TECHNOLOGY
been the case over the last few years, primarily, but not solely, due to the outbreak of the Covid pandemic. In answer to your specific question around the difference in the CJRS implementation and the PT implementation, the major difference here is that the PT implementation is applicable to everyone, to every single payroll, and is required for the calculation of NICs. With the implementation of the CJRS, not all software included the actual calculation of CJRS values. Most payroll software allowed a payment category to be implemented, or already had the ability for employers to add their own bespoke pay category, which could identify a CJRS payment. Indeed, the burden of CJRS was upon payroll and accountant professionals. These professionals predominantly used other methods (e.g., Excel) to calculate the CJRS payments, and made the claims on behalf of clients using this information. Q: What have been your biggest challenges over the last few years, and what changes have you made to resource and processes as a result? A: The biggest challenges have centred on the late notification of upcoming changes. In the past, the budget was announced in November / December, allowing sufficient time to implement and fully test payroll software before the start of the new tax year, without any further changes. The budget changes are implemented even though the actual legislation may not pass through government until the beginning of the new tax year. This ‘on faith’ implementation is that the legislation will follow. To be honest, it’s only occurred once, when the Scottish government made a change after its initial budget. This was because it required the Green Party’s support, who had asked for a change as a condition of supporting the legislation. The other additional challenges have related to the devolved governments having their own agenda and timeframes. Indeed, the Welsh and Scottish assembly’s budgets are usually after the UK, so they’re aware of the values they’ll receive from the UK government. It’s not just budgets related to tax rates and thresholds that impact payroll software, and some examples of other recent challenges include: ● court orders – recently, the Welsh government made changes to council
tax from April 2022, which wasn’t widely publicised and was very last minute ● Northern Ireland didn’t implement the introduction for statutory parental bereavement pay at the same time as the rest of the UK – again this isn’t always widely known. BASDA, as an organisation, works closely with HMRC to ensure there’s understanding of the processes involved to update software. However, as we know, HMRC isn’t responsible for budgets. It’s under HM Treasury and developed governments, so we must rely on HMRC’s relationship with HM Treasury and others to act on behalf of software developers. Q: Could you describe the standard processes and timescales around year end please? A: As I’ve outlined above, in general, the tax year changes take three to four months to implement. Of course, we’re aware of tax table changes, meaning there are changes to rates and thresholds: however, tax year end doesn’t just involve tax table updates. For example, this year we’ve had the new NI letters to support freeports and veterans. There are also changes to the real time information submissions each year, which must be made and tested. Again, each software developer will have a slightly different process and requirements to implement and test. Desktop and on- site premise software will require a longer period for implementing the changes and regression testing. Some software developers may have different versions of the same software and need to ensure all the versions are updated correctly. As mentioned above, there may also be bespoke software for some customers as well. Beyond the software being updated, as a developer, there are other considerations, including ensuring customers are aware of the upcoming changes, plus internal teams, such as sales, marketing and customer support teams. Q: Do you have any tips on how to stay up-to-date with the constant changes we see in the payroll industry? A: Personally, I use multiple sources to keep on top of the changes. Obviously, the CIPP is one source. In addition, the regular interactions I have with HMRC, either directly via BASDA or indirectly via the EPG etc.,
provide me with an insight on future and upcoming changes.
Particularly, the EPG meetings enable cross-functional representations, allowing BASDA and other software developers to share any thoughts, concerns or questions. It’s during these meetings I become very aware that I’m representing software developers on behalf of BASDA, and not just myself. n About BASDA BASDA represents UK business software and is the only industry organisation focussed on supporting the issues that business software development organisations face. As a not-for-profit trade body, we ensure our members’ voice is heard by some of the highest levels within UK government and policy makers, as well as industry media. Our members’ software solutions cover most core business functions, such as operations, development, finance, marketing and HR, whether deployed as cloud, on-premise or hybrid applications. How we help our members We collaborate with our members through our SIGs, working parties and networking events so that knowledge is shared, and their views are heard. Our wealth of experience in dealing with the UK government and policy makers, including HMRC enables us to engage with them on issues that affect our members. Experts from our SIGs and working parties provide advice to the government on the best ways to ensure the successful rollout of policy initiatives which have an IT impact. In addition, we also develop industry standards and charters which allow best practices to be rolled out across our membership, as well as industry wide. This highlights the need for different government departments to align their policies and legislation to avoid anomalies arising
For further information on BASDA, check out: www.basda.org
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| Professional in Payroll, Pensions and Reward |
Issue 81 | June 2022
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