Payroll & Reward Brunch – May 2021

  • Date: 27 May 2021
  • Duration: 40 minutes
  • Cost: On Demand

One of the reasons we love being in payroll and reward is that the profession never stands still.  Even though we have only just started the new tax year, we are already thinking ahead to changes in the future.

So, our May 2021 Brunch took on a future-focused approach for professionals.  We looked at the implications of the elections in the devolved nations (Scotland and Wales) and what this could mean.  Plus, there are the announcements in the Queen’s Speech, not to mention the changes that are currently in progress for the Payroll Administrator Apprenticeship in England.

May’s Brunch was a smorgasbord!

Questions and answers from the end of the brunch are available below after the video.

Questions & Answers

Do you think that Scottish independence will cause problems for payroll and reward?

If Scotland becomes an independent country, I think it will be another thing to add to our already full agendas.  Depending on any settlement / agreement with the UK Government, we are looking at a UK regime and a Scottish one – which will probably mirror each other to start with but then diverge, just like with EU Exit.

So UK payroll and reward will move from away from a system similar to that in the United States where there is a federalised regime – with central law-making for somethings but individual States can do what they like on other things (just like we have with UK devolution really).  It will move to a regime where UK payroll and reward professionals have to consider that Scotland is not in the United Kingdom.  It will all depend on the settlement agreement – and, as with EU Exit, that will take years and years.

I am not a political commentator; however, I think it is interesting that you have a pro-independence number of MSPs elected to Holyrood.  Despite the element of proportional representation there, this is not truly reflective of the way that people voted which was, essentially, 50 / 50.

 

Is the payroll apprenticeship also applicable in Scotland and Wales?

No, the payroll apprenticeships have been designed under the English regime and funding is only available if the apprentice works 50% or more of their time in England.  Apprenticeships and education are devolved matters and the devolved nations have their own apprenticeships.

 

We are using this NI holiday for employer’s NICs for employing ex-Armed Forces when they enter civilian employment.  Our software does not cater for this and say that we have to pay NICs and reclaim next year.  Is that correct?

Yes it is.  See HMRC’s Policy Paper dated 12 May 2021 that confirms this.  The NICs Bill will legislative for this to happen, backdated to 06 April 2021 and we will get HMRC saying how this will work in software from April 2022.

 

Re the Right to Work checks, do we have to do retrospective physical checks for the period that the adjusted regime was in place?

No.  If an employer has carried out an adjusted check along with the guidance in place, there is not requirement for retrospective checks. The adjusted regime was I place from 30 Mar 2020, scheduled to end on 20 June 2021, reverting to ‘business as usual’ from 21 June 2021 in accordance with the planned easing of lockdown restrictions and social distancing measures (in England as per the roadmap and followed in the devolved nations).