ALL PARTY NOTICES

COMMONWEALTH PARLIAMENTARY ASSOCIATION

Members of the Northern Ireland Assembly Branch of the Commonwealth Parliamentary Association may wish to note the visit of Hon Denis Marshall QSO, Secretary-General of the Commonwealth Parliamentary Association on Monday 8 April 2002. During his visit he will address a special meeting of the Northern Ireland Assembly Branch of the Commonwealth Parliamentary Association in the end Reading Room of the Library at 12.15 pm followed by lunch in the Private Dining Room.

ADVICE TO MEMBERS REGARDING THE REIMBURSEMENT
OF HOME TELEPHONE BILLS

At present Members may reclaim part of their home telephone bill against their Office Cost Allowance. The Inland Revenue has recently advised the Finance Office that, while reimbursement of a percentage of the cost of the calls is non taxable, the reimbursement of a percentage of the line rental is in fact a benefit in kind and Members should be taxed on this element of the reimbursement.

From 1 April 2002 therefore reimbursement of the line rental cost will be paid through salaries and thus taxed at source.

ADVICE TO MEMBERS REGARDING
THE WITHDRAWAL OF THE FIXED PROFIT CAR SCHEME

The Fixed Profit Car Scheme (FPCS) is an arrangement that is agreed between the employer and the Inland Revenue to establish the taxable profit arising from motor mileage allowances. The taxable profit is the excess of the mileage allowance over the 'tax free' amount set by the Inland Revenue. The advantage of the FPCS was that it reduced the need for employers and employees to keep records and it made it easier for any tax payable to be collected by adjustment to the employee's tax code.

As from 5 April 2002 the Fixed Profit Car Scheme will cease and will be replaced by a new statutory annual mileage rate (AMR) scheme that allows employers to pay certain mileage rates without tax and NIC becoming due. These are known as approved mileage allowance payments. The current rates that are paid to members exceed these approved rates and thus, as with the FPCS, a tax liability arises.

In the past the Finance Office has included the tax liability arising from the FPCS on the Member's P11D issued at the end of the financial year. As recommended by the Inland Revenue it is proposed to change this system so that any tax liability arising is deducted at source.

The Finance Office will pay the non-taxable element of the mileage allowance through the expenses system as at present and the taxable element of the allowance through the payroll system. (Members who live outside their constituencies are currently paid the taxable element of their mileage claims through the payroll system.) Members will claim as at present but a minor change will be required to the claim form. New forms will be available from the beginning of April 2002.

By administering the taxable element of the Members' mileage claims in this way it will mean that at the end of a financial year the members will not owe any money to the Inland Revenue as they currently do with the FPCS.

CHILDCARE ALLOWANCE SCHEME

The Assembly Commission recently reviewed Childcare provision in the Assembly and has agreed that the current scheme should continue to operate for MLAs and Secretariat staff during the 2002/03 financial year. The Commission also agreed to extend the upper age limit for children to 14.

Please note there is no need to reapply if you are already in receipt of the allowance under the current arrangements. A revised approval will issue to you shortly which will extend the allowance to the end of the next financial year (if appropriate). MLAs who wish to apply for the allowance under the revised terms and conditions, which come into effect from Monday 1 April 2002 should forward their applications to the Personnel Office as soon as possible. Any queries regarding the allowance should be addressed to Gail Anderson, Annexe C, Dundonald House (telephone [028 905] 25558).