Official publication of The Chartered Institute of Payroll Professionals Issue 95 November 2023 PROFESSI NAL in Payroll, Pensions & Reward
Harnessing payroll data
AUDIT ANXIETY? How best to prepare for a national minimum wage audit by HM Revenue and Customs
MAKE YOUR PAYROLL DATA GO FURTHER How the information you hold can highlight the strategic value of payroll
INFLATION NATION How can inflation directly impact the processes payroll professionals carry out?
CIPP UPDATE POLICY HUB PERSONAL DEVELOPMENT
cipp.org.uk
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“Data is a precious thing and will last longer than the systems themselves” Tim Berners-Lee
Editor’s
comment
26
Hello and welcome to November’s issue of Professional magazine. I cannot believe we’re approaching the end of
2023 – where has the time gone? At the CIPP, we’ve been really busy preparing for a series of events, and still continue to make arrangements for our final
big day of the year – the graduation ceremony. On a personal level, this one will be extra special for me, as I’m actually graduating myself, having achieved the Foundation Degree in Payroll Management. I fully appreciate the dedication and time required to complete this qualification, so if you see me on the day please do come and celebrate with me! This issue of the magazine is all about data . Payroll naturally collects some really important information each pay period, and I truly believe this is only just starting to be fully appreciated and understood within organisations. That’s why we have a collection of articles on precisely this topic, to demonstrate exactly this point and to provide some top tips on how best to harness that data and show the strategic value of payroll. Our feature article (page 40) puts a series of questions to a panel of experts in this space, while articles on pages 24 and 26 give individual slants on the best ways in which to use payroll data to its full potential. Case law and how much things change is always on a payroll professional’s periphery. That’s why we have a roundup of the latest in employment law on page 48, and a special hot topic article on the treatment of National Insurance on business mileage undertaken within employees’ own vehicles (page 58). I hope you enjoy this issue of Professional as much as I’ve enjoyed putting it together.
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Lora Murphy MCIPP (editor@cipp.org.uk) Editor
48
24 - The role of payroll data in the people analysis mix By Chris Kirby 26 - Using payroll data to shape wider business strategy and approaches By Maria Mason 40 - Feature article – harnessing payroll data By Jerome Smail 48 - The importance of treating job applicants fairly By Nicola Mullineux 58 - The NI treatment of business mileage undertaken by employees driving their own cars By John Messore
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
Chair’s
Chief executive officer Jason Davenport MCIPP MloD CIPP board of directors Clare Warrington MSc FCIPPdip AFHEA Sohail Butt ACIPP Louise Gray ChMCIPPdip Stuart Hall MCIPPdip Dianne Hoodless MSc ChFCIPP FHEA Liz Lay MSc FCIPPdip FHEA ACIPD Jeremy Montgomery BA (Hons) FCIPP Brendan Mulkern FCIPP Justine Riccomini MSc FFTA AIPA Chartered MCIPD ChFCIPP Cliff Vidgeon BA (Hons) CMA ACG ChFCIPP Editor Lora Murphy 07920 787221 | lora.murphy@cipp.org.uk Advertising Daniel Cull 07795 652645 | advertising@cipp.org.uk Design James Bartlett and Nicole Davis design@cipp.org.uk Printing Acorn Press Ltd
message
Where does time go? We’re already on the countdown to Christmas, planning the tight December deadlines and now, the nights have really drawn in. It’s at this time of year especially that employees and organisations are very focussed on the work of the payroll team and ensuring payments are made
accurately and on time. Given the current economic climate, it’s more important than ever this year. Payroll systems hold lots of valuable data which can help finance with planning budgets and human resource teams with sickness analysis. There’s also lots of output reports and data that feed other areas of the organisation, many of which can help drive business strategies. It’s important that the reports are fit for purpose and meet the needs of the organisation. They should be regularly reviewed, as often reports are unused and other workaround processes must be implemented as a result. Remember, the CIPP is here to help, whether that be through advice and guidance or training courses and qualifications. Pease get in touch with us to discuss how we can help.
Clare Warrington MSc FCIPPdip AFHEA (clare.warrington@cipp.org.uk) Chair, CIPP
Useful contacts
CEO’s
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
message Although this issue will reach your doors in November, at the time of writing my message, I have just returned from the South African Payroll Association (SAPA) conference in Johannesburg. Forming relationships and working together for the benefit of both parties is incredibly rewarding. Listening to the
challenges payroll professionals in South Africa face made me realise how payroll is so connected to the prosperity of the country of origin in collecting the correct taxes and securities due. It also showed that, even across borders, so many challenges are consistent and the same. I also have the pleasure of representing the Institute over in Australia during November and am delighted to be sharing the stage with Clare Warrington, our chair, to bring to life the superhero roles of payroll, pension and reward professionals. It was a pleasure to represent the CIPP as the eminent body for payroll professionals in the UK. The importance of our mission statement to lead with qualifications and training for the benefit of payroll and pensions professionals really resonated with me. That is why I would like to appeal to you, the membership, to let me know if there’s anything you think should be added in terms of specialist interest groups, or key elements of working practice that we might better represent. Please get in touch with me regarding your suggestions. This issue is all about harnessing the data available within payroll. Years ago, I worked with a chief data scientist, and I thought what a great job title. He had worked with many large retailers and could predict sales of products via data analysis. I have also heard stories told by the founder of Just Eat, who recruited more than 50 data analysts to help determine what would be ordered at any given date and time, to best predict buying patterns within the takeaway industry. The outcomes from data analysis have great benefits to business, as would the analysis of payroll data and predictive trends. These could have a significant impact on the decisions made within a business, if analysed fully. I do hope you enjoy the content shared in this issue.
0121 712 1013 cipp.org.uk @CIPP_UK
Articles Please support this magazine so that it can continue to be a part of your membership package. To get involved, contact Lora, at editor@cipp.org.uk. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2023. The Chartered Institute of Payroll Professionals, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.
Jason Davenport MCIPP MIoD (jason.davenport@cipp.org.uk) Chief executive officer, CIPP
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 2
in Payroll, Pensions & Reward PROFESSI NAL
Contents November 2023
REGULARS
FEATURES
Will the rabbits be hibernating this autumn statement? By Richard Hattersley Going beyond transactional payroll outsourcing: embracing the future By Ned McEvoy and Matthew Harper
01 Editor’s comment 02 Chair and CEO messages 04 CIPP update News and developments 05 My CIPP Events horizon, On your behalf, Spotlight on…, Payroll news, Movers and shakers, Advisory Q&As, National Payroll Week 16 Personal development BePayroll
Construction industry scheme data for payroll By Sudeep Gangali National minimum wage – on the record By Jeni Morris and Gary Henderson
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20
22
Putting in a new salary sacrifice benefit – how complicated can it be? By Jeni Morris and Brian Cooper
The wider use of gender pay gap data By Karen Thomson
30
28
Inflation and payroll: how do they interact? By Mathew Akrigg
The future of payroll By The CIPP
17 Compliance
34
32
From ensuring you’re ready for a national minimum wage audit to tax predictions for the upcoming autumn statement
online exclusive content
Understanding the importance of strengthening your payroll data security Webcast by Ceridian Is your brain up to the challenge of payroll? By Lindsey Byrne
Making payroll data go further By Sandra Was
40 45
Feature topic Read all about the theme of the current issue
38
37
online exclusive content
online exclusive content
Reward Keeping your brain prepared for the challenge of payroll and ensuring job applicants are treated fairly
‘Harnessing the power of payroll data’…… to support employee saving By Anna Buckle The rise of artificial intelligence in payroll By David Yewdall
46
45
52 Technology
The rise of artificial intelligence and how you can prepare
online exclusive content
58 Hot topic
Let’s discuss the intricacies of the National Insurance treatment of business miles carried out in employees’ personal vehicles
Bonuses – to pay or not to pay? By Danny Done
52
50
60 Payroll pets
We say hello to some of your furry friends
View the online version for additional content at cipp.org.uk
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
Think strategically
Designed for ambitious payroll and pensions professionals, the CIPP’s BA (Hons) Business Management builds on your industry knowledge and skills to take your capabilities to a strategic level. BA (HONS) BUSINESS MANAGEMENT
CIPP update
THE CHARTERED Institute is pleased to announce the following individuals have recently gained Chartered membership status: Gaining Chartered status is a huge achievement, so congratulations to you both. Chartered members
Visit www.cipp.org.uk/BA for details and to enrol
Samantha O’Sullivan ChMCIPPdip , policy lead, the CIPP
Ellis Rees ChFCIPPdip , strategic account director, ADP
We’re attending the Reward and Payroll Summit – stand nine ON WEDNESDAY 15 November 2023, we’re sponsoring and exhibiting at the Reward and Payroll Summit 2023, taking place at the Hilton London Watford. If you’re also attending, make sure you head over to stand nine and speak to Daniel Cull, Sarah Winnett, Cait Butler and Natasha Taylor, who will be representing the CIPP. If you’d like to see us there, book your place here: https://ow.ly/xUhm50PVwWO.
The CIPP’s graduation takes place on 24 November COMING UP in November is the CIPP’s graduation ceremony where students who have completed our Foundation Degree in Payroll Management, Foundation Degree in Pensions Administration and Management, BA (Hons) Business Management, MSc in Strategic Leadership and Certificate in Pensions Administration get to celebrate their achievements with family and friends. Taking place at the Symphony Hall in Birmingham, qualified students will get their cap and gown and receive their certification on
Delivered in conjunction with
Member price: £1,047 + VAT Non-member price: £1,347 + VAT LINCOLN INTERNATIONAL BUSINESS SCHOOL
Scan to book
stage, with a drinks reception following the ceremony. If you’d like to become qualified and one day attend a CIPP graduation, take the next step in your career by enrolling on one of our qualifications: https://ow.ly/LKQg50PVxKr.
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 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.
The Annual Conference and Exhibition (ACE) and Annual Excellence Awards And that’s a wrap! The CIPP’s ACE and Annual Excellence Awards are over for 2023. They were
Graduation ceremony 2023 The next big event in the CIPP’s calendar is, of course, the graduation ceremony. This year, the ceremony will be held at the Symphony Hall in Birmingham on 24 November 2023. We welcome students who have completed our: l Foundation Degree in Payroll Management l Foundation Degree in Pensions Administration and Management l BA (Hons) Business Management l MSc in Strategic Leadership l Certificate in Pensions Administration. We love this event as it’s time to celebrate the amazing achievements of those who have worked hard to achieve a qualification, often while juggling other commitments, such as families and work. We look forward to seeing you, your friends and your family at this wonderful event. Graduation Ceremony 2023
both bigger and better than ever, and we’re already looking forward to 2024. There’s a supplement within this issue of Professional , which provides coverage across the two days. Also, you can get ahead of the game and register your interest for 2024 now, here: https://ow.ly/WtQx50PX1Vm.
You can continue to BeKnowledgeable The CIPP’s award-winning BeKnowlegeable series continues, with a new event coming up in November.
On 7 November, join the CIPP’s policy and research team, as they discuss the key findings from some of the surveys held in 2023. This will include coverage of both the Payslip Statistics Survey and the recent Benchmarking Survey . The webinar will help delegates to identify where non- compliance could potentially creep in. To join this fantastic session, you can sign up here: https://ow.ly/3TkG50PX220.
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 other dates, locations and training courses available. Please visit http://ow.ly/iVfT50MU7yr
Course
Date
Location
Course
Date
Location
27 November
Online
07 November
Online
Automatic enrolment and pensions for payroll
11 December
Online
Holiday pay and leave
08 December
Online
22 January
Online
11 January
Online
17 November
Online
13 November
Online
Construction industry scheme
08 December
Online
27 November
Manchester
16 January
Online
04 December
Online
Introduction to payroll
Global mobility key payroll issues
23 November
Online
13 December
Birmingham
10 November
Online
08 January
Online
Off payroll working and other employment status considerations
21 December
Online
24 January
London
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
POLICY HUB
On your behalf
As Halloween took place last month, 'don't be scared, be prepared' was the motto for the CIPP's policy and research team . The team were busy getting ready for for the CIPP's Annual Conference and Exhibition (ACE) 2023, but the hard work didn't stop there... Policy team update
We ACEd it ACE is the much anticipated event of the year for payroll professionals and this one was the biggest to date! With nearly 400 guests attending ACE 2023, it was an incredible two full days at the Celtic Manor in Wales. Our 2023 conference programme included 20 workshop sessions, split across five streams, over two days. Policy lead, Samantha O’Sullivan and policy and research officer, Mathew Akrigg presented a policy team update, to cover the latest hot topics and potential future developments in payroll legislation and policy. ACE is the biggest independent payroll conference and exhibition in the UK, and provides an invaluable opportunity for professionals to educate, collaborate and celebrate all things payroll, pensions and reward. A huge thank you to all sponsors, speakers and guests. It was ‘no tricks and all treats’ for the Annual Excellence Awards 2023 winners. Almost 600 guests attended the CIPP’s 20th awards, which is amazing. Once again, congratulations to all the winners and those who were shortlisted. Events Editor, Lora Murphy and Mathew facilitated two virtual think tanks meetings with HM Revenue and Customs (HMRC). The head of new data policy, strategic data policy at HMRC, delivered an update on the findings and plans from the ‘ Improving the data HMRC collects from its customers ’ consultation, which ran in 2022. HMRC reached out to the CIPP to arrange these think tanks with our members, to inform them of the changes being made, and to gather thoughts and feedback around the proposed amendments. At the CIPP, we understand the differences in processing payroll in an in-house or in a bureau setting, therefore we ran a think tank for each environment payroll is processed in. HMRC also used these think tanks to update members on the progress it has made since last year
and seek input / support on the work it has underway, to ensure collaborative policy development. The discussion covered the following: l a brief overview of the policy l update on the draft Finance Bill l update on the development of secondary legislation and next steps l any policy and technical questions. Policy and research officer, Meena Salhan joined a research roundtable organised by the Chartered Institute of Fundraising (CIOF) regarding enhancing and developing tax incentives to make giving more accessible. The UK has some of the most generous tax incentives to help people in all income brackets support causes they care about. But with over 500 million of gift-aid going unclaimed, payroll giving is in decline and inheritance tax reform is threatening charitable donations. In recognition of this, discussion was held on how these promising areas of giving can be improved. Meena also represented the CIPP at the accessible payroll giving project. Contributions to these roundtables will help the CIOF with research into how to encourage more people to donate to charity, with findings published next year. Samantha attended the UK’s biggest pensions conference, the Pensions and Lifetime Savings Association (PLSA) Annual Conference, held in Manchester. Pension leaders, pension scheme advisers, trustees, professional trustees and chief executive officers were present to discuss every aspect of pensions. Talks also delved deeper into what the future holds, including how artificial intelligence and technology will impact pensions and the workforce, and what could change before and after the next general election. Samantha also made a trip to the House of Lords to attend a roundtable discussion hosted by the All-Party Parliamentary Group (APPG) for health, and chaired by Lord Bethell, on statutory sick pay. The roundtable bought together members of Parliament, peers, health experts and trade unions to
hear about the benefits of sick pay reform and to discuss what can be done next to ensure these reforms become legislation. Mathew represented the CIPP at an Advisory, Conciliation and Arbitration Service (ACAS) roundtable to discuss the code of practice for predictable working patterns. The outcomes will feed into guidance which will be constructed to help employers get predictable working pattern requests and processes correct. Are we there yet? Consultations were still on the to-do list for the team last month. Two formal responses were submitted for the below: l Draft regulations: proposed amendments in respect of salary advances l Joint HMT-HMRC consultation on tax incentives for occupational health. We encourage everyone to continue responding and contributing to consultations that are of interest. Setting the benchmark The CIPP Benchmarking Survey Report 2023 is now available. Thank you to all participants who made this report a success. The study explored: l payroll team structures l payroll frequencies l error rates l key performance indicators l pensions l current trends. This is all to allow you to benchmark your company against existing industry standards. This report can be accessed in the ‘MyCIPP’ area if you are member. Never fear, the policy team are here! We’re all ears, with the King’s speech on 7 November 2023, followed by the autumn statement on 22 November 2023. Rest assured, we have you covered and will be providing live updates across our social media platforms and News Online page on both dates. n
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 6
MY CIPP
Spotlight on...
Dr Sue Smith EdD MA BEd FHEA FCMI Cmgr Assoc CIPD ACIPP Education director
Tell us a little about your career and background so far. I’ve had quite an eclectic career, working in lots of different industries. My background is in training and development, more recently in executive coaching. I’ve supported managers in businesses throughout my career, mostly through teaching and presenting on leadership and management, but also by drawing on my operational experience. My first career was as a primary school teacher and then I managed a restaurant, moving into hospitality and entertainment, where I worked in the pub, night club and hotel industry. During my mid-career, I moved into outsourcing, working in Accenture and with clients on graduate programmes in large corporates. When I started researching my doctorate in 2009, I had my own company and by the time I graduated in 2015, I’d also lectured in three different universities. What are your main priorities as the education director? Clearly, I’m passionate about education, learning and development. I believe it’s the gateway to achievement and growth. As the education director, I steer the direction of the organisation, constantly looking at the latest developments in qualifications, training and in learning. It’s my responsibility to ensure we have the most appropriate interventions and that they’re accessible to all. So, this means
With some great events coming up, which one are you most looking forward to, and why? That’s a little bit like asking someone to choose their favourite child! I recently attended the CIPP’s Annual Conference and that was amazing! I love events which recognise the achievement (and sacrifice) people have made. Our graduation ceremony is one of my favourite events too. It’s an opportunity to share the celebration, but also to recognise all those unsung heroes who have supported the students and learners to cross the finish-line. The formality of the graduation ceremony is topped only by speaking to the graduates and being introduced to their partners, spouses, children and parents who have supported them, encouraged them and literally been the shoulder to cry on through the highs and lows of their studies. What do you think you and the education team can bring to the future strategy of the CIPP? We’re fortunate enough to have an incredibly dedicated team at the CIPP. Everyone brings their wealth of knowledge and expertise to enable us to provide the best products and services. The team are striving to improve all that we offer so we can meet the members’ needs, recognise their achievements and support those in need of guidance and information. n
the learning packages might come in all sorts of different shapes and sizes, fit for our diverse profession. It’s important to remember learning is a life-long process, so catering for learners of all ages and at all times in their career is imperative. What does your role mean to you? What is the purpose of your role? My role helps people gain an advantage in their career pathway. It doesn’t matter: l where they’re starting from, or which rung of the ladder they’re aiming for l whether they’re a practitioner or a professional l if they’re learning new skills and developing themselves l whether this is through a qualification / a training intervention / self-taught activity, or by sitting with Nelly. All of this can only give them an advantage over where they were before. How would completing a CIPP qualification help support an individual’s payroll / pensions career? At the CIPP, we have a progression of qualifications from entry-level through to strategic leadership. We also appreciate that not everyone has an ambition to be strategic. For those who prefer to grow as a specialist in their chosen field, we provide the information, education and recognition to support them.
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
PAYROLL news
National living wage (NLW) to increase to at least £11 from April 2024 THE PRIME minister, Rishi Sunak and the chancellor of the Exchequer, Jeremy Hunt, announced in October 2023 that the NLW will increase to at least £11 an hour, from April 2024. At the time of writing, the Low Pay Commission (LPC) hadn’t confirmed its recommendations on minimum wage rates for the next year. The NLW currently sits at £10.42 per hour and is the minimum wage those aged 23 and over must be paid. The announcement confirmed that whatever the LPC recommends, the NLW will rise to a minimum of £11 an hour. Rishi Sunak said: ‘‘For a full-time worker on the NLW, this boost is worth over £1,000 more next year. It’ll mean that the wages of the lowest paid people in society are over £9,000 a year higher than they were in 2010.” The full news story can be accessed here: https://ow.ly/ lhpw50PX2NT.
Employer Bulletin – October 2023 HER MAJESTY’S Revenue and Customs (HMRC) has released the latest issue of the Employer Bulletin . The CIPP advises all payroll professionals to read the bimonthly publication in full, as it provides a comprehensive round-up of all announcements made that will impact the work payroll teams carry out. This issue includes updates on, but not limited to: l electric charging of company cars and vans at residential properties l paying your pay as you earn (PAYE) settlement agreement (PSA) l reporting PAYE information in real time when payments are made early at Christmas l overlap relief – preparing for the new tax year basis l ‘pay by bank account’ enhancements. You can read the October Employer Bulletin in full, here: https://ow.ly/6qJO50PX3rY.
The latest Supreme Court (SC) holiday pay ruling ON 4 OCTOBER 2023, the SC issued a judgment in the Chief Constable of the Police Service of Northern Ireland and another v Agnew and others (Northern Ireland) case. This can be read here: https://ow.ly/PQ9450PX3fo.
The key part of the judgment relates to the three-month series rules when backdating unlawful deductions from wages. The case of Fulton v Bear Scotland previously established that a gap of three months would break a series and therefore anything further back than that would be out of time to claim. The SC has now ruled that where underpayments can be linked by a common fault this would not necessarily bring the series to an end. The press summary (https://ow.ly/Re9650PX3k0), explained: “A series does not require a contiguous sequence of deductions and a gap of more than three months between deductions does not necessarily bring a series to an end. A correct payment of holiday pay does not break a series if that correct payment was calculated by reference to basic pay.” In this case, as the payments for holiday had only used basic hours, and the processing method was the same in each payment, even for occasions where more than three months had passed, these can be seen as linked. Additionally, a lawful payment in between a series of unlawful ones would not bring a series to an end if the underlying issue were still present. This could happen where a payment has correctly used only basic pay to calculate as no overtime was done in the reference period, but a second, following payment reference period should have included an element of overtime. In this example the error is still consistent, despite one occasion where the method coincidentally resulted in a correct outcome; the series is therefore linked. The case as seen here relates to Northern Ireland, where there is no backstop for backdating claims. In the rest of the UK there is a two- year backstop; still, this could represent a very large liability for many businesses that may have been operating non-compliant holiday pay calculations. Coupled with the recent Harpur Trust v Brazel case, many businesses would be best to review their situations and assess the risk to the business of backdated claims that could not stretch further than where a three-month break would break a series.
Diary dates
5 November 6 November 19 November (this is a weekend date)
Last day of tax month 7 First day of tax month 8
Last day for submitting a real time information employer payment summary to apply to tax month 7 Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by non-electronic method Deadline for payment of PAYE and NICs under a PAYE Settlement Agreement (PSA) by non-electronic method
Deadline for payment of PAYE and NICs etc to HMRC’s Accounts Office by electronic method Deadline for payment of PAYE and NICs under a PSA by electronic method
22 November
5 December 6 December
Last day of tax month 8 First day of tax month 9
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 8
LOOKING TO MAKE A DIFFERENCE IN YOUR ORGANISATION?
In partnership with Loughborough University, the CIPP offers experienced managers the opportunity to gain a recognised university qualification in Strategic Leadership, with the benefits of part-time learning to fit around their schedule. This qualification will help organisations to retain and develop talent, build management and leadership capability and bring an extra dimension to existing professional development within their organisation. MSc in Strategic Leadership
Waving goodbye to policy and saying hello to digital learning ONE OF our policy and research officers, Meena Salhan MCIPPdip, is making the move across to the digital learning team. This is a great opportunity for Meena, and the policy team wishes her every success in her new role. Meena said: ‘‘I recently had the privilege of having the ‘spotlight on’ me in Professional magazine. I shared that to me, payroll isn’t just all about numbers and that the policy
and research position at the CIPP had given me a new outlook on payroll. Being part of the policy team has increased my admiration for payroll. I have gained new skills and knowledge, while working with reputable professionals and making great friends. “Now the CIPP has allowed me to explore my career further and there are mixed emotions as I move on from the policy team to the role of digital learning developer this month. I feel like I’ve only just started to scratch the surface of what payroll can offer as a career. I’m thrilled to be able to start this new journey and use my skills, taking my ‘policy brain’ into the digital learning department. The CIPP focusses on elevating the payroll profession and educating the next generation, and I’m delighted to have the opportunity to support this through my role at the CIPP. I would like to thank the policy team and the CIPP for being supportive and recognising my strengths, allowing me to me to succeed and grow, both personally and professionally.’’
Visit cipp.org.uk/study for details and to enrol
Making the move from the Advisory Service to the materials team KAREN WHARAM MCIPPdip, one of the members of our valued Advisory Service team is making a move and will also remain within the CIPP. Karen was previously an advisory officer, taking your calls and emails and helping you with all your payroll-related queries. She will now take up the position of content material author and will assist in the development of all the qualifications and training products the CIPP puts out to those who wish to learn.
Delivered in conjunction with
Speaking about the move, Karen said: “I’m really looking forward to my new role within the materials team. I have enjoyed working in the Advisory Service and am so pleased this has given me the knowledge required to further my career with CIPP”.
Scan to book
If you are moving roles and would like to appear on this page, please contact editor@cipp.org.uk .
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
MY CIPP
The CIPP’s Advisory Service team provides answers to popular questions
Treatment of pension when employee is in receipt of statutory sick pay (SSP) Q: If an employee goes onto SSP, can we deduct the pension (salary sacrifice) or should the employer be paying this on their behalf? A: While an employee is in receipt of a statutory sick payment, you cannot deduct salary sacrifice which reduces that payment, and this includes for a pension. The employee’s contribution would stop, and the employer isn’t required to pick up the difference. The employer’s contributions would be based on qualifying or pensionable pay, and not based on full pay. Paying staff working remotely in Northern Ireland Q: As a UK-based business, if you were to employ a client working remotely based in Northern Ireland, can you process their salary through a UK payroll system, or does it have to be through an Irish payroll system? Does the UK business need to register for a pay as you earn (PAYE) number in Ireland and pay employer pay related social insurance (PRSI) for each employee? A: As Northern Ireland is part of the
has now gone on maternity leave. While she’s on maternity leave, can we leave her on the H code, or should she revert to the A category? A: She will remain on category H, as her position and contract hasn’t changed. She’s still an apprentice, just her circumstances have changed. However, if she moves into year two of her apprenticeship while on maternity leave, please be mindful of national minimum wage (NMW) implications if she’s aged 19 or above. It’s also advisable to check she’s still completing an apprenticeship when she returns from maternity leave to ensure the correct NI category is being applied at all times.
UK, there’s no real difference. However, there may be some differences with regards to statutory redundancy rates and employment law. But this can still be processed on a UK payroll system. PRSI is applicable in the Republic of Ireland. If the employee lives in Northern Ireland, this wouldn’t apply, and UK National Insurance (NI) / PAYE would be due. The following links may be of use: https://ow.ly/Th4550PXefx and https:// ow.ly/YxUf50PXegz. NI categories for apprentices on maternity leave Q: We have an employee who was in an apprenticeship scheme, so we were using the NI category H as she met all the requirements. But the employee Are there any special considerations to be mindful of when paying staff working remotely in Northern Ireland?
How do you treat e-vouchers and NI purposes?
Receipt of a P45 following a P6 Q: If you’ve received a P6 from HM How would you proceed when you are given a P45 following receipt of a P6 from HRMC?
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 10
Available online or face-to-face
POLICY HUB
MAKE SURE YOU’RE UP TO DATE WITH THE LATEST CHANGES
Revenue and Customs (HMRC) but are then handed a P45 by the employee, do you use the previous pay details from them if you believe they were missing from the P6? A: No. Once HMRC has sent P6 details, you wouldn’t operate the P45. You should send it back to the employee, telling them you’re unable to operate it but prompt them to speak with HMRC to get it to send the previous pay details too if required. Q: Are there rules on how to calculate deductions for sickness days (as in, the rate to use)? We’re not sure if this should be based on the 260 rule or the hourly rate * hours in that day. A: The applicable rate or formula would entirely depend on what’s stated in the contact of employment or absence policies. Apportionment methods should also be documented in terms and conditions or handbooks for all employees to access. It can be based on calendar days, working days or it could be based on contractual hours. However it’s done, the same method must be applied to all employees so that it’s fair and consistent. Calculation methods for sickness days
to enquire if they have recently been in receipt of employment and support allowance (ESA) and possess a linking letter (ESA220). This would entitle them to be excluded from SSP for a fixed period in preference for continuing ESA payments, which can sometimes be higher. Where an employee claims ESA, they will be given a form at the end of the claim period known as a ‘linking letter’. The standard letter (form ESA220) contains a date falling 12 weeks and one day after the end of the period of claim to the relevant state benefit. If an employee falls ill before that date, no SSP is due and a form SSP1 must be issued to the employee. The above justifies asking certain questions from new employees. NI implications for company directors Q: With company directors, what are the risks of not ticking the director’s NI tick box on the payroll system? No additional payments are made during the tax year and salaries are quite low for director level. The salary received is also based on 12 equal instalments. Two of them complete their own self assessments, so I would assume if this was a problem, it would have been picked up then. I’ve inherited a payroll on which it hasn’t been ticked for several years. However, for peace of mind, I might tick the box for next tax year. A: The primary risk is that this can result in underpayments or overpayments of employee and employer National Insurance contributions (NICs). The likelihood of this occurring depends on the payment profile of the directors in question. Those who receive a regular salary and nothing more are unlikely to have their NIC liabilities notably impeded. But those who are paid irregularly and / or have large bonuses and other ad hoc payments could experience large discrepancies in their NIC calculations. To a lesser extent, this can also result in incorrect student loan deductions, as these also follow an annual learnings method for directors. An annual reconciliation should always be done in month 12. Please note that most systems will do this for you if the appropriate indicators are set. n
PAYROLL UPDATE
Duration Two consecutive half days for online option OR one full day for face-to-face option
This focused update course represents the single best opportunity to be briefed and updated on changes affecting payroll.
Book online at cipp.org.uk/training
How do you treat e-vouchers for tax and NI purposes?
Are you required to ask new employees if they have had any recent sickness absence with their previous employer?
Absences in previous employment
*Price correct at time of print and based on CIPP membership with eligible grade booking the online delivery of the course.
Q: Currently, in our starter paperwork we ask employees if they have been off sick during the final few weeks in their previous employment. Is there a rule that states we must record or consider sickness in a previous employment? A: There isn’t a requirement to enquire about absence prior to new employment, nor to record previous instances of sickness absence. However, in the interest of a new employee’s welfare, it’s best practice
Member price: £247.50 + VAT Non-member price: £495 + VAT
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
NATIONAL PAYROLL WEEK
4-8 September
KEEPING THE UK PAID
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| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 12
NATIONAL PAYROLL WEEK
Vickie Graham DipM ACIPP ACIM, business development director, CIPP , provides a summary of the magical event that was National Payroll Week (NPW) 2023 J eremy Hunt, chancellor of the Exchequer, said: “Payroll departments have a critical role 1998 to celebrate the important role payroll plays within businesses and the UK economy, and it was fantastic to kick off the week in 2023 with an endorsement from the current chancellor recognising that role.
outcomes. You can find out more at https://ow.ly/gq3i50PX7Zi. The week continued on a high, with a plethora of industry events and social media activity which celebrated payroll professionals. n
in supporting the UK economy through the tax and national insurance system, collecting taxpayer’s contributions to fund essential UK services. In doing this [National Payroll Week], you are both supporting government policy and upskilling and supporting payroll staff to meet that challenge. “Please accept this letter as my support and endorsement of your work in professionalising this important sector.” NPW was introduced in the UK in
At the start of NPW 2023, the CIPP was pleased to announce the introduction of the earned wage access (EWA) Code of Practice. Working with seven leading UK providers of EWA, this code was written in response to a recommendation by the Financial Conduct Authority (FCA) and sets the common standard for firms providing EWA products to deliver good consumer
HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ
Mr. Jason Davenport MCIPP MIoD Chief Executive Officer Ms. Samantha O’Sullivan MCIPPdip Policy Lead
CIPP, Goldfinger House 245 Cranmore Boulevard Solihull, B90 4ZL
17 August 2023
Dear Jason and Samantha,
Chartered Institute of Payroll Professionals – National Payroll Week 2023 Thank you for your letter of 7 July regarding your National Payroll Week from 4-8 September. I appreciate you bringing this to my attention and giving me the opportunity to endorse the work of payroll professionals. As your letter highlights, payroll departments have a critical role in supporting the UK economy through the tax and national insurance system, collecting taxpayer’s contributions to fund essential UK services. In doing this, you are both supporting Government policy and upskilling and supporting payroll staff to meet that challenge. Please accept this letter as my support and endorsement of your work in professionalising this important sector. You also invited me to join your National Payroll Week reception on Monday 4 September. I regret I will be unable to join you – but I am sure representatives from key Government Departments will be able to attend and share feedback after the event.
“It was fantastic to kick off the week in 2023 with an endorsement from the current chancellor recognising that role”
Yours sincerely,
RT HON JEREMY HUNT MP Chancellor of the Exchequer
MONDAY 5 SEPTEMBER
The week kicked off with a payroll update from the CIPP’s policy team, in which they covered the tax year so far, as well as what’s on the horizon. Following this, we hosted a lively roundtable discussion on the future of payroll with our NPW sponsors and supporting partners. The key themes focussed on: l the importance of education within the payroll profession l the strategic value of payroll and how we can get payroll recognised as a strategic partner within business l the future of payments, specifically focussing on EWA l technology, including cyber security for payroll and HM Revenue and Customs’ (HMRC’s) plans for digitalisation. We finished the day with the NPW drinks reception, which was once again held at the fabulous London Sky Garden. Clare Warrington, chair of the CIPP, addressed the 250 payroll professionals in attendance with an update on NPW and what the CIPP has been doing on your behalf.
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
NATIONAL PAYROLL WEEK
TUESDAY 6 SEPTEMBER
We started the day with a breakfast club for payroll apprentices, students and early career entrants. Dawn Baxter, membership manager, shared how CIPP membership can support you throughout your career and Andrew McAulay, head of EMEA payroll at Illumina shared his career journey and highlights, demonstrating how rewarding and successful a career in payroll can be. The day continued with a series of online events. Our gold sponsors, Veritas Prime, held a panel debate on whether the traditional role of the payroll manager is dead, concluding that although not dead, it’s definitely evolving. Sue Smith, education director, and Jo Leather, education manager, continued the theme of payroll careers with a session on the education matrix and qualification options available to support payroll professionals throughout their career.
WEDNESDAY 7 SEPTEMBER
Our headline sponsors, Portfolio Payroll kicked off events on Wednesday with an event hosted by Clare Warrington at their offices in London. Clare shared the activities the CIPP has been working on over the course of the last 12 months and the event summarised the findings from Monday’s roundtable. Gold sponsors, CR Payroll, followed this event with a webinar focussing on mitigating payroll risks and how to safeguard against unexpected disruptions. Fiona Smith, training manager, then delivered a bitesize training session on salary sacrifice, followed by the IPP Education’s end point assessment manager, Gemma Mullis, discussing why you should consider a payroll apprenticeship. The day ended with the CIPP supporting the Caxton Career Collective in bringing together female leaders from the payroll industry, and their male allies, to share their career challenges and leverage the experience within the room to support female leadership.
THURSDAY 8 SEPTEMBER
Our gold sponsors, Access, opened events on Thursday with an insightful session on how to unlock payroll efficiencies through automation. Fiona Smith then delivered another educational session on automatic enrolment assessments. In the evening, the CIPP once again supported Caxton as they hosted Inspire, influence and impact: payroll professionals’ progression to partner and senior leadership roles. Lou Gray, CIPP board director attended this event, which explored career journeys to senior payroll positions and the importance of building a personal brand to support you in climbing up the ladder.
FRIDAY 8 SEPTEMBER
On the final day of NPW, gold sponsors, Sage shared their top tips for payroll professionals. The CIPP’s Advisory Team also hosted a panel which allowed members and non-members to come together and ask their burning questions. We closed the day with a lively debate around EWA and the role it plays in supporting employees.
| Professional in Payroll, Pensions and Reward | November 2023 | Issue 95 14
NATIONAL PAYROLL WEEK
Essex Police Essex Police kicked off NPW 2023 with a series of staff engagement sessions to help their staff and officers understand their pay / pensions and answer any questions they may have.
Hays Hays called for nominations for payroll champions who deserve to be recognised for their hard work and achievements over the last 12 months. The winner was announced as Jennifer Saunders ACIPP.
PwC PwC hosted internal sessions across the UK to educate their teams about what it is that the payroll services team does within their organisation.
PPHE Hotel Group PPHE celebrated NPW by recognising their ‘payroll heroes’ and hosting competitions and lunches throughout the week. PPHE were also joined by colleagues from Amsterdam to celebrate NPW and celebrated with a team game (or two) of bowling.
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| Professional in Payroll, Pensions and Reward |
Issue 95 | November 2023
PERSONAL DEVELOPMENT
# Be Payroll Meg Kirk ACIPP, payroll manager at Albany Beck Worldwide Ltd shares the virtues of studying with the CIPP, and provides an insight into her payroll career
Can you describe your payroll career so far? I initially planned a career in teaching sports and achieved a Masters in Management of Sport and Leisure in 2000. However, after exploring various options, I realised my true passion lay in accounting. Through my employer at the time, Profile Productions Ltd, I enrolled in an accountants course in London School of Accountancy and Finance. A few years later, in 2012, I found myself working alongside Andrew Twynam, starting up a new TaxAssist Accountants practice in Chesham. Initially, it was only the two of us, so I was engaging in various roles. As the practice expanded and roles became more defined, I gravitated towards payroll. Payroll was something I liked and understood instantly. When you know, you know, as they say! Most of what I know about payroll I learned during my 11 years at TaxAssist, managing a multitude of employer files of different complexities, demands and expectations. TaxAssist have been like family to me, and I’m still working with them on a consultancy basis. In 2021, I took on the role of payroll manager at Interquest Group, a specialist recruitment company. Earlier this year, I transitioned to Albany Beck Worldwide, which is part of the same group, and situated in the heart of London’s financial district. It’s a fantastic workplace and an exceptional employer. In 2019, alongside my day job, I set up my own practice called MK Tax Accountant, which provides personal tax return and payroll services. How do you feel about working in payroll? What does working in payroll mean to you? I cannot imagine myself doing anything else. It’s the most rewarding and captivating career. You never stop learning as the world of taxation, compliance and employment legislation is constantly changing. I have a genuine passion for expanding my knowledge and sharing it with my colleagues, which is why I’ve started composing regular newsletters to share with them. As a payroll manager, I firmly believe my role extends beyond the payroll itself. I view it as being my responsibility to engage, educate and disseminate information. I write about a wide range of topics, such as: l tax-saving strategies l deciphering tax codes l understanding payslips l cultivating a more tax-savvy approach. In a recruitment company like Albany Beck, where our employees are our most valuable assets, I want to be a proactive and supportive payroll manager. This is where I can connect and share my expertise in personal taxation and payroll.
What course have you studied / are you currently studying? I’m proud to say that my company has sponsored my training and I’m currently in the final part of completing my Foundation Degree in Payroll Management with the CIPP. How would you describe your experience of studying with the CIPP? Challenging. Although I have a good working knowledge of most of the topics covered, there’s so much I didn’t know. The third year covers mostly business management which I touched on at university, but now I can link it with the payroll. I appreciate the flexibility, online content and help provided by our tutors. Ray Ronnpage has been incredibly supportive, and I will honestly miss his guidance. Interacting with other students who are navigating the same journey is also invaluable. Thanks to this course, I made new friendships.
Why was it important to you to gain this qualification?
In terms of my career, this made me a more noticeable and desirable candidate for interviews. Working within a recruitment company, I’ve gained a profound understanding of the significance of qualifications and skills. I also feel a lot more confident, not just within payroll but also other areas of the business. This course has equipped me with valuable strategic and analytical skills which are useful in carrying out various work projects. It’s gratifying to see that my colleagues, employer and my private clients appreciate the value of these capabilities, so I intend to keep working hard. What advice do you have for someone thinking of studying a qualification with us? Only one: if you’re considering this course, don’t hesitate any longer. The only regret I have is that I didn’t start this course earlier. The CIPP’s Foundation Degree will take you to a different level and you’ll never regret it. What are your hopes for your future career? My goal is to move into global payroll. I currently oversee payroll operations in Ireland, Netherlands and the US, with a modest understanding of Polish payroll. I would like to expand this and learn about other countries. I have recently enrolled in the Certificate in Global Payroll Leadership course offered by the Global Payroll Association. This aligns seamlessly with Albany Beck’s global development strategy so this will prove beneficial for my employer too. n
16 | Professional in Payroll, Pensions and Reward | November 2023 | Issue 95
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