SE65865 - Tax treatment of local authority officials and employees: other benefits and allowances

Other benefits and allowances may be provided but, as they may vary in scope and amount from authority to authority, it is hard to generalise about them. Tax offices should obtain from local authorities for which they are Paying Office District details of the nature, scope and amount of other benefits and payments, and of any changes to them.

The most common payments are probably meal allowances ( SE01530) and allowances to meet all or part of telephone expenses ( SE07800). Meal allowances are regarded as chargeable under Section 19(1)1 ICTA 1988 for all employees irrespective of their rate of pay. Allowances in respect of telephone expenses can give rise to liability on all employees or only on employees with emoluments at a rate of £8,500 a year or more depending on the circumstances of payment.

The local authority should be

• advised to operate PAYE, or
• advised to record the expenses and benefits but not to operate PAYE ( SE30051 and paragraph F81 of the Employer's Guide to PAYE ), or
• issued with a dispensation ( SE30051 onwards) as appropriate.