Schedule E – Supporting Guidance

In this section:

Contacts, Enquiries and Other General Matters

1. If councillors or co-opted members:

a) Require help with the submission of claims for allowances or wish to question any payment made to them, please contact membersallowances@lancashire.gov.uk; or

b) Wish to raise a point of principle or require clarification of the Members' Allowance Scheme, please contact the Democratic and Member Services Manager on 01772 534580.

2. Cases of Uncertainty

Where questions arise in connection with Members' Allowances and are not specifically covered in the Scheme (for example whether a function is sufficiently closely connected with the functions of the Council to warrant 'approved duty' status and thus attract the payment of allowances) the matter falls for consideration by the Chief Executive in consultation with the Cabinet Member responsible for Members' Allowances.
Any such matters should be raised with the Chief Executive by contacting the Democratic and Member Services Manager on 01772 534580.

3. Attendance Record

Councillors should ensure that they sign an official attendance record circulated at each meeting, where one is available, as this will support a claim for allowances and form part of the permanent record.

4. Record of Payments

The Council is required to keep a record of all payments to councillors, indicating the amount paid to each councillor in respect of each type of allowance. That record is open to inspection at all reasonable hours by any local government elector resident in the area of the Council. Each year the payments made in the preceding year are published on the Council’s website.

Top of Page

Travelling Allowances - Additional Guidance and Provision

5. General

Allowances should be claimed according to the actual method of travel used. When councillors or co-opted members travel in the performance of approved duties, in the car of an officer or another councillor or co-opted member who is claiming reimbursement, or when transport is provided, they are not entitled to any allowance for that journey.

6. Travel by public transport

First Class travel is permitted and must be authorised by the Cabinet Member with responsibility for Members' Allowances.
Councillors and co-opted members are asked to notify the Purchase to Pay Officer on 01772 533406 of their travel requirements as early as possible so that the Council can benefit from discounts for advance booking where available. Exceptionally, councillors and co-opted members may purchase their own tickets at short notice, but reimbursement will only be made on production of the rail tickets used or a receipt for payment.
Unused portions of rail tickets should be returned to the Purchase to Pay Officer.

7. Travel by Private Vehicle

Councillors and co-opted members are prohibited from using personal vehicles to travel outside Lancashire unless prior approval is given in exceptional circumstances by the Cabinet Member with responsibility for Members' Allowances.

Exceptional circumstances would be where an event is held at a remote location with no public transport connections or where the event start/finish time means that the use of public transport is impractical. Councillors and co-opted members can elect to use their own vehicle for journeys beyond Lancashire, but they can only claim the equivalent public transport cost unless the journey has been previously approved by the Cabinet Member with responsibility for Members' Allowances, via Democratic Services.

Councillors and co-opted members are encouraged to car share wherever possible and journeys should be made via the shortest practicable route.

Councillors and co-opted members are responsible for ensuring that their motor insurance covers use of the vehicle on Council business.

8. Travel by Taxi

Councillors and co-opted members are permitted to reclaim the cost of a taxi journey in the following circumstances only:

a) Where a taxi needs to be used prior to or following a train journey in connection with attendance at a conference or other similar event away from County Hall; or

b) An emergency situation where no other form of transport is available; or

c) Where a journey by taxi has been given prior approval by the Monitoring Officer.

9. Overnight Accommodation

The Purchase to Pay Officer (01772 533406) will make the necessary arrangements, including payment, in respect of any overnight accommodation. In exceptional circumstances, where it is not possible for a direct booking to be made, the actual receipted cost of accommodation will be reimbursed in accordance with Schedule ‘C’ of this Scheme.

10. Travel Abroad

A flat daily rate will be paid to councillors or co-opted members traveling outside Great Britain on 'approved duties'. This allowance is intended to cover costs incurred on transport whilst actually abroad. Any unused portion of this allowance (for example in respect of meals provided at no cost to the councillor or co-opted member) must be returned to the Council. Details of the rate are set out in Schedule ‘C’ of this Scheme.

Top of Page

Taxation

11. PAYE

Basic Allowances and Special Responsibility Allowances are taxable emoluments. As such, the allowances will be taxed, less any tax-free pay notified to the Council's Payroll Service in the form of a tax code notification from HM Revenue and Customs (HMRC). It should be noted that it is up to each councillor to contact HMRC directly in order to obtain or query such notifications. This can be done online, by phone or by in writing:

https://www.gov.uk/personal-tax-account

Tel: 0300 200 3300

Pay As You Earn and Self-Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom

Allowances paid and tax deducted are notified to HMRC monthly and a certificate (P60) will be issued to each councillor showing the total amount of taxable allowances paid and the total tax deducted in the year by 31 May of the following year. The certificate should be retained to check any notice of assessment, which the Tax office may issue.

The Dependants' Carer's allowance is also subject to tax.

Top of Page

National Insurance

12. General Liability for National Insurance Contributions

The Social Security Contributions and Benefits Act 1992 and subsequent amendments provide for National Insurance contributions to be collected along with Income Tax under the PAYE procedure.

As Basic Allowances and Special Responsibility Allowances are taxable, they are also liable for National Insurance contributions.

The Dependants’ Carer’s Allowance is also subject to National Insurance contributions.

National Insurance contributions are payable on the total of all monies earned by an individual that are subject to National Insurance (including allowances) in excess of the Earnings Threshold. Contributions are payable at the standard rate up to an Upper Earnings Limit after which a reduced rate applies. These limits are subject to annual adjustment and are available on request.

Councillors should notify the local office of the Department for Work and Pensions of any taxable allowances received if they are claiming or receiving benefits from the Department for Work and Pensions.

13. Persons of Pensionable Age

No Class 1 National Insurance contribution will be payable by a person over pensionable age who is a retirement pensioner or who does not satisfy the contribution conditions for a retirement pension. In such circumstances, the councillor should apply to HMRC for a Certificate of Age Exemption (CF384). This certificate should then be forwarded to the County Council’s Payroll Service.

Tel: 0300 200 3500

HM Revenue and Customs
National Insurance Contributions Office
Longbenton
Newcastle Upon Tyne
NE98 1ZZ

14. Married Women and Widows

There is now no right to "opt out" of paying full rate National Insurance contributions; however, those councillors who currently hold a reduced rate certificate and have paid contributions during the last two consecutive tax years can retain the right to pay reduced rate. Any valid certificate should be forwarded to the Council’s Payroll Service.

15. Dual Employment etc.

Each employment or office is considered separately for contribution purposes and no account is taken for the fact that a councillor may be employed or the holder of another office under another "employer" or self-employed.

However, in situations where the taxable emoluments received, either in total or in one particular employment, exceed the Upper Earnings Limit, councillors should contact HMRC in order to limit contributions payable (by use of Form CA2700) or obtain an appropriate refund of contributions paid.

Tel: 0300 200 3500

HM Revenue and Customs
National Insurance Contributions Office
Longbenton
Newcastle Upon Tyne
NE98 1ZZ

Top of Page

Insurance Arrangements

16. Liability Insurance

The Council's liability insurance arrangements provide appropriate cover in respect of the actions of councillors whilst acting on Council business.

17. Personal Accident Insurance

The Council has a Personal Accident Insurance Policy which provides financial benefits regardless of legal liability for councillors who are accidentally killed or injured while attending a Council or committee meeting or any other function or engagement which forms part of their duties as members of the Council, or whilst traveling to and from such meetings, or functions, including travel abroad on Council business.

The benefits provided by this policy are as follows:

a) For death or permanent total disablement, a lump sum of £200,000 (this could be reduced if no dependants).

b) For other permanent partial disablement(s) a lump sum percentage of £200,000 on a scale determined according to the severity of the injury.

c) For temporary total or partial disablement, actual loss of net earnings up to a maximum of £200 per week for a maximum period of 104 weeks.

d) In addition to the benefits outlined in paragraphs a), b) and c), the following benefits are provided whilst traveling abroad on County Council business:

 

 

Maximum per person

i)

Medical and emergency travel expenses

Unlimited

ii)

Personal baggage (subject to a single article limit of £2,000)

£10,000

iii)

Personal money (subject to the cover for cash being limited to £2,000)

£10,000

There is no upper age limit on the policy.

At the age of 75, the lump sum benefits for death and permanent total disablement are reduced. Benefits for permanent partial disablement and all temporary disablement cease to be payable at the age of 75.

Medical expenses cover for travel abroad is subject to the proviso that such journeys are not made against medical advice.

18. Motor Vehicle Insurance

The use of motor vehicles is subject to compulsory insurance cover and where councillors and co-opted members use private motor vehicles on Council business, it is the responsibility of individual councillors and co-opted members to ensure that their own motor vehicle insurance policies provide appropriate cover for such use.

Top of Page