Tribunal Lay Member Fees and Allowances: Tax Treatment in 2026/27
Lay members and panel members sitting on employment tribunals or other statutory panels are paid a daily fee, not a salary. How HMRC and HMCTS treat this fee income in 2026/27.
Quick answer
Sitting as a lay member on an employment tribunal or similar statutory panel is paid work, not volunteering — the daily fee is taxable income, usually processed through HMCTS's own PAYE system, separately from expense reimbursement for travel and subsistence, which remains tax-free.
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Income tax calculatorFee income versus expense reimbursement
HMRC and HMCTS draw a clear line between the two elements of a lay member's pay:
- Daily sitting fee — taxable, because it compensates for the member's time and service on the panel.
- Travel and subsistence — not taxable, because it simply reimburses actual costs of attending.
This mirrors how expenses work for any other paid role: the pay itself is taxed, genuine cost recovery isn't.
How the fee is usually taxed
Most fee-paid judicial and tribunal office-holders receive their fee under a dedicated HMCTS PAYE arrangement, complete with a payslip showing tax and National Insurance deducted and an annual P60. This is distinct from being genuinely self-employed — the £1,000 trading allowance and Self Assessment trading pages generally don't apply to this income, because it isn't trading income in HMRC's eyes.
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Self-employed tax calculatorCombining with a main job
If you hold a main job alongside a lay member appointment, you effectively have two PAYE income sources. Your Personal Allowance is normally set against one (typically your main employment), with the other taxed from the first pound — check both tax codes via your Personal Tax Account to make sure the split is correct, especially in the year the appointment starts or ends.
uk-tax-codes-explained-2026What if you're self-employed generally?
A self-employed person who also sits as a lay member should keep the two income streams separate: the tribunal fee is taxed under its own PAYE arrangement (or via a specific Self Assessment entry if that applies to the appointment), and shouldn't be blended into the trading income or expenses of your own separate business.
Bottom line
Fee-paid tribunal and panel appointments are genuinely paid roles for tax purposes, not volunteering — expect tax and National Insurance deducted from the sitting fee itself, with only the travel and subsistence element staying outside the tax system.
Sources
- GOV.UK: Judicial and tribunal appointments
- HMRC: PAYE for employers
Frequently asked questions
Is a tribunal lay member's daily fee taxable?
Yes. Unlike expense reimbursement, the daily sitting fee paid to lay members and panel members is taxable income, because it's compensation for time and service, not simply a recovery of costs incurred.
How is the fee normally taxed — through PAYE or Self Assessment?
It depends on the specific appointment. Many fee-paid judicial and tribunal office-holders are taxed under PAYE by HMCTS directly, receiving a payslip and a P60, while others may need to declare fee income via Self Assessment — check the specific terms of the appointment letter.
Does sitting as a lay member affect my main employment's tax code?
It can. If the fee income is taxed under a separate PAYE reference, your Personal Allowance may need to be allocated correctly between your main job and the tribunal fee income, similar to having two employers, to avoid an incorrect tax code on either source.
Are travel expenses to attend hearings taxable?
No — genuine travel and subsistence expenses reimbursed for attending hearings are treated as expense recovery, not income, and are not taxable, separately from the taxable daily fee itself.
Does the fee count towards the £1,000 trading allowance?
Generally no — the trading allowance applies to genuinely self-employed trading income, not fee-paid judicial or quasi-judicial office-holder income, which HMRC and HMCTS typically treat as employment-like income under its own PAYE arrangements rather than a trade.
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