PAYE
PAYE for Clerks and RFO’s
PAYE Implementation
PAYE Implementation FAQ’s
Returning to Work Post Lockdown – Guest Blog
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Annual Leave and Covid – Guest Blog
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Pensions
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HMRC and PAYE
Clerks are officers and employees of the council so tax arrangements will need to be made by the council to ensure that it is compliant with HMRC.
PAYE and NIC
HMRC confirmed that the tax and National Insurance contributions of clerks and RFOs must be paid by the council as employer, under PAYE. Clerks and RFOs are office holders for the council and as such, cannot be self-employed. If the council is not already registered as an employer, then you can do that here.
HMRC offer a free piece of software called Basic PAYE Tools which can assist with making payments, although there may be other software available which may suit your needs better. Some councils also outsource their payroll to another organisation who can manage the PAYE for you.
A guide to PAYE implementation for clerks is available below for download.
Parish Council Clerks – PAYE implementation
Working from home
Where clerks are working from home, councils will need to be mindful of HMRC guidance on working from home payments; employers can reimburse employees for reasonable additional costs, including heating, lighting and water. Increased charges for internet access, home contents insurance or telephone calls can also be covered. However, the amounts paid are only tax exempt up to a certain figure (currently £6/week). For further guidance read the guide on payments for working from home below, supplied by The Parkinson Partnership.
Salaries
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Managing Staff
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Recruitment
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The Good Councillor’s Guide to Employment (2023)
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Employment
No matter what level of staffing your council needs it is important that you adhere to good employment practice, from recruitment, through support and development and beyond.
Local councils as employers
The Local Government Act 1972 section 112 gives local councils the powers to employ staff to enable it to carry out its statutory functions and powers. A council could employ people with a range of skills and these roles may include: clerk, financial officers, admin assistants, caretakers, groundsmen, village hall managers and more.
Local council staff will work regularly and directly with individual councillors, but it is the council (as a corporate body), not its councillors, that is the employer.
There are two officer roles which a council must appoint. Firstly, the ‘Proper Officer‘ (more commonly known as the Clerk). The proper officer has a number of statutory obligations such as summoning councillors to meetings, as well as the day-to-day administration of the council including tasks such as handling correspondence, preparing agendas and writing minutes, record keeping, handling complaints, managing projects and much more.
The other role a council must appoint is the ‘Responsible Financial Officer‘ (RFO). This role is often, but not always, also the proper officer. The RFO’s statutory obligations include signing the annual accounts of the council, but other financial administrative tasks will also include: supporting the council’s internal financial controls, preparing budgets and schedules for payment.
Guides
The Good Councillor’s guide to employment gives practical guidance on recruiting and managing employees effectively and in compliance with employment legislation.
NALC has a range of employment policy templates* on a number of different topics available on their website.
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