beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

National Insurance Manual

Class 1 NICs: Expenses and allowances: Civic dignitaries' and Councillors’ allowances: Civic dignitaries’ entertainment expenses

However, if the payment is for a business function where the costs are supported by itemised bills, the amount can be excluded from NICs as a payment incurred in carrying out the employment. This will apply, for example, if the mayor has receipts for the amount spent on a business lunch hosted for visiting officials.