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Financial Loss
15. Financial Loss Allowance
15.1 The amount of financial loss payable to JPs in Scotland is significantly lower than the allowance that can be claimed by magistrates in England and Wales.
FINANCIAL LOSS ALLOWANCE |
|---|
MAGISTRATES (in England & Wales) | JUSTICES OF THE PEACE |
|---|
| Gross Rate | Net Rate | | Gross Rate | Net Rate |
|---|
Up to 4 hours | £56.63 | £45.30 | Up to 4 hours | £39.41 | £30.35 |
Over 4 hours | £113.26 | £90.61 | Over 4 hours | £78.82 | £60.69 |
16. Proposed Adjustment to Net Rate of Financial Loss Allowance
16.1 The current financial loss allowance rate for JPs who are employed on a PAYE basis is based on a previous basic rate of income tax of 23%, rather than the current rate of 20%. It is proposed to address this anomaly in the review. This would mean, for example, that if the current gross rates were to remain unaltered, the net rate of financial loss payable for employed JPs would increase to £31.53 for a period of absence of up to 4 hours, and £63.06 for over 4 hours.
17. Children's Panel Member Rates
17.1 Children's Panel Members are paid a financial loss allowance of £27.21 for periods of up to 4 hours, and £54.43 for longer periods. These are recommended maximum rates, however, and the actual level payable is at the discretion of the local authority.
18. HMCS Methodology
18.1 Financial loss allowance is paid in respect of:
- Loss of earnings or social security benefit incurred by a justice in the performance of his or her duties;
- A cost incurred by a justice to maintain their earnings; or
- A cost incurred by a justice in the performance of their duties.
18.2 To calculate financial loss allowance rates, HMCS uses the mean earnings for full-time UK employees as reported by the ONS, using data from the Annual Survey of Hours and Earnings ( ASHE).
Consultation Questions on Financial Loss Allowance
Q6 Do you agree it is appropriate to revise the rates for financial loss to use the 20% rate of income tax?
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