Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward
Issue 31 June 2017
CIPP’s Annual Conference and Exhibition 2017
National Payroll Week Spotlight on payroll
CIPP Annual Excellence Awards Casting enlightening nominations
Confessions of a payroll manager “And the winner is…”
CIPP update | Policy hub | Professional development
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People never lie so much as after a hunt, during a war or before an election. Otto von Bismarck (1815–1898)
The snap general election resulted in deep cuts being made to the extensive content of the 2017 Finance Bill to
pages 41–46. This issue also includes a roundtable on the changes to taxation of off-payroll working in the public sector (see page 18). I recommend you read all the insightful comments of the participating industry luminaries to comprehend the impact of these changes, particularly as the rules might be extended to the private sector at some not-too-distant date. Issue 32 (July/August) of the magazine will include the final instalment. And, finally, those who enjoy the Confessions articles will find this issue’s revelations on page 54.
Whether summer has hit the UK yet or not, I’m very fortunate to be writing my chair’s message this month from gloriously sunny Florida. It’s not every day that we can spend a full day at work and then have a couple of hours laying beside the pool – and I certainly don’t take it for granted, as I don’t most things in life. I’m really enjoying working on a new payroll implementation project based in the United States and spending a few weeks in several different US locations meeting local teams, as well as attending both the American Payroll Association congress in Orlando, where I’m a guest speaker, and the Canadian Payroll Association conference in Niagara. When I joined the CIPP back in 2002 after studying for my Diploma in Payroll Management, I could never have imagined that I imagine there will be a second 2017 Finance Bill after the election and possibly another (emergency) budget before the autumn budget. So, some if not all the withdrawn measures are likely to be resurrected, perhaps with retrospective application. Employee welfare and wellbeing is the feature articles topic this issue. This is a broad subject, which has rapidly moved upward in employers’ priorities, that embraces financial issues and health matters. With Brexit ahead, are we likely to see employers increasingly focussing on such policies to retain employees? See Chair’s message ensure fast passage into law of retained provisions. See page 4 for details. Clause one was retained – regrettably, some might think – as it imposes income tax for the current fiscal year.
Mike Nicholas MCIPP AMBCS Editor
my association with this wonderful organisation would open up so many opportunities for me. As Ken mentions in his message below, speaking with George Powell recently about his vision made me think how amazing it is that one little seed can grow into such a unique organisation. In this edition, on page 5 you’ll see we’re now actively looking for the right individuals to nominate themselves as part of the CIPP board to continue building for the future. If you want to discuss it further with any of the current board, or if you would just like to nominate yourself, we’d love to hear from you.
Eira Hammond FCIPPdip Chair, CIPP
Hopefully this finds us all enjoying some inkling of summer coming our way. The CIPP board have recently concluded a strategy review of our lines of business, with a focus on how we can continually improve our service offerings to the
accurate content. Digital first is also high on our agenda as we look to provide more online content, within training and qualifications. And a new look prospectus is also being released this month, so look out for that in your mailbox. It was a pleasure to invite and meet up with retiree George Powell here in the CIPP office in early May. For those unaware, George was the gentleman who originally had the ‘dream’ of setting up a professional body for the payroll profession, and is the reason why today you have membership of the CIPP. A future issue of the magazine will include an article on George’s visit.
membership base. This is something we, like most organisations, carry out on at least an annual basis and with some detailed preparation and input from the CIPP management team. From reviewing our mission and values, right through to the uniqueness of the Chartered Institute we concentrated on those areas to receive special focus for this year. Our immediate focus will be in ensuring a clear payroll, pensions and reward career path through our education portfolio which includes a world class training provision with a unique review process where our payroll and HR legislation update course is no older than seven days old in terms of
Ken Pullar FCIPP Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward |
Issue 31 | June 2017
in Payroll, Pensions & Reward PROFESSI NAL
Also available online at payrollpensionsandreward.org.uk
Brian Hall reveals the effect absence from work can have
Hey dude – it’s an emergency Peter Minchinton sounds alarm about HMRC’s response
Workers’ services provided to public sector through intermediaries Roundtable with industry luminaries
Apprenticeship reforms Jason Clark provides an update
Is 2017 the time to check- in? Chris Kerridge and Neil Tonks discuss performance management of work
Gender pay gap reporting Samantha Mann questions whether the glass ceiling will be broken
Surviving the next industrial revolution Doug Sawers discusses the role of HR
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 2
Editor Mike Nicholas 01273 412 836 | firstname.lastname@example.org Advertising Jill Bonehill 0121 712 1033 | email@example.com Design James Bartlett and Nicole Gumery firstname.lastname@example.org Printing Warwick Printing Company Ltd
Redundancy alternative, dismissal for poor attitude, worker status Nicola Mullineux reviews decisions in three casesmotivation
Dress redress Danny Done discusses developments
Chief executive Ken Pullar FCIPP CIPP board of directors
Employee wellbeing - simple! Lisa Gillespie relates her experiences and provides helpful advice
Can we get beyond politics? Henry Tapper conveys exasperation and concern
Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT
Workplace inactivity Charles Alberts explains what we can do
Useful contacts Membership email@example.com 0121 712 1073 Education firstname.lastname@example.org 0121 712 1023 Training email@example.com 0121 712 1063 Events firstname.lastname@example.org 0121 712 1013 Marketing and sales email@example.com 0121 712 1033 General enquiries
01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with 11 Professional development Diary of a student 12 Events horizon 14 CIPP update CIPP delivers excellence in training, Compliance accreditations Events, news and developments
36 Pensions news 37 Pensions insight 41 Feature articles
The Pensions Regulator
Employee welfare and welbeing
47 Industry news 48 A week in the life of 54 Confessions of a payroll manager
firstname.lastname@example.org 0121 712 1000
Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2017. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
15 Payroll news 16 Payroll insight 28 Reward insight
Additional online content: 37 Getting pensions governance in shape 44 Employee back pain
Includes roundtable on off- payroll working
45 Holistic approach 46 Wellbeing schemes
| Professional in Payroll, Pensions and Reward |
Issue 31 | June 2017
On your behalf
Policy team update
Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update about legislation, some CIPP polls and the CWG2 guide
General election We normally include a consultation update in On Your Behalf, but the announcement of a snap election to be held on 8 June 2017 has delayed consultation proceedings somewhat. On 21 April, the government went into the pre-election period known as ‘purdah’ and during this time only essential government business is meant to take place so expected publications are also delayed. The government’s own guidance says that in a period of purdah “decisions on matters of policy on which a new government might be expected to want the opportunity to take a different view from the present government should be postponed until after the election, provided that such postponement would not be detrimental to the national interest or wasteful of public money”. We have already seen the impact of purdah through the dramatic shortening of what would have been the longest Finance Bill in history. The Bill, which originally stood at 762 pages, has been reduced to approximately 140; the committee stage debate was limited to four hours, and all Treasury Select
Committee evidence sessions were cancelled. As a result, some changes affecting the taxation of benefits from employment, which were to have taken effect this tax year, were removed: ● the time limit for making good ● ultra-low emission vehicles ● employer-provided pensions advice ...changes affecting the taxation of benefits from employment, which were to have taken effect this tax year, were removed... ● termination payments, and ● PAYE settlement agreements. Clauses dropped included those on making tax digital and penalties for enablers of defeated tax avoidance schemes. At the time of writing, party manifestos had not yet been published but it is highly likely that the general election will bring more changes. The prime minister has refused to confirm whether or not previous manifesto pledges not to raise tax or National Insurance will be retained, and the Labour party manifesto is expected to include a pledge to increase taxes. We shall have to wait until after the general election to find out just which clauses and schedules will be resumed
in the Finance Bill. And, once a new government has been formed, the complexity of the Brexit negotiations will recommence. CIPP quick polls ● Brexit negotiations – Through the second half of April and first half of May we ran a poll on our website asking if you were optimistic about the prime minister having the legal power to start Brexit negotiations. The snap election has of course been announced since then and is well under way while you are reading this; however, the responses to this question showed that 43% were confident, 47% were not and 10% were indifferent to the whole process. 936 people responded to the poll in total. ● Real time information (RTI) reconciliation – One of our members was interested to know whether other agents were having issues with full payment submission (FPS) values not reconciling with payments to HM Revenue & Customs (HMRC). We asked through our poll, “Do you currently have RTI issues where FPS values do not balance with what is being paid to HMRC?”. We received 388 responses in total: ● 61% said yes, they currently have issues ● 31% said they did not, and ● the remaining 8% said they did have issues but they have now been resolved. Of course, what we do have to bear in mind with these results, and any of our poll results, is that it is only a snapshot in
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 4
time so this may not be as widespread an issue as it would appear. We would have to conduct a far more in-depth survey to find out the real picture. If any CIPP members would like to share any issues with the Policy team, or other members, you can either email us at email@example.com or post your commentary on one of our SIGs (specialist interest group) which are situated under ‘My CIPP’ on our website. ● Continuing professional development – At the time of writing we had started a poll asking if you remember to log your continuing professional development (CPD). Early indications showed that 13% of respondents always log their CPD, 56% sometimes do and 23% never do; with the remaining 8% opting for “I don’t need to for my role”. Again this is only a snapshot and we would have to delve deeper as to respondents’ membership status (as anyone can complete our polls) and the rationale behind the answers. It could be lack of time, lack of motivation or maybe not understanding the importance of logging CPD – all questions for a future
suitable index added to the guide. So, for anyone who suffered the frustration of the CWG2 when it was first updated in a non PDF format in February, it is now easily searchable with the welcome addition of an index. Someone within HMRC also highlighted that there is a way of bringing up a search box in most documents and on most browser pages: press keys Ctrl and F – who knew? Maybe you did, but we did not in the Policy team and are most grateful for this useful tip. n
survey, perhaps? All published information on our polls and surveys can be found in the CIPP’s Policy News Journal , a benefit reserved exclusively for members. If you would like to take part in our latest poll it is situated to the right of all of our news items on the CIPP website. ...lack of time, lack of motivation or maybe not understanding the importance of logging CPD... The CWG2 guide In case anyone missed our news item about the CWG2 – the Further guide to PAYE and National Insurance contributions – it is one of the unfortunate guides that has not retained its user-friendly PDF format on GOV.UK. We did of course ask HMRC about this change and we were very pleased to subsequently see a
AGM17 Notice of Annual General Meeting Notice is hereby given that the Annual General Meeting (AGM) of the Chartered Institute of Payroll Professionals (trading as CIPP) will be held on Tuesday 5 December at 11.00 at the CIPP, Arne Street, Covent Garden, London, WC2E 9RA. Ordinary business To consider and, if thought fit, to pass the following resolutions which will be proposed as ordinary resolutions: 1. Approval of minutes from AGM 2016 2. To elect directors to the board 3. Approval of accounts for the year ended 30 June 2017 Notes The deadline for submitting further agenda items is 31 July 2017 . This is the Institute’s twentieth AGM.
Any member wishing to stand as a board director should send a completed nomination form and accompanying documentation, received by the company secretary no later than 31 July 2017 .
4. Election of auditors 5. Any other business By order of the board
Gordon Cresswell FCIPP, company secretary Chartered Institute of Payroll Professionals Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, B90 4ZL
Attendance at the AGM is free to attend for CIPP members. Should you wish to attend, please book via our website at cipp.org.uk
| Professional in Payroll, Pensions and Reward |
Issue 31 | June 2017
period then they would be included in the reporting. This link – https://goo.gl/0Plwjd – to guidance on GOV.UK details what an employer should do in the circumstances where a new employee joins part-way through the pay period, or an existing employee has changed their working hours in the pay period. This explains that if the employee has changed their hours you would calculate the hours over a twelve- week average. ● For new employees and changes in role: Where a new employee joins or an existing employee changes their role and they have worked less than twelve weeks in the new position, you must use a figure that fairly represents the hours worked. ● For new employees: You can use an average over a shorter period if you believe it fairly represents their working hours. If they have replaced someone who was previously working longer or shorter hours you can create a twelve-week total by using a mixture of the old and new employees’ hours. For employees changing role you would take a twelve-week average, even if the period covers more than one role. Q: We would like to know if the tax exempt amounts of childcare vouchers (CCVs) an employee can receive have changed in any way? Also, will the limits be different between England and Scotland now that their tax thresholds are slightly different? A: The tax exempt amount of CCV an employee can receive for each tax bracket has remained the same, but you would have to consider which tax bracket the employee falls into. The thresholds can change each year; the current thresholds for 2017/18 tax year are: ● basic rate up to £33,500 – CCVs up to a maximum of £243.00 ● higher rate from £33,501 to £150,000 – CCVs up to a maximum of £124.00 ● additional rate over £150,000 – CCVs up to a maximum of £110.00. The eligibility criteria for employer- provided CCVs are not devolved to the Scottish parliament and therefore the basic and higher income tax rates mentioned above are for the whole of the UK including Scotland. This means that Scotland has the same limits as the rest of the UK in regards to CCVs and the annual assessment.
Advisory Service is available 9a.m. to 5p.m. Mondays to Thursdays, and 9a.m.
to 4.30p.m. on Fridays. It is free to all CIPP members * , students and attendees of approved CIPP courses and conferences in the last six months. Call 0121 712 1099 , email firstname.lastname@example.org or visit cipp.org.uk for frequently asked questions.
*please see summary at cippmembership.org.uk for details.
Q: Within our company we have an employee who is provided with hire vehicles instead of a company car. The hire period can be for two to three days every week and can span a weekend. How would this be reported in a P11D return? A: This will depend on the conditions the hire car has been provided to the employee. If a hire car is made available to an employee who does not have the use of a company car, then there will be no benefit in kind arising; this would include if the car was only provided for business travel with only ‘incidental’ private use. HM Revenue & Customs’ (HMRC’s) guidance states that incidental private use is not measured by the number of private miles driven, but rather in the proportion of the private element of the journey when viewed as a whole. A hire vehicle provided for a business journey which is taken home overnight to serve this purpose the following morning will be classed as incidental private use, but if the vehicle was taken for private use over a weekend that would not be considered incidental. If the hire car is used for more than incidental private use, a benefit in kind charge will arise, which is calculated using the normal rules i.e. using the list price and CO2 emissions of the vehicle provided. This will be apportioned in the tax year according to the time it was available to the employee and reported in the P11D return. Where a hire or relief vehicle is used as a replacement for both business and private use during periods of unavailability, the company car benefit will still apply when this is for a continuous period of less than thirty days.
Q: I believe that for employees who have passed away, no Class 1 National Insurance contributions (NICs) should be calculated on their final payment. Does this rule apply the same for a recently deceased director or should we pro rata his final payment up until the tax week of death? A: A director’s NICs have to be calculated on an annual basis when they leave/ or pass away. If you have been using the alternative method then in March or when a director ends the employment (or dies) the calculation reverts to an annual calculation. To clarify, when a director passes away you should calculate the NICs due on the final payment in the following way: the director will pay NICs as normal on earnings paid or due to be paid before death but no NICs will be due on earnings due to be paid on or after the date of death. Further guidance can be found in the CA44 National Insurance for company directors (http://bit.ly/2oIzVcw). Q: Can you clarify the guidance on two questions regarding gender pay gap reporting: ● Do we include new starters who have not worked the complete pay period (April 18) in the reporting, or would we pro rata their pay over the time they have been employed? ● If an employee has changed role/ hours or pay within the snap shot period does this data also need to be manipulated to give a more accurate figure? A: Where the new employee has worked for a full pay period (month) at the snapshot date, and the employer is going to pay them for a complete pay
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 6
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Q: My team has received a form P45 from an employee who joined our company on 12 April 2017, showing leaving date of 31 March 2017 and tax code 1100L on the cumulative basis. What tax code should I use and what starter declaration should I report? A: As the employee joined the company on 12 April 2017 and the tax code ends in ‘L’ the employer will use the code from the P45 but will also need to add ‘50’ to the tax code and report starter declaration code B. Had the employee joined the company after 25 May 2017 you would have used 1150L on a non-cumulative basis and again report starter declaration B. In the same scenario a new employee without a P45 would have to complete a new starter declaration and if they had ticked box B this would indicate that this is their main job and they have had another job or claimed job seeker’s allowance, employment support allowance or incapacity benefit in the current tax year. In this scenario you would use the emergency code 1150L on a non-cumulative basis and report starter declaration B. (See https://goo.gl/ im45C8.) Q: We have an employee within our company who takes home the ‘pool car’. How does this affect the status of the car benefit? A: Section 167 of the Income Tax (Earnings and Pensions) Act 2003) (ITEPA) explains the conditions that have to apply for the car to be considered a pool car. All these conditions have to be satisfied: ● the car must be available for use by several employees in a tax year ● by reason of their employment ● was not used by one employee to the exclusion of the other employees ● any private use was ‘merely incidental’, and ● the car was not normally kept overnight on or in the vicinity of any of the employees’ homes. Section 167(3)(e) states that the pooled car cannot be taken home by the employee. There is a rule of thumb that HMRC can (but do not have to) apply, which is that if the car is taken home by the employee more than 60% of the time then it would no longer be considered
a pool car. This is because HMRC would consider it unlikely that all the home- to-work journeys would be ‘merely incidental’. Q: Our organisation has an employee who has requested to take statutory adoption leave (SAL) and pay (SAP) under the ‘foster to adopt’ scheme. Do we need a matching certificate before we can pay SAP? A: The employee would need to provide evidence in the form of a letter from the local authority to prove to the employer that he or she was claiming SAP under the ‘foster to adopt’ scheme as not all fostering to adopt will attract adoption leave and pay. The employee can commence SAP and SAL up to two weeks before the child is placed with the employee under ‘dual approved prospective adopters’ under section 22C of the Children Act 1989. The employee must be a local authority foster carer who has been approved as suitable to adopt the child, and will have been notified by the local authority that it has decided to place a child with them in accordance with section 22C. Q: We are going to provide healthcare cover for an employee who is leaving the employment under a compromise agreement beyond the leaving date. employment but has not yet retired the medical benefit provided continues to fall under section 403 ITEPA. However, it should be noted that the provision of medical benefits to former employees does not attract Class 1A NICs. The reporting requirements are that when the benefits are paid, the former employer (or scheme operator) must send the following information to HMRC by 7 July following the end of the tax year: ● the name, address and National Insurance number of the recipient of the benefit ● the nature of the benefit, e.g. private medical insurance ● the amount of the benefit, and ● the responsible person’s details (usually the former employer). Further guidance on these points can be found in HMRC’s Employment Income Manual at EIM15200 (http://bit. ly/2qkCqmE). n How do we notify HMRC? A: If an employee has left the
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Issue 31 | 2017
| Professional in Payroll, Pensions and Reward |
5 minutes with… Karen Thomson MSC FCIPPdip Board director, CIPP
Every political party talks about making tax simpler, but the problem is that tax just isn’t simple and if it were no doubt it would be abused further. It is going to be really important for payroll professionals to keep up to date and being a member of the CIPP is the perfect medicine for that task. Pensions – I think this has got some new, good press. I remember the Maxwell days and how badly pensions got it, but the younger generation do seem to be embracing automatic enrolment so maybe pensions has been re-born? As we see more freedom in what we do with our pension savings more doors will open up for our pension professionals offering different types of services I feel. Reward – this is a moving beast. With flexible benefit packages changing due to the new salary sacrifice rules, employee engagement becoming a real hot potato for chief executive officers I can see this area expanding further. It will be important for payroll to support our human resources colleagues in this space. What do you do in your available time to unwind? When I am not tutoring or working I like to spend time with my dogs. Having moved to the countryside, I love my nine hens and Colin the cockerel, along with the masses of wild birds that cost me a fortune to feed each month. Although when I see mummy, daddy and two of their baby spotted woodpeckers on the peanut feeder, it is all worth it. I am also trying to live in some way the ‘good life’ by learning to grow my own veg and fruit; wish me luck! n
Tell us about your career and background My career in payroll started by accident. My husband joined Cumbria Police and I was working in local government pensions at the time. I wanted something to do with people and numbers and a job in payroll at Cumbria Police came up so I applied and moved from Edinburgh to join my husband. I commenced the IPPM (as the Chartered Institute was then) diploma in payroll and pensions management, moved to Two Castles Housing, successfully passing my diploma and then onto Carlisle City Council. I joined the Chartered Institute heading up the Policy team in 2003 and left to work for Armstrong Watson Accountants heading up the payroll service line (circa 1,500 payroll clients). When did you first become involved with the CIPP? In 1999, as a payroll and pensions diploma student. I carried on as a tutor before joining the Policy team in 2003. How did you find the transition from CIPP employee to board member? Really easy, as I did have a break and the board welcomed me with open arms. I have found the transition from operational to board an enjoyable
experience; well, for two meetings anyway. The membership being behind me means a lot as they are the ones I am on the board to represent. I love strategy so not being involved in the day to day running of the CIPP suits me and of course I know there is a fantastic complement of staff to do that job. What do you think you can bring to the future strategy of the CIPP? Honest business feedback. I have been a student, am a tutor for the Foundation Degree and Masters programmes and am a fellow member, so can wear a number of hats at any given time to help the CIPP in its strategic direction. I love everything about the CIPP and its members and only want the best for all within our wonderful profession. The CIPP is always moving at a fast pace so helping keep everything on track is important to me, without me putting fingers in pies I shouldn’t. What does the future hold for the future of payroll, pensions and reward? Payroll will only get more complicated, meaning businesses will need to employ a professional or service provider.
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 8
National payroll week | 4-8 September
The focus of this year’s National Payroll Week is shining the spotlight onto payroll professionals and the importance of how much payroll contributes to the UK economy. National Payroll Week acknowledges the hard work, effort and significance of payroll professionals as they ensure millions of people are paid correctly and on time, every pay period. We want you to raise awareness by celebrating National Payroll Week. Last year over 2,000 organisations were involved making it our biggest year ever, but we want to better this and that’s how you can help.
Celebrating National Payroll Week Here are a few creative ways to get you and your organisation involved: ● Email firstname.lastname@example.org to request your free pack/s ● Use social media to keep up to date and connect using #NPW17 and #spotlightonpayroll ● Decorate your workplace with National Payroll Week balloons and posters. Make use of the artwork and print off extra versions on our website ● Invite a CIPP representative to do a presentation on understanding your payslip ● Run a payroll awareness event With your support your employees could have a more positive attitude and improve their performance at work. National Payroll Week gives you the opportunity to show the positive impact payroll can have on the nation. You don’t have to work in payroll to celebrate; we encourage everyone to celebrate their payroll team.
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PORTFOLIO PAYROLL LTD
Linking in with this year’s theme ‘spotlight on payroll’ we encourage you to nominate your payroll professionals and teams for the CIPP Excellence Awards and really demonstrate the values that they have within your organisation. Nominations are now open and there are new categories for 2017, including the ‘my biggest influence award’ designed to recognise individuals who have supported you throughout your career. So nominate before 11 August 2017 and make sure that you shine a #spotlightonpayroll.
Issue 31 | June 2017
| Professional in Payroll, Pensions and Reward |
PROFESSIONAL DEVELOPMENT INSIGHT
Jason Clark, CIPP operations manager for the professional careers academy, provides an update with references to the available information
I n issue 27 (February 2017) of Professional in Payroll, Pensions and Reward , the apprenticeship levy was discussed in these two articles: Taking advantage of apprenticeship reforms (page 12) and The Apprenticeship levy (page 18). Samantha Mann’s article focussed on paying the apprenticeship levy and I wrote about apprenticeship reforms and preparations to take advantage of the levy. Since those articles, the apprenticeship levy has come into force (on 6 April 2017), and all United Kingdom (UK) employers are now required to report their apprenticeship levy payment. This is done using the employer’s normal payroll process via either the real time information employer payment summary or HM Revenue & Custom’s Basic PAYE tools. Though there has been very little change since February, the following outlines the processes: ● Funding for apprenticeship prior to 1 May 2017 remains unchanged and will continue to be funded under the rules when the apprentices began their learning journey. ● If you have not registered for an apprenticeship service account (previously known as digital apprenticeship service or, simply, DAS), you can still do so from the GOV.UK website (http://bit.ly/2lKUFMe). ● If you are not a levy paying employer, you will not be able to register for an account until 2018, at the earliest. ● Using your apprenticeship service account, you can: ❍ choose the type of apprenticeship programme (Framework or Standards), ❍ choose a training provider ❍ choose an end-point assessment organisation ❍ agree a price and how you will pay for the training and end-point assessment for the apprenticeship levy, and ❍ pay for the training provider from your apprenticeship levy funding.
● If you are a connected company, you can pool the funding in a single account. ● You have 24 months to utilise the funding before it expires. ● You cannot use apprenticeship levy funding for anything other than training and end-point assessment costs. This means that funding cannot be used for: wages, work placement programmes, statutory licenses to practice, travel and subscription costs, or setting up the apprenticeship programme. In my article, Taking advantage of apprenticeship reforms, I discussed arrangements for UK employers with a focus on the processes for England. This is because the UK government has allocated a proportion of the apprenticeship levy funding to each of the devolved nations. Scotland, Wales and Northern Ireland will provide their own guidance on accessing the apprenticeship levy. ...Scotland, Wales and Northern Ireland will provide their own guidance on accessing the apprenticeship levy Even though the apprenticeship levy has now been introduced, there is still very little information from the devolved nations regarding the levy. ● Scotland – Skills Development Scotland has a devolved budget of £221 million in 2017/18 to support skills training and employment in Scotland. This is expected to support the delivery of 30,000 modern apprenticeship starts by 2020. A new £10million workforce development fund – that is expected to
be launched in autumn 2017 – will be introduced to upskill and retrain employers’ existing workforce in Scotland. This fund will focus on the older workforce where an apprenticeship will not be suitable. Further information on Scotland’s response to the apprenticeship levy can be found here: http://bit.ly/1ez5Vbl, or by contacting the apprenticeship service on 0800 917 8000. ● Wales – Business Wales does not allocate the apprenticeship funding in the same way. They do not ring-fence any funding but allocate the resources provided according to their priorities, one of which is to support the delivery of 100,000 apprenticeship starts by 2020. They will not be using a similar system to provide funding to employers but need to provide guidance on how funding can be claimed by employers. Their commitment to provide apprenticeship funding for individuals is irrespective of where the learner lives (which is different to England). They will fund an apprentice where they are working 51% of their time in Wales. Further information on Wales’s response to the apprenticeship levy can be found here: http://bit.ly/2prfmBr, or by contacting the apprenticeship service on 0292 090 6801. ● Northern Ireland – There is very little information about the apprenticeship levy available through NIBusinessInfo.co.uk, but at the time of writing they were drafting an employer guide and hoping to publish this at the beginning of May 2017. Further information on Northern Ireland’s response to the apprenticeship levy can be found here: http://bit.ly/2qnVMHJ, or by contacting the apprenticeship service on 0300 200 7876. n
CIPP members can utilise our Advisory Service on 0121 712 1099.
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 10
Professional development insight
Diary of a student… Linda Shotton MSc
has also helped me with my CIPP tutor work as I can understand many of my students’ issues and help them accordingly. How do you cope with the work-life balance and include your study? I would be lying if I said it was easy but I love learning. It was made even harder when I decided to train to be a tutor on the Foundation Degree in Payroll Management. I now facilitate module review days and currently I have a year-2 tutor group with thirteen students. I live with my ninety-year old father who has dementia which tends to add additional stress. Luckily I have very supportive managers and colleagues. I was allowed the time and resources I needed. My friends were excellent and kept me grounded ensuring I had some ‘me’ time. Did the fact that the CIPP is chartered or recognised within the industry influence your decision to enrol with the CIPP? And were there any particular modules which were of interest prior to enrolling? The Foundation Degree was recommended to me and I enjoyed year 1 as this reminded me of the basics of payroll as I had been out of payroll for a few years. On the MSc, I thoroughly enjoyed the strategic management of remuneration and the strategic business finance for non-accountancy professionals modules. Although I enjoyed the appreciating skills for career development and leadership module personally I do not like this type of inward-looking work. For someone who is thinking about studying for a CIPP qualification what would your advice be to them? Go for it. It has been a wonderful experience. Stressful at times but the graduation at the end is worth the hard work. The qualification is good and is worthwhile. I would recommend it. n
FCIPPdip Assoc CIPD Payroll manager, Homes and Communities Agency
Can you give us a brief background into your life? I come from the north east of England and have worked all my life since leaving school. I have been made redundant twice and have temped until I found a new role. In 1987, I moved to London for a new role and lived there for eighteen years. I thoroughly enjoyed working and living in the south east, but returned to the north east at the beginning of 2005. I am a committed Catholic and am very involved in my church. I love going to the theatre, listening to live music and meeting up with friends. Can you give us an insight into your career and qualifications background? I did not find study easy at school and had to work hard to gain qualifications. Having said that, I did leave school with a variety of O and A levels and RSAs. When choosing my options my mam persuaded me to take shorthand and typing as something to always fall back on which has been extremely useful in both my work and personal life. My first job was a junior secretary. After being made redundant from that I joined the health service and worked in nursing personnel. This was my first role in human resources (HR) and I thoroughly enjoyed it. Unfortunately, the health authority would not support my completing the Chartered Institute of Personnel and Development’s (CIPD’s) qualification so I obtained a job in London as personal assistant to the managing director with responsibility for HR in an international steel trading company. As part of this role I had responsibility
for the UK and pension payrolls working extensively on the annual review for the whole organisation. Here I was involved in a management buyout and a takeover. The company sponsored me to complete the CIPD qualification. I then started the Payroll Alliance Diploma but did not complete this due to the pressures of the work. I was made redundant at the end of 2004 and had a number of short-term contracts; one was leading HR/payroll from announcement of closure of the factory until this event. In 2007, I was appointed as HR advisor within English Partnerships covering maternity leave. My contract was extended as the organisation was being merged with two others and we became the Homes and Communities Agency. In 2010, the head of HR asked me to transfer into payroll as a succession planning exercise. I started the Foundation Degree in Payroll Management and graduated in 2013. Also in 2013, I was appointed payroll manager. I then started the MSc. Why did you choose to study the MSc in Business and Reward Management? I completed the Foundation Degree in Payroll Management and had to choose between the BA or MSc. I contacted the CIPP to discuss this and decided that the MSc was better suited for my purposes. How important is this degree in relation to your future career? Though now fully qualified for my role I am investigating a CIPD level 7 course. However, I am not thinking of changing my role in the short-term as I have flexibility which I require with my dad. This course
| Professional in Payroll, Pensions and Reward |
Issue 31 | June 2017
Full details of events and training courses can be found at cipp.org.uk or you can email firstname.lastname@example.org for more information. Events Horizon National forums Available throughout May to July and exclusive to CIPP associate, full and fellow members, national forums are an excellent networking opportunity whilst hearing from the policy and research team, as well as other key speakers on the latest developments in payroll, pensions and reward legislation such as: ● Optional remuneration and the changes to salary sacrifice ● Holiday pay and leave ● Gender pay gap reporting ● Automatic enrolment and automatic re-enrolment. If you are an affiliate, trial, web user or student member and you’re interested in attending a national forum, please login to ‘my CIPP’ at cipp.org.uk where you can upgrade your membership; or email email@example.com for more information on how to upgrade.
Scottish National Conference 07 September 2017, Crowne Plaza Glasgow The only payroll conference in Scotland will provide you with the latest legislative changes and an update on what CIPP Scotland is doing on your behalf, whilst offering you the perfect opportunity to meet exhibitors to see what they can offer you and network with like-minded professionals. Why should I attend? ● Learn about the key changes to payroll and pensions legislation ● Avoid non-compliance penalties ● Network with other local members ● Ensure you are on the right track to achieve your CPD Book and pay for your place before 1 June 2017 and benefit from our early bird rate. What does the cost include? ● Full-day conference programme with updates from industry experts ● Attendance at a networking dinner* ● Overnight accommodation*
Dates are filling up fast so please book your place at cipp.org.uk today.
05 July (AM) London 12 July (AM) Newcastle 18 July (PM) Birmingham
06 June (PM) Glasgow 20 June (PM) London - fully booked
21 June (AM) London 04 July (PM) London
*Accommodation and networking dinner is on Wednesday 6 September.
To be added to the waiting list for a fully booked event please contact firstname.lastname@example.org.
Thanks to our sponsors:
Thanks to our sponsors:
To view the full programme and to book your place please visit payrollevents.org.uk , email email@example.com or call 0121 712 1013.
| Professional in Payroll, Pensions and Reward | June 2017 | Issue 31 12
4 July 6 July
Apprenticeship levy and funding Construction industry scheme Employment status and employment intermediaries Gender pay gap reporting and HR implications
Essential additions to payroll basics
Birmingham Manchester Stevenage
13 July 18 July 25 July 26 July
Payroll and HR legislation update
4 July 6 July
Payrolling benefits and legislation update
20 July 28 July
Holiday pay and leave
Pensions for payroll and automatic enrolment
Introduction to payroll
* Dates are subject to change
Introduction to PAYE and NIC
The full list of CIPP training courses can be found at cipp.org.uk/training
Introduction to statutory payments
Book a 121 CPD appointment Once you have confirmed your attendance at the Annual Conference, you can book a 121 continuing professional development (CPD) meeting with a member of the CIPP team. Simply email firstname.lastname@example.org to book your appointment which will be confirmed prior to the event.
Apprenticeship levy and funding
This course covers: l Background l Apprenticeship levy l Apprenticeship funding arrangements in England l Apprenticeship funding arrangements in the rest of the UK l Future developments This course is designed to introduce delegates to the apprenticeship levy that comes into effect from April 2017. The course also covers the devolved funding arrangements across the UK. Half day
Book online at cipp.org.uk or email email@example.com for more information.
| Professional in Payroll, Pensions and Reward |
Issue 31 | June 2017
Compliance accreditations CINTRA HR and Payroll Services has become the latest organisation to gain the CIPP’s Payroll Assurance Scheme (PAS) compliance accreditation. Carsten Staehr, Cintra’s chief executive officer commented: “The CIPP is the pre-eminent industry
CIPP delivers excellence in training YOUR CHARTERED Institute has successfully achieved continuing professional development (CPD) certification for its training, events and qualifications programmes, demonstrating excellence in the delivery and provision of education in payroll and pensions. The certification with the CPD Certification Service (https:// cpduk.co.uk/) has been achieved for the following training courses, qualifications and events: ● Creating payroll procedures ● Termination payments ● Overpayments recovery workshop ● Holiday pay and leave ● Salary sacrifice ● Employment status and employment intermediaries ● Introduction to statutory payments ● Payroll and HR legislation update ● Payroll for non-payroll professionals ● Certificate in Pensions Administration ● Payroll Technician Certificate ● Advanced Payroll Technician Certificate ● Foundation Degree in Pensions Administration and Management ● Foundation Degree in Payroll Management ● National Forum ● CIPP and AAT hot topic event ● Payroll and pensions update ● Budget update ● The CIPP’s Annual Conference and Exhibition. ● The CIPP’s Scottish National Conference and Exhibition Elaine Gibson, CIPP’s education director, commented: “CPD certification is incredibly important to the CIPP. Increasing knowledge and skills through education is core to the CIPP and achieving this accreditation provides our members and customers assurance that CIPP delivers quality education services to payroll professionals.” All CIPP training courses, events and qualifications will now ● Construction industry scheme ● P11D expenses and benefits ● Payrolling benefits and legislation update ● Essential additions to payroll basics ● Introduction to PAYE and NICs ● Introduction to payroll
body for payroll professionals and this accreditation really is the icing on our compliance cake. We invest a lot of time and effort in making sure that our processes not only serve our clients well but demonstrate industry best practice, ensuring a smooth, efficient experience for our customers. We are proud to carry the PAS accreditation as a demonstration of the high quality payroll processing service we provide.” Michael Hughes, Cintra human resources and payroll bureau manager, is particularly pleased with the accolade: “Our entire bureau team are CIPP qualified, so CIPP affirmation is especially dear to our hearts. We were confident in our procedures but to have them externally ratified, especially by the CIPP, has made the whole team extremely proud. In addition, the accreditation process itself has been an extremely worthwhile and rewarding exercise” In addition, Dumfries and Galloway Council have been reaccredited with the Payroll Assurance Scheme and Payroll Quality Partnership, and Equiniti are reaccredited with the Payroll Quality Partnership. Colin Jackson, CIPP’s head of consultancy, said: “We are delighted that Cintra HR and Payroll have achieved the PAS accreditation, demonstrating that they are not only committed to customer service but to compliance and best practice in payroll standards. It is also pleasing that other organisations continually value the accreditations and achieve reaccreditation year on year, especially in light of recent highly publicised news stories relating to non-compliance due to payroll errors. “The CIPP encourages all UK plc to engage in a payroll health check or accreditation, such as the PAS, to ensure that they are at less risk of payroll fraud and non-compliance penalties from government, both of which can be extremely costly to organisations both financially and reputationally.” For further information about CIPP’s PAS visit: www. payrollcompliance.org.uk .
be assessed through the CPD certification service to ensure consistency and high quality standards. To find out more about the CIPP’s education portfolio visit www.cipp.org.uk .
| Professional in Payroll, Pensions and Reward | June 2016 | Issue 31 14Page 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
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