FINANCIAL SERVICES – PAYROLL and BENEFITS
April 2011
TO:
DISTRICT/CIRCUIT STEWARDS/TREASURERS
TAXATION DICTIONARY
This Taxation Dictionary is a set of notes on the tax treatment of a
number of topics, put together chiefly with Methodist ministers (i.e.
presbyters, deacons and probationers) in mind. We have attempted to
make this a comprehensive set of guidance notes on tax issues, although
it will need to be amended from time to time for additions, and also in the
light of any changes indicated to us by H M Revenue & Customs.
At the front there are two indices, one categorised by type of expenditure
with accompanying section coding, the other in alphabetical order with
the section code as a cross-reference.
If you have the Dictionary as an A5 set, it is suggested that an A5 Loose
Leaf Folder is created that will readily accommodate revisions and
additions. It is intended that a copy should be made for each person in
your circuit who might benefit from its use. Please liaise at circuit level
to ensure that this is distributed effectively. Alternatively this document
may be sent as an attachment to anyone making an e-mail request to
Stipends@methodistchurch.org.uk.
Please note that wherever reference is made to ‘minister’ this is to include
all such persons for whom a Form P11D must be completed and/or is in
receipt of payment through the central stipends system.
If you have any queries please do not hesitate to raise them with us at the
Payroll and Benefits Section, and we shall do our best to answer them.
With best wishes
PHILIP BEDFORD-SMITH
Manager, Benefits
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
TAXATION DICTIONARY
FINANCIAL SERVICES – PAYROLL & BENEFITS
April 2011
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
What is a P11D?
It is an annual declaration by an “employer” of taxable
benefits that need to be declared on a Tax Return.
For whom should a Form P11D be completed ?
No declaration on the Form P11D is required for the
following categories of persons:
(a) Those whose total emoluments are less than £8,500 per
annum.
(Total emoluments are defined as the sum of stipend/salary, taxable
allowances, taxable benefits, and reimbursed taxable expenses.)
Where a person is paid for only part of the tax year then the total
emoluments need to be annualised to see if the total paid is less than
£8,500 p.a.
Where the person is reimbursed expenses or paid preaching fees only, e.g.
supernumeraries or non-stipendiary ministers, then no P11D is required.
(b) Non-stipendiary/non-salaried persons
No declaration is required on Form P11D for these persons. For the
purposes of H M Revenue & Customs reporting they are not regarded as
“employees”.
If expenses or fees are paid (and where possible this should be in line
with the minimum rates set by Conference), it is the responsibility of the
recipient to declare any income received for taxation purposes.
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
INDEX by Code
Code Ref.
Category of Expenditure
0100
Business Expenses
0101
0102
0103
0104
0105
0110
0111
0120
0121
0130
0131
0140
0141
Stationery
Photocopying
Postage
Books
Computer Supplies
Clerical Clothing
Communion Wine
Entertaining – Business
Entertaining – Social
Travel – Private Transport
Travel – Public Transport
Training Courses
Training Materials
0200
Business Equipment
0201
0202
0203
Computers (amended 2008)
Faxes
Telephones (amended 2011)
4
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
INDEX by Code
Code Ref.
Category of Expenditure
0300
Accommodation
0301
0302
0303
0304
0305
0310
0311
0312
0320
0321
Provision of a Manse (amended 2005)
Building Insurance
Council Tax
Water Rates
Garaging
Garden Maintenance – General
Garden Maintenance – Specific
Garden Equipment
Building – Extensions
Building – Security
0400
Furniture and Furnishings
0401
0402
0410
0420
0421
Furniture – Study
Furniture – Other
Curtains and Blinds
Floor Covering – Carpets (amended 2003)
Floor Covering – Other
5
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
INDEX by Code
Code Ref.
Category of Expenditure
0500
Fixtures and Fittings
0501
0502
0510
0511
0520
0530
0531
0540
Kitchen Units
Kitchen Appliances
Bathroom Units
Bathroom Appliances
Other Units – Storage (including
wardrobes)
Other Fixtures – Heating
Other Fixtures – Lighting
Other Appliances
0600
Repairs and Maintenance
0601
0610
0611
0620
0621
0622
0630
0631
0640
Structural Repairs (amended 2003)
Heating and Lighting
Plumbing
Appliances – Kitchen
Appliances – Bathroom
Appliances – Other
Decoration – External
Decoration – Internal (amended 2003)
Cleaning
6
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
INDEX by Code
Code Ref.
Category of Expenditure
0700
Other Expenditure
0701
0702
0710
0711
0712
0713
Gifts – Received
Gifts – Made
Expenses – Removals (amended 2011)
Expenses – Sabbaticals
Expenses – Motor Vehicles
Expenses – Security
0800
Grants/Loans
0801
Grants – Methodist Medical Benevolent
Fund (formerly Invalid Ministers Rest Fund)
Grants – Methodist Ministers’ Children’s
Fund (amended 2008)
Grants – Methodist Ministers’ Children’s
Relief Association
Grants – Auxiliary Fund (amended 2007)
Grants – Connexional Travel Fund
Grants – Initial Grants
Loans – Initial Loans
Loans – Other
0802
0803
0804
0805
0806
0810
0811
7
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
Alphabetical INDEX
Type of Expenditure
Code Ref.
Auxiliary Fund Grants
Bathroom Units
Books
Blinds
Building Extensions
Building Insurance
Burglar Alarm
Cable Television (line rental)
Car
Carpets
Central Heating Maintenance
Christmas Gifts
Cleaning
Clerical Clothing
Clothes Dryer
Communion Wine
Computers
Computer Supplies
Connexional Travel Fund Grants
Conservatory
Cooker
Council Tax
Curtains and Blinds
Decoration – External
Decoration – Internal
Dishwasher
DIY Equipment
Entertaining – Business
Entertaining – Social
External Decoration
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0804
0510
0104
0410
0320
0302
0321
0203
0712
0420
0610
0701
0640
0110
0502
0111
0201
0105
0805
0320
0502
0303
0410
0630
0631
0502
0540
0120
0121
0630
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
Alphabetical INDEX
Type of Expenditure
Code Ref.
Fitted Storage Units (including wardrobes)
Fixed Fires
Freezer
Fridge/Freezer
Garaging
Garden Equipment
General Garden Maintenance
Gifts – Made
Gifts – Received
Initial Grants
Initial Loans
Internal Decoration
Invalid Ministers' Rest Fund Grants – see MMBF
Kitchen Appliances
Kitchen Appliances Repairs
Kitchen Units
Leaving Gifts
Loans – Initial
Loans (other than Initial Loans)
Manse (Provision of)
Metered Water
Methodist Medical Benevolent Fund
Methodist Ministers' Children's Fund - Trinity Hall
Grants
Methodist Ministers' Children’s Relief Association
Grants
Microwave Cooker
Mileage Reimbursement
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0520
0530
0502
0502
0305
0312
0310
0702
0701
0806
0810
0631
0801
0502
0620
0501
0701
0810
0811
0301
0304
0801
0802
0803
0502
0130
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
Alphabetical INDEX
Type of Expenditure
Code Ref.
Mobile Telephones
Other Furniture
Parking
Personal Alarm
Photocopying
Plumbing
Postage
Refrigerator
Removal Expenses
Repairs and Maintenance – Car
Sabbatical Expenses
Security Equipment – Personal
Security Equipment – Building
Specific Garden Maintenance
Stationery
Structural Repairs
Study Furniture
Telephones
Train Fares
Training Courses
Training Materials
Travel - Private Transport
Travel - Public Transport
Tree Lopping
Vacuum Cleaner
Window Cleaning
Washing Machine
Water Rates
0203
0402
0131
0713
0102
0611
0103
0502
0710
0712
0711
0713
0321
0311
0101
0601
0401
0203
0131
0140
0141
0130
0131
0311
0540
0640
0502
0304
10
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
STATIONERY
0101
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed expenditure for business use only.
Any central supply of stationery, i.e. the district/circuit/church purchases
and/or holds a stock of stationery, and the minister is supplied from the
central stock.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of stationery purchases
for personal use. Stationery is an allowable expense for business if used
for business purposes.
It is possible to claim tax relief also for any direct purchase of stationery
that is used for business purposes and not reimbursed by the
district/circuit/church.
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
STATIONERY
0101
NOTES
Provided that the minister claims only business expenses and/or
reimburses the district/circuit/church for the portion of any personal
use/benefit arising from this purchase/supply, then there is no taxable
benefit.
In such a situation there will be no requirement to make a tax declaration
by the district/circuit/church or minister.
See Dispensation Notice (Postage, Stationery & Sundry Business
Expenses)
12
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
PHOTOCOPYING
0102
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed expenditure for business use only.
Any photocopying undertaken or paid for directly by the
district/circuit/church.
Any direct purchase made by a minister from a photocopy print shop with
which the district/circuit/church has a business account. The
district/circuit/church meets the charge on the account and has the right to
demand payment from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of photocopying
charges for personal use. Photocopying is an allowable expense for
business if used for business purposes.
It is possible to claim tax relief also for any direct purchase of
photocopying services that are used for business purposes and not
reimbursed by the district/circuit/church.
13
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
PHOTOCOPYING
0102
NOTES
Provided that the minister claims only business expenses and/or
reimburses the district/circuit/church for the portion of any personal
use/benefit arising from this purchase/supply, then there is no taxable
benefit.
In such a situation there will be no requirement to make a tax declaration
by the district/circuit/church or minister.
See Dispensation Notice (Postage, Stationery & Sundry Business
Expenses)
14
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
POSTAGE
0103
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed expenditure for business use only. Any central supply of
postage items, i.e. the district/circuit/church purchases and/or holds a
stock of stamps and other postage materials, and the minister is supplied
from the central stock.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of postage items
purchased for personal use. Postage is an allowable expense for business
if used for business purposes.
It is possible to claim tax relief also for any direct purchase of postage
items that are used for business purposes and not reimbursed by the
district/circuit/church.
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
POSTAGE
0103
NOTES
Provided that the minister claims only business expenses and/or
reimburses the district/circuit/church for the portion of any personal
use/benefit arising from this purchase/supply, then there is no taxable
benefit.
In such a situation there will be no requirement to make a tax declaration
by the district/circuit/church or minister.
See Dispensation Notice (Postage, Stationery & Sundry Business
Expenses)
16
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
0104
BOOKS
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
Any reimbursed expenditure for business use in excess of £100 that is not
supported by receipts.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed expenditure for business use supported by receipts.
Any central supply of books, i.e. the district/circuit/church purchases
and/or holds a stock of books, and the minister is supplied from the
central stock.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of books purchased for
personal use or for business use in excess of £100 where receipts are not
provided.
A section 332 claim can be made. When the Revenue examines this,
claims for less than £100 will be allowed in full.
Claims in excess of £100 will only be allowed if supported by receipts.
It is possible to claim tax relief also for any direct purchase of books that
are used for business purposes and not reimbursed by the
district/circuit/church. The same rule applies with regard to receipts.
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
0104
BOOKS
NOTES
The Revenue will allow the first £100 of “business” books in any one
year without the provision of receipts.
Any expenditure in excess of £100 that is unsupported by receipts will be
regarded as a taxable benefit.
See Dispensation Notice (Books and Publications)
18
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
COMPUTER SUPPLIES
0105
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed business expenditure.
Any central supply of computer supplies, i.e. the district/circuit/church
purchases and/or holds a stock of computer supplies, e.g. print paper,
print cartridges, computer software etc, and the minister is supplied from
the central stock.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of computer supplies
purchased for personal use. Computer supplies are an allowable expense
for business if used for business purposes.
It is possible to claim tax relief also for any direct purchase of computer
supplies that are used for business purposes and not reimbursed by the
district/circuit/church.
19
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
COMPUTER SUPPLIES
0105
NOTES
Provided that the minister claims only business expenses and/or
reimburses the district/circuit/church for the portion of any personal
use/benefit arising from this purchase/supply, then there is no taxable
benefit.
In such a situation there will be no requirement to make a tax declaration
by the district/circuit/church or minister.
See Dispensation Notice (Postage, Stationery & Sundry Business
Expenses)
20
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
CLERICAL CLOTHING
0110
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for “distinctive clothing” (See notes on next
page) must be declared. This includes items that are paid for by an
advance on expenses, i.e. the minister is given cash by the
district/circuit/church office and submits the receipts after purchase. This
would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for normal
every day clothing, including waterproof cloaks.
TO BE EXCLUDED FROM FORM P11D
Any central supply of clerical clothing, i.e. the district/circuit/church
purchases and/or holds a stock of clerical clothing, e.g. ceremonial
robes/cloaks. The minister is supplied from the central stock.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of clerical clothing
purchased which can be regarded as for normal every day use. Clerical
clothing is an allowable expense for ministers of religion if used for
ministerial purposes. This includes robes, cloaks (other than waterproof),
and stoles for both males and females.
It is possible to claim tax relief also for any direct purchase of clerical
clothing that is used for business purposes and not reimbursed by the
district/circuit/church. This excludes common dress wear.
21
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
CLERICAL CLOTHING
0110
NOTES
Allowable clerical clothing includes cloaks (male and female) but
excludes waterproof cloaks.
“Distinctive clothing” (the term used in the Revenue dispensation)
includes clerical shirts and collars, which are regarded by the Revenue as
normal everyday wear, and therefore not allowable.
See Dispensation Notice (Clerical Clothing)
22
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
COMMUNION WINE
0111
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any central supply of communion wine, i.e. the district/circuit/church
purchases and/or holds a stock of communion wine, and the minister is
supplied from the central stock.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of communion wine
purchased for personal use. Communion wine is an allowable expense
for ministers of religion if used for ministerial purposes.
It is possible to claim tax relief also for any direct purchase of
communion wine that is used for ministerial purposes and not reimbursed
by the district/circuit/church.
23
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
COMMUNION WINE
0111
NOTES
Personal use is probably quite rare for most ministers.
It could include communion wine purchased with the church wine but to
be used on a privately organised pilgrimage that is separate to the work of
the church. If, however, there is any income accruing from the
pilgrimage or other private venture then the cost of the wine could be
offset against this “business” income.
24
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
ENTERTAINING – BUSINESS
0120
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure relating to personal entertaining or nonbusiness entertaining must be declared (see Note on reverse). This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase. This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any reimbursed entertaining expenses for business use.
Any central supply of consumables for allowable entertaining, e.g. food
and drink, disposable cutlery/plates, paper napkins, i.e. the
district/circuit/church purchases and/or holds a stock of consumables, and
the minister is supplied from the central stock.
Any direct purchase of allowable entertaining consumables made by a
minister from a supplier with whom the district/circuit/church has a
business account. The district/circuit/church meets the charge on the
account and has the right to demand payment from the minister for any
items not deemed “essential”.
Allowable entertaining includes functions/meetings/events held for fellow
ministers of religion or district/circuit/church officials. Also allowed is
any event for members of the church for religious purposes, e.g. prayer
meetings, pre-confirmation classes where refreshments are provided.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of expenses relating to
personal use or non-business entertaining.
It is possible to claim tax relief also for any direct purchase of allowable
entertaining consumables.
25
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
ENTERTAINING BUSINESS
0120
NOTES
It is tax allowable to entertain colleagues, church officers and members or
the public who are attending a religious gathering. This could include
services, confirmation classes, pre-wedding discussions, Bible studies etc.
This would not include a ‘Strawberry Tea’, anniversary party etc. where
there is no religious content but the event is organised as a social event.
If refreshments are provided directly by the district/circuit/church on such
occasions then there is no taxable benefit and no declaration is required
for tax.
See Dispensation Notice (Entertainment)
26
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
ENTERTAINING – SOCIAL
0121
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the circuit/church office and submits the receipts after purchase. This
would include the use of petty cash.
All direct purchases made by the district/circuit/church or central supply
of non-allowable entertaining consumables. Non-allowable entertaining
relates to any social event held for members of the church who are not
fellow ministers of religion or district/circuit/church officers. Events to
be included here are those that are organised by the minister as private
events rather than organised by or on behalf of the church.
TO BE EXCLUDED FROM FORM P11D
Any allowable entertaining that includes functions/meetings/events held
for fellow ministers of religion or district/circuit/church officials. Also
allowed is any event for members of the church for religious purposes,
e.g. services, prayer meetings, pre-confirmation classes where
refreshments are provided.
Any central supply of consumables for allowable entertaining, e.g. food
and drink, disposable cutlery/plates, paper napkins, i.e. the
district/circuit/church purchases and/or holds a stock of consumables, and
the minister is supplied from the central stock.
Any direct purchase of allowable entertaining consumables made by a
minister from a supplier with whom the district/circuit/church has a
business account. The district/circuit/church meets the charge on the
account and has the right to demand payment from the minister for any
items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of expenses and claim
tax relief for the appropriate amount of allowable entertaining expense
only. It is possible to claim tax relief also for any direct purchase of
allowable entertaining consumables.
27
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
ENTERTAINING SOCIAL
0121
NOTES
Social Entertaining is defined as occasions where there is no religious
content/purpose to the gathering.
Any reimbursed expenditure is tax declarable.
Any supply of refreshments to the minister who is responsible for
organising the social occasion is tax declarable.
However, if the event is organised by the district/circuit/church, but the
minister purely attends, and refreshments are supplied directly to the
function by the district/circuit/church then there is no tax declaration
required.
See Dispensation Notice (Entertainment)
28
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAVEL – PRIVATE TRANSPORT
0130
TO BE INCLUDED ON FORM P11D
Any expenses met directly by the district/circuit/church in relation to
transport costs such as petrol, car maintenance, insurance.
Any reimbursed mileage if this is not at a rate within the Revenue
approved mileage payment rates (AMAP’s).
Reimbursed mileage at the AMAP rates if this is combined with some
other method of recovering travel costs.
TO BE EXCLUDED FROM FORM P11D
Any reimbursement of travel using the Revenue approved mileage
payments (AMAP’s), if this is the only basis for recovery of travel costs.
This means that no other scale rate charge for mileage reimbursement is
used and no other expenses are met or reimbursed for car insurance,
repairs and maintenance etc.
SELF-ASSESSMENT TAX RETURN
If any system other than the AMAP rates for recovery of travel cost is
used or a combination of the AMAP rates and some other method then
the following is required :
Declare any reimbursed income.
Claim tax relief according to the % of business use made of the transport,
i.e. claim the calculated % of motoring costs incurred for petrol, car
maintenance, insurance, road tax etc.
(See Briefing Note BN0130 for further guidance)
29
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAVEL – PRIVATE TRANSPORT
0130
NOTES
If actual mileage is reimbursed at the Revenue approved rates no
declaration for tax is required.
However, if any other method of reimbursement is used or any
combination of some other method and the Revenue approved mileage
rates, then declaration for tax must be made.
Please note:

No lump sum payments should be made.

No estimated mileage should be used.
See Dispensation Notice (Motor Mileage Allowance and Motorcycle and
Bicycle Mileage Allowance)
See also Briefing Note BN0130
30
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAVEL – PUBLIC TRANSPORT
0131
TO BE INCLUDED ON FORM P11D
Any reimbursement of travel costs made by the district/circuit/church in
relation to transport costs such as train fares, air fares, taxi fares, parking,
in relation to normal commuting or for spouse and/or dependants.
TO BE EXCLUDED FROM FORM P11D
Any expenses met directly by the district/circuit/church in relation to
transport costs such as train fares, air fares, taxi fares, parking.
Some of these issues may be addressed by the district/circuit/church
setting up an account with the appropriate supplier if the services are used
regularly. Any use of these services is charged to the account and the
invoice paid by the district/circuit/church. The minister would pay
directly for any personal use.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of travel costs that are
not for business use.
It is possible to claim tax relief for any direct purchase of allowable travel
expenses.
31
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAVEL – PUBLIC TRANSPORT
0131
NOTES
It is not necessary to declare reimbursement of travel costs undertaken for
business purposes only.
See Dispensation Notice (Travel and Subsistence)
32
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAINING COURSES
0140
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure for non-work-related training must be
declared. This includes items that are paid for by an advance on
expenses, i.e. the minister is given cash by the district/circuit/church
office and submits the receipts after purchase. This would include the use
of petty cash.
All direct purchases made by the district/circuit/church which do not
comply with Section 250 ITEPA 2003, i.e. non-work related training.
Non-work-related implies that there is major personal benefit rather than
attaining skills which allow better performance of duties.
(See Briefing Note BN0140 for further guidance)
TO BE EXCLUDED FROM FORM P11D
Any expenditure on work related training irrespective of how purchased,
i.e. in relation to training which meets the conditions of Section 250
ITEPA 2003. There must be no element of reward, no inducement, no
entertaining or recreational benefit unconnected with “work-related
training”, unless this is incidental to its provision (e.g. hotel leisure
facilities).
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of non-work-related
training course fees. No claim for tax relief can be made.
It is possible to claim tax relief also for any direct purchase of allowable
work-related training course fees.
33
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAINING COURSES
NOTES
See Dispensation Notice (Educational Courses Allowances)
See also Briefing Note BN0140
34
D:\106727264.doc, 12/02/16
0140
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAINING MATERIALS
0141
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure for non-work related training materials must
be declared. This includes items that are paid for by an advance on
expenses, i.e. the minister is given cash by the district/circuit/church
office and submits the receipts after purchase. This would include the use
of petty cash.
All direct purchases made by the district/circuit/church which do not
comply with Section 250 ITEPA 2003, i.e. non-work related training
materials.
Non-work related implies that there is some personal benefit other than
attaining skills that allow the better performance of duties.
(See Briefing Note BN0140 for further guidance)
TO BE EXCLUDED FROM FORM P11D
Any expenditure on work related training materials irrespective of how
purchased, i.e. in relation to training which meets the conditions of
Section 250 ITEPA 2003. There must be no element of reward, no
inducement, no entertaining or recreational benefit unconnected with
“work-related training”, unless this is incidental to its provision.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of non-work related
training materials. No tax relief can be claimed.
It is possible to claim tax relief for any direct purchase of allowable
work-related training materials.
35
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EXPENSES
TRAINING MATERIALS
NOTES
See Dispensation Notice (Educational Courses Allowances)
See also Briefing Note BN0140
36
D:\106727264.doc, 12/02/16
0141
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
COMPUTERS
0201
TO BE INCLUDED ON FORM P11D
Any reimbursed expenditure for personal use must be declared. This
includes items that are paid for by an advance on expenses, i.e. the
minister is given cash by the district/circuit/church office and submits the
receipts after purchase.
Any provision of a computer partly or wholly for personal use.
TO BE EXCLUDED FROM FORM P11D
Any central supply of a computer, i.e. the district/circuit/church purchases
a computer for ministerial use.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and must have the right to demand
payment from the minister for any items not deemed “essential”.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of a computer purchased
partly or wholly for personal use. The amount claimed in tax relief may
be a % of any business use made.
It is possible to claim tax relief also for any direct purchase of a computer
or an apportionment of the amount paid according to business use.
(See Briefing Notes BN0201 for further information)
37
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
COMPUTERS
0201
NOTES
Provision of computer equipment for business use (where the
church/circuit retains ownership) is not declarable for tax provided that
the minister makes a contribution to the district/circuit/church for any
personal use. Alternatively, the portion of personal use can be entered on
the Form P11D and the minister declares the equivalent amount on the
Tax Return.
Where a minister has made a claim under the Computers for Ministry
Scheme, this is a taxable benefit since the minister owns the computer.
We are collecting the tax where possible through the payroll and
therefore no entry on the P11D is required. However a %age of business
use may be claimed on the Tax Return.
A minister may claim capital allowances for computer equipment
purchased directly. If a computer is used wholly, necessarily and
exclusively for church purposes then a 100% first year allowance is
available.
See Dispensation Notice (Postage, Stationery & Sundry Business
Expenses)
See also Briefing Note BN0201.
38
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
0202
FAXES
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any provision of a fax solely for personal use.
Any provision under a rental agreement as for a telephone.
TO BE EXCLUDED FROM FORM P11D
Any central supply of a fax, i.e. the district/circuit/church purchases a fax
for ministerial use.
Any direct purchase made by a minister from a supplier with whom the
district/circuit/church has a business account. The district/circuit/church
meets the charge on the account and has the right to demand payment
from the minister for any items not deemed “essential”.
Any provision under a rental agreement as for a telephone.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of a fax purchased and
claim tax relief for an equivalent amount. Adjust the amount claimed in
tax relief for the % of any personal use made.
It is possible to claim tax relief also for any direct purchase of a fax or an
apportionment of the amount paid according to business use.
Follow guidance for telephones where a fax is provided under a rental
agreement.
(see briefing notes BN0203 for further information)
39
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
0202
FAXES
NOTES
The rental of a fax should be treated in the same way as a telephone.
See Dispensation Notice (Telephone Rental and Business Calls)
See also Briefing Note BN0203
40
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
TELEPHONES
0203
TO BE INCLUDED ON FORM P11D
Any reimbursed business calls and rental where the invoice is in the name
of the minister as legal subscriber.
The contract for supply of telecommunications should be with the
district/circuit/church who are then responsible for paying the invoice. If
required the minister can be named in the correspondence address and the
invoice mailed to the manse.
Any rental charge met directly by the district/circuit/church that includes
cable television where the rental cannot be split between
telecommunications and cable television.
(See briefing notes BN0203 for further guidance.)
TO BE EXCLUDED FROM FORM P11D
Any rental paid directly by the district/circuit/church where the
district/circuit/church is the legal subscriber. Any itemised business calls
plus VAT.
This assumes that the minister is reimbursing the district/circuit/church
for any itemised personal calls plus VAT. If this is the case then no
declaration is required.
If this is not the case, and the district/circuit/church is meeting all the
costs, then the whole of the telecommunications invoice would be a
taxable benefit and should be declared.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of telecommunication
costs met by the minister.
Only the business calls plus VAT can be claimed for tax relief.
NB. The same rules as outlined above apply to the provision of mobile
telephones.
41
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
BUSINESS EQUIPMENT
TELEPHONES
0203
NOTES
Please note that where there is a joint contract for telephone and
television there will be no taxable benefit if the minister reimburses the
television portion of the rental. If, however, the telecommunications
supplier cannot provide a split rental charge invoice, then the whole of
the rental if met by the district/circuit/church is taxable.
The same principles apply to broadband and internet usage as to
telephones.
Mobile telephones should be treated in the same way as land telephones.
Some circuits/churches install separate lines for church business and
private usage, with the former only being in the name of the circuit or
church. The minister is then responsible for the other line.
See Dispensation Notice (Telephone Rental and Business Calls)
See also Briefing Note BN0203
42
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
PROVISION OF A MANSE
0301
TO BE INCLUDED ON FORM P11D
A taxable benefit equivalent to a market rent, if the property is provided
for the convenience of the occupants rather than for the benefit of the
district/circuit/church, and the minister is not actually required to reside
in the manse for the better performance of his/her ministerial duties.
Accommodation provided to a Lay Worker (see below).
TO BE EXCLUDED FROM FORM P11D
Any statement of taxable benefit if the property is provided for the better
performance of duties, i.e. it is a requirement of the district/circuit/church
that the minister resides in the manse.
SELF-ASSESSMENT TAX RETURN
No declaration is normally required.
(See Briefing Notes BN0301, BN0804 for further information re Occupation of
Owned Properties)
43
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
PROVISION OF A MANSE
0301
NOTES
Conference discourages the practice of ministers living in their own
properties where the district/circuit/church is able to provide
accommodation. (See Briefing Note BN0301)
Concerns are raised about the threat that the practice of homeowner
occupancy poses to the tax benefit enjoyed by ministers of religion.
Ministers are required to live in a manse to better enable them to carry out
the work of the church. If this is seen no longer to be necessary, the
Revenue could remove the tax-free benefit. Ministers would then be
taxed on the equivalent market rent of the manse, as well as on council
tax, water rates, repairs and maintenance etc.
A Lay Worker “standing in the shoes of a minister” may sometimes
obtain the same exemption as a minister in respect of accommodation
provided. However the Revenue are unwilling to issue a general
exemption and each situation must be approached individually.
44
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING INSURANCE
0302
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure made directly by the district/circuit/church for the
provision of insurance for a privately owned property or a property
owned by the church that is not provided for the benefit of the church.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for building
insurance of a property owned by the church or leased in the name of the
church.
Any direct purchase made by a minister from an insurance
broker/provider with whom the district/circuit/church has a business
account. The circuit/district meets the charge on the account and has the
right to demand payment from the minister for any items not deemed
“essential”.
This assumes that the property is provided for the better performance of
duties, i.e. it is a requirement of the district/circuit/church that the
minister resides in the manse (owned or leased by the church).
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of building insurance
and claim tax relief for an equivalent amount. This is in relation to
property owned/leased by the church.
It is possible to claim tax relief also for any direct purchase of building
insurance for a property owned/leased by the church. This assumes that
the conditions stated above are met. (See Briefing Note BN0301, for further
information re Occupation of Owned Properties)
45
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING INSURANCE
0302
NOTES
Any building insurance paid for or reimbursed to a minister not residing
in a property owned by or leased in the name of the district/circuit/church
is a taxable benefit.
See also Briefing Note BN0301
46
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
COUNCIL TAX
0303
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure made directly by the district/circuit/church against a
privately owned property or a property owned by the church that is not
occupied for the benefit of the church.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for council tax
on a property owned by the church or leased in the name of the church.
This assumes that the property is provided for the better performance of
duties, i.e. it is a requirement of the district/circuit/church that the
minister resides in the manse (owned or leased by the church).
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of council tax and
claim tax relief for an equivalent amount. This is in relation to property
owned/leased by the church.
It is possible to claim tax relief also for any direct payment of council tax
for a property owned/leased by the church. This assumes that the
conditions stated above are met.
Any payment made by the church for a privately owned property is a
taxable benefit.
(See Briefing Note BN0301 for further guidance)
47
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
COUNCIL TAX
0303
NOTES
Any Council Tax paid for or reimbursed to a minister not residing in a
property owned by or leased in the name of the district/circuit/church is a
taxable benefit.
The district/circuit/church has no obligation to pay council tax for a
property owned by a minister where the minister chooses to occupy this
property rather than a manse made available by the district/circuit/church.
In the event of a manse not being available and it is at the request of the
district/circuit/church that a minister occupies his/her own property, then
the costs similar to those for a manse would normally be covered.
However, remember that any such payments would be regarded as a
taxable benefit by the Revenue and should be declared on Form P11D.
See also Briefing Note BN0303 for further guidance.
48
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
WATER RATES
0304
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared.
Any expenditure made directly by the district/circuit/church against a
privately owned property or a property owned/leased by the church that is
not occupied for the benefit of the church. This includes the payment of
both water rates or metered water charge.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for water rates
or metered water charges on a property owned by the church or leased in
the name of the church.
This assumes that the property is provided for the better performance of
duties, i.e. it is a requirement of the district/circuit/church that the
minister resides in the manse (owned or leased by the church).
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of water rates or
metered water and claim tax relief for an equivalent amount. This is in
relation to property owned/leased by the church.
It is possible to claim tax relief also for any direct payment of water rates
or metered water for a property owned/leased by the church. This
assumes that the conditions stated above are met.
Any payment made by the church on a privately owned property is a
taxable benefit.
(See Briefing Note BN0301 for further guidance)
49
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
WATER RATES
0304
NOTES
Any water rates paid for or reimbursed to a minister not residing in a
property owned by or leased in the name of the district/circuit/church is a
taxable benefit.
The district/circuit/church has no obligation to pay water rates for a
property owned by a minister where the minister chooses to occupy this
property rather than a manse made available by the district/circuit/church.
In the event of a manse not being available and it is at the request of the
district/circuit/church that a minister occupies his/her own property, then
the costs similar to those for a manse would normally be covered.
However, remember that any such payments would be regarded as a
taxable benefit by the Revenue and should be declared on Form P11D.
See also Briefing Note BN0301 for further guidance.
50
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARAGING
0305
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared.
Any expenditure made directly by the district/circuit/church against a
privately owned garage or a garage owned/leased by the church that is not
provided for the benefit of the church. This includes the payment of a
lease for a garage where the property occupied by the minister does not
have garaging facilities and the minister is occupying the property for his
own benefit and not for the benefit of the church.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for provision
of garaging when the property owned or leased by the church does not
have garaging facilities.
This assumes that the minister is occupying the property and using the
garaging provided for the better performance of duties, i.e. it is a
requirement of the district/circuit/church that the minister resides in the
manse (owned or leased by the church).
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of garaging facilities
and claim tax relief for an equivalent amount. This assumes that the
minister is occupying a property owned/leased by the church for which
there are no garaging facilities on site. Also that the minister is residing
here for the benefit of the church.
It is possible to claim tax relief also for any direct payment of garaging
facilities for a property owned/leased by the church. This assumes that
the conditions stated above are met.
(See Briefing Note BN0301 for further guidance)
51
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARAGING
0305
NOTES
Garaging is normally the responsibility of the landlord where it is a
requirement of the occupation of the property.
Any payments made to or incurred on behalf of the minister for garaging
relating to an owner/occupier property must be declared for tax.
The same taxation rules apply where a property is owned by the minister
as for council tax and water rates.
52
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN MAINTENANCE – GENERAL
0310
TO BE INCLUDED ON FORM P11D
General (i.e. regular) garden maintenance, such as lawn mowing, hedge
cutting, weeding, since these are not allowable for tax.
If such expenses are either reimbursed to the minister or paid directly by
the district/circuit/church, they must be included here.
The value to be declared for expenditure met directly by the
district/circuit/church is 75% of cost. The value for reimbursed
expenditure is 100% of cost.
TO BE EXCLUDED FROM FORM P11D
Specific garden maintenance expenditure, i.e. tree lopping, fence
maintenance, driveway maintenance which is the responsibility of the
landlord and therefore is allowable for tax. This would include the
maintenance of common areas shared by the manse and for which the
landlord has some responsibility.
These items should not be declared if paid directly by the
district/circuit/church.
They must be declared if reimbursed to the minister but the minister can
then claim tax relief.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursed garden maintenance and
include any benefits declared on Form P11D.
Claim relief for reimbursed expenses or those met directly by the minister
as follows:
Claim 25% tax relief for general garden maintenance.
Claim 100% tax relief for specific garden maintenance, i.e. that which is
the landlord’s responsibility.
53
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN MAINTENANCE - GENERAL
0310
NOTES
Any general (i.e. regular) maintenance is taxable, e.g. lawn-mowing,
flower border maintenance, weeding, hedge cutting/trimming etc.
However tax relief can be claimed for 25% of any such costs incurred.
See Dispensation Notice (Garden Maintenance)
54
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN MAINTENANCE – SPECIFIC
0311
TO BE INCLUDED ON FORM P11D
Any expenditure incurred directly by the district/circuit/church or
reimbursed to the minister which is not regarded as the landlord’s
responsibility, i.e. anything that may be regarded as general maintenance
and may include lawn mowing, hedge trimming, weeding etc. The value
to be declared for expenses met directly by the district/circuit/church is
75% of the cost. The value to be declared for reimbursed expenditure is
100%.
Any specific garden maintenance expenses reimbursed to the minister
that can be regarded as the landlord’s responsibility, i.e. tree lopping,
fence maintenance, driveway maintenance. The value to be declared is
100% of cost.
TO BE EXCLUDED FROM FORM P11D
Any specific garden maintenance expenditure incurred directly by the
district/circuit/church that can be regarded as the responsibility of the
landlord. This may include tree lopping, fence maintenance, driveway
maintenance, maintenance of common areas shared by the manse.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursed garden maintenance and
include any benefits declared on Form P11D.
Claim tax relief for reimbursed expenses and those met directly by the
minister as follows:
Claim 25% tax relief for general garden maintenance.
Claim 100% tax relief for specific garden maintenance.
55
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN MAINTENANCE – SPECIFIC
0311
NOTES
It is important to differentiate between general and specific garden
maintenance.
General maintenance could be described as the regular work required to
keep the garden tidy and in good order, e.g. regular weeding, lawncutting, hedge trimming etc.
Specific maintenance would probably be of a more periodic nature and
involving more long-term maintenance, e.g. repair/replacement of
fencing, tree lopping, maintenance of a driveway and gateway. These
categories are more likely to be considered the landlord’s responsibility.
This could include the removal/replacement of substantial trees/shrubs.
It would also include major clearance and replanting where a manse
garden has been neglected whilst unoccupied. It would not include work
required because the minister has failed to maintain the garden.
Any work on an owner/occupier property would be a taxable benefit if
paid for by the church/circuit.
See Dispensation Notice (Garden Maintenance)
See also Tax Sheet 0310 Garden Maintenance – General
56
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN EQUIPMENT
0312
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for garden
equipment. This includes lawnmower, hedge cutters, garden tools etc.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for garden
equipment which may be used at the manse to carry out landlord’s
responsibilities of tree lopping etc.
Also any equipment that is retained by the district/circuit/church for
general use on properties, e.g. a lawnmower which is used to maintain all
manse gardens in the circuit. However, a garden maintenance benefit
must then be charged. (See also Tax Sheet 0310)
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of garden equipment.
No tax relief claim can be made unless:
- the equipment purchased was for the sole use of the church for general
garden maintenance for the circuit manses.
- The equipment purchased is for work in relation to landlord’s
responsibilities, e.g. tree lopping (See also Tax sheet 0311)
Claim tax relief for any direct purchases made which meet either or both
of the conditions stated above.
57
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
GARDEN EQUIPMENT
0312
NOTES
Garden equipment if provided to the minister for his/her sole use is a
taxable benefit.
Any equipment purchased by the district/circuit/church that is shared by
ministers would have to be apportioned accordingly as a taxable benefit.
Any equipment used to carry out general garden maintenance would be
part of the ‘servicing’ benefit declared on Form P11D.
Any equipment to be used for landlord’s responsibilities would not be a
taxable benefit.
58
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING – EXTENSIONS
0320
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
extension to the building that is purely to meet the personal needs of the
occupant. This would include the provision of a second garage where
there is only one full-time appointment. The provision of a conservatory
where there is adequate accommodation space already available.
TO BE EXCLUDED FROM FORM P11D
Any direct expenditure made by the district/circuit/church for any
extension that is required by the church. This would include an
additional room or conservatory where the existing accommodation is not
sufficient to meet the needs of a minister’s family and public space. The
addition of a downstairs lavatory/cloakroom for use of visitors.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure relating
to building extensions. No tax relief claim can be made if the work is
undertaken at the specific request of the minister and for his/her benefit
only and does not provide necessary facilities for the church.
Claim tax relief for any direct purchase made which complies with the
above conditions.
59
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING EXTENSIONS
0320
NOTES
There is no taxable benefit if the work carried out is to offer additional
“accommodation space” to meet the needs of the size of the incumbent’s
family or to provide facilities which benefit the church. Examples might
be an increased area available for public use, creation of study facilities,
provision of downstairs cloakroom for visitors.
There is a taxable benefit if the work is done solely for aesthetic or
personal reasons that do not benefit the church.
60
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING – SECURITY
0321
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
personal alarm systems. Also for any installation of building security
systems to a property which is not owned by the district/circuit/church
which the minister occupies, i.e. a property owned by the minister.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of building security systems made by a minister from
a supplier with whom the circuit/district has a business account. The
district/circuit/district meets the charge on the account and has the right to
demand payment from the minister for any items not deemed “essential”.
Any direct expenditure made by the district/circuit/church for any
building security systems, e.g. a burglar alarm.
This assumes that any security system purchased is installed to a property
owned by the district/circuit/church.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of building security
systems and claim tax relief for an equivalent amount.
Claim tax relief for any direct purchase of building security systems
made.
This relates only to any building security systems installed to a property
owned by the district/circuit/church.
61
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
ACCOMMODATION
BUILDING SECURITY
0321
NOTES
Building security systems include:
Perimeter lighting
Internal security lighting
Security gates
Burglar alarm systems fitted to a building
Security cameras
Personal alarms that are part of the building security system, e.g. panic
alarms.
This does not include personal security alarms that can be taken off the
premises.
62
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FURNITURE - STUDY
0401
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
furniture that is not provided for a study in a property owned or leased by
the church.
Any expenditure on study furniture that is provided for a study in a
property that is privately owned.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of study furniture made by a minister from a supplier
with whom the district/circuit/district has a business account. The
district/circuit/district meets the charge on the account and has the right to
demand payment from the minister for any items not deemed “essential”.
Any direct expenditure made by the district/circuit/church for any study
furniture.
This assumes that study furniture purchased is provided for a property
owned or leased by the district/circuit/church.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of study furniture and
claim tax relief for an equivalent amount only if the furniture is located in
a property provided by the church.
Claim tax relief for any direct purchase of study furniture located in any
property.
63
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FURNITURE - STUDY
0401
NOTES
Furniture provided for a study as a business expense is allowable for tax.
This would apply to furniture provided in an owned property provided
that this was for the benefit of church business. Tax relief could be
sought on the self-assessment tax return.
64
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FURNITURE - OTHER
0402
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
furniture other than that provided for a study.
A declaration must be made irrespective of where the furniture is housed
if it is provided for the benefit of the minister.
The value of the benefit to be declared is calculated as follows:
Market Value of furniture x 75% x 20% - each year for five years.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of study furniture housed in a property owned or
leased by the district/circuit/church.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of other furniture. No
claim for tax relief can be made.
No claim for tax relief for any direct purchase of other furniture can be
made.
65
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FURNITURE - OTHER
0402
NOTES
Any furniture provided other than for a study is a taxable benefit.
However, the Revenue allows a 25% reduction in the value to be
declared, representing the business element.
Furniture is treated as having a five-year life for taxation purposes.
Therefore, 20% of the value is taxed in each year for the relevant five
years. (See calculation on front of sheet).
For the purpose of taxation the Market Value is Acquisition Cost.
66
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
CURTAINS AND BLINDS
0410
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
curtains and blinds. This includes fitted blinds (venetian/lateral etc.).
Exclude only items provided for a study in a property owned or leased by
the district/circuit/church.
The value of the benefit to be declared is calculated as follows:
Market Value of benefit x 75% x 20% - each year for five years.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of blinds and curtains for a study that is housed in a
property owned or leased by the district/circuit/church.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of blinds and curtains.
No claim for tax relief can be made other than in relation to expenditure
for the study housed in a property owned or leased by the
district/circuit/church.
Claim tax relief for any direct purchase of blinds and curtains for a study
housed in a property owned or leased by the district/circuit/church.
67
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
CURTAINS AND BLINDS
0410
NOTES
All curtains and blinds provided, except any in the study, are taxable.
However, the Revenue allows a 25% reduction in the value to be
declared, representing the business element.
This includes any type of blind, e.g. Venetian, lateral, roller/roman,
conservatory blinds. However security shutters are excluded.
Curtains and blinds are treated as having a five-year life for taxation
purposes. Therefore, 20% of the value is taxed in each year for the
relevant five years. (See calculation on front of sheet).
For the purpose of taxation the Market Value is Acquisition Cost.
68
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FLOOR COVERING - CARPETS
0420
TO BE INCLUDED ON FORM P11D
Any carpets that are five years old or less. Any carpet provided is
regarded as being second-hand to the person resident in the manse.
The value to be reported is the Market Value. The Revenue has agreed
that the Market Value of a second-hand carpet if new and un-used is 1/3rd
of the original cost. The Market Value of a used carpet is 1/3rd of the
acquisition cost. If the carpets are acquired as part of the purchase price
of a house, then an attempt should be made to ascertain the value of the
carpets included.
The value of the benefit to be declared is calculated as follows:
Market Value of carpet x 75% x 20% - each year for five years.
(see above)
TO BE EXCLUDED FROM FORM P11D
Any carpets provided for a study.
Any carpets gifted to the church.
Any carpets that replaced carpets regarded as unsuitable for installation in
the new home at a time of relocation.
SELF-ASSESSMENT TAX RETURN
Declare the benefit included on Form P11D.
69
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FLOOR COVERING – CARPETS
0420
NOTES
For the purpose of taxation the Revenue take the Market Value of a
carpet as the basis of the taxable benefit calculation.
The Market Value of a carpet provided in a manse is its second-hand
value, as the minister does not own the carpet.
The Revenue has agreed that the Market Value (Second-hand value) can
be taken as 1/3 of its acquisition cost. Therefore, the Market Value of a
carpet can be taken as follows:
New (unused) carpet : Market Value = 1/3 Purchase Price
Newly acquired (used) carpet : Market Value = 1/3 Acquisition Price
A minister moving into a manse inherits the written down value of a
carpet for taxation purposes, if the carpet is still there. For example :
Minister moves in after the carpet has been down for three years.
Purchase Price = £1,000 Age of carpet = 3 years (tax life = 5 years)
The taxable benefit in the 4th year = (1/3 of £1,000) x 1/5 x 75%,
75% being the agreed private (rather than business) proportion that is
applied to manse expenditure.
70
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FLOOR COVERING – OTHER
0421
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
floor covering that is not fixed. Exclude only items provided for a study
in a property owned or leased by the district/circuit/church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of floor covering provided for a study that is housed
in a property owned or leased by the district/circuit/church.
Any direct purchase of floor covering that is fixed, e.g. ceramic tiles,
fixed vinyl covering and adhesive carpet tiles.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of floor covering.
Claim tax relief for any expenditure for the study housed in a property
owned or leased by the district/circuit/church. Also for any fixed floor
covering as defined above.
Claim tax relief as above for any direct purchase of floor covering.
71
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FURNITURE AND FURNISHINGS
FLOOR COVERING – OTHER
0421
NOTES
Only floor coverings that are permanently fixed are not a taxable benefit.
Examples :
 Grouted ceramic floor tiles
 Adhesive fixed vinyl floor covering
 Adhesive fixed carpet tiles
N.B. It is not possible to permanently fix carpets!
72
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
KITCHEN UNITS
0501
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
freestanding kitchen units. Also any replacement of fixed units for
cosmetic reasons rather than because of obsolescence or health and
hygiene risks.
Any items provided for a property not owned by the
district/circuit/church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed kitchen units for a property owned or leased
by the district/circuit/church and to replace fixed kitchen units where it is
necessary to refurbish a kitchen due to wear and tear and/or health and
hygiene reasons.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
kitchen units.
Claim tax relief for any expenditure on fixed kitchen units to replace
obsolete units or those which present a health hazard housed in a property
owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fixed kitchen units.
73
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
KITCHEN UNITS
0501
NOTES
Provided that a kitchen is refurbished for reasons of obsolescence or
health and hygiene there is no taxable benefit.
Any making good of internal decorations following refurbishment is also
not taxable.
74
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
KITCHEN APPLIANCES
0502
TO BE INCLUDED ON FORM P11D
Any removable appliances that have been purchased by the
district/circuit/church, or any items for which the minister/deacon has
received reimbursement.
This includes dishwashers, washing machines, clothes dryers,
freestanding refrigerators, freezers, fridge-freezers, microwaves, minor
appliances etc.
TO BE EXCLUDED FROM FORM P11D
Any cookers that are fixed and plumbed for electricity or gas, i.e. cannot
be plugged into a normal electrical socket. This includes freestanding
cookers as well as those fitted into kitchen units.
Any appliances that are built into the kitchen fittings and can therefore be
regarded as fixtures.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursed expenditure on kitchen
appliances.
Claim tax relief for the equivalent value of reimbursed fixed cookers or
kitchen fittings to be built into kitchen units, i.e. in a fully fitted kitchen.
Similarly claim tax relief for any direct purchase of the above allowable
items
75
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
KITCHEN APPLIANCES
0502
NOTES
A permanent appliance includes:
Any equipment which can be regarded as a built-in fixture of the kitchen,
i.e. it cannot be accommodated without a kitchen unit casing system.
This would include microwave, cooker, fridge/freezer, and waste
disposal.
This would not normally include washing machine, dryer, or dishwasher.
A freestanding cooker that has been permanently connected to the mains
supply for electricity or plumbed for gas etc. is not a taxable benefit.
Moveable cookers that can be plugged into a ‘normal’ wall socket
connection, e.g. worktop mini-cooker or worktop microwave, would be
regarded as a taxable benefit.
76
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
BATHROOM UNITS
0510
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
free standing bathroom units. Also any replacement of fixed units for
cosmetic reasons rather than because of obsolescence or health and
hygiene risks.
Any items provided for a property not owned by the
district/circuit/church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed bathroom units for a property owned or
leased by the district/circuit/church.
Any direct purchase to replace fixed bathroom units where it is necessary
to refurbish a bathroom due to wear and tear and/or health and hygiene
reasons.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
bathroom units.
Claim tax relief for any expenditure on fixed bathroom units to replace
obsolete units or those which present a health hazard, housed in a
property owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fixed bathroom units.
77
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
BATHROOM UNITS
0510
NOTES
Bathroom refurbishment is not taxable if carried out for reasons of
obsolescence or health and hygiene.
Freestanding units that can be removed to other premises are taxable.
There would be no taxable benefit arising from the replacement of
bathroom wall tiles adjacent to units. However, full tiling would be
taxable as for internal decoration.
See also 0631 Decoration - Internal
78
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
BATHROOM APPLIANCES
0511
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
removable bathroom appliances. Also any replacement of fixed
appliances, e.g. shower, heated towel rail for cosmetic reasons rather than
because of obsolescence or health and hygiene risks.
Any items provided for a property not owned by the church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed bathroom appliances for a property owned
or leased by the district/circuit/church.
Any direct purchase to replace fixed bathroom appliances where it is
necessary to refurbish a bathroom due to wear and tear and/or health and
hygiene reasons.
This purchase can be made directly by the district/circuit/church or by the
minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
bathroom appliances.
Claim tax relief for any expenditure on or to replace fixed appliances
which are obsolete or which present a health hazard, housed in a property
owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fixed bathroom
appliances.
79
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
BATHROOM APPLIANCES
0511
NOTES
Removable appliances and fittings, e.g. a bathroom cabinet (if specially
requested by the minister and which is likely to be removed on taking up
a new appointment) are a taxable benefit.
This would not include essential items provided by the landlord such as
toilet seats, shower curtains etc.
80
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER UNITS – STORAGE (including
wardrobes)
0520
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
non-fixed storage, e.g. freestanding wardrobes, larders/dressers, cloaks
stand, tool shed.
Any items provided for a property not owned by the church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed storage units for a property owned or leased
by the district/circuit/church. This may include fitted wardrobes, airing
cupboard, garage wall storage etc.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
storage units.
Claim tax relief for any expenditure to replace or install fitted storage
units in a property owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fitted storage units.
81
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER UNITS – STORAGE (including
wardrobes)
0520
NOTES
Anything that can be regarded as a fixture of the property is not a taxable
benefit.
82
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER FIXTURES – HEATING
0530
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
provision of heating that is not fixed, e.g. removable electric fires, fanheaters, electric radiators etc.
Any items provided for a property not owned or leased by the church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed heating for a property owned or leased by
the district/circuit/church. This may include central heating boiler and
system, fixed gas fire, log burning stove.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
heating.
Claim tax relief for any expenditure to replace or install fixed heating
items in a property owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fixed heating items.
83
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER FIXTURES - HEATING
0530
NOTES
Anything that cannot be regarded as a fixture is taxable, e.g. removable
fires, removable heaters etc.
84
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER FIXTURES – LIGHTING
0531
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
provision of lighting that is not fixed, e.g. removable lamps, spot lights,
torches.
Any items provided for a property not owned by the church.
Any lighting accessories, e.g. lampshades, light bulbs, batteries etc.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of fixed lighting for a property owned or leased by
the district/circuit/church. This may include external security lights,
patio lights.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
lighting.
Claim tax relief for any expenditure to replace or install fixed lighting
items in a property owned or leased by the district/circuit/church.
Claim tax relief as above for any direct purchase of fixed lighting items.
85
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER FIXTURES - LIGHTING
0531
NOTES
Anything that is removable is regarded as taxable, e.g. freestanding
lamps, lampshades, batteries, light bulbs, torches etc.
86
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER APPLIANCES
0540
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for any
provision of other appliances, e.g. vacuum cleaner, DIY equipment,
television etc.
Any items provided for a property not owned by the church.
Any apportionment of share of appliances purchased mainly for use by
the church.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase of other appliances to be used solely by the
district/circuit/church on a property owned or leased by them.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved. (But for the use of the church only).
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on other
appliances.
No claim for tax relief can be made.
87
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
FIXTURES AND FITTINGS
OTHER APPLIANCES
0540
NOTES
If any appliances are shared by ministers in the circuit, e.g. DIY
equipment purchased by the district/circuit/church which is common to
all ministers, then an apportionment of the benefit should be made.
88
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
STRUCTURAL REPAIRS
0601
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for
structural repairs for a property not owned by the church.
.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to structural repairs made by a
district/circuit/church on a property owned or leased by them.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on garages and outbuildings, replacement windows
and double-glazing, but excludes garden sheds.
This includes any redecoration required following structural repairs
carried out at any time, i.e. whether the manse is occupied or vacant.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
structural repairs.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church.
A similar claim can be made for any direct purchase of structural work.
89
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
STRUCTURAL REPAIRS
0601
NOTES
Any structural work undertaken at any time is not a taxable benefit.
Installation of double glazing is now regarded as an allowable window
replacement, rather than a benefit for tax purposes.
Any making good of internal decoration following structural repairs is not
taxable at any time.
90
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
HEATING AND LIGHTING
0610
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for repairs
to heating and lighting which cannot be regarded as the landlord’s
responsibility and/or is carried out on a property not owned by the
church.
This may include repairs to freestanding electric fires/heaters,
freestanding lamps etc. (See also 0530 and 0531)
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to repairs to heating and lighting made by
a district/circuit/church on a property owned or leased by them.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on central heating systems, fixed fires, electrical
wiring, security lighting, security alarms. (See also 0530 and 0531)
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on repairs
and maintenance.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church in relation to work done as a landlord’s
responsibilities. (see above)
A similar claim can be made for any direct purchase of repairs and
maintenance.
91
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
HEATING AND LIGHTING
0610
NOTES
Repairs and maintenance of heating and lighting equipment that can be
regarded as the landlord’s responsibility is not taxable.
This includes central heating, wiring, cookers, security systems,
telephone connections, i.e. all work approved and deemed necessary by
the landlord in line with ‘normal’ landlord’s responsibilities.
Any other repairs are taxable, e.g. non-fixed fires, washing machines,
dishwashers, dryers, and television aerials.
92
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
PLUMBING
0611
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for repairs
to plumbing that is carried out on a property not owned by the church.
Any plumbing work carried out in relation to a dishwasher or washing
machine or anything regarded not the landlord’s responsibility.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to repairs to plumbing made by a
district/circuit/church on a property owned or leased by them.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on central heating systems, water or gas supplies or
any area that is the responsibility of a landlord.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on
plumbing work.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church in relation to work done as a landlord’s
responsibilities. (see above)
A similar claim can be made for any direct purchase of repairs and
maintenance.
93
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
PLUMBING
0611
NOTES
This relates to any repairs and maintenance and general plumbing that
can be regarded as the landlord’s responsibility.
This does not include plumbing of dishwashers, washing machines etc.
which are themselves a taxable benefit.
94
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES – KITCHEN
0620
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for repairs
to kitchen appliances in a property not owned by the church.
Any repairs to kitchen appliances which are not the responsibility of the
landlord, e.g. non-plumbed cooker, dishwasher, fridge/freezer, washing
machine (See also 0502).
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to repairs to kitchen appliances made by a
district/circuit/church on a property owned or leased by them which can
be regarded as the responsibility of the landlord. (see above)
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on non-removable cookers, electrical appliances fitted
into kitchen units.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on repairs
and maintenance to kitchen appliances.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church in relation to work done as a landlord’s
responsibilities. (see above)
A similar claim can be made for any direct purchase of repairs and
maintenance.
95
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES - KITCHEN
0620
NOTES
Repairs and maintenance on kitchen appliances that are the landlord’s
responsibility are not taxable.
This includes appliances that are fixtures in the kitchen. (See also 0502
Kitchen Appliances)
This does not include repairs of washing machines, dishwashers, dryers,
freestanding microwaves, minor appliances etc. which are a taxable
benefit if provided.
96
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES – BATHROOM
0621
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for repairs
to other appliances in a property not owned by the church.
Any repairs to bathroom appliances which are not the responsibility of
the landlord, e.g. personal items, razors etc. (See also 0511).
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to repairs to bathroom appliances made by
a district/circuit/church on a property owned or leased by them which can
be regarded as the responsibility of the landlord. (see above)
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on a shower, heated towel rail etc.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on repairs
and maintenance to bathroom appliances.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church in relation to work done as a landlord’s
responsibilities. (see above)
A similar claim can be made for any direct purchase of repairs and
maintenance.
97
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES – BATHROOM
0621
NOTES
Items that are the landlord’s responsibility are not taxable, e.g. shower,
razor socket, heated towel rail.
Other items that are removable are taxable, e.g. hand fitted shower hose,
bathroom scales, laundry basket.
98
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES – OTHER
0622
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for repairs
to other appliances in a property not owned by the church.
Any repairs to other appliances that are not the responsibility of the
landlord, e.g. DIY equipment, vacuum cleaner.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to repairs to other appliances made by a
district/circuit/church on a property owned or leased by them which can
be regarded as the responsibility of the landlord. (see above)
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This includes work on equipment held by the district/circuit/church for
use on manses.
SELF-ASSESSMENT TAX RETURN
Declare any income received for reimbursement of expenditure on repairs
and maintenance to other appliances.
Claim tax relief only where work done is on appliances held and
generally used by the district/circuit/church and for which there is no
personal benefit.
A similar claim can be made for direct payment of repairs mentioned
above.
99
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
APPLIANCES - OTHER
0622
NOTES
Any work carried out on equipment “owned” by the
district/circuit/church that is shared by the ministers would be borne by
the landlord.
However, the ministers would share in the taxable benefit of any work
carried out using the equipment if the nature of the work is taxable, e.g.
lawn-mowing.
100
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
DECORATION – EXTERNAL
0630
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to external decoration made by a
district/circuit/church on a property owned or leased by them.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
This relates to work carried out at any time.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement of expenditure.
Claim tax relief for any work carried out on a property owned or leased
by the district/circuit/church whether this is reimbursed expenditure or
paid directly by the minister.
The work can be carried out at any time.
101
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
DECORATION – EXTERNAL
0630
NOTES
All external decoration work carried out at any time is non taxable.
This includes work on garages, gates and fences.
This excludes garden sheds if provided specifically for the benefit of the
minister and not as a storage requirement of the property.
102
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
DECORATION – INTERNAL
0631
TO BE INCLUDED ON FORM P11D
Any expenditure paid directly by the district/circuit/church for work done
while the manse is occupied, i.e. carried out after occupation.
Any expenditure paid directly by the district/circuit/church incurred
during occupation which is a continuation of work started while the
manse was empty, i.e. that part of the work which is carried out whilst the
minister was resident.
Any reimbursed expenditure.
TO BE EXCLUDED FROM FORM P11D
Any expenditure paid directly by the district/circuit/church or
commissioned and against which a part payment has been made, before
occupation of the manse.
It is not necessary to include any work that is carried out while the manse
is empty.
It is possible to commission work for the next minister while the existing
minister is still in residence provided that the work does not commence
before the minister moves.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement of expenditure.
If this relates to work commenced while the manse was vacant then an
equivalent sum may be claimed in tax relief, i.e. the minister met the cost
but was not resident at the time the work commenced.
103
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
DECORATION – INTERNAL
0631
NOTES
There is no taxable benefit provided that the work is carried out while the
manse is empty.
The work is taxable if:
 The work is carried out during occupation.
 Work started whilst the manse is empty is then completed after the
minister takes up residence. The part relating to the time after he/she
takes up residence is a taxable benefit.
For a minister who is resident in the manse the taxable benefit will be
declared in the tax year in which the work was carried out.
104
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
CLEANING
0640
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
75% of any expenditure incurred directly by the district/circuit/church for
cleaning work. This includes window cleaning.
TO BE EXCLUDED FROM FORM P11D
25% of any expenditure paid directly by the district/circuit/church.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement of expenditure for
cleaning work.
Claim tax relief for 25% of the reimbursed cost. This can include general
household cleaning and window cleaning.
A similar claim for 25% of the cost can be made for any purchase of
cleaning services paid directly by the minister.
105
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
REPAIRS AND MAINTENANCE
CLEANING
0640
NOTES
The Revenue will allow 25% of any cost incurred for cleaning of the
manse as a tax-free benefit.
This includes window cleaning.
If the minister is to be reimbursed for this cost then payment should be
made against receipts provided.
106
D:\106727264.doc, 12/02/16
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
GIFTS – RECEIVED
0701
TO BE INCLUDED ON FORM P11D
Any gifts of money made to the minister in recognition of the service that
he/she provides in performing ministerial duties.
Any gift with a value greater than £150 or gifts that total more than £150
in any one year.
This relates to all gifts for whatever occasion, e.g. Christmas, leaving etc.
(See conditions at ESC A70)
TO BE EXCLUDED FROM FORM P11D
Any gift made in the form of goods or voucher with a value less than
£150 or the sum of such gifts received in any one year if less than £150.
If the gift is not made either in recognition of the performance of
particular services in the course of ‘employment’ or in anticipation of
particular services which are to be performed, i.e. the gift is made as
acknowledgement of the person and not to that person in his/her capacity
as a minister.
The gift is made in fellowship to a member of the church and not as from
or on behalf of an ‘employer’ to an ‘employee’.
SELF-ASSESSMENT TAX RETURN
Declare any income received as a gift.
Claim tax relief for any equivalent sum if the gift is not given as a result
of ‘employment’, i.e. not in recognition of services as a minister. (See
above).
(See also Briefing Notes BN 0701 for further guidance.)
107
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
GIFTS – RECEIVED
0701
NOTES
There is a taxable benefit if:
 The gift is given by or on behalf of the ‘employer’ to the ‘employee’.
 The gift arises from some contractual arrangement or expectation.
 The gift is given in recognition of services offered as an ‘employee’.
There is no taxable benefit if:
 The gift is given to the minister from the congregation in fellowship as
if to any other member of the church, e.g. to a member who is leaving.

There is no direct contribution from church funds as an expense on the
church, i.e. the gift is purely from donations/collections but routed for
convenience through the church/circuit’s bank account.
108
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
GIFTS – MADE
0702
TO BE INCLUDED ON FORM P11D
Any reimbursed expense in relation to gifts made on behalf of the
district/circuit/church. This may include a gift of flowers at the time of
illness or for a deceased member of the church. (Include under Expenses
Reimbursed not under Taxable Benefits.)
TO BE EXCLUDED FROM FORM P11D
Any gift made in the circumstances mentioned above but paid for directly
by the district/circuit/church.
Any gift made in the circumstances mentioned above but charged to a
business account in the name of the district/circuit/church.
SELF-ASSESSMENT TAX RETURN
Declare any income received from reimbursement of gifts purchased.
Claim tax relief for the equivalent value of the gift purchased provided
that the gift meets the criteria outlined above.
109
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
GIFTS - MADE
NOTES
Gifts made on behalf of the church are not taxable.
110
D:\106727264.doc, 12/02/16
0702
FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – REMOVALS
0710
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure incurred directly by the district/circuit/church for
removals on retirement.
Any expenditure incurred on taking up a first appointment or any
subsequent appointment in excess of £8,000.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase in relation to removal expenses made by a
district/circuit/church when a minister takes up appointment. This relates
to a first appointment and every subsequent appointment.
The relocation allowance of £500 introduced in 2003 has been agreed
with the Revenue to be tax-free.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement of expenditure.
Claim tax relief for an equivalent amount for any removal expense
incurred in moving to a first or subsequent appointment. Maximum
allowed £8,000.
A similar claim for tax relief can be made for any expenditure directly
incurred by the minister.
111
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES - REMOVALS
0710
NOTES
There is no taxable benefit if:
Removal expenses are incurred as relocation expenses when a minister
moves circuit, provided that the expense does not exceed £8,000 in any
one year.
There is a taxable benefit if:
Removal expenses are paid on retirement. (The relocation is no longer
attaching to ‘employment’ and is purely for the benefit of the individual
under Revenue rules. Any grant paid while the minister is ‘employed’
and made by the ‘employer’ is therefore taxable.) However a grant
claimed from the Auxiliary Fund out of need is not taxable.
Expenditure qualifying for exemption within the £8,000 limit may
include the cost of replacing domestic goods such as carpets, curtains and
cookers if the goods used in the old home “are unsuitable for installation
in your new home” (according to the HMRC web site under Relocation).
It is thought this is only relevant for goods owned by the minister, rather
than goods provided with the manse.
112
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – SABBATICALS
0711
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure for personal use (e.g. spouse’s travel) must
be declared. This includes items that are paid for by an advance on
expenses, i.e. the minister is given cash by the district/circuit/church
office and submits the receipts after purchase. This would include the use
of petty cash.
Expenditure must only be reimbursed if supported by the appropriate
receipts. The present maximum allowed is £600.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase made by a district/circuit/church in relation to
sabbatical expenses which are not part of the approved £600 sabbatical
expense supported by receipts reimbursed from the central offices.
This purchase may be made directly by the district/circuit/church or by
the minister via a business account in the district/circuit/church name as
approved.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement of sabbatical expenditure
for personal use.
No tax relief can be sought for expenses unsupported by receipts or in
excess of the £600 approved by the district.
113
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES - SABBATICALS
0711
NOTES
Sabbaticals are a requirement of appointment and any expense incurred
can be regarded as a business expense.
Sabbatical expenses must be approved by the Sabbatical Advisory
Committee before expenditure up to the agreed ceiling, currently £600.
Any advance on expenses must be later supported by an expense claim
with the appropriate receipts.
Any advance not supported by expense receipts, or under spent at the end
of the sabbatical, will be deducted from stipend as agreed with the
minister on taking out the advance.
114
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – MOTOR VEHICLES
0712
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared including mileage
reimbursed, even within Revenue agreed rates, when this method of
reimbursement is used in addition to paying motor vehicle expenses. (See
note below). This includes items that are paid for by an advance on
expenses, i.e. the minister is given cash by the district/circuit/church
office and submits the receipts after purchase. This would include the use
of petty cash.
Any expenditure met directly by the district/circuit/church in relation to
motor vehicle expenses, e.g. road tax, repairs and maintenance, fuel,
insurance.
Any taxable benefit arising from the provision of a vehicle.
(See also Briefing Notes BN0712 for further guidance)
TO BE EXCLUDED FROM FORM P11D
Any reimbursed mileage using the Revenue approved mileage allowance
payment (AMAP) rates if no other benefit applies.
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement for motor vehicle
expenditure, including approved mileage reimbursements only if this is
not the only basis used to recover motoring costs. (See also 0130)
Claim tax relief for motoring costs according to the % ministerial use
made of the vehicle.
115
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – MOTOR VEHICLES
0712
NOTES
Any expense for motor vehicles paid or reimbursed by the
district/circuit/church must be declared for tax.
If the IR approved mileage rates are used in addition to other payments
then any reimbursed mileage must also be declared.
The minister can claim an apportionment of motoring costs according to
the ministerial mileage undertaken.
It is the responsibility of the minister to keep adequate records, i.e. a log
of business journeys, to substantiate any claim made.
116
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – SECURITY
0713
TO BE INCLUDED ON FORM P11D
All reimbursed expenditure must be declared. This includes items that
are paid for by an advance on expenses, i.e. the minister is given cash by
the district/circuit/church office and submits the receipts after purchase.
This would include the use of petty cash.
Any expenditure met directly by the district/circuit/church in relation to
personal security, e.g. personal alarms, special clothing, provision of safe
for personal use.
TO BE EXCLUDED FROM FORM P11D
Any direct purchase made by the district/circuit/church or any purchase
made via a business account in the name of the district/circuit/church for
security systems installed to a manse. (See also BN0301)
SELF-ASSESSMENT TAX RETURN
Declare any income received as reimbursement for security expenses.
Claim tax relief for non-personal security items, e.g. keys to the manse,
padlocks etc.
A similar claim can be made for direct purchase of the above items.
117
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
OTHER EXPENDITURE
EXPENSES – SECURITY
0713
NOTES
Any personal security expenditure is a taxable benefit, e.g. personal
alarms, security clothing, special clothing, personal safe.
Excluded is any expenditure on building security. This includes burglar
alarms, security gates, security lighting and maintenance of any such
systems. Any personal panic alarms supplied with a building security
system are also not taxable.
(See also Briefing Notes BN0301)
118
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MEDICAL
BENEVOLENT FUND
0801
TO BE INCLUDED ON FORM P11D
No declaration is required.
TO BE EXCLUDED FROM FORM P11D
This is a grant made from a charitable fund for the benefit “of relief,
protection and recuperation of, and the supply of medical services and
treatment to Methodist Ministers, probationer Ministers, students for the
Methodist Ministry, members of the Diaconal Order, authorised lay
workers and employees of the Methodist Church or the spouses, widows,
widowers or children of any such persons who are in need and who by
reason of stress, illness or other unhealthy condition of mind or body
have been, are or are likely to be invalided or in need of rest”.
At this time the Revenue do not regard any grant made from this fund as
a taxable benefit.
SELF-ASSESSMENT TAX RETURN
No declaration required.
(See also Briefing Note BN0800)
119
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MEDICAL
BENEVOLENT FUND
0801
NOTES
The MMBF (formerly the Invalid Ministers’ Rest Fund) can offer
assistance towards minor medical expenses, respite care, recuperative
care/breaks, and travel costs incurred when travelling to receive medical
treatment.
In addition the MMBF owns a property, the Murton bungalow, on the
Gower Peninsula, South Wales. This can be booked free of charge for a
recuperative break. (See also Briefing Note BN0800)
An application form for the MMBF and a booking form for the bungalow
can be obtained from:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
120
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MINISTERS’
CHILDREN’S FUND
0802
TO BE INCLUDED ON FORM P11D
No declaration is required.
Where a grant is made from the Trinity Hall Trust (for the benefit of
ministers’ children), tax and national insurance contributions are
deducted through the stipends payroll.
TO BE EXCLUDED FROM FORM P11D
Uses of the fund :
MMCF – Trinity Hall
 Grants are offered to assist ministers’ sons and daughters of
primary or secondary school age with extra-curricular costs such as
educational materials, special tuition, school uniforms, school trips,
etc.
SELF-ASSESSMENT TAX RETURN
No declaration is required, because tax is normally deducted through the
payroll, as above. (See also Briefing Note BN0800)
121
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MINISTERS’
CHILDREN’S FUND
0802
NOTES
Applications should be made in writing to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
N.B. Any grant paid and input to the central stipend system to attract tax
and NIC at source will also result in a charge for ‘employer’s NIC’ on the
Circuit Debit Summary.
Help is also available to enable the children of Methodist ministers to
attend Methodist schools, from the Central Bursary Fund of Methodist
Residential Schools, Methodist Church House. Application forms may
be obtained from individual schools.
122
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MINISTERS’
CHILDREN’S RELIEF ASSOCIATION
0803
TO BE INCLUDED ON FORM P11D
No declaration is required.
TO BE EXCLUDED FROM FORM P11D
Purpose of the fund :
 Grants are paid in respect of ministers’ children in cases of need
especially because of disability. Often this takes the form of a
continuing annual payment. In some cases grants continue to be made
to mature children.
At this time the Revenue do not regard any grant made from this fund as
a taxable benefit.
SELF-ASSESSMENT TAX RETURN
No declaration required.
(See also Briefing Note BN0800)
123
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – METHODIST MINISTERS’
CHILDREN’S RELIEF ASSOCIATION
0803
NOTES
The MMCRA receives a small annual income from District Synod
collections. Where Gift Aid schedules or envelopes are completed, tax
may be recovered.
The full annual income is used to provide annual grants to individuals
who are children of the manse with a disability.
Some of the recipients are now orphaned and ageing but the list of
recipients is regularly reviewed and new applicants are accommodated.
Applications should be made in writing to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
124
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – FSPD (AUXILIARY FUND)
0804
TO BE INCLUDED ON FORM P11D
No declaration is required.
TO BE EXCLUDED FROM FORM P11D
Purpose of the Fund for the Support of Presbyters and Deacons (FSPD):
 To provide additional assistance to supernumeraries (including those
permitted or directed to become supernumerary) and to ministers’ and
probationers’ widows or widowers who are in need.
 Grants are made available in response to need and an annual grant is
made available to owner-occupiers who apply, to help maintain their
property. An annual grant is also made to the Ministers’ Housing
Society.
 Grants may also be made to enable ministers to continue in the active
work where they would otherwise be prevented from doing so by
sickness or disability.
At this time the Revenue do not regard any grant made from this fund as
a taxable benefit, since grants are paid to supernumeraries who are no
longer “employees” under Revenue rules, and also to dependants where
grants cannot arise out of “employment”.
SELF-ASSESSMENT TAX RETURN
No declaration required.
(See also Briefing Note BN0800)
125
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – FSPD (AUXILIARY FUND)
0804
NOTES
The Auxiliary Fund offers small grants to those in financial need on
application to assist with:
 Personal needs
 House and garden maintenance
 Mobility vehicles
 Stair lifts
 Medical needs
 Other financial needs
 Owner/occupier grants
 Removal grants upon retirement
Applications should be made by sending a completed request form to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
126
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – CONNEXIONAL TRAVEL
FUND
0805
TO BE INCLUDED ON FORM P11D
No declaration is required.
Any grants made are currently taxed at source through the central stipend
payroll.
TO BE EXCLUDED FROM FORM P11D
Travel Allowances during sickness
Purpose of the fund :
 To offer assistance to ministers, deacons, probationers who are
suffering long-term sickness. After a period of three months’
continuous sickness, application can be made to this fund for a grant
(currently £280) and a further application at the end of each
subsequent period of three months. The grant is to contribute towards
the cost of running a motor vehicle.
SELF-ASSESSMENT TAX RETURN
No declaration required, since tax is normally deducted through the
payroll.
(See also Briefing Note BN0800)
127
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – CONNEXIONAL TRAVEL
FUND
0805
NOTES
The Connexional Travel Fund is available to assist with:
 Travel allowances during sickness

Island District travel and long mainland journeys, i.e. to/from certain
stations in the north of Scotland.
Applications should be made in writing to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
128
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – INITIAL GRANTS
0806
TO BE INCLUDED ON FORM P11D
No declaration is required.
TO BE EXCLUDED FROM FORM P11D
Purpose of grant:
 Any minister, probationer, deacon being appointed for the first time to
a station in the homework within the control of the church is eligible
to apply for a grant.
An assessment of financial circumstances is carried out and an offer may
be made following this assessment. The maximum grant available is
currently £2,000.
At this time the Revenue do not regard any grant made from this fund as
a taxable benefit. The grant is usually paid in the tax year prior to
appointment, and is therefore not received in the year in which the new
starter receives income from the church and is not taxable. Alternatively,
it may be received in the first tax year, but is regarded as a qualifying
relocation expense and is therefore not taxable.
SELF-ASSESSMENT TAX RETURN
No declaration required.
(See also Briefing Note BN0800)
129
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
GRANTS – INITIAL GRANTS
0806
NOTES
The Conference 1999 introduced a system of financial assessment for
ascertaining eligibility to apply for a grant for those taking up their first
appointment in intinerant ministry.
This decision was taken to preserve the funds available for those in most
need. This took into consideration the increasing number of mature
persons entering the ministry who have had previous commercial careers
and were seen as being often well provided for.
Documentation will be sent to those who are eligible to apply, usually in
the January prior to taking up appointment in the following September.
Any queries should be addressed to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
130
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
LOANS – INITIAL LOANS
0810
TO BE INCLUDED ON FORM P11D
No declaration is required.
TO BE EXCLUDED FROM FORM P11D
Purpose of loan:
 Any minister, probationer, deacon being appointed for the first time to
a station in the home work within the control of the church is eligible
to apply for an Initial Loan.
An assessment of financial circumstances is carried out and an offer may
be made following this assessment. The maximum loan available is
£5,000 and the loan is interest free.
Under Revenue regulations, this loan is not a taxable benefit because it
falls within the threshold for taxable interest free loans.
SELF-ASSESSMENT TAX RETURN
No declaration required.
(See also Briefing Note BN0800)
131
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
LOANS – INITIAL LOANS
0810
NOTES
The Conference of 1999 introduced a system of financial assessment for
ascertaining eligibility to apply for a loan for those taking up first
appointment in itinerant ministry.
This decision was taken to preserve the funds available for those in most
need. This took into consideration the increasing number of mature
persons entering the ministry who have had previous commercial careers
and were seen as being often well provided for.
Documentation will be sent to those who are eligible to apply, usually in
the January prior to taking up appointment in the following September.
Any queries should be addressed to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
132
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
LOANS – OTHER LOANS
0811
TO BE INCLUDED ON FORM P11D
Declare any interest free loan provided by the district/circuit/church with
a balance at any time in a tax year of more than £5,000.
The taxable benefit to be declared is the market interest that would have
been paid on the full value of the loan in the tax year, calculated at the
official Revenue rate.
The Benefits Office will add the taxable benefit attributable to any loans
in excess of £5,000 issued by the Methodist Church from any central
source to Form P11D.
TO BE EXCLUDED FROM FORM P11D
Any interest free loan which, together with any other loans from the
Methodist Church, come to a total value of no more than £5,000 at any
time in a tax year. Provided the total of £5,000 is not exceeded there is
no taxable benefit.
SELF-ASSESSMENT TAX RETURN
Declare any taxable benefit stated on the Form P11D in relation to
interest free loans received, as above.
(See also Briefing Note BN0800)
133
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FINANCIAL SERVICES – PAYROLL & BENEFITS
TAXATION DICTIONARY
GRANTS/LOANS
LOANS – OTHER LOANS
NOTES
Any queries should be addressed to:
Mr Philip Bedford-Smith
Finance Manager, Payroll & Benefits
Methodist Church House
25 Marylebone Road
LONDON
NW1 5JR
Tel: 020 7467 5266
E-mail: Stipends@methodistchurch.org.uk
134
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0811