Allowances
LOC officers and committee members should be paid for the work they do on behalf of the LOC. LOCs can reimburse bona fide costs incurred by LOC members when attending day meetings on LOC business. In addition, LOC members may claim reasonable travelling and subsistence costs incurred in attending meetings on behalf of the LOC. Most LOCs also pay a small attendance allowance for attending LOC meetings.
Honoraria payments can be made to the LOC officers (chair, secretary, treasurer) and the amount is based on the level of activity in the LOC.
Taxation
LOCSU organised central professional legal and financial advice on PAYE at the request of and to support LOCs. An FAQ document can be found here.
PAYE applies automatically to payments to office holders or employees, including honoraria. There is a “grey” area on whether a junior committee member is an office holder in the same way as office holders and so LOCs need to determine the status of committee members and every LOC should:
- complete the 2-page checklist provided by LOCSU to check employment status of all Committee members and taxation status check of all office holders.
- Undertake a taxation status check for all office holders and employees (CEST tool)
- The risk-free option is to regard all committee members as office holders and to apply PAYE to all payments to committee members.
All the LOCSU PAYE resources can be found in the members area on our website here.
PAYE (Payroll)
At the request of LOCs, LOCSU provides payroll services for LOCs who pay the LOCSU levy. All the LOCSU PAYE resources can be found in the members area on our website here
The payroll service is provided by Locumkit who liaise directly with LOCs.
If you would like more information on the payroll service, please contact info@locsu.co.uk
Mileage Rates
HM Revenue & Customs have set a maximum reimbursement rate for car mileage of 45 pence per mile in order that the payment may be tax free. This covers up to 10,000 miles in any tax year.