Professional May 2017

Professional May 2017

Official publication of The Chartered Institute of Payroll Professionals

in Payroll, Pensions & Reward

Issue 30 May 2017

Budget 2017

Employment status and the digital tool Questions, answers

Dress sense Image, mentality

Paying your international workforce Issues, solutions

CIPP update | Policy hub | Professional development

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Payroll & HR Solutions

In order to carry a positive action we must develop here a positive vision. Dalai Lama (1935–)

Editor’s comment

Although the 2017 Budget was somewhat light on content affecting payroll and pensions (which makes a welcome change), the 2017 Finance Bill (No. 2) is apparently claimed to be the largest

Budget a similar requirement for the private sector.) A problem for all sectors is making tax digital – see pages 20–21. Maybe it’s just me, but having successfully achieved PAYE in real time surely the payroll profession and industry can feel a sense of self-satisfaction viewing from a comfortable distance the troublesome implementation of another mega computerisation project? A further so-far successful implementation for the profession is automatic enrolment. See page 36 for a big opportunity for the profession that AE offers. Is this something which the payroll professional must step up to and deliver, too?

in UK history, running to more than 300,000 words spread over more than 760 pages. A review of the Budget content can be found on pages 16–17. Many, if not all, of the problems currently afflicting payroll and employers can be attributed to the previous incumbent of the post of Chancellor of the Exchequer. One payroll-related issue exercising public sector employers, caused by the previous Chancellor, is the implementation of ‘off- payroll’ working changes. See pages 18–19 for a review of the new employment status tool that might help decide cases of uncertainty. (Fortunately, the current Chancellor didn’t announce in the spring

Mike Nicholas MCIPP AMBCS Editor

Chair’s message

I was delighted with the response from members regarding my request last month for more interest in applying to stand as a board member of the CIPP.

The other exciting development within the CIPP this month, that I eluded to in my Chair’s message last month, will be announced at the National Forum’s which run from May to July. If you haven’t booked your place yet, make sure you do, as we’ll be explaining what it means to be a ‘Chartered member of the CIPP’. The formal launch of this new membership status will be during National Payroll Week – remember to save the date 4–8 September #NPW17 #spotlightonpayroll. (See page 13 for further information.) I hope to see you all at one of the National Forums over the next few months.

Should you be interested in progressing your career in this direction and giving something back to the payroll industry, there is still time to contact us to find out more before the deadline for formal applications closes. Earlier this year I was honoured to accept the invitation to speak on UK payroll legislation at the American Payroll Association (APA) Congress taking place this month. When I started my career in payroll back in the early 1980s, I never thought it would give me such opportunities. I wish the APA a successful conference and I’m looking forward to meeting lots of new, passionate and enthusiastic payroll professionals.

Eira Hammond FCIPPdip Chair, CIPP

CEO’s message

Well, there’s another year end come and gone – or in our complex environment maybe there’s still some finishing work in progress. Hopefully, systems, plans and processes all came together to make this a success. And then here we are straight into a

states, “Maintaining an educational and ethical structure of the highest standards aiming to train and licence professionals to work in the payroll and pensions profession by requiring such standards of knowledge and experience, so that such professionals are of the highest quality”. So, here at the CIPP, through your membership and any facet of our portfolio you utilise, there is a group of hard-working, highly skilled professionals ensuring we meet the expectations of our Charter to your benefit.

new tax year. Easter has also come and gone and hopefully an ascent into some warmer weather. I was reminded that we have just completed six successful years as a Chartered Institute. Sometimes in the cut and thrust of our daily activities I think it’s good to take a few minutes aside and reflect on your membership of the Chartered Institute of Payroll Professionals. To paraphrase a famous wood sealing paint, the CIPP ‘does what it says on the tin’, and the opening introduction to your Charter

Ken Pullar FCIPP Chief executive officer, CIPP

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| Professional in Payroll, Pensions and Reward |

Issue 30 | May 2017

in Payroll, Pensions & Reward PROFESSI NAL

Also available online at payrollpensionsandreward.org.uk

Contents

May 2017

43

Global payroll challenges

Lisa Gillespie comments on changes ahead

Features

20

15

18

Employment status and the digital tool Peter Minchinton considers the questions and tool

Authorising payment claims Neil Tonks opines that change is required

Will MTD make tax easier? Samantha Mann brings us up to speed

24

31

30

Paying the price for payroll errors Simon Puryer outlines damage and solution

Shaping an AI-driven future Doug Sawers discusses the future of work

Dress sense Emma O’Leary addresses the issue

| Professional in Payroll, Pensions and Reward | May 2017 | Issue 30 2

32

33

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

Zero-hours contracts and talent pipeline Ian MacRae discusses security and motivation

Working in the gig economy Stephen Morrall offers advice

Chief executive Ken Pullar FCIPP CIPP board of directors

38

44

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

How payroll professionals can become pension experts

Paying your international workforce Sam Bennett identifies barriers and provides advice

(without trying) Henry Tapper explains

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

Regulars

01 Editor’s comment, and Chair’s and CEO’s message 04 Membership insight On your behalf, Advisory, Five minutes with, Board nominations, We’ve got mail 10 Professional development Diary of a student, CPD 12 CIPP update PAS accreditation, FoAE, factapp Events, news and developments

29 Reward news 30 Reward insight 38 Pensions insight

Employment law cases, age matters with NMW

The Pensions Regulator

40 Pensions news 41 Industry news 42 Feature articles 47 Confessions of a payroll manager Additional content in the online version: 22 Salary sacrifice: a brief history 42 Protecting business travellers 46 GOV.UK and GDS

[email protected] 0121 712 1000

cipp.org.uk @cipp_uk

14 Payroll news 15 Payroll insight Budget 2017 26 Events Horizon 28 Charity news

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.

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| Professional in Payroll, Pensions and Reward |

Issue 30 | May 2017

MEMBERSHIP INSIGHT

On your behalf

Policy team update

Diana Bruce MCIPPdip, CIPP senior policy liaison officer, divulges developments

G ender pay gap regulations for the private and voluntary sectors cover any employer with 250 or more ‘relevant’ employees in England, Wales and Scotland (but not Northern Ireland) on 5 April 2017. The Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017 came into force on 31 March 2017 and whilst the initial aim was to make the reporting requirements consistent across the public and private sectors, as the public sector already has specific duties on equality, the regulations needed to reflect this. More specifically there are differences between the public sector equality duties in Wales and Scotland as compared to England. The impact of devolution continues to add to the burden of UK employers. To ascertain employers’ awareness and subsequent readiness, we ran a poll through February and part of March asking: “Have you tested your gender pay gap >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 Page 56

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