PAYE70270 - PAYE operation: specific employments: part time public appointments
Ceasing of the special arrangement from 6 April 2019
Prior to 6 April 2019 payments for travel and subsistence
Prior to 6 April 2019 travel and subsistence payments - special arrangement letter of invitation
Prior to 6 April 2019 travel and subsistence payments - agreement to special arrangement
Ceasing of the special arrangement from 6 April 2019
The Special Arrangements for Part Time Officer Holders set out below will cease from the 6 April 2019 and will no longer be available.
This will mean any payments made to the part time Office Holders in respect of travel and subsistence payments from this date will have to be paid through the payroll to account for the tax and National Insurance due.
There is still the option for you to account for the tax and National Insurance due by grossing up the payments through the payroll.
Further information on grossing up payments can be found on the gov.uk website, see guaranteed take home pay
Or if you require further assistance, you can contact the employer helpline. Information on how to contact the employer helpline.
Prior to 6 April 2019 payments for travel and subsistence
As part of the terms of a part time appointment, government departments and public bodies often paid
- The expense of travel between the office holder's home and the usual place where duties are performed - more information is at EIM32065
- A subsistence allowance for periods spent there
Special arrangement
Office holders were often invited to enter into an agreement whereby the payer accounts for tax on payments towards travel and subsistence. These expenses payments were then
- Not treated as pay for tax deduction purposes
- Not included on the Deductions Working Sheet of the individual
- Not included by the individual as expenses payments on tax returns
So the tax deducted under these arrangements cannot be repaid.
The government department or public body that makes the payments, invited the office holder to agree to the special arrangement by
- Writing a letter of invitation to the office holder (see below)
- Sending it with a blank letter of agreement (see below)
The office holder agreed the arrangements by completing the letter of agreement and returning it to the payer.
It is then sent by the payer to the Demand Led Customer Coordinator Team in Bristol (NHS, Government Departments and Police Authorities only).
A copy of the signed letter should be filed in the Demand Led Customer Coordinator file.
If an agreement is given in a different form, refer it to the Demand Led Customer Coordinator Team in Bristol (NHS, Government Departments and Police).
Accounting arrangements
The accounting arrangements for these special arrangements are made centrally by the Demand Led Customer Coordinator Team in Bristol. The tax is at a composite rate calculated from a review of a sample of office holders. KAI will ask for information about selected office holders.
Office holder does not agree or revokes the arrangement
Where agreement is not given, PAYE will be operated on taxable payments of travelling and subsistence expenses.
The Demand Led Customer Coordinator Team in Bristol will advise on the arrangements to be adopted if an agreement is revoked.
Prior to 6 April 2019 travel and subsistence payments - special arrangement letter of invitation
Description of part-time office:
Payments of travelling and subsistence expenses: Income Tax
1. Payments we make to you for travelling to and from the place where you normally carry out the duties of your office and for staying there, are taxable
2. Our intention is that the amount you receive for travelling, subsistence and so on in these circumstances should be equivalent to the amount you actually spend. So we have entered into special arrangements with HM Revenue & Customs (HMRC) which mean we can effectively pay the tax on your behalf. We do this by paying tax to HMRC at a special rate.
3. If you wish to participate in these arrangements you will need to sign an agreement with HMRC. The agreement would be that the travelling, subsistence and other expenses paid to you which come within its scope would not form part of your income for tax purposes. This would mean that:
- You would have no tax to pay on these expenses
- You would not be able to reclaim the tax we have paid on your behalf
4. The terms of this agreement are set out in the attached letter. If you decide to accept them please complete the letter and return it to our address printed above. We will then send it on to HMRC on your behalf.
5. If you do not wish to enter into this agreement with HMRC, we shall operate PAYE on these expenses in the same way as we operate PAYE on the fees paid to you.
Prior to 6 April 2019 travel and subsistence payments - agreement to special arrangement
Letter of agreement.
Demand Led Customer Coordinator Team
S0927
Newcastle
NE98 1ZZ
I am writing to let you know that:
a.
I wish to have the tax due on travelling and subsistence expenses I receive together with any further liability arising as a consequence of entering this agreement paid by [enter name of payer]
b.
I understand that I will not be entitled to receive repayment of the tax paid on my behalf in any circumstances
c.
I will write to let you know if I wish to withdraw from this agreement. I understand that in those circumstances the agreement will cease from 6 April following your letter to me confirming your agreement to my withdrawal
Signed:
Date:
Name (in block capitals):
National Insurance number:
Address: