Local Council Notices & Information

HMRC Directive as from 6th April 2011.

Parish Council and Community Council Clerks PAYE Implementation
The correct Tax and NIC treatment of Parish Clerks.
A Parish Clerk is an Office holder. All office holders are subject to PAYE. This means that Parish Clerks:
  •  can never be considered self employed for tax or NIC purposes
  •  must not be paid gross; and
  •  must be taxed under PAYE.

Parish Councils must register as an employer with HMRC and operate PAYE on the income the Clerk earns. This is the same position as for any office or employment; there is no other acceptable tax treatment applicable to Parish Clerks. Any previous agreements with HMRC or the former Inland Revenue under which the Clerk was paid gross or was treated as self employed are void.

To see the complete change in procedures and guidance, please click on the ‘HM Revenue & Customs’ Link above.

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