EIM65800 - Tax treatment of local authority officials and employees: incidental appointments
Where the Clerk or other officer of a local authority enters into an arrangement with the authority, or is required by the terms of the appointment, to surrender to the authority fees receivable in respect of incidental appointments (for example as registration officer) any such fees should be excluded from liability to tax.
But the officer will be chargeable to tax on any part of the specific remuneration of any of the incidental appointments that is not surrendered. The amount chargeable to tax is subject to a deduction for any expenses borne by the officer provided they qualify for a deduction under the rules of Section 336 to 338 ITEPA 2003, in respect of that particular appointment (see EIM31600 onwards).