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Remuneration for becoming a board member of a registered charity

Lyn Davey
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Joined: 22 June 2010

I am hoping for some definitive guidance on this issue so would be pleased to have any and all views on the subject.

If someone is remunerated by £x amount per year for services as a board member, on a contract with the payment being administered on a monthly basis via payroll and subject to tax and NI as appropriate to the individual, can this ever be treated as anything other than earnings? Expenses for attending meetings etc will be paid separately.

I cannot find anything in the regs to indicate it should be treated any differently and I think the PS are likely to treat it as earnings from the first instance but would like to know if anyone has any suggestions as to how we could argue the case for appeal against it being treated as such if possible.

Or, does anyone have any ideas about how the manner in which the remuneration is paid could be changed to a more preferential way - a yearly one off ex gratia payment for example - so that payment of it does not wipe out entitlement to Pension Credit and the associated benefits and therefore prove a disincentive to tenants of a Housing Association applying for and filling the post of tenant board member?

Thanks in advance for any help/info

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Welfare rights adviser - Sefton Council, Liverpool

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Joined: 16 June 2010

Class 1 and class 2 contributions are paid on employed earners or self imployed earnings and it would be highly unlikely that his income would not be treated as earnings.