Previous HM Revenue & Customs (HMRC) guidance on the tax treatment of payments made by Parish Councils to their Clerks indicated that these payments could be made outside of a PAYE Scheme. HMRC has now issued new guidance on the tax treatment of parish clerks.

The document provides information and guidance regarding the employment status of Parish and Community Clerks for tax and NIC purposes and the operation of PAYE by Parish and Community Councils. Both English and Welsh language versions have been provided.

The Employment Income Manual entry mentioned in this document will be updated in March 2011 to reflect the correct position regarding this issue as set out within.