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HMRC internal manual

PAYE Manual

Employer records: employer types: councillors

Following an election a council must submit a completed form P46 / starter information or list for

  • Each newly elected councillor


  • Each re-elected councillor, who begins to receive taxable allowances, for whom the council does not have a code notification

The council must forward a completed form P45 / leaving information for each councillor receiving taxable allowances who stops holding office.

A councillor is given the choice between

  • Having PAYE operated normally on any attendance allowances received


  • Having tax deducted at basic rate from payments of attendance allowance, excluding any expenses allowance (extended by concession to the special responsibility allowances)

An option may be made after deductions under the normal PAYE procedure have begun.

Setting up a scheme

If you are required to set up a PAYE record note that

  • Records of councillors must be distinguishable from those of council employees
  • A separate employer reference is required
  • The scheme type is P
  • You must note the main reference for council employees as a Linked Scheme

Follow PAYE20136 for further guidance.

ELECT scheme

Do not confuse an employer reference set up for councillors with an employer record with an ELECT scheme type, which is required when councils or local authorities make payments to individuals in respect of electoral duties.

Further information is available at PAYE20105.