EIM71130 - Voluntary office holders: meaning of reasonable: examples

Example 1

Vincent volunteers as the treasurer for a local charity. As his role exists regardless of who occupies it at any one time, he is an office holder and would be chargeable to tax on any reward he might receive for performing the duties of that role. Vincent undertakes most of the duties of his voluntary office from home. The charity offers Vincent a payment of £6 per week in respect of the additional costs of using his home based on the amount for employees who work from home. This is a reasonable reimbursement of the additional private costs incurred as a result of Vincent being a voluntary office holder. Any payment in this sum would also be exempted under the homeworking deductions rules. See EIM01476.

The charity also offers to reimburse Vincent for the cost of his domestic broadband to cover the cost of his internet use in research for potential fundraising opportunities and emails. As Vincent’s existing domestic broadband contract is for an unlimited use of the internet, he incurs no additional expense as a result of performing the duties of his voluntary office from home. Any payment or reimbursement from the charity would not be the reimbursement of reasonable costs attributable to his role as a voluntary office holder.

Example 2

Victor is the chairperson for a local charity. His role is voluntary, and he receives no pay or reward. Victor often incurs costs in respect of stationary and postage in relation to his duties, and occasionally attends meetings to represent the charity at national events which sometimes involve overnight stays away from his home. The charity reimburses Victor his stationary, postage, travel, accommodation and meal costs. These are reasonable reimbursements of the expenses that Victor has incurred in relation to the duties of his voluntary role.

Example 3

Vesta holds a voluntary office as a Special Constable. As a result of a Royal visit to the area Vesta normally performs her duties in, Vesta is required to be on duty for a number of additional hours and as a result incurs additional childcare costs. The reimbursement of these costs by the Constabulary is a reasonable reimbursement of costs attributable to her holding her voluntary office.

Example 4

Viola volunteers as a Magistrate at her local magistrate’s court. Viola is a voluntary office holder. Viola volunteers as a magistrate for an average one day each week. If the court agrees to pay or reimburse her total weekly childcare costs the payment or reimbursement is not a reasonable reimbursement of Viola’s additional private expenses arising as a result of holding the voluntary position. Reimbursement of the childcare costs Viola incurs in relation to the days when she is undertaking her role as a magistrate would be reasonable and within the scope of the exemption.

Example 5

Vikram is a solicitor and the chairperson of his local amateur sports club. The club is set up as a charity and as chairperson Vikram holds a voluntary office. In his role as chairperson Vikram attends a number of business meetings each year to discuss sponsorship arrangements for the sports club and meetings with the sport’s governing body. If the sports club offers Vikram payment or reimbursement for the costs Vikram incurs in paying for a business suit these costs are not reasonable additional costs attributable to Vikram’s role as chairman of the sports club. Vikram regularly attends business meetings in his professional role as a solicitor and incurs no additional costs in purchasing or owning a business suit for use in his voluntary position.

Example 6

Valtteri is the secretary for a local charitable trust. He is a voluntary office holder. As a keen gardener, Valterri agrees to open his garden to the public with donations going to the trust. In preparation for his open garden event Valterri engages a local tree surgeon to trim some of the trees in his garden and the trust offers to reimburse him a proportion of the cost. This is not a reasonable reimbursement of an additional cost attributable to Valterri being a voluntary office holder.