cipp.org.uk) Editor
20 - The generation game: understanding age diversity By Carina Monnelly-Owen 28 - Feature topic – education or experience? By Jerome Smail 36 - The ever-changing profession By Karen Beckett 38 - The dynamic debate: payroll qualifications versus experience By Karen Thomson 42 - Developing skills and seeking opportunities in the payroll world By Maria Mason
42
Carrier sheet Put in your recycling
Cover Put in your regular rubbish
It takes approximately 70% less energy and water to recycle paper than to create new from trees. Help us reach our sustainability goals by recycling this magazine.
2 0 3 5 CIPP COMMITMENT TO CLIMATE CHANGE
Outer wrap Put in food waste or composting
Inner pages Put in your recycling
As a sustainable alternative, keep hold of me for future reference.
1
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
Chair’s message
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Ana Laiu MSc FCIPPdip Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Lara Smart ChFCIPPdip Brian Sparling ChFCIPPdip Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Clare Warrington MSc FCIPPdip AFHEA 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 Acorn Press Ltd
Hello, June! Where have the last six months gone?! We’ve already passed another year end, sent out our P60s and sorted our P11Ds. We’re now looking forward to the next set of challenges in the world of payroll. I often get asked how I started my payroll career, and the truth is I fell into it, starting on a youth training scheme as a payroll clerk and progressing my way through various roles in the industry over the years
Today, there are apprenticeship opportunities which can act as a gateway into a career in payroll, as well as supporting individuals on their qualification journeys. This can subsequently open doors to the many different career routes available to take within the payroll industry. So, what’s on offer for somebody wanting to start out in payroll or to move careers within the industry? Entry level roles are often offered alongside employer-supported training, and this can be a great way to get into payroll. Another possibility could be to undertake a qualification, and here at the CIPP, we offer a range of different options in this space. Payroll is no longer seen as just ‘pushing a button’ on pay day, as there are many more opportunities and pathways available, which will help attract and retain payroll professionals. In this issue of Professional , you will find some good advice and guidance on the opportunities and options out there. Membership is also a great way to ensure you have the tools, advice, support and guidance you need to help you through your career journey.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s message Welcome to the June issue of the magazine. We’re nearly halfway through the calendar year and rapidly closing in on the first quarter of the tax year. This also means we’re into the payroll conference season, which across the globe spans from May through to November, with events in the US, Southern Ireland, Canada and South Africa all coming before our own
Consult compliance@cipp.org.uk 0121 712 1023 Education education@cipp.org.uk 0121 712 1023 Events events@cipp.org.uk 0121 712 1013 General enquiries enquiries@cipp.org.uk 0121 712 1000 Marketing and sales marketing@cipp.org.uk 0121 712 1033 Membership membership@cipp.org.uk 0121 712 1073 Training training@cipp.org.uk 0121 712 1013 cipp.org.uk @CIPP_UK
Annual Conference and Exhibition (ACE), with Australia following, all interspersed with events by the Global Payroll Association and others. These are fantastic networking opportunities and provide education and guidance to propel payroll development. In this issue, the ‘experience or education’ debate is explored and both approaches have validity. I’m experienced within the payroll industry and recognise how important it is to build education through qualifications and training, along with continuous development as part of ongoing professional development. This aligns with my philosophy that every day is a school day. Hopefully, you will be aware of the Payroll Live event being organised in Manchester in July. This isn’t to compete with ACE, but rather to complement it and provide a content-rich experience for those who may not normally get to attend ACE. Presenting additional opportunities for learning is increasingly important to me, as such a high percentage of training courses and qualifications are now delivered online. This type of event still allows for face-to-face interaction, education and networking. For those who do attend, please let me know what you think of the event. Feedback is super important for us in developing and improving the range of events we deliver. As part of an educational community, you may prefer to maintain your continuous professional development with online learning and by consuming updates at your leisure. However, human interaction and face-to-face meetings also have their place in sharing stories and updating each other. I would be delighted to hear from you regarding any other opportunities for getting together that you think we, at the CIPP and IPP Education Ltd, should be thinking about. I look forward to hearing from you.
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 2024. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000
Copyright This magazine is published by The Chartered Institute of Payroll
Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 2
Contents JUNE 2024
Interested in writing for our magazine? Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk.
Reading the magazine gives you one CPD point
REGULARS
FEATURES - EDUCATION OR EXPERIENCE?
01 Editor’s comment 02 CEO’s and chair’s message 04 CIPP update News and developments 05 My CIPP
Exempt employees – basic federal
How the HMRC app can support you and your employees By Suzanne Newton
18
17
regulations, exceptions By Gretchen Inouye
Employers’ year end reporting By David Yewdall and Lewis Howarth
Data quality: the impacts on RTI By Cybill Watkins and Ben Dudley
22
24
Events horizon, On your behalf, Spotlight on…, Advisory Q&As, Payroll news, The CIPP’s Foundations of Payroll Analytics Course, CIPP’s climate change and environmental awareness day
How to avoid recruitment problems By Danny Done
The apprenticeship levy: maximising the benefits By Susan Ball and Richard Travis-Nash Social media, seeking parental leave, significant travel distances By Nicola Mullineux
26
31
15 Personal development BePayroll 16 Compliance From exempt employees and the impacts on payroll processing to data quality and the effects on real time information
From accidental careers to intentional futures By Paul Unwin Nurturing talent through apprenticeships By Tracy Jerram Service desks in pay and reward (Part 3) By Ian Hodson and Ana Laiu
32
34
28 Feature topic
Read all about the theme of the current issue
Payroll: the career and me By Brian Sparling
40
44
31 Reward
online exclusive content
All the latest in employment law and tips on how to avoid recruitment problems from the outset
A passion for payroll By Eilidh McFarlane
48
46
54 Technology
This issue, we’re looking at artificial intelligence and its role in enhancing payroll apprenticeships
online exclusive content
online exclusive content
60 Hot topic
Constant payroll change means more diverse career
Education or experience – does it have to be a choice? By Beverley Gibbs
Payrolling of all benefits in kind will be mandatory from April 2026, so discover tips on early preparation to ensure compliance
52
50
opportunities By Stephen Abbotts
online exclusive content
online exclusive content
62 Payroll pets
We say hello to some of your furry friends
Hot topic - considerations for the mandatory payrolling of benefits in kind By Justine Riccomini
AI and its role in enhancing payroll qualifications By Mark Bremner
54
60
3
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
CIPP UPDATE
CIPP update
The CIPP attends the academic awards ceremony at the University of Lincoln IN APRIL, our chief executive officer (CEO), Jason Davenport and education director, Dr Sue Smith, attended the academic awards ceremony at the University of Lincoln to congratulate five students who successfully completed their BA (Hons) in Business Management. Congratulations to Mo Coleman, Andrew McAulay, Wacika Sari, Andrea Taccuso and Caleb Weston.
Celebrating the 100th issue of Professional AS I’M sure you’re already aware, our last issue of Professional , May 2024, was our 100th. Celebrations took place in our office and were shared online to celebrate this huge milestone for the magazine and the CIPP as a whole. Once again, we’d like to thank everyone who helps to make the magazine happen each month, and you, our members, who consistently read and support this great membership benefit. Here’s to 100 more issues!
Chartered members
WE’RE DELIGHTED to annouce the following individuals have recently gained Chartered membership status:
Jason featured on the Inspiring Industry Podcast TUNE IN and listen to episode 15 of the Inspiring Industry Podcast featuring our CEO, Jason Davenport, titled ‘Why we need to give credit to those who manage our payrolls’. With Jason’s vast knowledge and insight, the podcast explores the significance of payroll’s impact on businesses and individuals alike. The podcast also covers Jason’s leadership approach, his thoughts on the importance of continued learning and development and his career journey so far. Listen on Spotify (https://ow.ly/gfn050RqMCB) or YouTube (https://ow.ly/kAxH50RqMCA)..
Victoria Thatcher ChMCIPP , head of payroll, Rickard Luckin Ltd
Laura Wood ChFCIPPdip, payroll director, Lasu Payroll Consultancy and Services
Ben May ChMCIPPdip, senior manager - payroll, ADP UK
Gaining Chartered status is a huge achievement, so congratulations to you all.
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 4
Scan to book
Event horizon
Your guide to upcoming events and training
Full details of events and training courses can be found at cipp.org.uk/events or you can email info@cipp.org.uk for more information.
Are you ready for National Payroll Week (NPW) 2024? That’s right. We’re getting closer to the all-important time when we celebrate the wonderful work payroll professionals carry out and all the amazing
Save £200 with our early bird rates
Don’t miss your opportunity to get discounted tickets for our Annual Conference and Exhibition 2024. Book before 30 June 2024 to save £200 off the advertised rates. Visit https://ow.ly/tlUg50Rtoyn to book your place today.
opportunities available in our industry, in NPW! In 1998, NPW was launched by the CIPP as an annual event dedicated to raising awareness of payroll processes, financial literacy and the overall importance of fair compensation within the workforce. Since its introduction, it has continued to grow exponentially in both importance and popularity. Throughout the week, there will be a huge range of activities, workshops and educational events which will help to promote better understanding of payroll practices and financial management. NPW webinar bookings can be made online now and are free to attend for both CIPP members and non-members. Click here to secure your place on any of our NPW webinars: https://ow.ly/3uhm50RtowS.
There’s still time to nominate for the industry’s leading awards If you think you, your team or
THE CIPP
2024
your organisation have achieved excellence over the past 12 months, make sure you nominate for the CIPP Annual Excellence Awards 2024. The closing date for nominations is 30 June 2024, so make sure you don’t miss the deadline if you have somebody in mind!
Training courses Take a look at some of our upcoming training courses below. Those that are taking place face-to-face are highlighted in orange. Please note, there are additional dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr.
COURSE
DATE
LOCATION
24 June 11 July 08 July 26 June 29 July 10 June 26 June 01 July 22 July 17 June 22 July 05 June 13 June 02 July 05 July 25 July 03 June
Online Online Online Online Online Online
Automatic enrolment and pensions for payroll
Foundations of payroll analytics
Holiday pay and leave
Birmingham
Introduction to payroll
Online
London Online Online
P11D expenses and benefits
Manchester
Online Online
Payroll update
Birmingham
Online Online
US payroll practice essentials
5
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
POLICY HUB
On your behalf
What has the CIPP's policy and research team been doing during May on behalf of you, our members, and the wider payroll profession? Read on to find out all about activities the team has been involved in... Policy team update
Events are ramping up The team was involved in several events in May, some of which were hosted by the CIPP and others by external organisations. Internally, we ran think tanks on a couple of very important topics. One such think tank looked at the requirement from HM Revenue and Customs (HMRC) to collect more granular detail relating to employee hours and built on work we’d previously carried out with members and HMRC in this space. This was the opportunity for members to liaise directly with an HMRC representative to discuss their views and to highlight any potential obstacles to implementing changes being proposed. We also welcomed commissioners from the Low Pay Commission (LPC) to a series of think tanks which discussed national minimum wage and national living wage (NLW) rates for use from April 2025. This looked (among other things) at the affordability and effects of a potential increase to NLW in April 2025 to between £11.61 and £12.18, and at the impact of the increases to NLW we saw in April 2024 on workers, employers, the labour market and the economy. Now onto external events. The whole policy team attended the ‘ Policy influence conference ’ in mid-May, which considered the best tools and techniques to use when lobbying for change at parliamentary level. This was a must-attend for the team, as they’re always looking for new ways to get the views of members and payroll professionals heard at government level, ensuring change is handled correctly and that there are no unintended consequences of policy decisions made. Mathew Akrigg, policy and research officer, travelled to London to deliver a legislative update at Accountex, providing an all-important update on those things which have recently changed for the
payroll industry, while also looking ahead to changes we know are coming in the near future. Mat then joined SD Worx on its monthly interactive webinar, ‘ Payroll question time ’, to break down all the latest changes for payroll professionals to be aware of and to answer live Q&As from delegates. Consultations and calls for evidence (CfEs) In addition to other ongoing consultations and CfEs already covered within this page of previous issues of the magazine, tax administration and maintenance day introduced one additional consultation for the team to consider, which they responded to in May. HMRC has put forward plans to require employers claiming National Insurance relief in freeports and investment zones to report the workplace postcode of the qualifying employee. It’s stated that this is to assist compliance checks and to get employers thinking about eligibility at the point of claiming. The CIPP’s response to the consultation agreed the measure is proportionate to the relief being claimed but raised concerns of this requirement creeping into other areas of payroll reporting. A similar data point was initially proposed during the consultations on improving the data HMRC collects, but was backtracked after significant pushback regarding the associated administrative burdens. Payslip Statistics Report 2024 The CIPP’s flagship piece of research, The Payslip Statistics Report for 2024 was published in May. The survey and resulting report have been running since 2008, allowing the CIPP to compare payroll trends over the years. It looks specifically at the latest payslip trends, including pay frequencies, pay methods and payslip
distribution. There’s a staple bank of questions included each year to allow for that comparison to happen but there are also more topical questions included, to gauge what’s going on in the payroll industry at a certain point in time. This year, the Money and Pensions Service provided some questions for use in the survey, which looked at how payroll professionals are helping to support employee financial well-being, something so topical that it was the theme for our previous issue of Professional ! You can access the latest report here: https://ow.ly/EG8450RzF6N.
PAYSLIP STATISTICS REPORT 2024 COMPILED AND EDITED BY SARAH SMITH, CIPP POLICY AND RESEARCH OFFICER
SPONSORED BY
Forums The policy team is privileged to sit on several HMRC forums. Samantha O’Sullivan, policy and advisory lead, and Mat attended several forums between them in May, including: l the Department for Work and Pensions small pots delivery core group l HMRC’s Charter stakeholder group l the small pension pots delivery group l HMRC’s expert panel. The team sits on these forums to ensure our members’ feedback is provided at government level. We will 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. n
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 6
MY CIPP
How did you start your payroll career? Like many people in our industry, I discovered payroll by chance. I had decided to get a job after not quite fitting my subjects in college and went for a role in pensions payroll after being referred by a recruitment agent. Once I got into the role, I felt like the demands of payroll suited me very well, leading me to the journey I’ve now been on for 17 years. How did you then move into the CIPP’s advisory team? I spent many years in operational payroll working for a wide range of companies, big and small. During 2020, I got the opportunity to perform some training and loved helping others in understanding payroll. This led to three years as a payroll tutor at an apprenticeship training company called MBKB, which I thoroughly enjoyed. I was incredibly excited to move into the advisory team as it allows me to help payrollers across the country. Tell us about a typical week as an advisory team member? I’m not sure that we have a typical week. The advisory team receives a wide range of queries by phone and email, which means any two days could be very different. Our primary goal is to make sure our members feel supported, so our daily activities are mainly focussed on delivering the most helpful guidance to our members. What skills does an advisory team member need to have? The main thing an advisory team member needs is curiosity. Due to the range of queries received, our team also needs to keep up to date with the latest changes and be able to detail this in a digestible way for our members. Additionally, we like to embody the CIPP’s values of teamwork and striving for excellence. What does your role at the CIPP mean to you? I'm incredibly proud to work for the CIPP and feel like it's a role that makes a difference to many others. On a personal level, I had admired the organisation since starting my career, so starting work in the advisory team was the achievement of a career goal. o
Sam Jones MCIPPdip Payroll advisory team leader
7
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Holiday pay considerations for term-time workers Q: If a term-time worker leaves mid-term (mid-year), what will the calculations be and what adjustments would need to be made or noted as per their salary and holiday leave entitlement? A: When an employee leaves before the term end, you need to revisit your original calculation from the start of that term year and pay them for the actual term weeks worked up to the leaving date, plus any holiday pay they were due for the same period. Once you have calculated the amount due for the period the employee has worked, from the start of the term to the leaving date, you would compare it to what you have actually paid the employee for the same period. You’d include what your system might pay in the month of leaving, then pay the employee any extra money due in their final salary.
hasn’t taken any pay this year while the other is a director on £12,570, can you
The following link may be of use: https:// ow.ly/OiyI50RqZv7.
claim employment allowance? A: I can confirm that employment
Claiming back SSP Q: We have employees off sick on full pay, which costs the business money, but we have never processed SSP. Is there any other way to make a claim or for the business to get some of the SSP back? A: Unfortunately not. Employers are responsible for paying SSP to eligible employees but since 2014, they have been unable to claim any of it back from HM Revenue and Customs (HMRC), unlike with other statutory payments, such as statutory maternity pay (SMP). The only time in recent years was during the pandemic but this is no longer the case.
allowance isn’t claimable in the scenario described. You cannot claim the allowance if both of the following apply: l you’re a company with only one employee paid above the class 1 National Insurance secondary threshold l the employee is also a director of the company. For ease of reference, here’s the link to the relevant guidance: https://ow.ly/ hrj150RqYyB. Salary sacrifice deductions from statutory payments Q: Am I correct in thinking that it’s not possible to process salary sacrifice pension deductions from statutory payments, so statutory sick pay (SSP) would go through the payroll without having any pension deduction applied? A: While an employee is in receipt of a statutory only payment, there must be no salary sacrifice reduction. If the employee is on child-related leave and pay, the employer would usually bear this cost. However, for SSP there’s no legal requirement to top up an employee’s benefits. Therefore you would not necessarily need to make up the shortfall unless it’s stated somewhere in the contract of employment / salary sacrifice agreement. You may wish to seek employment law advice to review your salary sacrifice agreements and what happens in these situations.
Do you make salary sacrifice deductions when someone is receiving statutory pay?
Payrolling benefits and national minimum wage (NMW) Q: Does payrolling benefits conflict with the NMW? A: Firstly, it’s important to note that payrolling will be mandatory from April 2026. When payrolling benefits, all you’re doing is increasing the taxable pay so that tax can be collected on the benefit. This is a notional
What adjustments to holiday pay would need to be made for term-time workers leaving mid-year?
Conditions for claiming employment allowance
Q: If you have two people on your payroll and one is an employee but
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 8
POLICY HUB
amount and the gross pay isn’t affected. The calculation of the overall taxable benefit figures is no different for payrolled benefits versus those reported on a P11D. Once the benefit figure is identified, you divide this number by the pay periods for which the benefit is made available and use this figure to add to the employee’s taxable pay for each relevant pay period. The class 1A National Insurance contributions due on the benefits is still paid over at the end of the tax year when you complete the P11D(b). The following link may be of use: https:// ow.ly/9oxf50Rsl9y. You do have to consider NMW / national living wage rates if you’re offering benefits through a salary sacrifice arrangement. For more, visit https://ow.ly/OiyI50RqZv7 and https://ow.ly/eeUl50Rsllb.
address, i.e. the location X office, his home to work commute wouldn’t qualify for business mileage to be paid. Likewise, if you put him up in a hotel it would result in a benefit in kind (BIK) on the cost incurred to the employer, i.e. £300 a week in hotel costs would be £300 a week charged on a P11D to report the BIK. However, if his place of work is his home address, then location X could be deemed to be a temporary place of work, in which case, travel and accommodation costs would be allowable and no BIK would arise. I stress ‘could’ because frequent travel to the same office could be deemed to be a second permanent workplace. See Subheading 3.11 here: https://ow.ly/E40q50RsmMw. Information from HMRC is thorough in this area, so I would advise you to look at the 490 guidance, here: https://ow.ly/ o20y50Rsn0r. As this is based on the contractual and individual working arrangements, we cannot give a definitive answer, but hopefully the above basic rulings along with the guidance pages will give you some clarity.
2-6 SEPTEMBER
Register your interest on our website and be first to have updates on the week’s events and when the 2024 digital packs launch
#ChoosePayroll
How does payrolling benefits affect the minimum wage?
IR35 workers and automatic enrolment Q: We have assessed someone who falls inside IR35 and need to put them through the payroll under pay as you earn (PAYE) for their payments. Do I need to legally enrol them in a pension? A: Workers who fall inside of IR35 aren’t classed as employees. They’re called ‘deemed employees’ for PAYE purposes only. They don’t have employment rights such as NMW protections, holiday pay / entitlements or rights to join a work-based pension scheme. For ease of reference, here’s a link to the guide substantiating this: https:// ow.ly/6l8Y50RslJj. Mileage claims for business travel Q: I have a member of staff who lives in Sunderland but his official place of work is in Stoke on Trent. We provide a hotel from Monday to Friday and he travels around sites from the Stoke on Trent office. Is he able to claim business mileage for these trips? A: If your staff member has a fixed work
What are the guidelines for business travel mileage claims?
Shared parental pay and leave rules Q: Is SMP paid in weekly blocks? Can someone take 37 weeks and two days’ SMP and then transfer the remaining eight days’ payment to their partner under shared parental pay and leave? A: SMP is a weekly payment which is confirmed here: https://ow.ly/ wTbc50RsnjV. Shared parental leave can be taken in blocks but a block must be a minimum of one week at a time. Please see the following extract: “Shared parental leave may be taken in a single continuous block or may be taken in smaller blocks of leave (a minimum of a week at a time), interspersed with time at work (in contrast to maternity leave which has to be taken in a single continuous block).” For more, see https://ow.ly/fZSw50RBlxK. n
HEADLINE SPONSOR
GOLD SPONSORS
SILVER SPONSOR
Scan to book
9
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
Watch the video
2-3 October 2024 | Celtic Manor Resort, Wales
The CIPP’s Annual Conference and Exhibition is the largest independent payroll conference in the UK, and brings together top payroll professionals, thought leaders and solution providers from across the UK. Whether you’re a seasoned payroll expert or just starting your journey, the Annual Conference is designed to empower and elevate your payroll skills and knowledge. MAKE SURE YOU ATTEND THE PAYROLL EVENT OF THE YEAR!
Visit cipp.org.uk/ACE for full details and to book your place
THANK YOU TO OUR SPONSORS AND EXHIBITORS
Workshop stream sponsors
Exhibitors
LET’S COMMUTE
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 10
Why should you attend?
ENLIGHTENING KEYNOTE SESSIONS Gain insights from leading payroll practitioners, industry experts and HM Revenue and Customs officials who will share their knowledge and experiences. Dive deep into the latest payroll trends, legislation updates, compliance strategies and best practices. INTERACTIVE WORKSHOP SESSIONS Participate in a wide range of interactive workshops and thought-provoking discussion groups led by industry experts. DISCOVER NEW SOLUTIONS Discover the latest payroll technologies, services and products from our diverse range of exhibitors. Engage with providers from across the industry to find solutions that will transform the way you manage your payroll.
PERSONAL AND PROFESSIONAL DEVELOPMENT Develop new skills and explore new perspectives, and gain valuable updates to boost your professional development and career prospects. CELEBRATE EXCELLENCE Attendance at the full conference includes a ticket to attend the CIPP’s Annual Excellence Awards 2024; the largest UK payroll awards ceremony celebrating excellence in the profession.
NETWORKING Speak with like-minded professionals and grow your personal network.
Featured sessions
CYBERSECURITY, FOLLOWING THE BREADCRUMB TRAIL OF POTENTIAL RISKS IN THE PAYROLL FOODCHAIN
WHO IS THAT WEARING MY CLOTHES AND DOING MY ROLE?
THE TAX CASES UPDATE FOR PAYROLL PROFESSIONALS
Dr Sue Smith EdD MA BEd FHEA FCMI Cmgr Assoc CIPD ACIPP, education director, CIPP
Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP, head of tax, The Institute of Chartered Accountants of Scotland
Will Jackson ACIPP, chief executive officer, C2 Risk
Waiting for that shoulder tap? Many people suffer from Imposter
Join Justine, in her ever-popular ACE slot, for a rundown of the main employment tax cases from the last 12 months.
Are you fully aware of some of the risks associated with the security of your data?
Syndrome; a psychological phenomenon where people doubt their skills, talents or accomplishments.
Don’t forget to nominate Taking place on 3 October 2024 as part of the CIPP’s Annual Conference and Exhibition; the Annual Excellence Awards are the longest running, independent awards in the industry. Nominations for the CIPP’s Annual Excellence Awards 2024 are closing on 30 June so make sure you get your submissions in soon.
Visit cipp.org.uk/awards for information and to submit your nominations
11
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
MY CIPP
PAYROLL news
HM Revenue and Customs (HMRC) overpays staff by £12 million in ten years HMRC HAS overpaid staff by £12.6 million in the past decade. Many of the payments were made to individuals who had left the organisation, according to The Telegraph. In total, £12.3 million has been reclaimed, leaving a shortfall of £300,000. Last year alone, overpayments were made to around 250 individuals totalling £1.1 million, of which £900,000 has been recovered, according to the figures. An HMRC spokesperson said: “With a staff headcount of almost 67,500, we operate at a monthly payroll average accuracy rate of 99.54%, which exceeds the corporate benchmark of 98%. Our total pay bill in the 2022/23 financial year was £2.449 billion, which means that 0.05% was incorrectly paid that year, and we have recovered over 84% of that. Overpayments can occur for various reasons such as
delay in reporting someone has left HMRC, breaking a part-year pay averaging contract, late notification of sick leave or a delay in reporting career breaks / maternity leave. We have robust processes in place for the recovery of over and underpayments and all staff are provided with guidance on the importance of checking the payment of their salary.”
Sky Sports presenter loses tax appeal SKY SPORTS presenter and former footballer Neil McCann has lost his appeal in the Upper Tier Tribunal (UTT) in relation to off payroll working. The dismissal of the appeal lands him with a tax bill of around £210,000 to pay HMRC. The UTT agreed with the previous decision to dismiss the appeal at First Tier Tribunal (FTT), also concluding that McCann’s contract with Sky wouldn’t be viewed as a business in its own right. Speaking to FT Adviser , Dave Chaplain, chief executive officer of off payroll working compliance firm IR35 Shield, highlighted how hard it is to overturn a decision made at FTT. He said: “The key lessons for taxpayers heading to the FTT is to ensure the facts of the case are comprehensively corroborated and presented, because once the FTT has made its decision, it’s very hard to overturn.” Read more here: https://ow.ly/utIR50RtxQb.
Diary dates
5 July 6 July
Last day of tax month 3
First day of tax month 4
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 June
22 June (This is a weekend date)
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method
5 August 6 August
Last day of tax month 4 First day of tax month 5
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 12
MY CIPP
The CIPP’s Foundations of Payroll Analytics Course
Fiona Smith MCIPPdip, CIPP payroll training manager, provides an overview of this unique training course which considers how adopting an analytical approach to payroll can help wider organisational growth and efficiency
Q: Talk to us about what payroll analytics is and what it means. Besides being one of the largest expenses for any business, the payroll department also holds a great deal of operational information. Payroll analytics is about looking at this data and identifying patterns and trends which can be used to inform key business decisions. Imagine being able to provide a dashboard with up-to-date information on turnover, overtime and budget information for key departments, or being able to identify interventions based on payroll data, which reduces the risk of overpayment or turnover. Adopting an analytical approach within a payroll function not only helps to minimise errors and fraud but can also support better forecasting and financial management, ultimately contributing to an organisation's growth and efficiency. Q: What will the course teach delegates about? The course covers how payroll data can be used to drive process improvement, reduce costs and ensure compliance. Delegates will learn how to leverage data to inform decision making, identify areas of opportunity and anticipate / address risks. Ultimately, it’s about harnessing data to demonstrate payroll's value as a key business partner. After completing the course, delegates will be familiar with: l types of business analytics and methodologies l how to overcome barriers to using analytics l ways of using analytics to detect and prevent payroll fraud l constructing a step-by-step benchmarking plan l demonstrating the value of payroll analytics to an organisation.
Q: The course is made up of six half-day sessions. How is the material covered spread across those periods? The content is broken into nine modules: l what are analytics? l data maturity l payroll data l using graphics to communicate analytics l using analytics to detect and prevent payroll fraud l using metrics to monitor the payroll operation l using analytics to improve the payroll operation l using payroll analytics to improve the organisation l incorporating payroll analytics. Every module has its own learning objectives, as well as knowledge checks and practical exercises, allowing delegates to practise with demonstration data. The modules vary in size, but the half-day sessions will generally cover one to two of these modules flexibly across the six sessions. The sessions are scheduled over two weeks and begin at 1pm each day. Q: How can the content delivered in the course benefit wider organisations, outside of payroll? Refining the information provided to key decision makers can have a positive impact on many areas of a business. In a similar vein, not having access to clear and current information may delay decisions or cause poor decisions. Without giving too much away, the course looks at areas in which payroll analytics can provide benefits to an organisation, including the following: Supporting the organisation’s mission statement Through turnover data or other metrics,
using payroll analytics can demonstrate the impact of the organisation's mission statement or values on the results within the organisation. Using analytics in effective decision making Making well-supported decisions based on real payroll data means that the outcome is more likely to be successful and sustained. Analytical awareness through graphics Displaying key payroll data through dashboards can allow timely responses, preventing or mitigating issues before they arise. Efficiencies using analytics Analytics can help organisations monitor performance and measure the impact of their decisions to become more effective and efficient. Q: This all sounds amazing. Do delegates need to undertake any study prior to this course to prepare for it? There’s no specific mandatory prior learning. However, the payroll analytics training will delve into a broad range of payroll elements. To make the most out of the learning experience, I would suggest that delegates have a basic familiarity with the systems used to operate their payroll, along with an understanding of any unique business processes and key performance indicators within the organisation. Having a working knowledge of Excel or other spreadsheet software would also be beneficial for this course. n You can see the upcoming dates for the Foundations of Payroll Analytics course and book your place here: https://ow.ly/MuPz50RvvxI .
13
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
MY CIPP
CIPP’s climate change and environmental awareness day
Laura Bate ACIPP, CIPP quality, environment, safety and health executive, gives an overview of how the company is raising awareness of climate change and the environment, also discussing how we can make a difference this World Ocean Day
O n 18 March 2024, the
taking the lead by just one point. The takeaway from the activity was that it’s important to promote taking your time when throwing rubbish away, and you should always remember to check packets first to ensure you dispose of them correctly.
It was soon the afternoon and employees were invited to attend an online interactive quiz, answering climate change and sustainability questions. The turnout was amazing, and everyone had fun using their mobile phones to answer the questions in the quickest time to reach the leaderboard. To close the day, another round of ‘Recycle rally bingo’ took place. Employees also had the opportunity to play an online game called ‘Recycle roundup’, in which they could help Gus clean up their local park. For an entry to count they had to submit their highest score to the green team by close of business. Awareness emails were distributed to employees throughout the day to include the incorrectly recycled items from ‘Sort it out!’, which recycle symbols to look out for and all about the Great Pacific garbage patch. n We’re all in this together to make our planet a better place. Remember the three ‘Rs’ when you next throw something away. A quick checklist you can use is: ● do I really need to throw this away? No – reduce ● can this be used for something else? Yes – reuse ● can I recycle this? Yes – recycle. Useful links On 8 June, it’s World Ocean Day. See how you can make a difference by visiting https://ow.ly/x7jv50RsbXH. One of the CIPP’s nominated charities is the Marine Conservation Society. Check out what they do to help protect our sea life by visiting https://ow.ly/LnPi50RsbZF.
CIPP’s green team hosted its first climate change and
environmental awareness day in honour of Global Recycling Day. The day was filled with fun and engaging exercises to educate employees about the importance of recycling.
The green team quiz leaderboard
The ‘Sort it out’ winning team
Next on the agenda was ‘Recycle rally bingo’, which employees could participate in online. The bingo caller provided the participants with recycling facts each time they called out a square. Anticipation was built by using an online tool, and the bingo caller would ‘spin the wheel’ for a result.
The green team highlighted the key items which are regularly disposed of incorrectly in a game called ‘Sort it out’. Teams battled it out to correctly recycle the most items in the shortest time. The results were very close, with the winners Did you know? The Great Pacific garbage patch is the largest accumulation of ocean plastic in the world and is three times the size of France. It’s a collection of marine debris which has ended up in our oceans, seas and other large bodies of water. The area of litter covers waters from the west coast of North America and Japan. When strong plastics are accumulated, they can transport over great distances and stay on the surface of the sea. When plastics enter the gyre, they don’t tend to leave the area until they have been broken down into microplastics, from waves, sun and marine life. These small microplastics are often mistaken by marine life as food which causes malnutrition. Types of plastics found include: l fishing lines, nets, ropes
l containers, i.e. bottles and cartons l foamed materials l plastic sheets l film. This has a detrimental effect on
our marine life causing entanglement, malnutrition and even death. It has been found that marine life’s diets are made up of 74% of ocean plastics. Due to marine life consuming a high level of plastic, it’s also entering the human food chain. Recycling correctly enables plastics to be manufactured into new products without using unnecessary energy. Plastics end up in our oceans by being disposed of incorrectly, from landfill or when they’re being transported to landfill. As some plastics are light, they’re often blown into our seas.
| Professional in Payroll, Pensions and Reward | June 2024 | Issue 101 14
MY CIPP
# Be Payroll Rebecca Russell MCIPPdip, payroll expert at PayFit UK, shares details of her experience studying with the CIPP and her payroll career to date
Can you describe your payroll journey to us so far?
it in a logical way, and they add it to the software. It’s almost magical. Working in payroll is also a community of passionate people. They’re very active on LinkedIn too, which doesn’t happen in many other careers. I love to hear about all the exciting things everyone is getting up to. I’ve seen people hosting webinars and podcasts, writing articles and attending festivals and events, I also love to see the team pictures. What are your hopes for your future career? I want to continue down the road that I’m headed, merging my technical and payroll skills. Perhaps I’ll include another technical qualification, but technology and payroll are always evolving – now more so than ever – so it should keep me occupied for a while. Why did you choose to become a member of the CIPP? I initially joined as an associate member so I could start my Foundation Degree in Payroll Management. Before that, I thought maybe I wasn’t knowledgeable enough to be associated with such a prestigious organisation. I didn’t have any official payroll training – I’ve learned through experience, which is difficult to prove. Once I was accepted, I’ve seen a huge change in my confidence and my knowledge of payroll legislation by using the membership benefits. What membership benefits have you used or enjoyed the most and how have they helped you? The Advisory Service team. They’re a godsend to me, especially while I’m still interpreting legislation from years ago. They have confirmed there’s no limit on the number of questions I can ask, but I sometimes wonder if they’re just being polite.
Also, the CIPP BeKnowledgeable events, where topical knowledge is communicated clearly. The events give us a chance to ask relevant questions at the end. We know someone will ask the question we were afraid to ask. I always learn a lot from these events. What qualification have you studied / are you currently studying? I graduated in November 2023 with a Foundation Degree in Payroll Management. With excellent grades, I might add! Why was it important to you that you gained this qualification? To become recognised as a qualified payroll person through the most recognised payroll institution in the UK. Senior leaders who knew about my passion for payroll urged (some might say pushed) me to go for it. Of those colleagues who’d completed it, they waxed lyrical about the experience and the feeling at the end when you hand in your final project. I wanted to feel that too. Also, being able to use the MCIPP post-nominals means that when someone asks a payroll question, they know they’re speaking to an expert. What advice do you have for someone thinking of studying a qualification with us? Do it. As someone who thought their knowledge was average at best, it brought out the confidence I needed to really succeed in my career. If I hadn’t already spent my company’s annual training budget on my foundation degree, I’d for sure already have taken up the Payroll Specialist Certificate course to solidify my knowledge. You can never know too much payroll legislation. n
This is quite a long story. I started out 13 years ago, before real time information and automatic enrolment existed. I’ve worn many hats in that time. I started out in payroll software technical support, helping customers use our software. It’s then that I quickly had to learn payroll legislation to understand what they were asking. It took longer than I’d like to admit to understand the difference between gross and net pay. After that, I added another few strings to my bow: interpreting payroll and benefits legislation as a technical writer, and user acceptance testing. I’ll skip the parts in between, but they included working with payroll software developers to ensure compliance, working in bureaux and in-house roles. Those positions led me to where I am now, which is my favourite role to date. I work in payroll software compliance at a payroll software company. My career has come full circle. Having started as a Microsoft certified IT technician, I’ve always been keen to get back to my technical roots. The two combined create a very particular set of skills that are incredibly useful. What does working in payroll mean to you? To me, it’s being able to help people by using my knowledge. My knowledge allows me to explain a tax code, tax relief on a pension and how HM Revenue and Customs knows all of this. I make sure they’re getting the most out of their pay and help my family create their own net pay calculators to rival mine. The knowledge also needs to translate well to our software developer team. I tell them what’s in my head, together we organise
15
| Professional in Payroll, Pensions and Reward |
Issue 101 | June 2024
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66Made with FlippingBook - Online magazine maker