Allowances Policy

Council recognises the value of the input of all Members and the expenses incurred when undertaking the role.  As a token of recompense for the considerable contribution made by Members of Lanner Parish Council payments of a Basic Allowance will be made available to all elected Members and payments of a Parish Travelling and Subsistence Allowance will be available to all Members. In addition, the Chairman of the Parish Council may be paid a higher allowance to reflect the expenses of that office.

This policy will be administered in line with The Local Authorities (Members’ Allowances) (England) Regulations 2003 and Cornwall Council’s

Independent Remuneration Panel on Cornwall’s Parish Councils’ Allowances.

This policy will be reviewed and amended as necessary, including the amounts applicable for the next financial year, at each Annual Meeting of the Parish Council. Allowances were last fixed by the Independent Remuneration Panel in 2011/12 being Member Allowance £ £196.96 and Chairman Allowance £ 290.93.

Parish Basic Allowance:

  1. Payment of a Basic Allowance can only be made to an elected member of a parish council: that is to say, not to a co-opted member. Parish Basic Allowance can be paid to a parish chairman only or to each elected member.
  2. The allowance can be set at a higher rate for the chairman, but otherwise the payment must be the same for all members.
  3. The entitlement to payment must be calculated on a daily basis over a given year.
  4. Details of the level(s) of the parish council’s basic allowance will be posted in the parish and on the website as soon as practicable after agreement, and maintained for a minimum 14 day period,

Parish Travelling and Subsistence Allowance:

  1. For all Members who are attending events OUTSIDE of the parish on behalf of the Council, travel costs will be borne by the Parish Council.
  2. A standard class rail/bus ticket receipt should accompany travel claims or, where travel is by car motor cycle or cycle, at the appropriate rates per mile as applied by Cornwall Council.
  3. For subsistence allowance, the rates and conditions in force for meals and accommodation as utilised by Cornwall Council will be applied.
  4. Travel within the parish is at the personal expense of Members.
  5. Travel outside of the county would require prior approval and be equivalent to 2nd class rail fare or the method of transport most cost effective for the public purse.
  6. This allowance includes travel by motor vehicle when undertaking performance of a duty within one or more of the following categories:

a) for attending a meeting of the parish council or any of its committees or sub-committees or meetings of a body to which the parish council makes appointments or nominations or of meetings of committees or sub-committees of those bodies;

b) for attending meetings of any association of authorities of which the parish council is a member;

c) for performing any duty under the parish council’s standing orders made under section 135 of the Local Government Act 1972 requiring a member or members to be present when tender documents are opened; d) for the performance of any duty in connection with the discharge of any function of the parish council conferred by or under any enactment and empowering or requiring the parish council to inspect or authorise the inspection of premises;

e) for carrying out any other approved duty of the parish council, or any duty of a class so approved, for the purpose of or in connection with the discharge of the functions of the parish council or any of its committees or sub-committees.

Records of Parish Allowances:

The council will keep records of all allowance payments and, at the end of each financial year, post a notice in the parish and on the website for a period of at least fourteen days setting out the total sum paid over the year and the amounts paid to each individual member in respect of the parish basic allowance and parish travelling and subsistence allowance.

(Copies of the records will be made available for purchase)

Elections to Forgo Parish Allowances:

Any member of the parish council may decide to forgo all or part of his or her allowance entitlements. The member must do this by notice in writing to the Clerk.

 

APPENDIX: TAX TREATMENT OF PARISH COUNCILLORS’ ALLOWANCES

      1. Parish Basic Allowance paid to councillors counts as earnings of an office and is therefore taxable (and subject to Class 1 National Insurance contributions although the level of allowances is unlikely to be high enough to give rise to a liability).
      2. A parish councillor in receipt of parish basic allowance will need to be added to the council’s PAYE scheme, given a tax code and reported as a starter under Real Time Information.
      3. Chairman’s Allowance paid under section 15(5) Local Government Act 1972 will also be taxable if it is paid as a round sum allowance but not if it reimburses actual deductible expenditure.
      4. Parish councillors can claim a tax deduction for expenditure incurred ‘wholly, exclusively and necessarily’ in the performance of their duties as councillors. This would include stationery, postage and the cost of phone calls (but not any part of line rental) but not expenditure related to their personal circumstances such as childcare costs.
      5. Parish Travelling and Subsistence Allowance will not be taxable provided that mileage payments for use of private motor vehicle do not exceed 45p per mile. Councillors who receive only parish travelling and subsistence allowance (and not parish basic allowance) do not need to be added to the council’s PAYE scheme.

Further guidance can be found in the Advice Note ‘Tax and NIC Treatment of Clerks’ Expenses and Benefits’ which applies equally to allowances paid to councillors.

 

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