PROFESSI NALIssue 68 in Payroll, Pensions & Reward - Peter Blackhurst FCIPP, founder member
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PROFESSI NAL
Official publication of The Chartered Institute of Payroll Professionals
in Payroll, Pensions & Reward Issue 68
March 2021
Peter Blackhurst FCIPP, founder member
(Obituary, pages 4 and 5)
professionalmag.co.uk
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Payroll’s objective is “to pay people accurately on time”
Peter Blackhurst (1943–2021)
The tributes and memories on pages recommend the article on page 16 which reveals a wide range of
4 and 5 reveal Peter Blackhurst as a opinions from industry luminaries surely reflecting their roles and
charming, innovative and talented person experiences. For me, compliance in paying people accurately and
who (along with those mentioned in the on time remains fundamental. I would be delighted to receive your
article) played a key formative role in putting in views.
place the underpinnings that supported the eventual emergence of
the CIPP. What an extraordinary and wonderful life achievement!
The above axiomatic quote, attributed to Peter, succinctly
encapsulates the absolute essence of our profession.
I imagine Peter would have avidly read this issue’s articles Mike Nicholas MCIPP (editor@cipp.org.uk)
on the feature topic of the future skills of payroll professionals. I Editor
Chair’s message
The very nature of work and staying and development.
connected with others is high on Interpretation of case law where it impacts payroll and pensions
everyone’s agenda, but communication – and helping employers and employees understand the effects
and stakeholder management is not just on their teams or departments – is also a way of taking account of
staying in touch and providing information. changing legislation and adding value to the organisation.
If you want to be seen as a key individual Adding value is something that I hope I have achieved as chair
within the business and a valuable asset, knowing during my tenure. It has been fantastic to work with the board and
what and when to share information that will help your peers and the whole CIPP team, on developing governance, reviewing our
seniors is a key skill. This means looking ahead (horizon scanning), education portfolio, representing the CIPP at numerous events,
interpreting what is happening (predictive analysis) and drawing out building the strategy for the future, and making key co-options to
key information and actions that can be acted upon. support that journey. Whilst critically also keeping an eye on the
Mental health and well-being is a key focus for employers present. I look forward to supporting Liz Lay in the future and hope
also, and payroll and pensions professionals can support further to see as many of you as possible when circumstances allow.
in the financial well-being element by ensuring the skills they Stay safe and keep well.
have developed in terms of understanding workplace financial
management and planning can be interpreted to benefit those
you come into contact with. Is a copy of a payslip and a narrative
for interpretation provided as part of a company induction pack for
new employees (including apprentices, graduates etc)? This type of Jason Davenport MCIPP MIoD (jason.davenport3@cipp.org.uk)
information may be very useful to receive as part of their learning Chair, CIPP
CEO’s message
In the twelve months since the pandemic member benefit, namely: Payroll: need to know – your guide to
struck, our profession has been recognised as UK payroll legislation and reporting for 2020-2021 (https://bit.
‘key workers’, and in the main all being done ly/2NhwpEo). This contains all relevant UK payroll, pensions and general
from home. ‘Payroll and pensions, you can’t employment items, indexed and categorised for easy reference, in date
do that from home’ has been the refrain over the order to ensure you have the latest updates on any given subject. The
years and yet overnight we did. CIPP policy unit produce this detailed document for your benefit so
I hope at the end of this month (year-end permitting!) as please follow the link and avail yourself of this resource.
we enter Easter you all get a chance for a well-deserved break. Going I extend my personal thanks to Jason Davenport, who steps down
forward, who knows or can predict what the payroll and pension as chair at the AGM on 31 March, for his support since January 2019.
professional will look like; and whether the workplace will be a blend of Jason’s passion and leadership skills have ably supported the CIPP, along
office and home; we’ll see. with the excellent support of his board colleagues. While Jason remains
As I mention year-end (and what last minute surprises might the on the board for a further year as ‘past chair’, Liz Lay commences her
March budget bring?), it’s appropriate that I remind you of valuable term as the new CIPP chair. I’m sure we all wish Liz well in this role.
(online!) training courses to help tackle this key time of the year. Training Please note the AGM is also the time to elect two new board
courses – such as our revamped ‘P11Ds, expenses and benefits’ members; so please ensure you use your vote – see www.cipp.org.uk/
(https://bit.ly/3tHDD5v) and our ‘Off-payroll working (IR35)’ (http://bit. my-cipp/annual-general-meeting.
ly/3oepQiT) – are available now and continue to be very popular with
our members. It’s also very timely to join our ‘Payroll update’ course
(https://bit.ly/3p9rAuh) – a must-have for all industry professionals –
with members receiving 50% off the full price. Ken Pullar FCIPP (ken.pullar@cipp.org.uk)
It’s also an appropriate time to remind you of an invaluable key Chief executive officer, CIPP
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 1
PROFESSI NAL Also available online at
professionalmag.co.uk
in Payroll, Pensions & Reward
Contents March 2021
THIS ISSUE’S FEATURE TOPIC
FUTURE SKILLS OF PAYROLL PROFESSIONALS
41
Transforming
payroll
by Jaspal Randhawa Wayte
Features
16 18 25
Future skills of payroll Kickstart scheme
Starting your own business professionals developments
by Eira Hammond by Jerome Smail by CIPP policy team
26 28 30
Off-payroll working –
Imminent changes changes imminent Reporting benefits
by Lora Murphy by John Harling by Gemma Mullis
2 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68
34 35
Editor
Mike Nicholas
0121 712 1000 | editor@cipp.org.uk
Advertising
Vickie Graham
07775 564 352 | advertising@cipp.org.uk
Employers beware staff Big and short lessons in Design
gaming the CMS engagement James Bartlett, Nicole Davis and Sam Parkes
by Henry Tapper by Gareth Stears design@cipp.org.uk
Printing
Warwick Printing Company Ltd
36 38
Chief executive officer
Ken Pullar FCIPP
CIPP board of directors
Jason Davenport MCIPP MIoD
Stuart Hall MCIPPdip
Dianne Hoodless MSc ChFCIPP FHEA
Liz Lay MSc FCIPPdip
Redundancy situation, Carole Pearson MCIPP
disability discrimination, Why payments should always Katie Sharpe ACIPPdip
termination date be accurate Cliff Vidgeon BA (Hons) FCIPP CMA ACIS
Clare Warrington MSc FCIPPdip AFHEA
by Nicola Mullineux by Danny Done
Useful contacts
41 44
Education
education@cipp.org.uk
0121 712 1023
Events
events@cipp.org.uk
Outstanding customer 0121 712 1013
experience A transparent approach
General enquiries
by Jeanette Hibbert by Jeff Phipps enquiries@cipp.org.uk
0121 712 1000
Regulars Marketing and sales
marketing@cipp.org.uk
0121 712 1033
01 Editor’s comment, and
Chair’s and CEO’s message 32 Covid-19 news
Membership
membership@cipp.org.uk
34
0121 712 1073
07 CIPP update Reward
Events, news and developments Training
training@cipp.org.uk
08 My CIPP
Policy hub: On your behalf,
40 Industry news 0121 712 1063
cipp.org.uk
Advisory; Spotlight on…
41 Technology @CIPP_UK
13 Movers and shakers Articles
45 Wordsearch Please support this magazine so that it can continue to be a part
of your membership package.
Trademarks
14 Personal development
Diary of student, Starting your
own business, BePayroll
50 Confessions of a payroll
manager
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 2021. The Chartered
Institute of Payroll Professionals, Goldfinger House, 245 Cranmore
Boulevard, Shirley, Solihull, West Midlands, B90 4ZL.
22
Switchboard 0121 712 1000
Payroll news Additional online content
15 Ways to prioritise your wellbeing Copyright
This magazine is published by The Chartered Institute of Payroll
24 Compliance while working from home Professionals in whom the copyright is vested. All rights reserved. No
part of this publication may be reproduced, stored in a retrieval system,
24 Payroll needs to evolve, more or transmitted in any form or any means, electronic, mechanical,
photocopying, recording or otherwise, without the prior written
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are not necessarily those of the CIPP or the editor. The information and
comment contained in this publication are given in good faith, their
Full issue including additional online content available at professionalmag.co.uk accuracy or completeness cannot be guaranteed.
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 3
Tributes to
Peter
Blackhurst
FCIPP
10 October 1943 – 16 January 2021
It is with much sadness the Chartered Institute learned of the death of this highly respected and
loved founder member who played key roles in creating our professional body. The following
obituary was compiled by Gordon Cresswell FCIPP from conversations with Trevor Lakin FCIPPdip,
Chris Williams FCIPPdip, Peter White FCIPP, and Bryan Monkman FCIPP.
T
he payroll profession was very saddened to learn of house payroll system. He was successful, and it lasted for
Peter’s passing, leaving a void in the early group of over fifteen years.
payroll pioneers. He had been fighting MDS, a rare I met Peter at the first meeting of what was to become
form of blood cancer and sadly complications set in. the committee of APSA, the forerunner of today’s Institute.
As Chris Williams remarked, “Oddly I thought our We had only broad ideas of what it would become –
inaugural group would go on forever”, a comment I notions of representation for the payroll voice, a vague
understand because, although we’re not invincible, there idea of a payroll qualification. There were about twenty
was something about those early days in the eighties that of us, mostly strangers to each other, with Peter standing
made us feel we could change the world – we certainly out charismatically with his charm and original ideas. Peter
rocked the payroll establishment and Peter was a large part was never quiet, and you always knew when he was in
of this. the room! We became firm friends as the organisation
Peter White recalls first meeting Peter in 1968 when progressed, often rooming together in London in interests
both Peter B and his wife Krys worked at Hertfordshire of economy. Bryan recalls that Peter’s boss had allowed
County Council. Says Peter: “We renewed our him to attend the first APSA meeting with the proviso of
acquaintanceship in 1980 with the advent of APSA not taking on any roles. He returned the next day as APSA
(Association of Payroll Administrators) when I joined a secretary! He was proud of his membership being number
number of payroll and pensions people including Graham 2, second only to George Powell, the Liverpudlian who
Francis, Gordon Cresswell and Peter who I recall as a made the first rallying call for there to be a payroll body.
confident young man, pushing ahead with his career The most important initiative we undertook as a body
and bringing fresh ideas to the table, forming part of the was to produce the first payroll qualification, a warts-and-
bedrock of our fledgling organisation.” all product but it worked. I remember Peter coining the
Peter moved to Cheshire City Council then to Cheshire phrase that payroll’s objective is “to pay people accurately
County Council where he employed Bryan Monkman in on time”, something so obvious but it needed to be
1975 in the pensions department. Bryan remembers, stated. Another major contribution he made towards the
“Peter adopted a quite radical stance to our reorganisation qualification was to measure efficiency through payroll
of the department, adopting a team structure, an alien indicators – old-hat now, but back in the 1980s quite
concept to some of the diehards.” His boss, Lawrence radical. Peter was an ideas man. He believed everything we
Warrell, who died last year, moved Peter back into payroll did in payroll could be laid out as a formula which meant,
with the challenge to design and develop a bespoke in- when adopted, that the payroll programs could be made to
do so much more than they had in the past.
It was during these exciting early days, as we all got
standing out charismatically to know each other, that I met Peter’s wife Krys, always
supportive of his efforts and putting up with Peter going off
with his charm and original with the rest of us for workshops and meetings.
ideas. Peter was never quiet, During the early days Trevor Lakin met Peter and he
recalls “I was working at Peterborough Software and was
and you always knew when introduced to Peter for the production of an article for our
he was in the room local government customers. We bonded over a splendid
lunch (quite liquid!) with discussions on music and bands
4 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68
we had seen, eventually reconvening to produce the article professionals to attend the first meeting in Coventry in
– the beginning of a lifelong friendship.” 1985, my hand shot up; and his belief and encouragement
APSA was an important body in payroll’s history but sadly made me want to be a part of this exciting new venture.
there was a schism as the decision was taken not to admit I am sure that the same was true for many others. Peter
non-public sector members, a move with which Peter and convinced us, through his talk, that there was nowhere else
I vehemently disagreed as, to us, payroll was payroll with to be if you were serious about taking payroll forward.”
common issues throughout the profession. Recalling the early days, Chris says “I was lucky to be
Trevor Lakin was refused membership of APSA because deputy chair under Peter, following his lead and I became
he worked in the private sector. “I was disappointed,” chair after him. I appreciate many of you will not have
he said, “and I contacted Peter for advice on setting up heard of Peter Blackhurst , as he was only active in the
a private sector payroll body which he agreed to on the formative years, but trust me he played a key part. We
condition that Gordon Cresswell also became part of the remained friends and I will miss his bubbly attitude a huge
team.” amount.”
Although Peter was a natural front man, only those
of us close to him were aware of the agony he went
an innovative payroll through prior to a presentation. He suffered stage fright
and normally we would arrange for his slot to be the last
professional who lightened one before lunch so that he didn’t have a ruined lunch as
our lives with humour and well as a spoilt breakfast! His concerns were unfounded
because as soon as he hit the lectern he went into a
a charismatic presence, superb presentation mode.
leaving a lasting legacy As the BPMA grew into the Institute Peter took a quieter
role and concentrated on his real day job until he took
early retirement. He loved his golf and became the seniors
With heavy hearts Peter and I decided to join Trevor captain for his local club. Holidays and Peter just went
and form the private sector body BPMA (British Payroll together so whenever we all met up his conversation
Manager’s Association), now CIPP. Again, Peter was revolved around holidays with Krys, his children and his
inspirational in the formation of the syllabus for the BTEC grandchildren.
Diploma in Administration although he left the production For me, the one word to summarise Peter is ‘upbeat’. He
of material largely to others, notably his friend and was always positive and the last time we spoke, just three
colleague Lawrence Warrell. weeks before his passing, he was still very upbeat although
So it was at the second Peterborough Software quite seriously ill. This is echoed by Bryan Monkman,
sponsored National Payroll Conference that Peter launched “Peter was always upbeat, positive and funny, even whilst
the BPMA with his first major speech, receiving a standing enduring his treatment for leukaemia.”
ovation and an article in The Times, and we celebrated So, it is with sadness that we pay this tribute to an
with now customary drinks. We three then worked hard innovative payroll professional who lightened our lives
arranging the first open meeting for all interested parties with humour and a charismatic presence, leaving a lasting
held in Coventry and fronted by Peter who was voted in as legacy to the payroll profession.
the first chairperson, a role he loved, so much so that he
bought a personalised number plate with the letters BPMA. The funeral took place on 12 February, at Blacon
It was this first presentation that inspired Chris Williams crematorium. Bryan Monkman attended the funeral,
to join the BPMA on day one. Chris says “As a member representing the CIPP.
of the Private Sector Payroll Group (PSPG), and having
failed to join APSA as I was a private sector employer, I felt
strongly that there was a need for a national joint payroll
body.
“So, attending the second Peterborough Software Payroll
Conference in Park Lane in 1984 I was excited to hear
there was to be a session on exactly this. The speaker
introducing the concept was Peter Blackhurst, who was the
current secretary of APSA. As soon as he started to speak
enthusiastically about the prospective new association,
the hairs on the back of my neck started to tingle. Here
was someone committed to forwarding the progression of
payroll, someone who I knew from his enthusiasm could
engage payroll professionals to join the cause.”
Chris was not the only person to be so inspired and
over one hundred payroll people turned up for the
inaugural meeting. Chris continues, “Asking for like-minded
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 5
All new Optimised
for virtual
P11D course classroom
Brand new course launching 8 March, P11Ds, expenses and benefits. Contains
everything you need to know about this annual process.
If you’re new to payroll and need to know how to report your employee expenses
and benefits, or just need a refresher and want to ensure what you are providing
is effective and compliant, then this course is for you.
Enrol online today at cipp.org.uk/training
For more information or to enrol:
Visit: cipp.org.uk/training
Email enquiries@cipp.org.uk
Call: 0121 712 1023
Live chat with us
cipp.org.uk @CIPP_UK
ONLINE LEARNING
CIPP
update Off -payroll
working
WE HOPE you are all looking forward to the fresh new shoots of spring and the
(IR35)
new opportunities it promises. Whatever new opportunities the spring brings, we
are here to help, so don’t hesitate to contact us: enquiries@cipp.org.uk.
● Price freeze – To help with these new opportunities, we’re pleased to announce Medium and large organisations
that we’ve frozen our prices this year, so you can access our events and training
courses at the same price as last year. We reduced the prices at the end of last
in all sectors of the economy will
year and these reduced prices stay around for a while longer (please see cipp.org. become responsible for assessing
uk/T&Cs/). This could be the opportunity you or your team are looking for, to take the employment status of
advantage of the great value payroll training courses currently on offer. individuals who work for them.
● Annual General Meeting – On 31 March we will be holding our annual general
meeting (AGM). Paid associate, full, fellow, and Chartered members are eligible to
vote and attend the virtual meeting, taking place at 11am via Microsoft Teams. The Make sure you are compliant with
business of the AGM will be to elect directors to the board, to approve the accounts the legislation with our
for year ending 30 June 2020 and to elect the auditors, amongst other business. If
eligible, you can book your place, support the Chartered institute, and cast your vote
online: www.cipp.org.uk/my-cipp/annual-general-meeting.
Off-payroll working (IR35)
● Software directory – You’ll have noticed that with this issue you will find our webinar
annual software directory – a handy reference tool if you or your organisation are
thinking of changing your software provider. The tables allow you to quickly review and
and compare key features at a glance and will aid your research into this business-
critical task.
● Payslip survey – This month also sees the launch of our annual payslip survey. Off-payroll working (IR35) and
The survey helps us to create a trends report, highlighting payslip trends, the contents other employment
of different payslips, how easily companies have been able to itemise payslips and status considerations
whether helps software has needed to be implemented. To find out more and to take
part in the payslip survey, keep an eye on your CIPP emails, our website, and our
training course.
social media channels.
● P11Ds, expenses and benefits course – New opportunities bring new ideas
and new plans. If you’re thinking of upgrading the knowledge and skills of yourself
and your team, then our new P11Ds, expenses and benefits course could be of
Book your
interest. Designed to ensure that those in payroll and finance can calculate and report place today
accurately and with confidence: www.cipp.org.uk/course/p11ds-expenses-and-
benefits.
Congratulations to the newly accredited PAS organisations
THE CIPP’s Payroll Assurance Scheme (PAS) is designed to test red
Institute
rte ofessionals
ha ll Pr
your payroll processes in relation to payroll processing, compliance o
SCHE ME
of P e C
r
ay
Th
and the people skills and development opportunities.
PAY R
One of the most important elements is ensuring business Course Webinar
CE
LL
ASSURAN
O
continuity plans are in place and effective should they be required. CPD CPD
Given recent events, congratulations to all organisations that have 3 points 1 point
achieved this accreditation and will have been able to put those plans into action.
Special congratulations to our recently accredited organisations:
● Bupa UK Payroll Services
● Willis Towers Watson
For more information or to enrol:
Ken Pullar, CIPP chief executive officer, said: “Never has it been more important for Visit: www.cipp.org.uk/training
businesses to have good payroll processes, knowledge and skills that enable them to Email enquiries@cipp.org.uk
implement new government legislation and guidance quickly. Congratulations to those
Call: 0121 712 1044
organisations that have recently demonstrated just that.”
The Payroll Assurance Scheme is still operating, with assessments currently
Live chat with us
operating virtually.
To find out how the Payroll Assurance Scheme can benefit your organisation, email
compliance@cipp.org.uk.
cipp.org.uk
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 7 @CIPP_UK
MY CIPP
On your
behalf
Policy team update
The CIPP’s policy and research team provide an update on developments
T
he CIPP’s policy team has been In October 2019, when the reforms of a worry, and continue to be the area,
kept busy by attending various were due to be introduced from 6 April unsurprisingly, that payroll professionals
forums, hosting informational 2020, the team posted a Quick Poll on are most conscious of.
webinars and presentations, and creating News Online, asking “What concerns Another Quick Poll was hosted in July
both news pieces and extended articles to do you have about your readiness in 2020, which asked “In light of the fact that
keep members and the wider profession April 2020 for off-payroll working rules?”. it has now been confirmed that the off-
up to date. This question was also posed in the payroll working reforms will definitely be
webinar, hosted on 19 January 2021. The introduced from 6 April 2021, how ready
Readiness for off-payroll responses are shown in Table 1. are you for the changes?”. This question
working was also posed in the webinar. The
It is widely accepted that from 6 April ...‘payroll responses are shown in Table 2.
2021 the off-payroll working reforms will
be implemented in the private sector,
obligations’ has Although the question was presented
to two potentially different audiences,
impacting any businesses classified as become more of a the results indicate that marginally more
being either ‘medium’ or ‘large’ in size.
The policy team recently hosted the
worry... companies are either ready for or are
starting to prepare for the reforms, which
‘BeKnowledgeable: Off-payroll working is a positive sign. There are, however, still
webinar’ and wanted to assess how ready Whereas most areas seem to be companies that are optimistic that the
businesses are for the changes, identify causing less concern (with the exception reforms will be delayed again, but there
their main worries, and gauge changes of communications with the supply chain), has been no indication of this. So, the
over time. ‘payroll obligations’ has become more resounding advice from the CIPP is ‘start
preparing now’.
Employer NICs holiday for
veterans
The CIPP responded to the consultation,
launched by HM Revenue & Customs
(HMRC) in conjunction with the Office
for Veterans’ Affairs, which explored
granting businesses that employ veterans
an employer-only National Insurance
contributions (NICs) holiday on their
earnings (http://ow.ly/TYKt30rtI9M).
The government has now published its
response to the consultation explaining
some of the key elements of the policy,
ahead of detailed guidance being
provided.
The main area of interest to payroll
professionals will relate to how the relief
is provided in the first tax year of its
introduction i.e. 2021/22. During the first
year, as there is no real time information
(RTI) solution, employers will be required
to pay the associated employer NICs on
the earnings of veterans and will be able
to reclaim this from April 2022 onwards.
8 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68Policy hub
From tax year 2022/23, a RTI solution will is awaited, which will be published by Names are to be published on a monthly
be developed. HMRC prior to April 2021, confirming the basis.
Legislation for the relief will include a information and records an employer will HMRC has confirmed that the details of
three-year sunset clause, from April 2021. need to keep and retain for qualifying employers demonstrating that publication
The policy will be reviewed at that point employments relating to tax year of their name would lead to a risk of
and, if it is not fulfilling its aim of helping 2021/22. The types of evidence that can violence or intimidation to individuals,
veterans into civilian employment, it can be used to determine a veteran’s eligibility or anyone living with them, will not be
be withdrawn. In terms of definitions, will also be provided. included. There is an online application
the government will define a ‘veteran’ form (http://ow.ly/Izv730rtIRN) for
in accordance with criteria laid out in employers in this position to complete.
established NICs legislation and the ...for a period of Details will not be published before HMRC
Armed Forces covenant, and does not
consider it necessary to extend the
their first twelve makes a decision on the case, and the
employer will subsequently be notified of
definition to include those who have months of civilian it. Employers must submit the application
only served in the Reserve Forces.
Additionally, the relief’s availability will not
employment... forms themselves and must not utilise an
agent to submit the form on their behalf.
be dependent upon when the veteran left Employees also have the ability to
the Armed Forces. CJRS: publication of employer check if a CJRS claim has been made
The government intends to define names on their behalf through their online
‘qualifying employment’ in line with the HMRC has confirmed it is publishing the Personal Tax Account, from February 2021
approach put forward in the consultation names of employers that have utilised the onwards. It is hoped that this will prevent
document but will ensure that veterans coronavirus job retention scheme (CJRS) ‘furlough fraud’, which unfortunately was
are not restricted for qualifying for the for periods from 1 December 2020. prevalent under the previous version of
relief if they have previously served in the Initially, employer names were published the scheme. This could involve businesses
Armed Forces and then re-joined. The on 26 January 2021 (http://ow.ly/ encouraging employees to carry out work
relief will be available for a period of their cWQL30ruxSx), with additional information whilst claiming furlough pay for them,
first twelve months of civilian employment being provided in February, including the or claiming for employees who do not
every time they leave HM Armed Forces. value of claims (within a banded range) qualify, or claiming too much in relation to
At the time of writing, further guidance and the company registration numbers. an employee. n
BeConnected: National Forums Launch date
27 April
Delivered by our policy officers, Gemma Mullis and Lora
Murphy, these BeConnected: National Forums are the
perfect way to understand how recent changes will affect
your and your team’s day to day roles.
We’ll keep you up to date on any changes and updates
revealed in the March 2021 budget and also tell you how
you’ll need to implement and process these changes.
Now open to all current CIPP members.
Additional dates: 6 May, 12 May, 20 May, 26 May.
Visit cipp.org.uk/events/events-calendar, to book your
place and find out more.
cipp.org.uk @CIPP_UK
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 9MY CIPP
Advisory
The CIPP's Advisory Service team provides
answers to popular questions
Q. A company is looking to make HMRC provide guidance on manual There is no business presence in
some employees redundant. There is a SSP calculations along with the rules Romania. The employee has been in
dispute as to whether an employee in surrounding both SSP and PIWs: https:// Romania for 107 days so far. What
question would be eligible for statutory bit.ly/3iowOR6. certification is required from HMRC
redundancy pay due to their start in relation to their class 1 National
date. They commenced employment Q. When will statutory maternity pay Insurance contributions (NICs)? Is
1 September 2019 and are due to be (SMP) commence for an employee there anything from a tax perspective
made redundant 31 August 2021. Can whose baby is born mid-week and has required for payroll purposes?
you advise? previously been on furlough leave and A: If an employee is working temporarily
A: Length of service for redundancy pay? Also, does the calculation of the in the EU then they must get a certificate
calculations are based on complete years average weekly earnings (AWE) differ from HMRC to exempt them from
of service. From the dates provided, these where furlough pay has been applied? Romanian social security. Social security is
employees have been employed for a full A: Child-related statutory leave can start usually paid in the country in which duties
24 months; therefore, they are entitled to on any day of the week but can only are performed.
redundancy pay. be paid in completed weeks. Where an Ideally all applications should be
For reference, HM Revenue & employee works up until the birth, the submitted prior to the employee
Customs (HMRC) provides an online leave and pay must commence on the departing the UK. Form CA3822
calculator where details of age, start date, first day after the birth of the baby. must be completed. HMRC will then
redundancy date and weekly salary can be AWE is usually calculated based on all issue a certificate to ensure payment
entered to find out how much statutory payments made in the reference period, of UK NICs continue. HMRC provide
redundancy an employee is entitled to: which is the eight-week period before the guidance on which country's social
https://bit.ly/3oW3Me8. qualifying week. security contributions to pay: https://bit.
Due to Covid-19, a temporary rule ly/2LGudG8.
Q. Is a period of incapacity for work was introduced to protect employees on With regards to the tax position, an
(PIW) linked to an earlier PIW if the furlough leave where their AWE calculation employer would have to refer to the
time between them is less than eight is lower due to the pay received whilst relevant double taxation treaty (DTT)
weeks? If so, is statutory sick pay (SSP) on furlough. In this situation, employers the UK has in place with the country.
payable from day one? would base the AWE calculation on the Most DTTs require an employee to be
A: You should link PIWs and treat them pay the employee would have received, present in the overseas country for 183
as one PIW if the gap between them is had they not been on furlough. days before double taxation arises. This
eight weeks (56 days) or less. If all three HMRC provide guidance on how would mean that an employee would
waiting days have not been used in the to manually calculate an employee's continue paying UK tax until their overseas
first PIW, use any remaining waiting days payments for SMP: https://bit.ly/3bP5RER. presence exceeds 183 days. When
at the start of the next or series of linked How to establish the earnings dealing with globally mobile employees,
PIWs. employees may have received had they it is advisable to speak to a tax advisor to
A PIW is a period of sickness lasting not been furloughed is a contractual deal with any complexities that may arise
four days or more in a row. All days of matter, and there is no formula to assist. from overseas employment.
sickness count towards the total number Whatever calculation an employer may HMRC provides guidance on DTTs:
of days in a PIW, including: bank holidays, choose to use must be justifiable should https://bit.ly/3iqrQ6d.
weekends, non-working days. HMRC carry out an investigation.
If the period of sickness is less than Q. A company is looking at introducing
four days in a row there is no PIW and Q. An employee is currently living in a scheme wherein employees can
you do not need to do anything. Romania on a temporary basis but is purchase extra holidays (not using
SSP is not payable for the first three working for the UK-based company a salary sacrifice arrangement). The
qualifying days in a PIW. and being paid through the UK payroll. deduction will be a gross deduction
10 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68Policy hub
DON’T WAIT UNTIL
IT’S TOO LATE
PAYROLL
therefore saving the employee tax and funeral costs. How should this payment
class 1 NICs. What advice can be given be treated for the purposes of tax and
in relation to this kind of arrangement? NICs?
Would it be classed as a flexible benefit
arrangement and would it impact
A: Under section 406 of the Income
Tax (Earnings and Pensions) Act 2003 ASSURANCE
SCHEME
the national minimum wage (NMW) (https://bit.ly/2XSeera), a tax-free
calculation? payment can be made on the death or
A: If employees were having the entire permanent disability of an employee.
cost of their holiday purchase deducted These types of payment are not subject
in one payroll period, then this would not to NICs.
Can you afford penalties of up
be a salary sacrifice arrangement; it would
be treated as unpaid leave. This would not Q: Can an employer split a payment for to £10,000* per day for non-
reduce the employee’s pay for minimum redundancy over tax years so that the compliance?
wage purposes as the employee’s working employee can make use of the new tax
hours and salary would be reduced in the allowances in 2021/2022?
Make sure your people and
month in which the leave is taken. A: Page EIM42290 in HMRC’s
However, if an employer is contractually Employment Income Manual (https://bit.
processes are working, and get
agreeing with employees to reduce their ly/3sJ6fen) states that money earnings ahead of any nonconformities
salary by an amount of holiday purchase are treated as received for assessment before they become a problem.
over several months, then this would be purposes, and paid for PAYE purposes on
regarded as a salary sacrifice arrangement the earliest of the following:
as it is a change to the employee’s ● when a payment of earnings is made or
terms and conditions of employment. when a payment on account of earnings
The holiday purchase would reduce is made
the contractual wages of the employee ● the time when a person becomes
and would therefore affect the NMW entitled to payment of earnings or a
calculation. HMRC guidance does state payment on account of earnings.
that no salary sacrifice arrangement should An employer would not be able to
lower an employee’s wage below the delay part of the payment to the next
minimum and that the employer must tax year to allow an employee to take
have checks in place to safeguard the advantage of any new tax thresholds;
minimum wage. this could be interpreted by HMRC as tax
Holiday purchase is one of the benefits avoidance.
that does not fall under the optional An employer could agree with the
remuneration arrangements rules. employee to split the net value over
several months, provided there is a written
Q. With regards to HMRC’s coronavirus agreement in place.
job retention scheme (CJRS) guidance
update from November 2020 in relation Q: A company is conducting interviews
to notice pay, does this only apply to over the coming weeks. To give
redundancy notice? financial assistance to the interviewees,
A: The update in the CJRS guidance the company have agreed to pay their
relates to all types of contractual travelling expenses. How should these
and statutory notice periods. From 1 be treated for tax and NICs purposes?
December 2020, employers are not A: The interviewees are not employees so
able to use the CJRS to claim served any payments made to them will not be
contractual or statutory notice periods. subject to tax and NICs, as directed under
This includes redundancy, resignation, and section 62 of the Income Tax, (Earnings
retirement notice periods. and Pensions) Act 2003 (https://bit.
It is important to note that a payment in ly/3qpMN46). n
For more information
For more information or to enrol:
lieu of notice (PILON) cannot be claimed Visit: cipp.org.uk/PAS
under the rules of CJRS as it would Email www.cipp.org.uk/study
Visit: enquiries@cipp.org.uk
be classed as a termination payment. Email enquiries@cipp.org.uk
Call: 0121 712 1000
Termination payments have always
Call: 0121 712 1023
Live chat with us
remained outside the remit of the CJRS.
Live chat with us
Q. An employee has sadly passed away
and the employer wishes to make a
payment to the family to assist with
cipp.org.uk
cipp.org.uk
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 11 @CIPP_UK
@CIPP_UK *correct at time of publicationMY CIPP
Spotlight on...
profession I love, able to study and impart these past months without the support of
my knowledge to members – and my one another and I cannot thank the team
working hours suit my lifestyle perfectly. It’s and the policy team enough, as it has been
a win-win situation, and I am fortunate to one crazy year. The number of queries we
have been given the opportunity. have dealt with have increased by 54%
Being promoted to advisory team leader from April to November compared to the
has given me a big sense of achievement. same period in 2019, which indicates the
pace at which we have been working. 2020
How do you feel when you have is a year every payroller will never forget.
Lorna Nicholls ACIPP made a positive difference to If payroll does not get acknowledged as a
someone through your advice? recognised profession after all our members
CIPP’s payroll It’s a fantastic feeling knowing that you have have achieved with great sacrifices at times,
advisory team leader answered and helped solve a member’s then I think a government petition will be
query. The relief in their voice or that ‘thank the next step.
How did you start your payroll you so much for your help’ in a return
career? email gives immense satisfaction knowing What techniques and sources
After leaving school I decided to go I have helped a fellow payroller resolve an do you use to provide detailed
into nursing. The careers advisor had issue. accurate answers?
recommended a career as a speech The additional stress placed upon Referring to legislation and translating that
therapist so I thought, if nursing didn’t payrollers this year has been incomparable into layman terms. Understanding why you
work out, I could attempt that; but I didn’t to anything I can remember in 36 years. have to carry out a certain task to remain
know what to do whilst waiting for the If our team has been able to relieve their compliant is beneficial to all payrollers.
next year’s intake of student nurses. After worries in any way, that gives immense Better understanding leads to less
replying “maths” to my careers advisor satisfaction and pride in the jobs we do. confusion and improved processes within a
asking what I liked doing, next thing I was The role of advisory team member payroll team.
working in the local hospital as a wages requires a good understanding of payroll To keep up to date with general
clerk collecting and totalling hours on the legislation, a clear head, an excellent sense legislation requires reading, writing guidance
nurses’ timesheets. I enjoyed ‘wages’ so of humour, and being both a good listener notes for myself and my team, regular
much I forfeited my nursing career and and a good speaker. meetings with policy, and directing queries
stayed – 36 years later I am still working in to HMRC for clarification. I am constantly
‘wages’. I fell into payroll, fell in love with it, Tell us about a typical week as an studying and learning even after all these
and stayed. advisory team member? years in the profession. I maintain my own
To get the job I sat a maths and English It is a nonstop treadmill from 9 to 5. We payroll compendium with links to all payroll
test and that was it. I learned my skills on have regular team chats to discuss any legislation for ease of access.
the job as many older payrollers will be unusual queries that come in as each of us
familiar with. I have attended so many have areas of expertise in different fields of What’s the most interesting
courses over the years, I have lost count. payroll legislation. The policy team provide fact you have ever heard about
updates on any forthcoming changes, payroll?
How did you move into policy enabling us to study the material and Recovery of an overpayment of wages;
and advisory? prepare for any queries we receive. section 14 of the Employment Rights Act
I was working incredibly long hours, my Furlough however has been an 1996 means an employer has the right to
work-life balance was non-existent, and enormous challenge for us as the rules deduct an overpayment even if there is no
I wanted to spend time with my loved have changed with such pace. We have agreed deduction clause in the employee’s
ones and enjoy other interests. A job depended upon each other and the policy contract. Considerations have to be made
in the CIPP’s Advisory team came up; I team for guidance and support dealing with of course, but this was a very interesting
applied, and here I am. I am still part of the the queries. We wouldn’t have got through topic. n
12 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68To appear on this page
contact editor@cipp.org.uk
Movers
Shakers
CHARLES BUTTERWORTH APPOINTED AS MANAGING DIRECTOR
LEADING BUSINESS solutions and software provider for mid- to large-sized organisations, The Access Group, has
appointed Charles Butterworth as managing director of its Access People division to lead the human resources,
payroll, learning and development and compliance teams and solutions. Butterworth’s role will include further
integration of recent company acquisitions into the Access People business for the benefit of customers, partners
and employees.
Charles Butterworth, who recently was managing director with responsibilities extending across data, analytics
and software business for Experian UK & Ireland and EMEA, commented: “I am delighted to be joining The
Access Group at such an exciting time in the development of the business. The team at Access and the
capabilities of the Access People division are world class and I am particularly impressed by the opportunities for
the business in the years ahead.”
Chris Bayne, chief executive officer at The Access Group said: “Charles brings exceptional experience in
growing ambitious organisations and is an accomplished leader of large teams across multiple locations and disciplines.”
SO LONG, FAREWELL…
COLIN JACKSON ACIPP has retired from his role as a CIPP Payroll Assurance Scheme assessor. Colin was part of
the team that merged the CIPP’s Payroll Assurance Scheme and the Payroll Quality Partnership which ensured
that the service was right for the clients.
Colin’s professional contribution has been invaluable to the PAS standard, supporting new assessors and has
helped numerous organisations achieve success.
The CIPP extends its thanks to Colin for his valuable involvement to the processes and procedures.
CAN YOU AFFORD FINES OF £10,000* A DAY FOR NON-COMPLIANCE?
Certificate in Pensions
Administration
The Certificate in Pensions Administration has
been developed with pension practitioners to
ensure that it meets the needs of the industry.
It provides payroll and pension staff with
relevant training so businesses can
safeguard against the financial risk for
non-compliance. CPD
15 points
*correct at time of publication
Visit cipp.org.uk/study, email enquiries@cipp.org.uk or call
0121 712 1044 for more information.
cipp.org.uk @CIPP_UK
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 13ONLINE LEARNING
PERSONAL DEVELOPMENT
Termination
payments
Learn how to process a number
of common termination packages
Diary of a student…
correctly, from redundancies to
contractual breaches, retirement
and death-in-service. Harriotte McNamara MCIPPdip,
payroll administrator,
Gregory Distribution Ltd.
Visit
www.cipp.org.uk/training
to find out more Tell us a little about your evenings and weekends, but it’s definitely
background and life so far? worth it when you complete the course. If
I’m originally from Essex but moved you can get some support from your family
to Devon thirteen years ago with my members, that will be invaluable. I am
husband. We have two dogs which we like grateful both to my husband for helping
to take for walks on the moors when it’s me revise and doing a lot of the cooking
not raining too much. whilst I was busy studying, and to my mum
for proof-reading my assignments.
What can you tell us about your
career and qualifications? How did you manage the work-
I completed my GCSEs and A-levels but life balance and your study? Do
didn’t go to university as I never really knew you have any tips for others in
what I wanted to do. I have had a varied the same position?
career, but I have always been drawn I think being organised helped me a lot.
towards an administrative role as I have a During my second year, I got married and
natural ability to organise things. Like many moved houses at short notice without
people, I didn’t set out to work in payroll, missing any deadlines or taking time off
but found it is a role that suits my character work. I had a lot of support from my family
very well. which was a massive help, and I made
a lot of ‘to do’ lists so I knew what I had
Why did you choose to study the to do and when. I didn’t have much of a
Foundation Degree? social life though.
When I started working for my current
company, they offered me the chance to What would you say is the most
complete the Foundation Degree. I felt it important thing you learnt?
was something that could only benefit me, Everything! The modules are quite varied
so I gladly accepted the offer. and focus on topics that apply to the wider
business as well as processing a payroll so
How did you find the you gain a multitude of different skills that
CPD qualification? you can put in to practice on a day-to-day
Time-consuming and rewarding. I did have basis.
3 points
to devote a lot of my free time to studying
but it was definitely worth it. I found the What did you gain from this
topics both interesting and challenging and qualification – both in terms
For more information:
they definitely broadened my knowledge of skills and also career
Visit: www.cipp.org.uk/training and increased my confidence at work. progression?
Email enquiries@cipp.org.uk It gave me a lot more confidence within
Call: 0121 712 1044 What advice would you give to my current role, so I feel much better-
others who are thinking about equipped to deal with any situations that
Live chat with us
studying in order to improve are out of the ordinary. You learn to do
their career? a lot of research for yourself which was
It’s a lot of work, so you need to be invaluable when the furlough scheme was
committed and prepared to give up your introduced. n
cipp.org.uk
@CIPP_UK 14 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68PERSONAL DEVELOPMENT
Ways to prioritise
your wellbeing while
working from home
Dr Tracy Brower, PhD sociologist and principal with Steelcase’s Applied
Research + Consulting, outlines strategies
W
orking from home affects secondary and tertiary networks of people posture’.
us all differently and no two with whom it’s easier to connect in the In addition to activity, equipping people
employees will have the office. It’s important to stay connected. with the right tools is also important for
same experience – which can make it Social touchpoints – which can even be physical wellbeing. Whether employees
difficult to know how to improve your as simple as sharing a coffee over video are in the workplace or at home, tools
own situation. With millions in the UK call – help to keep us present and stave such as an ergonomic chair, separate
working from home, it is more essential off loneliness. keyboard and mouse, and additional
than ever to prioritise wellbeing. From monitor are some of the necessities for
managing motivation and mood to lack Science and self-awareness maximising work processes. Without
of social interaction and a blurring work/ Self-awareness and reflection are critical these tools, employees can suffer from
life balance – working remotely during skills in maintaining good mental health. neck strain, lumbar problems, and other
a global pandemic is not easy. Through Based on brain science, we know injuries.
extensive research and an ongoing reactions like anxiety, loneliness or anger
dialogue with employees, Steelcase has are natural and driven by chemical Performance over presence
developed strategies for both employers responses. In fact, the brain processes Unfortunately, remote working can be an
and employees to put wellbeing into focus change in a similar way to grief and loss, obstacle to transparency, an important
(http://bit.ly/37wlkXo).. and people experience these in unique characteristic of success. Trust plays an
ways. By registering early symptoms of important role here, and employers need
Maintain meaning and connection stress or anxiety, people can take steps to create a climate in which employees
It can be easy to feel untethered and lost to counteract these feelings before they feel empowered to work autonomously.
in the current working climate. With such become overwhelmed. Develop strategies It is also helpful to ensure clarity about
significant global events taking place, there to detect and diffuse your potential performance expectations and what will
is a risk that work can begin to feel less stressors as early as possible – and reach be necessary for success or productivity.
meaningful. When individuals lose their out to support colleagues as well. This is critical in helping teams to measure
sense of purpose, they typically experience the quality of their work, rather than the
reduced productivity and engagement as Thinking physical hours they spend on it.
well as a loss of happiness and wellbeing. Along with mental health, physical Work/life navigation can also be a
Business leaders need to make sure that wellbeing is also at risk while we can’t challenge with remote work. The longer
employees feel their work has value and be in the office. According to one study, we work at home, the more the lines
facilitate meaningful interactions between those working from home sit for an extra between work and home blur – which
individuals and teams to boost motivation two hours on average, compared with can make it difficult to turn off at the
and energy levels. those working in an office. While it can end of the work-day. To reinforce these
The transition from seeing colleagues be difficult to remember to get up and boundaries, create physical separations
every day to working alone can be jarring. move throughout the day, try scheduling between ‘home’ and ‘work’ spaces where
Our social circles have gotten smaller, and movement whenever you can. In addition, possible, both visually and acoustically.
while we may still be communicating with change postures as much as possible. This separation will significantly contribute
primary contacts, we’re missing out on the Remember, ‘Your best posture is your next to wellbeing.
Overall, the pandemic has caused
...detect and diffuse your potential obstacles for wellbeing, but it is possible
stressors as early as possible – and to thrive. Our lessons learned through the
pandemic can help us grow and improve
reach out to support colleagues... over time. n
Issue 68 | March 2021 | Professional in Payroll, Pensions and Reward | 15PERSONAL DEVELOPMENT
Starting your
own business
Eira Hammond ChFCIPPdip, independent consultant and payroll
headhunter, Eira Connect, part of Eira Consulting Limited, addresses the
issues of whether being a payroll consultant is right for you
C
onsulting has changed a bit payroll expertise in a part-time capacity. It ● Do you have good salesmanship, and
over the last twelve months or could be that you are currently looking for are you a good negotiator?
so, especially with the delayed your perfect permanent role, but until that ● Are you analytical, and quick to frame
introduction of IR35 in the private sector. It comes along you’ve decided to do some issues?
is assumed that consultancy referred to in interim work. Another way of trying out ● Are you good at facilitating meetings?
this article is outside scope of IR35. consultancy is by doing some small projects ● Can you bring/add/generate value, rather
There are loads of myths surrounding in the evening or during your weekends than just perform tasks?
consultants and many of these statements to earn some extra money. Whatever the ● Are you diplomatic?
have made me smile over the years, reason, you must always remember that as ● Do you have a sense of humour?
including the following which I’ll return to well as doing the consultancy projects, you If you can answer ‘yes’ to all of these
later: will also have to administer your business, questions – and you are self-assertive
● consulting is what to do if you’re out of including sales, payroll, marketing, email – you may be ready! But, are you ready
work communication, accounts and all the other financially?
● consultants get to keep all the £s they tasks that are involved when running your This is one of the difficult things you
make own business. need to be brutally honest about. How long
● consulting is glamorous could you make it with no income? Do you
● consultants go to exotic places Is consulting right for you? have enough savings to live for six months
● consultants are their own bosses Once you have your goal, then you need to or a year? Could you manage when there
● consultants have no personal life. really look at your skills and experience and are dry spells and no work? Are you deeply
Most of the above are partly true, but consider whether consultancy is right for in debt now? How is your credit? What if
before you consider embarking on a career you. Consider the following. you get sick? These are really important but
as a consultant it’s only fair you see the full ● Do you have the entrepreneurial spirit? very difficult questions to answer, so it’s
picture. ● Are you self-disciplined and can maintain crucial to be honest with yourself and be
focus? realistic.
Why be a consultant? ● Are you astute in business issues?
You could be consulting for a large ● Are you willing to work hard and make Getting started
organisation and want to start your own sacrifices for your business? There are a few options in the UK when
business or maybe you are a bit of an ● Have you got good communication skills: starting your own business including being
entrepreneur and want to start your own listening, writing and speaking well? a sole trader, partnership or having your
consultancy practice? Perhaps you’ve ● Are you convincing, confident, influential, own limited company. The GOV.UK site
retired and want to continue to offer your credible? has some valuable resources to help you
choose which option is best for you, so I’m
...loads of myths surrounding not going to recommend as it really does
depend on a lot of factors.
consultants... Start with a business plan which
16 | Professional in Payroll, Pensions and Reward | March 2021 | Issue 68You can also read
