The BGS Finance Committee has determined that "ex-gratia payments to volunteers who provide administrative support in furthering Society activities is acceptable". (BGS Finance Committee meeting 7 October 2004 - Minute F04/23 (iii).

The above resolution was ratified by the United Kingdom Management Committee (UKMC) on 11 November 2004 and there will be an annual review requiring a fresh UKMC resolution each year.

Although such payments may only be a token rather than a commercial fee, they are still "earnings" under S131 (1) of ICTA 1988 and as such are liable for tax. It is imperative that the British Geriatrics Society complies fully with the Inland Revenue, the Charity Commission and company legislation. As a result, while ex-gratia payments have been agreed in principle, it is vital that the following procedures need to be observed:-

Who may apply (download an application form here)

Trustees
No ex-gratia payments are to be made for the secretarial support of British Geriatrics Society trustees. Trustees, and particularly officers, are deemed to have sufficient resources to cope with the demands, and rewards, of their role.

National Councils
Steps need to be taken by national treasurers to ensure compliance with local legislation. Any ex-gratia payments made will be deducted from the amount received annually from BGS Head Office.

SIGs, Sections and Regions
Ex-gratia payments may be made and will be deducted from the relevant SIG, Section or Region funds.

Note: NO payments will be made to relatives or partners of BGS members.

How to apply
As ex-gratia payments are treated as earnings, they must all be processed through the BGS PAYE system. The following information needs to be provided to Susan Cox at Marjory Warren House:-

• Full name
• Address
• Date of birth
• National Insurance number
• Amount to be paid

The amount of PAYE due on the ex-gratia payment can then be calculated and remitted to the Inland Revenue. The person receiving the ex-gratia payment will receive a P60 at the end of April each year showing the amount they received and the PAYE paid on it. They will not be liable to any further PAYE on the ex-gratia payment. An amount equal to the PAYE plus the ex-gratia payment will be deducted from the relevant SIG, Section, Region or National Council’s funds.

A simple application form (downloadable here) needs to be completed by the applicant and MUST be authorised by the relevant Chair of the SIG/ section/region/national Council. Failure to adhere to this will result in delay.

Limits
There are no limits on the amount payable but it should be remembered that such payments are 'token' rather than a commercial fee. The SIG, section, region, or national Council wishing to make such payments must have sufficient funds to cover the ex-gratia payment and the PAYE due on it. If there are insufficient funds available, no payment will be made.

Any request for payment in excess of £500 per individual per year will be passed to the Finance Committee for approval before payment is made.

Susan Cox, BGS Accountant
Alex Mair, BGS Chief Executive