EIM67320 - Tax treatment of Parish and Community Council Clerks in England and Wales: assessment of payments to clerks

Strictly, the parish council (in Wales, Community Council) is responsible for operating PAYE on the remuneration paid to its Clerk. In practice, this is usually impractical as the only officer available to operate PAYE is the clerk himself.

As the amounts involved are small, the average annual remuneration including expenses is between £30 and £1,000, the Clerk commonly does not operate PAYE and payments are made in full. In all cases, the Clerk should include on his or her own tax returns, or otherwise declare to the Inspector, all payments made to him or her whether classed as salary or expenses. All these payments should be regarded as chargeable to tax and relief given for expenses claimed as appropriate.