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LOC Payments


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.


HMRC guidance makes clear that the posts of chair, vice chair, treasurer and secretary are office holders and therefore the payments they receive for attending meetings etc are subject to the deduction of PAYE and NIC.

Other LOC committee members are not deemed to be office holders and can therefore be paid gross for attending meetings etc, but such remuneration needs to be included on their annual tax returns and taxed accordingly as income from self-employment. It is advisable for the LOC to inform LOC members of this in writing.

If the services or the individuals involved are provided by the companies that employ them eg. website services, then the remuneration can be paid gross to the companies and taxed accordingly as part of the income of the companies. However, when invoicing such remuneration, the companies are likely to be VAT registered and will have to charge VAT on the remuneration.

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.