EIM65900 - Tax treatment of local government councillors and civic dignitaries: arrangement of guidance: ODPM guidance

The guidance on the taxation of local government councillors and civic dignitaries is arranged as follows.

EIM65920	Allowances councillors may receive
	Expenses deductions:
EIM65930	- general: provisional coding allowance
EIM65940	- - two places of work
EIM65950	- notes for guidance
PAYE23020	Issue of returns and operation of PAYE
EIM65955	Tax treatment of Local Government Councillors and civic dignitaries: expenses deductions: guidance note prepared by the Association of Local Councillors
EIM65960	Local Government Councillors and civic dignitaries in England: ODPM guidance: Part one: members’ allowances
EIM65970	Local Government Councillors and civic dignitaries in England: ODPM guidance: Part two: taxation of members’ allowances and expenses
NIM05640 onwards	Local Government Councillors and civic dignitaries in England: ODPM guidance: Part three: members’ allowances and National Insurance contributions

ODPM guidance (England only)

In July 2003 the Office of the Deputy Prime Minister (ODPM) issued a guidance note to Local Authorities in England explaining the income tax and National Insurance treatment of members’ allowances. The note is in 3 parts:

Part one: members’ allowances in England (see EIM65960)

Part two: taxation of members’ allowances and expenses (see EIM65970)

Part three: members’ allowances and National Insurance Contributions (see NIM05640 onwards).

The information in part one provides further useful background regarding the types of allowances that members may receive, and the circumstances in which they are paid.

The notes in Parts two and three were written in consultation with HMRC officials. They confirm and expand on the guidance at EIM65920 to EIM65950 (see table above). You may find it useful to refer to them if you become involved in correspondence about the tax or National Insurance treatment of allowances paid to members and civic dignitaries in England.

The ODPM guidance does not apply to Local Authorities in Scotland, Wales and Northern Ireland and you should not quote it when dealing with an Authority in any of those countries.

The ODPM guidance replaces guidance issued by the Department for the Environment, Transport and the Regions (DETR) in August 1997. That earlier guidance is reproduced at SE65960 onwards.