Professional April 2017

Professional April 2017

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 29 April 2017

Modern employment practices

Minding the gap Reporting gender differences

Blessing or curse? The creation of AI

Less tech, more talk Interaction developments

CIPP update | Policy hub | Professional development

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Payroll & HR Solutions

Unless a tree has borne blossoms in spring, you will vainly look for fruit on it in autumn. Sir Walter Scott (1771–1832)

Editor’s comment

I love spring – more sun, rising temperature, bloom and blossom, and bright/light apparel supplanting dark/ dense garments. But a miserable recurring downside at this

for the Chancellor to extend similar intermediaries rules to the private sector from, say, April 2018. Given the importance of pensions, it would be surprising if there were no savings related pronouncements in tomorrow’s Budget. Could any announcement affect the perceived crisis in pensions (page 37)? Maybe key announcements arising out of the automatic enrolment review will feature in the second 2017 Budget (page 38)? And might the impending changes to salary sacrifice – which were initially signalled in Budget 2016 – beneficially impact pensions savings (page 39)?

The focus for me over the past few months has been looking specifically at how we can bring more people into the CIPP family; either as board directors, fellow, full or associate members or by more people being educated in payroll through our training and qualifications or through our special interest group online forums. At the moment I’m paying particular attention to National Payroll Week, which takes place the first week in September. I’ve been privileged to spend time recently with the Canadian Payroll Association to find out how they celebrate this special week. This year we will be putting a #spotlightonpayroll and launching a new level of membership during National Payroll Week taking place 4–8 September – watch out for more exciting information about time of year, however, is the Budget, which – as I’m writing this on 7 March – is being delivered tomorrow. (Well, okay, Budgets aren’t bad as they help keep us employed.) Thankfully, this particular blight on the delight of spring is being banished as this year the UK moves timing of delivery to the autumn. You’ll find four articles in the payroll insight section covering imminent or potential changes that arise to some extent out of earlier Budgets: salary sacrifice (page 18), modern employment practices (page 14), sickness absence ideas (page 20), and intermediaries in the public sector (page 16). One announcement tomorrow (or in the autumn Budget) that I imagine could well cause chaos and perhaps uproar would be

Mike Nicholas MCIPP AMBCS Editor

Chair’s message

this over the coming months – and I’ll be working with the team to tell the world how incredibly special payroll people are, and what an important role payroll plays in every company. There are lots of things coming up over the next few months in the payroll calendar, and I’m asking all our members and readers to continue doing the fabulous job you are already doing. Keep up with your learning, keep logging your continuing professional development, and think about what more you might like to do to further your own personal development and your career.

Eira Hammond FCIPPdip Chair, CIPP

So here I am, six months in as your CEO and the time has just flown by. Do I have a mid-term report? I’ve CEO’s message

to set our vision, plans and direction to get us to that place where we start to become world class. Many of you recently completed our market insight survey and that contribution has helped us focus in areas you have identified. In addition, with the full support and agreement of the board, we are seeking to become more inclusive with any organisation, company or consultancy engaged in promoting payroll in UK plc and I have started discussions with many of these, large and small, to ensure we are a collaborative voice.

had chance to review all areas of our operations within the CIPP to ensure we are able to act as a standard bearer in payroll,

pensions and reward for all our members, and the industry, at all levels in the UK. And it’s fair to say our portfolio of services range from excellent to, perhaps, needs improvement. I want all our members (and non-members who participate) to feel that their training, qualifications and membership, as well as attendance at forums and conferences, is world class quality. So, how are we doing? There have been changes to our management and administration functions and during April the management team and I are hosting a strategy day with the board

Ken Pullar FCIPP Chief executive officer, CIPP

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| Professional in Payroll, Pensions and Reward |

Issue 29 | April 2017

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

April 2017

31

Minding the gap

Hannah Pryce outlines gender pay gap reporting requirements

Features

18

14

16

Intermediaries in the public sector John Harling explains changes from 6 April

Modern employment practices Helen Harvey discusses the Taylor review

Salary sacrifice Jas Jhooty outlines the imminent changes

20

38

37

Flexing SSP Samantha Mann discusses the role of SSP and new ideas

Are pensions in crisis? Henry Tapper says no and argues the contrary

Automatic enrolment review Stuart Price gives his thoughts

| Professional in Payroll, Pensions and Reward | April 2017 | Issue 29 2

39

41

Editor Mike Nicholas 01273 412 836 | [email protected] Advertising Jill Bonehill 0121 712 1033 | [email protected] Design James Bartlett and Nicole Gumery [email protected] Printing Warwick Printing Company Ltd

iPads out, pensions in Darren Hedgley argues changes may benefit pensions savings

Blessing or curse? Doug Sawers gauges the impact of AI

42

43

Chief executive Ken Pullar FCIPP CIPP board of directors

Giving your financial processes a spring clean Adam Reynolds identifies a great opportunity ahead

Gordon Cresswell FCIPP Jason Davenport ACIPP Eira Hammond FCIPPdip Ros Hendren MSc FCIPP, Mgr, FCMIdip, FHEA Paul Rains MCIPP Karen Thomson MSc FCIPP, FHEA Cliff Vidgeon FCIPP Ian Walters Msc, FCIPP, FHEA Ian Whyteside MCIPP, FMAAT, ATT

Less tech, more talk Ally Johns reviews AI developments

45

46

Useful contacts Membership [email protected] 0121 712 1073 Education [email protected] 0121 712 1023 Training [email protected] 0121 712 1013 Events [email protected] 0121 712 1013 Marketing and sales [email protected] 0121 712 1033 General enquiries

Pay – it’s what we go to work for Lisa Gillespie outlines why accuracy affects household finances

Successful payroll implementation Sandra Walker provides tips

Regulars

29 Reward insight 36 Pensions insight

01 Editor’s comment,

and Chair’s and CEO’s message Events, news and developments

Employment law cases, redundancy and alternatives

04 Membership insight On your behalf, Advisory, Five minutes with, Election to CIPP board 10 Professional development Diary of a student 11 CIPP update PAS accreditation, NPW 2017 – #spotlightonpayroll, Payroll Complexity Index 2017

The Pensions Regulator

40 Pensions news 41 Technology insight 45 Feature articles 47 Confessions of a payroll manager Additional content in the online version: 30 The 2017 Modern Families Index 25 Dancing around the new joiner question 29 Reward news

[email protected] 0121 712 1000

cipp.org.uk @cipp_uk

Articles Please support this magazine so that it can continue to be a part of your membership package. Trademarks The CIPP logo, the initials ‘CIPP’ and the words ‘Professional in Payroll, Pensions and Reward’ and ‘CIPP Consult’ are trademarks of the Chartered Institute of Payroll Professionals. Copyright: The Chartered Institute of Payroll Professionals 2017. The Chartered Institute of Payroll Professionals, CIPP, Goldfinger House, 245 Cranmore Boulevard, Shirley, Solihull, West Midlands, B90 4ZL. Switchboard 0121 712 1000 Fax 0121 712 1001 Copyright This magazine is published by The Chartered Institute of Payroll Professionals in whom the copyright is vested. All rights reserved. No part of this publication may be reproduced, stored in a retreival system, or transmitted in any form or any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. The views expressed in this publication are not necessarily those of the CIPP or the editor. The information and comment contained in this publication are given in good faith, their accuracy or completeness cannot be guaranteed.

13 Payroll news 14 Payroll insight 26 Events Horizon

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Issue 29 | April 2017

| Professional in Payroll, Pensions and Reward |

MEMBERSHIP INSIGHT

On your behalf

Policy team update

Diana Bruce MCIPPdip, CIPP senior policy liaison officer, provides an update

Making Tax Digital Forum At the end of January 2017, and following extensive consultation with more than 3,000 responses, HM Revenue & Customs (HMRC) issued in-depth detail on digitising the tax system. Alongside draft legislation HMRC published its responses to the six consultation documents issued in August 2016; contrary to many of the headlines in the media HMRC say they have heard a lot of positive feedback. The second meeting of the Making Tax Digital Forum (MTD Forum) was held in February and CIPP’s senior policy and research officer, Samantha Mann, attended. The aim is that the group will be an effective forum for HMRC to explain and explore implications of potential changes to policies, products and processes relating to MTD, and provide an opportunity for early review of guidance and information to make sure processes are clearly explained so that customers understand what is required of them. The MTD Forum will reflect the internal HMRC organisation of the MTD programme and, in recognition of the differing stakeholder priorities, separate time will be allocated to changes relating to individuals and those relating to businesses. ● Dynamic coding – Under discussion once again was the fact that from 2017–18, HMRC will be using real time >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55

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