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0 votes
In an ideal world it would increase the number of councilors if coopted councilors were treated as elected councilors, maybe after a qualifying period
by (220 points)

1 Answer

+1 vote
It's The Local Authorities (Members' Allowances) (England) Regulations 2003. Para 24(b) specifies elected only.

It's worth reading the whole document, particularly in relation to the role of the Remuneration Panel (paras 27 onwards). Whilst the panel recommendations are not legally binding, the Council must publish a statement setting out the Panel recommendations and the Council's decision-making process in setting their allowance. I mention this because my local Panel recommended a maximum allowance of £50 per annum for each elected member other than the Chair, and if paying an allowance, however small, Councils must add every member to their payroll and deduct income tax where appropriate.
by (54.1k points)
On what basis would the payment of a Cllrs allowance require that the Cllr be on payroll?

If the payment of an allowance is to recompense for expenses incurred then it is not a taxable income - it is a remuneration for expense incurred.
Even if it were solely considered as a taxable payment, it would be the responsibility of the recipient to report, and pay if necessary, any tax due via Self Assessment Tax Return.
It is for the recipient to report their tax affairs - not the PC.
It isn't a reimbursement of expenses incurred, it's a universal payment to all councillors regardless of any expense they incur. Local government organisations are required to operate a PAYE scheme and allowances fall within this scheme.
OK, so the question stands - on what basis do you believe 'allowances' should be via PAYE?

If there is a HMRC BIM which covers this topic I'd be really keen to see the reference so I can go to source.

PAYE v SATR v tax matters in general are complex and wide ranging - what is the reference which might lead someone to believe that ALLOWANCES must be paid via PAYE?
The part of the statement above which declares "...Local government organisations are required to operate a PAYE scheme..." is not in dispute (personally, I think it lacks the necessary qualifying part which would be "...for employees...")
Where does it say ALLOWANCES must be paid via PAYE....?
I'll open a new thread on this topic - its not exactly this topic but rather the issue of whether allowances should, or do not need to be, treated by a council as employee salaries with all the associated issues of PAYE etc that would entail.

One way or the other, I think we will either arrive at a definitive answer from HMCTS or the council which has just been served papers will concede before it goes to hearing.
Either way, it'll be interesting (at least I think so....)

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