Article Summary
This guidance note provides an overview of the tax treatment of ministers of religion in the UK. It explains that ministers are generally treated as employees for tax purposes, meaning their earnings are subject to income tax and National Insurance contributions. The note covers key topics relevant to ministers' tax affairs, including:
- Requirements to submit a self-assessment tax return, including a special supplementary page for ministers
- Tax treatment of fees received for external work, which are taxed differently to main salary
- Exemptions from tax on accommodation provided to perform duties better
- Gifts from congregations, which are usually taxable as they relate to the minister's employment
- Lower thresholds for benefits-in-kind charges applying to lower paid ministers
- Interaction with National Minimum Wage requirements
- ministers may not be covered if office-holders rather than employees. The guidance aims to help ministers and their advisers ensure tax compliance. It highlights some areas where ministers receive preferential tax treatment compared to other employees.