11 December 2017
Ring out the old, ring in the new! We thought 2017 was a busy year for the UK with the introduction of the Apprenticeship Levy and OpRA impacting salary sacrifice, flexible benefits systems and cash option benefit items such as Company Cars. HMRC introduced a plethora of changes which indirectly impacted employers with dynamic coding (yet continue to issue over 7 million P800 tax underpayment/overpayment letters) and an ability to not be able to calculate a predictive annual salary especially when a one-off bonus was paid. Now bank interest is being notified directly and numerous challenges to multi-tax codes are being issued to employers.
In many cases, the changes are of benefit resulting in the more accurate collection of tax. When it goes wrong, they are an unwelcome distraction which
take significant time and effort to reach a continuing unsatisfactory position, extremely upset employee and employer relationships that can extend
to the payroll and payroll service provision. And all while the Brexit uncertainty continues.
Not only 2018, but also the UK tax year 2018/2019 which begins on 6th April, the equivalent of the olden times new year day under the Gregorian calendar which is retained for tax purposes since the 18th century when the change of new years to 1st January was generally applied to the calendar. So,UK payroll managers have a new year window of 3 months to prepare for the much older UK (and Isle of Man) new tax year start. With the setting of new year resolutions, it is a good time for payroll professionals in the UK to review their preparations on items which are not purely system change, but challenge process and rules within employment.
The qualification for the £3,000 employment allowance needs to be verified to ensure that those employers who qualified for the 2017/2018 tax year still qualify for the allowance in 2018/2019, that ownership and application of the PAYE scheme has not changed the connected organisation status or single director business.
The £15,000 offset amount applies to the employer group and may be split across the PAYE schemes. Again, verification of the current settings for the offset need to be reviewed and splits for the 2018/2019 tax year determined and applied. Any change in ownership or group structure needs to be taken into account to ensure that the employer does not incorrectly apply multiple allowances into the new year.
The Autumn budget 2017 agreed to the proposed, and significant, rises to nationally set minimum payments, and the living wage foundation have already announced an uplift to the voluntary living wage rates. Employers who have signed up to the Living Wage have 6 months from the 6th November 2017 to ensure that they continue to meet the living wage foundation requirement for their voluntary code. And then employers need to prepare for the wage rises as a result of the nationally set and legal minimums. Employers are often being caught by inadvertent breaching of minimum pay rules, and some deliberate avoidance policies for a few. Set a goal to not be names and shamed in 2018.
According to HMRC minimum pay audits, the main areas of confusion relate to:
Payment In Lieu of Notice (PILON) has the former taxable or none-taxable question mark removed. Whether the payment is contractual or compensatory, from 6th April 2018 the payment is subject to both tax and Class 1 national insurance (and student loan deductions, etc). Payroll and HR professionals need to review and change their payment policies to comply with this legal change as well as the removal of foreign service tax relief from termination payments.
A second tranche of Optional Remuneration impact changes needs to be undertaken with the ending of grandfathering options for many on 5th April 2018. Benefits, salary sacrifice, flex, car v cash and other arrangements must be reviewed in light of OpRA with the payroll reflecting the revised and correct tax and Class 1A NICs position.
The uplift of minimum contributions applies from April 2018 (and then again in 2019). It is time for pension schemes, trustees and employers to review and amend their scheme rules to comply with the new laws on minimum contributions.
And to top it all there is the preparation for the General Data Protection Regulation which applies from May 2018. So, happy new year! There’s lots to be done to review and plan for the happy new UK tax year.
HR leaders play a pivotal role in the future success of the workplace. Cathy Geerts, Chief HR Officer at SD Worx, explains more in her blog.22 July 2020
Over the years, Fiona McKee, HR Director at SD Worx UK and Ireland, has heard many inaccurate, and often amusing, assumptions of what working in HR is like. She shares the most common misconceptions in her blog.22 July 2020
Are you prepared for the rise of the long-term home worker? Help your employees thrive while they are working from home with these top tips.20 May 2020
As the pressure of payroll continues to amplify, here are some best practice tips to improve payroll continuity.13 May 2020
The way we work is never going to be the same again. Find out which big changes will affect HR.11 May 2020
With summer just around the corner, businesses face the inevitable yearly challenge of balancing an influx of annual leave requests with keeping the company running at full capacity. Absence management is a vital, yet often overlooked part of running a business – get it wrong and the impact of summer holidays can last all year round.19 June 2019
I just don’t understand why organisations do not see the Living Wage, and I mean the Living Wage, NOT the government’s rebranded minimum wage (National Living Wage), as an *opportunity*. This is an opportunity to increase “engagement”, “efficiency” and to “empower” employees. Yet far too many organisations just see it as yet another cost they have to accommodate.1 February 2019
More than anything, this year’s data highlights the need for a new and more agile approach to HR. Conservative strategies simply aren’t going to cut it going forwards, because by the time the ink is dry, things will have moved on. Increasing business agility is now the #2 business driver for 86% of HR professionals, second only to increasing performance and profitability.28 November 2018
How do UK businesses tend to approach reward currently? Is there a shift in approach and if so, what is causing this?16 August 2018
How do UK businesses tend to approach reward currently? Is there a shift in approach and if so, what is causing this?14 August 2018
Autonomous Vehicles And Smart Warehouses Are So Last Year – 2018 Is All About Digitising Your HR Function.
Hear from our CEO Steven Van Hoorebeke during an interview with The Business Debate.18 April 2018
On 6th February at Hilton Park Lane in London, we joined HR and payroll professionals from across the globe for the SD Worx European Conference 2018. With the "Future of Collaboration: HR leading the way" theme, this one-of-a-kind event played host to industry-leading experts, practitioners and organisations.16 March 2018
Millennials: entitled, lazy job hoppers. Gen X: cynical and poor team players. Baby Boomers: out of touch, independent, money-driven workaholics. And what about the iGen: those house-bound, tech-obsessed kids who were born with a smartphone in their hand? These stereotypes are bandied around regularly, but is there really any truth in them? And do different generations expect to be treated differently by their employers?5 March 2018
On Tuesday 6th February, at Hilton Park Lane in London, we were delighted to join our partner SD Worx at its European Conference 2018.The theme for the day was close to our heart: ‘The Future of Collaboration’. This unique event played host to the industry's most influential experts, practitioners and businesses, attracting leading HR and payroll professionals from all over the world.5 March 2018
Adam Burgess, Business Development Manager at SD Worx UK & Ireland reflects on his first experience of an SD Worx conference. SD Worx hosted its 22nd Annual European Conference at the Park Lane Hilton in London in February 2018, with "The Future of Collaboration" as its 2018 theme.2 March 2018
At the SD Worx European Conference, held at the Park Lane Hilton on Tuesday 6 February, a panel of six individuals from different generations gave their thoughts on age-based stereotypes, their personal values, career aspirations, the challenges they’ve encountered and what, if anything, can be done to address the differences between the age brackets within the workplace.20 February 2018
As a Business Development Manager, I am often invited to most company events. Certainly anything client or prospect facing, and usually internal gatherings too. The SD Worx Business Kick Off 2018 was no different. Hosted in Manchester over the course of 2 days, we had a packed agenda and over a hundred colleagues in attendance, all ready to be WOW’ed.24 January 2018
With the aim to build a model employee experience, HR departments are compelled to rewrite the rules by revolutionising talent practices. Human resource management is designed to maximise staff performance, and the HR department should be a key component in an organisation’s digital transformation.10 January 2018
Technology is the wheel that never stops turning. If Moore’s Law is to be believed, the sheer power of processing units will have doubled within two years – and that means plenty of new pieces of tech that could shake up HR and payroll processes. With that in mind, here are three technological trends that could significantly alter your industry.10 January 2018
As an employee who has the privilege of representing SD Worx to an awful lot of prospective clients, I get to hear what’s important to the market straight from key decision makers. ISO 27001, and data security in general, is one of the hottest topics in our market space.5 January 2018
With the ever-increasing benefit costs for company cars for both the employee and the employer, and the new rules for Optional Remuneration Arrangements (OpRA), is a company car as cost-effective as it once was?20 December 2017
During Christmas and the associated holiday season, payroll managers experience some annual adjustments and events. Simon Parsons takes us through some of the festive benefits – and the associated tax implications.18 December 2017
Read Simon Parson's latest blog where he answers the frequently asked question: 'Do you know if HMRC are likely to want us to include more options for employees that may be transitioning or don’t identify themselves with either gender?'23 November 2017
The terms artificial intelligence and robotics are often used synonymously but are quite different, albeit complementary, in their application. Robotics, in simple terms, means process automation - using technology to remove human intervention in some of the lower value add activities such as information keying, data analysis and performing complex calculations. Artificial intelligence is a somewhat different concept13 November 2017
Nobody is safe, according to many scientists and technology gurus. Artificial Intelligence (AI) and robots will soon to be able to do almost everything better than humans and will take over most jobs, including that of a doctor, lawyer and other professionals. Our Managing Director, Doug Sawers, shares his thoughts...3 April 2017
HR Tech World Congress, the UK’s biggest annual HR technology show, took place at the ExCel in London last week with the theme of "The Future of Work". It was a fantastic two-day event attended by more than 3,500 exhibitors and delegates, with plenty of interesting speakers! Read our highlights from the event...30 March 2017
Technology in the workplace is not a new phenomenon but a continuous drive towards automation which has been taking place to varying degrees since the rise of Manchester Capitalism and the Industrial Revolution. As such, there is much we can learn from history regarding the nature of work...16 February 2017
We were delighted to exhibit at HR Tech World 2016 in Paris. Check out our short video here to get a flavour of this successful event.1 December 2016
Never before has it been more vital for businesses to optimise the ideas, strengths and skills of their entire workforce – and of others within their industry and beyond. Is it time for HR to become more proactive? Hear Doug's thoughts, MD of SD Wrox UK & Ireland, on HR and its role in the future of work.21 November 2016
In the UK alone, there are 11 million households with pets, equating to 57 million animals and a subsequent market where £4.6b is spent annually on pampering these additions to our family units. Despite this; pet owners do not feel confident to use their pet as the reason for a need to take unexpected absence when requesting time off or for needing flexible working. So is it not time for us to recognise the benefits that pet ownership has on both our employees and our businesses, and put stronger policies in place that continue to nurture and support our employees’ relationships with their pets?1 August 2016
On 23rd June 2016, UK voters decided in favour of leaving the European Union (EU) in a landmark referendum. Since then it’s fair to say that UK politics has seen a fair amount of turmoil. One thing we can be sure of is that, whenever it does happen, the UK’s withdrawal from the EU will have implications for workers and employers. In this blog I want to focus on what this could mean...11 July 2016
In today's world, "human capital management" seems to be the hot topic of choice. A complete HCM solution covers all the people related processes and data in an organisation, and by its very nature can get pretty full on and complicated to implement, with greater upheaval and cost involved. For that reason, it is not always appropriate for an organisation to consider changing all aspects of their HCM in one fell swoop.6 June 2016
Interview by FDE TV at HR Tech London 2016. David Woodward, our Chief Product & Marketing Officer, speaks with Darina Ivanova from FDE about HR and Payroll technologies, workforce optimisation and what it means to be "digital" from an enterprise level perspective.4 May 2016
600 people attended the Ceridian Conference 2016; find out their biggest challenges in new HR and Payroll legislation.18 April 2016
In the 2015 Queens speech, the Government set out to create 3 million new apprenticeships by 2020. As part of the Enterprise Bill, apprenticeships would gain the same legal treatment of degrees. ‘The Richard Review’ brings new standards being developed by ‘trailblazers’ and new funding trialled giving employers greater control over spend on training delivery.11 April 2016
In my last blog I described how keeping the labour model as simple and transparent as possible increases the chances of user buy-in whilst still generating an accurate labour forecast. Today I want to talk about how critical the flexibility of your workforce is to the successful implementation of a WFM system...14 March 2016
Our WFM System experts, describe how keeping the labour model simple and transparent could increases chances of user buy-in, whilst still generating an accurate labour forecast.15 February 2016
Welcome to the future! I am back with a new blog, this time I look at 6 technology predictions over the next 5 years that will impact the world of HR & Payroll. Who knows where we’ll be in 2020? My predictions are based on detailed research, analysis of past and current technology trends, and consumer purchasing behaviour.11 January 2016
Before the advent of the internet, applying for jobs was a fairly straightforward process. Now, with an incredible amount of technology infused into the recruitment process, there’s an entirely new approach to talent acquisition. Here are 5 ways the resume is changing in modern recruitment...4 January 2016
As an HR leader, your assignment from day to day and from month to month is to maximise employee engagement, while increasing employee retention and productivity. Your company is investing a great deal in talent – and you want to make the most of that talent. So what makes us productive, and what doesn’t?30 November 2015
Paying the living wage isn’t optional for survival, but neither should it be a problem. Lidl were the first supermarket to recognise the benefits of paying the living wage. Their stores may be no frills but their operation is efficient. Lidl’s customers, many deserting the likes of Waitrose and Sainsbury’s for all or some of their purchases, have clearly embraced the shopping experience...19 October 2015
The initial challenge of recruiting can be divided into two important parts - first is the step of sourcing, and second is evaluating whether they're a good fit. HR offices everywhere are looking for new, innovative strategies for improving in both of those areas. But is corporate recruiting via social media a worthwhile use of your time?11 August 2015
Through HR and Marketing, you can promote internal success and employee achievement to greater extents. HR can pinpoint outstanding employee performance and Marketing can spread these positive actions through internal communication channels27 July 2015
Like many, I believe that HR and Marketing are, and will, continue to move closer and closer. This belief has been further accelerated by increased and dominating use of both social media and mobile.20 July 2015
We often hear about favouritism occurring in classrooms, amongst friends, or even families, but how about in the workplace?14 July 2015
A great deal of the conversation in human capital management concerns the on-going movement of generations through the workforce. There are two undeniable trends happening in the present day - one, the baby boomer generation is gradually moving into retirement, and two, millennials are entering the office in full force.24 June 2015
Every organisation experiences conflict in one form or another, not only in the workplace but in our homes and our social life. Honestly, it's bound to happen with people working and being together with different personalities, values and culture but actually in some situations conflict can be the base for a healthy debate. However, it's not so much the conflict that causes problems and issues but how it is managed.16 June 2015
There is little doubt that HR transformation is big business with many of the leading advisory firms reporting strong demand and healthy pipelines of future work. However, while we support the importance for the HR function to evolve in ensuring it delivers optimum value to the business, we see scope for improvement in the execution of such programmes8 June 2015
The long-term goal in HR is always to drive employee retention and productivity upwards - you're given a staff with a certain number of employees on board, and your job is to maximise their output. You want every single worker under your roof to have the highest possible impact on the achievements of the company, so that in the long run, the business stays profitable and everyone's happy.20 May 2015