Part 5 - Members Allowances Scheme

There is no need to claim basic and special responsibility allowances; these will be paid automatically each month.

Claims for travelling and subsistence expenses should be made monthly with all receipts attached.  There is a three month time limit on expense claims being presented, with any claims submitted outside of that time limit, not being paid unless agreed by the Chief Executive that the delay was for good reason.

Claim forms in respect of the allowances payable under Section 3 above are available from Democratic Services.

Claims should be submitted promptly after the end of each month otherwise payment may be delayed. Information on payroll deadlines is available from Democratic Services

(a) RECOVERY OF VAT ON SOME COUNTY COUNCILLORS’ EXPENSES

HM Revenue & Customs have advised us that the VAT element of some types of County Councillors’ expenses can now be recovered by the County Council. VAT can be reclaimed where the full cost of expenses are being reimbursed.

The following is a list of the most likely types of expenses where VAT could be reclaimed:

• Hotel accommodation and sundries;
• Full cost of meals, for example, on trains;
• Car parking and tolls;
• Taxi fares (if driver is VAT registered).
  • To enable the County Council to recover the VAT, please obtain a VAT receipt/invoice, either made out to GCC or in your name and attach it to your monthly expenses claim form.

(b) INCOME TAX

At the end of the tax year, the Executive Director of Corporate Resources has to notify the Inspector of Taxes of the amounts paid during the tax year and a form P60 will be issued to each Member showing details of the information given to the Inspector. When a Member ceases to hold office, a form P45 is issued to the Member, a copy of which is sent to the Inspector.

As part of the Self Assessment arrangements for income tax the Inland Revenue do expect individuals to keep records of pay/allowances received and receipts for expenses, which should be obtained wherever possible.

(c) NATIONAL INSURANCE CONTRIBUTIONS

1. Irrespective of any involvement in other employment or office, contributions will be payable at the appropriate current rate.
2. Contributions are to be calculated by reference to the total gross earnings used for tax purposes paid in each pay period, irrespective of the period in which they are earned or relate. The pay period for this purpose will be one calendar month.
3. Members that are over State Pension age, currently 60 for women and 65 for men, do not have to pay employee’s contributions. In order for the County Council not to deduct National Insurance, from the Members Allowance, the Member must provide a Certificate of Age Exception. This certificate can be obtained by applying to the National Insurance Contributions Office, a department of HM Revenue & Customs.
4. At the end of the tax year the Executive Director of Corporate Resources has to notify HM Revenue & Customs of the amounts of National Insurance deducted during the year. This will be reported along with the income tax deducted (see 4b above). It will also be included on form P60, with the deductions of tax that will be issued to each Member.

(d) SOCIAL SECURITY BENEFITS

H M Revenue & Customs will regard "Member allowances" as a gain from employment. It is important, therefore, that a Member in receipt of any State Benefits (for example, Job Seekers Allowance or Disability Working Allowance) should inform the payer of the benefits irrespective of whether or not they claim the allowances payable by the County Council.