Where a councillor is reimbursed for additional household
expenses (heating, lighting, etc.) which are incurred in relation
to carrying out the duties of their employment at home, the amounts
involved will be disregarded when calculating NICs.
From 6 April 2003, in line with the tax treatment of the
reimbursement of such additional costs incurred under homeworking
arrangements, up to £2 per week can be disregarded without the
councillor being required to provide evidence of the additional
costs. This rate applied throughout the period to 5 April 2008.
From 6 April 2008 the rate was increased for both tax and NIC
purposes to £3 a week. In the event that a higher figure is
reimbursed, the councillor will have to prove that the higher
figure has actually been incurred, or that it is a reasonable
estimate of additional costs, before the amount can be disregarded.
See
NIM05648 for general guidance regarding
the treatment of expenses reimbursed to councillors.
