THE ASSOCIATION OF ELECTORAL ADMINISTRATORS

Transcription

1 THE ASSOCIATION OF ELECTORAL ADMINISTRATORS AEA Review on the Recruitment of Election Staff and HMRC RTI 1 Introduction 1.1 Responses to the AEA post-election 2015 survey highlighted that many administrators had issues again this year relating to the recruitment of sufficient numbers of staff to work at polling stations and on the count. The survey also highlighted that another reason for the difficulty in recruiting staff this year included the level of pay, having to take leave and the HMRC changes to real time income tax reporting. 1.2 In terms of the latter, Electoral Administrators reported that the changes had resulted in difficulties as a result of income tax implications. Previously, staff who did not earn enough in a tax year to have tax deducted from their earnings would have completed a P527 form and received their payment gross. A report was received this year that staff who had retired had received letters from HMRC advising them that, because they worked on the election, their entire personal tax allowance for the year had been transferred to the returning officer and subsequently their pension would be taxed at 40%. 1.3 In view of the problems reported about the recruitment and retention of polling station and counting staff, the AEA reported in its report Elections and Individual Electoral Registration The challenge of to undertake a separate review of these issues with a view to identifying possible solutions. 2 Members Survey 2.1 A members survey was published in the weekly bulletin on 29 July with a deadline for responses by 11 September. The survey has now closed and 205 responses were received representing 190 local authorities. A copy of the survey is available at Appendix A. 3 Survey Results Q5 How do you currently recruit staff to work on elections? (please tick all that apply): Answer options in % order % Internal memorandum/ /intranet 97.1 Letter to previous election and canvass staff 96.1 Word of mouth, family and friends Elections and Individual Registration The challenge of 2015

2 Provide the date of the next scheduled election in the election payment 34.1 letters/ s, and canvasser payment letters/ s to provide advance warning of the date Recruitment campaign as part of a presentation to local authority 29.3 managers forum/meeting - emphasising the election is a corporate event and the corporate image to encourage managers to release staff and become involved Telephone canvassing of previous staff 26.3 Articles in own local authority or parish council publications 24.9 Schools' bulletins - over 16s to count the votes and over 18s to carry 5.9 out polling duties Advert in local newspaper 4.9 Advert in job centre - looking for inexperienced people to train so as to 2.9 increase staff database Local Authority lunchtime drop in sessions to discover and discuss the 2.4 various election roles to encourage take up and recruitment Other methods of recruitment highlighted in the survey included: Website advert/article, advert on recruitment page of local authority website and advertise online at Communications Team - facebook/tweets Contact the County Council, large employers, banks, building societies, post offices, supermarkets in the town and local areas sent to all staff and included in staff newsletters Contacting University Job Shop, student unions and forces barracks Youth Mayoral election contacts (pick up school pupils who have worked on the Youth Mayoral election count) Staff forum meetings suggest recruit family and friends to work on the elections Payslip advert Include a question on the feedback survey asking staff if they know anyone who would like to work on future elections One local authority reported on holding an event before May 2015 called POllstars which was advertised via the local papers. Members of the public attended the event to find out what was involved and the different jobs. However, it was highlighted in one response that there was a problem with the external recruitment drives in that people are initially very keen, particularly if they are out of work, work part-time or are students. However, it had been found that these are the people who are most likely to drop out at the last minute if they get other more permanent employment or if something better comes along. As a result, plans need to be in place to address this should the issue arise, and the need to have reserves trained and readily available to work. Q6 Roughly what percentage of your election staff in May 2015 were local authority employees? The table below allocates the individual percentage figures received from each response to a percentage range. As can be seen, the highest is 47 responses in the percentage ranges of 41-50% of election staff being local authority

3 employees. However, it was clear from the responses received that there is a significant trend with the number of local authority employees working on elections reducing over recent years because of job losses and a reduced workforce within local government. % Number of responses within % Q7 Do local authority staff have to take leave to work on election duties? The survey revealed that 85.9% do not have to take leave to work on election duties whilst only 14.1% did. Numerous responses to the survey highlighted that, if staff had to take leave to work on polling day, they would be unable to fill the various roles as the rates of pay would not be attractive on their own. Some local authorities viewed the election as a corporate event and therefore allowed staff to work on polling day without having to take leave, subject to their line manager s approval. In the majority of those cases, it formed part of the local authority special leave policy. However, it was noted that generally only one day was granted and employees could either work on polling day or at the count the following day. If they chose to work on the election both days or on postal vote opening duties they would have to take leave or flexi for the additional hours. Several responses indicated that the special leave policy would be reviewed in the near future with the likely outcome that election leave would be removed. It was also noted that where local authority services had been outsourced to a private provider/partnership agency, those staff had to take annual leave whereby staff employed directly by the local authority were granted a day to work on the election. Q8 In your view what are the difficulties with the recruitment of election staff? (please tick all that apply): Answers in % order % Long hours, unsocial hours, poor working conditions 68.7 Income tax changes - e.g. HMRC Real Time Information (RTI) 65.7 Reluctance of local authority departments heads to release staff 56.6 Poor fees and expenses 53.0 Staff have to take leave 15.2 Employing those who might present an insurance risk 9.6

4 Charges from other departments for use of their staff 2.5 As can be seen above, the three highest difficulties in the recruitment of election staff are the hours and working conditions, income tax changes with RTI and the reluctance of local authority departmental heads releasing staff. Other difficulties highlighted in the survey included the complexity of elections especially with combined polls and the responsibility involved in working at a polling station. Experienced presiding officers are retiring and experienced and capable poll clerks are reluctant to step up to the role of presiding officer as a result of the increasing complexity. Unsociable hours with overnight election counts as at a UK Parliamentary election also make it difficult to recruit sufficient staff. This had led to the introduction of part time polling station staff being recruited for peak periods in some areas due to insufficient full time polling station staff being available. There is also a lack of new recruits joining the election staff database possibly because of a general lack of civic duty in society and the pay for the roles with unsociable hours and responsibility is not sufficiently attractive. Local authority budget cuts have also led to a significant reduction in the number of local authority employees and those employed have increased workloads as a result. Local authority managers are reluctant to release staff with business as usual becoming more of a priority within a reduced team. The goodwill of some local authority staff has also been lost over recent years. Q9 Following the elections in May 2015, have you received any reports or issues from staff who worked on your elections in relation to the income tax changes with HMRC Real Time Information (RTI)? The survey revealed that 75.6% did receive reports or issues from staff in relation to the income tax changes whilst only 24.4% reported they didn t. The results of the survey highlighted that the problem initially occurred with the election payments in May 2014, which followed on again this year although with less issues. As a result RTI, election payments are now being made in the majority of cases via the local authority payroll team whereas previously election payments would have been made by cheque or BACS on the day or within a couple of weeks of the election. As a result, payments now appear to be made with the monthly payroll run. If the local authority salary payment date is the middle of the month, election payments cannot be processed in time for the May payroll run and are therefore paid mid-june. As a result, payments could be received up to six weeks later than at previous elections. It would appear that the main issue is that for the majority of election staff who do not earn above the tax threshold, e.g. students, apprentices, those retired with a pensionable income had their election payments taxed and in some cases taxed at the 40% rate. These tax payments were deducted from their election payment despite the employee completing the relevant tax form accurately.

5 Reports were also received that, in some cases, their tax allowance had been transferred to their election payments despite having a main employer or receiving a pension. In other cases, new tax codes had been issued to their main employer which also increased their monthly tax payments in their main employment. Those election staff who are owed a refund from HMRC have had to contact HMRC direct. Numerous reports were received on the difficulty of being able to make contact with HMRC via telephone and that different advice was being given by HMRC depending on who was providing it. Examples are: Advised they have to wait until the end of the tax year and then present their P60 to obtain a refund. As the election payment was made at the start of the tax year, this means having to wait a whole year for a refund. HMRC have accepted a letter from the Returning Officer which explains the situation of the election one off payment and a tax refund is then given by HMRC. Staff being taken off the payroll system and a P45 being issued to enable HMRC to then process their tax refund. However, this means that, if the person wishes to work at future elections, all the pre-employment checks need to be repeated and payroll have to re-enter all their details for the next election. HMRC issued a new tax code as the previous tax code issued was incorrect with the local authority then running a separate payroll to refund the tax. One response reported that running the elections payroll again a couple of months later could mean that HMRC has, in the meantime, issued a tax code which results in a refund to the individual - about 25 people were affected by this in July. Advised to arrange to allocate some of their tax code to election work. It was reported in one response that some staff are still waiting for HMRC to remedy the issues from the 2014 election payments. The impact of RTI has resulted in numerous disgruntled election employees who, following the 2014 elections, have decided not to work again on future elections because of the personal impact of RTI and the repercussions on tax payments in their main employment or pension payments coupled with and the inconvenience and onerous process in obtaining a tax refund. Following this year s elections, it is likely that more staff will decide not to work on elections because of these difficulties. One response also reported that tax was not deducted from non-tax payers' election fees this year as the Returning Officer was not prepared to ask the staff to claim it back from HMRC themselves. HMRC have accepted the RTI submission with tax only taken from tax payers. A couple of responses reported that this year had not been as bad as last year in relation to RTI issues. One local authority had run a 1p payment for everyone in the month before the election payments this year so that they were more likely to have the correct tax code when they ran the actual election payment. Another response stated that, for those election employees not in regular work,

6 their payroll section has noticed that the majority had now been given a new tax code so that they will not be taxed in future. This means that, for future elections, the situation should improve and it will only be new external staff that may need a new tax code. Q10 If you answered 'yes' to question 9, have you identified any possible solutions? If so, please provide details below. From the survey responses, there were very few solutions that can be implemented under current legislation other than the following: Election staff request that HMRC split their personal tax allowance between jobs/income which then resolves the issue in relation to election payments. Payroll to cease the employment of anyone who wants to reclaim their tax. This will then generate a P45 which the employee can then send along with a completed P50 to the address that appears on the P50. The P50 form is available as a download on various websites which must be filled in on-screen before printing off. The whole process will take a few weeks before the tax is refunded. However, if the employee wishes to work on future elections, the pre-employment checks will need to be completed again and the person s data entered on to the payroll system. Appointment letters inform people how HMRC RTI works. Brief the electoral services staff so that they are able to answer the questions with regard to what staff need to do and how they can claim their tax back. Try to set up all employees on payroll early and run a 1p payment to ensure the tax codes are correct. Other suggestions made in the survey included: HMRC providing the tax codes in advance or allowing the use of local authority payroll data tax codes for individuals given that a lot of staff are internal. HMRC to consider issuing a single tax code specifically for election staff which will reduce the workload for HMRC in amending tax codes and spend time changing them back. It would also reduce the number of staff having to claim back tax that they do not need to pay. HMRC should recognise that many students and retired people take part in election work and that many of these will be under the tax threshold and the majority of elections are in the early part of the tax year. There needs to be a system which allows the person to make a statement, for example the completion of a similar form to the old P527 stating that they will not earn over the tax threshold. The completion and submission of the form would then enable Returning Officers to pay non-taxpayers the gross fee. HMRC to investigate making the process of applying for a tax refund easier without having to present a P45 and waiting to the end of the tax year. HMRC should consider election payments separately with a special election tax code, for example BR - they are taxable, or ZR - zero (non-taxable). This way payroll staff would apply that the person has had tax deducted at 20% or not at all, as applicable.

7 Discussions being held with the tax office at a higher level (e.g. Electoral Commission, AEA, etc.) to highlight issues as this affects all local authorities. The AEA North West Branch have invited HMRC to their February branch meeting to listen to concerns and issues. 4 Other Issues 4.1 The survey gave the opportunity to comment on other issues and concerns in relation to the recruitment of election staff and payments. In this section, many responses reiterated the concerns outlined in question 8 above although several other issues were also raised, as follows: 4.2 Auto pension enrolment the introduction of auto-enrolment for pensions from 2017 may cause similar issues to RTI and may also be a further disincentive to work on elections if pension contributions are deducted. 4.3 Election advances an issue was raised in relation to the Cabinet Office not forwarding final advance payments until the election claim had been settled and, as a result of the introduction of RTI, this needs to be reviewed. Previously the tax element that had been deducted from the employee payments due to HMRC would have been one of the last payments made by some Returning Officers and would have been made once the final advance had been received for the national election. However, with the introduction of RTI, the tax payment is now made instantly and therefore local authorities are having to fund the costs until the final settlement has been received from the Cabinet Office which can be some time after payment has been made to HMRC. 4.4 HMRC New starter form - The P46 new starter form which replaced the P527 to capture an employee s tax position needs to be reviewed. The three statements that an employee can choose from do not always fully capture the employee s circumstances and means that people who should not pay tax, will pay tax. This has caused issues at the previous election in relation to tax payments and, as a result, those staff affected are becoming reluctant to work on future elections. The form needs to be amended to take into account the various personal circumstances with the correct options being available for the employee to choose from which will mean that they will get taxed accordingly. 4.5 Polling station fees Concerns were expressed in relation to the presiding officer and poll clerk fees and the need for these to be reviewed with funding increased to reflect the unsocial hours, the very long day without proper breaks and the complex nature of the role and responsibility. One response highlighted the following: A poll clerk's fee of around 115 for a 15hr day with no guaranteed breaks, the unsociable hours and the travel time at the beginning and end of the day is not an attractive proposition. It presents an interesting scenario with the Government s aspiration of a National Living Wage of 9ph by the time of the next General Election!! 4.6 Funding for reserve staff At present, funding at national elections is not provided for reserve staff. However, there is an increasing need to have reserve staff trained and available. One of the responses quoted their 2014 analysis of withdrawals from appointment as follows: From first offers going out

8 to Polling Day we had 136 withdrawals of Presiding Officers, Poll Clerks, Counting Assistants etc. 81 Counting Assistants dropped out of which 41 dropped out in the final week. We had 5 Presiding Officer drop out in the final week including 2 on Polling Day. 28 Poll Clerks dropped out including 6 in the final week. We moved people round on the day, promoted poll clerks and in one case, called a Presiding Officer every day in the run up to the election to see just how sick he was. It is only by God's good grace that all polling stations opened. In short we need funding for reserve staff. 5 Recommendations 5.1 To raise this matter again with Cabinet Office and HMRC to discuss the issues outlined in this report in relation to RTI with a view to identifying a way forward in respect of election payments. 5.2 To request the Cabinet Office to fund the payment of reserve staff at national polls. 5.3 To request the Cabinet Office to review the funding provision in relation to staff fees and the payment of advances. 5.4 To review the outcome of the North West Branch AEA meeting in February 2016 when the HMRC representative is likely to be in attendance. 5.5 To publish the report. 5.6 To suggest to Branches that the report is placed on the agenda for the next Branch meeting and to ask that any further issues that arise out of that discussion be reported back. John Turner Chief Executive December 2015

9 Recruitment of Election Staff Appendix A Responses to the AEA post election survey highlighted that many administrators had issues again this year relating to the recruitment of sufficient numbers of staff to work at polling stations and on the count. The survey also highlighted that another reason for the difficulty in recruiting staff this year included the level of pay, having to take leave and the new HMRC changes to real time income tax reporting. Electoral Administrators reported that the changes under HMRC Real Time Information (RTI) had resulted in difficulties in recruiting staff to work on the elections as a result of income tax implications. Previously, staff who did not earn enough in a tax year to have tax deducted from their earnings would have completed a P527 and received their payment gross. A report was received this year that staff who had retired had received letters from the tax office advising them that, because they worked on the election, their entire personal tax allowance for the year had been transferred to the returning officer and subsequently their pension would be taxed at 40%. In view of the problems reported about the recruitment and retention of polling station and counting staff, the AEA is undertaking a review of these issues with a view to identifying possible solutions. This survey is forming part of that review. Please complete the survey so that we have as full a picture as possible in terms of trying to establish good practice and identifying potential solutions: *1. Your name *2. Local Authority *3. Address and Telephone Number (in case we need to clarify any points with you) Tel: *4. AEA Branch election staff 5. How do you currently recruit staff to work on elections? (please tick all that apply): Internal memorandum/e mail/intranet Letter to previous election and canvass staff Articles in local authority or parish council publications Telephone canvassing of previous staff Word of mouth, family and friends Recruitment campaign as part of a presentation to local authority managers forum/meeting emphasising the election is a corporate event and the corporate image to encourage managers to release staff and become involved Local Authority lunchtime drop in sessions to discover and discuss the various election roles to encourage take up and recruitment Advert in job centre looking for inexperienced people to train so as to increase staff database Schools' bulletins over 16s to count the votes and over 18s to carry out polling duties Advert in local newspaper Provide the date of the next scheduled election in the election payment letters/ s, and canvasser payment letters/ s to provide advance warning of the date

10 Other methods of recruitment please list below: 6. Roughly what percentage of your election staff in May 2015 were local authority employees? 7. Do local authority staff have to take leave to work on election duties? Yes No Comments: 8. In your view what are the difficulties with the recruitment of election staff? (please tick all that apply): Reluctance of local authority departments heads to release staff Staff have to take leave Charges from other departments for use of their staff Poor fees and expenses Income tax changes e.g. HMRC Real Time Information (RTI) Long hours, unsocial hours, poor working conditions Employing those who might present an insurance risk Other reasons please list below: 9. Following the elections in May 2015 have you received any reports or issues from staff who worked on your elections in relation to the income tax changes with HMRC Real Time Information (RTI)? Yes No Issues/Comments received please give details below 10. If you answered 'yes' to question 9 have you identified any possible solutions? If so, please provide details below. 11. Any further comments in relation to the recruitment and retention of staff or income tax issues. Thank you for completing this survey.