CENTRAL SERVICES BENEFITS



The Methodist Church – Payroll and Benefits Section

BRIEFING NOTES

INDEX

Car Benefits (BN 0712)

Central Stipends System

Certificate of Age Exception

Certificate of Coverage (for US ministers)

Funds for Ministers in Need (BN 0800)

Gifts Received (BN 0701)

Maternity Pay and Leave for Ministers

Murton Bungalow

National Minimum Wage Act 1998

Occupation of Owned Property (BN 0301)

Owned Property - Council Tax (BN 0303)

Owner Occupier Grant (BN 0804)

Payrolls for Lay Employees

Pension Provision for Lay Employees

P46 Completion

Provision of Computer Equipment (BN 0201)

Removal Expenses on Retirement

Self-Employed Status

Sickness of a Minister

Stakeholder Pensions

Telephones (BN 0203)

Travel - Private Transport (BN 0130)

Travel Allowances during Sickness

Work-Related Training (BN 0140)

The cross references (e.g. BN0712) are to sections in the Taxation Dictionary, also available on the Methodist Church web site.

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0712)

CAR BENEFITS

CAR BENEFIT

Where a car is provided by the ‘employing’ circuit a taxable benefit is incurred, based upon the original list price of the car less any amount contributed to the capital cost by the minister. This is independent of whether the car was purchased or leased by the circuit.

The percentage applied to the above value is determined by:

(a) For cars registered before 1 January 1998, the engine cylinder size:

Up to 1400 cc 15%

1401 to 2000 cc 22%

Over 2000 cc 32%

(b) For cars registered after 1 January 1998, the car’s level of carbon dioxide emissions (as shown on the Vehicle Registration Document). For 2010/11 the rates for petrol-powered cars are as follows:

|CO2 | | |CO2 | | |

|gms/km | |%age |gms/km | |%age |

| | | | | | |

|Up to 129 | |15% |180-4 | |26% |

|130-4 | |16% |185-9 | |27% |

|135-9 | |17% |190-4 | |28% |

|140-4 | |18% |195-9 | |29% |

|145-9 | |19% |200-4 | |30% |

|150-4 | |20% |205-9 | |31% |

|155-9 | |21% |210-4 | |32% |

|160-4 | |22% |215-9 | |33% |

|165-9 | |23% |220-4 | |34% |

|170-4 | |24% |225 & over | |35% |

|175-9 | |25% | | | |

Adjustments need to be made to the above table for other fuels, with an overall ceiling of 35%. Further details are available on the HMRC Web Site, under reference EIM23410.

Cont’d/…

FUEL BENEFIT

Where fuel is provided for private as well as business use, a further taxable benefit arises. For the current year this is calculated on a figure of £16,900, to which will be applied the same CO2 percentage as is used for calculating the car benefit itself.

Employer’s NIC is also payable on the above car scale and car fuel benefits.

INLAND REVENUE AUTHORISED MILEAGE RATES FOR 2008/09

Tax-Free Rate Per Mile

| |On first 10,000 miles |On each mile over |

| |in tax year |10,000 miles in tax year |

| | | |

| | | |

| | | |

|Cars |40p |25p |

| | | |

|Additional passenger rate (where |5p | |

|passenger is an employee on a | | |

|business journey) | | |

|Other Vehicles: | | |

| | | |

|Motorcycles |24p | |

|Bicycles |20p | |

Any amounts paid in excess of the above rates are taxable. Where reimbursement is at a lower rate, tax relief may be claimed for the difference on business journeys.

February 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

CENTRAL STIPENDS PAYROLL

We operate quarterly and monthly payrolls for more than 600 circuits and other employing bodies, paying stipends to presbyters, deacons and probationers and, where requested, salaries to lay employees.

In order to run our system in an efficient and timely manner we need all users to adhere to strict deadlines for the provision of payroll related information. This information includes:

Who should be paid, and how much

Allowances (standard or discretionary)

Pension contributions, including AVCs

Payee details: name and address, date of birth, NI number, bank details

P46 or P45 form for each new starter

Certificates of age exception

Sick notes

Notification of pregnancy

Circuit details: treasurer’s name and address, bank or CFB account to be debited

Any other items

All information should be received by Stipends or (in the case of pension contributions) by Pensions, by the dates specified in our quarterly circular letters.

This will enable us to produce up to date information on the Direct Debit Statements issued at the beginning of the month preceding the start of each quarter and will reduce the need for supplementary pay runs. The impact of this is that the department can be run more efficiently and savings made in related areas. We would very much appreciate your help in achieving this.

The Tax Office dealing with the affairs of all those on the quarterly payroll is:

H M Revenue & Customs

North East Metropolitan Area

Fountain Court

119 Grange Road

Middlesbrough Telephone helpline: 0845 302 1414

TS1 2AX District ref: Quarterly 120/M31272

Monthly 120/YZ85673

February 2008

CENTRALISED PAYMENT OF STIPENDS

PLEASE COMPLETE IN BLOCK LETTERS

Name (Title: Initials: Surname): ________ : ________: ___________________________

Christian Names: ______________________________________________

Address: ______________________________________________

(as from 1 September) ______________________________________________

______________________________________________

______________________________________________

Post Code: ______________________________________________

Telephone No (Home: Work: Ext): _________________ : _________________: _________

Sex (M/F): ____________________

Date of Birth: _____________________________________________

District/Circuit: _____________________________________________

I attach P45 or P46 (see Appendix D) P45 □ or P46 □ (please tick)

(Please only send P45 for present tax year)

Full/Part Stipend (specify): ____________________

National Insurance No: ___ ___ / ___ ___ / ___ ___ / ___ ___ / ___

Bank or Building Society Name: _______________________________________

Branch: _______________________________________

Address: _______________________________________

_______________________________________

Sort Code: ___ ___ / ___ ___/ ___ ___

Account No: _______________________________________

Account Name: _______________________________________

Building Society Reference: _______________________________________

I would prefer to be paid: Monthly □ or Quarterly □ (please tick)

Please return form to Mr S Sadik, Payroll Section, Methodist Church House,

25 Marylebone Road, London, NW1 5JR

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

CERTIFICATE OF AGE EXCEPTION

For men attaining the age of 65 years and women the age of 60, we are required to hold a Certificate of Age Exception (CA4140), which entitles the individual not to pay National Insurance contributions (although employer contributions will remain payable). Without this certificate we are required to continue deductions. It is the responsibility of the individual to apply for a Certificate of Age Exception. This may be obtained by writing to the HM Revenue & Customs, NIC Office, Contributor Caseworker, Benton Park View, Newcastle upon Tyne, NE98 1ZZ or telephoning 0845 302 1479, quoting your NI number. Alternatively, if you make a claim for State Pension shortly before reaching State Pension age, you can ask for a certificate by ticking the relevant box on the claim form.

The rules regarding deduction of NIC state that contributions must be paid according to due date of pay. As the Methodist Church pays quarterly or monthly in advance, we are required to deduct contributions for the whole of the quarter or month in which a 65th or 60th birthday falls. (We have a letter from the Revenue which clarifies the position, and is available for reference.)

On obtaining a Certificate of Age Exception please forward the original to:

Mr Samir Sadik

Payroll Administrator

Methodist Church House

25 Marylebone Road

London

NW1 5JR

The exemption from NIC only applies to employees’ contributions. Employer’s contributions remain payable for all those on the payroll.

February 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

CERTIFICATE OF COVERAGE APPLICATION FORM : NOTES

This form is designed to enable ministers coming to the United Kingdom from the USA for a period of up to five years to obtain exemption from having to pay UK National Insurance Contributions.

Exemption can only be applied for on the basis that the minister will continue to pay US Social Security and Medicare during their time in the UK.

The minister should complete the Certificate of Coverage and return it to Payroll & Benefits at Methodist Church House, 25 Marylebone Road, London NW1 5JR. It is important that all the boxes on the form are completed, otherwise a delay will occur whilst the form is returned and resubmitted. The completed forms are sent to the US Social Security Administration office in Baltimore, who will issue a Certificate of Coverage, with a copy for the minister.

The following guidelines apply to specific sections of the application form:

Date of Hire This will be the approximate date when your ministry in the UK was arranged, probably several months before you came over.

Country of Hire We have been advised by US Social Security that this should be shown as “USA”. This is to be consistent with the date of hire.

Address in UK This should be the address at which you will be stationed, if known, or failing that a suitable contact address in the circuit.

Address in USA of

College/Employer The underlying model here is that you are “employed” by an organisation in the USA and “sent” to the UK for a specified period. Normally the college is shown here, even if you have left it.

If you are staying in the UK for a longer period than anticipated, then we can apply for an extension to the period of exemption covered by the certificate. This is true for a period of up to five years overall, however exemption ceases the moment when a minister becomes “ordinarily resident”, i.e. likely to remain permanently.

January 2003

|CERTIFICATE OF COVERAGE APPLICATION FORM |

| | | | | | | |

|FULL NAME : | | | | | |

|PLACE OF BIRTH : | | | | | |

|DATE OF BIRTH : | | | | | |

|CITIZENSHIP : | | | | | |

|COUNTRY OF PERMANENT RESIDENCE : | | | | |

|U.S. SOCIAL SECURITY NO : | | | | |

|DATE OF HIRE : | | | | | |

|COUNTRY OF HIRE : USA | | | | |

|ADDRESS IN U.K. : | | | | | |

| | | | | | | |

| | | | | | | |

|ADDRESS IN USA OF | |ADDRESS IN USA TO WHICH | |

|COLLEGE/EMPLOYER : | |YOU WILL RETURN : | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

| | | | | | | |

|DATE OF TRANSFER TO U.K.: | | | | |

|ANTICIPATED DATE OF RETURN TO USA : | | | | |

|EMPLOYEE'S NAME : | | |EMPLOYER'S STAMP | |

| | | | | | | |

|SIGNATURE : | | | | | |

| | | | | | | |

|EMPLOYER'S NAME : | | | | | |

|THE METHODIST CHURCH | | | | |

|SIGNATURE : | | | | | |

| | | | | | | |

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0800)

FUNDS AVAILABLE TO PRESBYTERS AND DEACONS

ADMINISTERED BY THE BENEFITS SECTION

1. Active Ministers

Starting A probationer or other presbyter/deacon becoming stationed for the first time may apply for an Initial Loan and/or Grant during the months before appointment. Depending on expected net income in the first year of the appointment, a grant of up to £2,000 and a loan of up to £5,000 may be made available.

As the grant is means-tested, assessment forms are sent out to those who may apply.

Sickness The first point to be made is that a presbyter/deacon will continue to be paid their normal stipend during a time of sickness. If the presbyter/deacon continues to be sick over a long period then a review of their position would normally be made. The point of contact is the Manager, Payroll & Benefits.

The Connexional Travel Fund is available to assist with grants of £280 for a complete quarter for which a presbyter/deacon remains sick. This is designed to compensate for the loss of mileage reimbursements during the sickness period.

The Methodist Medical Benevolent Fund is available to assist both presbyters/deacons and lay employees, and their dependants, in situations of health-related need. This can cover (e.g.) medical services and expenses, counselling and recuperative breaks.

Children’s

Education Grants are available from the Trinity Hall Trust to assist with educational costs of children of presbyters/deacons. These may relate to pre-school, primary, secondary or university education. Help is not available for core tuition fees but is for uniforms, school materials and extra-curricular activities such as school trips, music lessons, sports activities, etc.

A small fund known as the Ministers’ Children’s Relief Association is available to help in respect of presbyters’/deacons’ children in need, in particular because of disability.

Bursaries for provision of school fees for children attending Methodist Schools are offered by Methodist Colleges and Schools, to whom enquiries should be made.

Remote Locations Where a presbyter/deacon is stationed to an island district (Channel Isles, Isle of Man, Shetland etc.) or the North of Scotland, application may be made to the Island Travel fund for the provision of two trips per annum to the mainland/rest of Britain for the presbyter/deacon and his/her dependants.

Application forms should be sent to Financial Services.

2. Retired Ministers

General need The Fund for the Support of Presbyters and Deacons (previously known as the Auxiliary Fund) provides assistance to supernumerary presbyters/deacons or their widow/widowers, in a variety of situations of exceptional or unforeseen need. Grants may be given for help towards such things as unexpected household expenditure (e.g. replacement of boiler/cooker/washing machine), gardening, property maintenance and repairs, bills which they struggle to meet ( e.g. council tax, water rates), recarpeting, redecorating and medical needs (e.g. stair lifts, mobility scooters, opticians and dental costs).

The fund also finances removal grants to retiring presbyters/deacons, and provides annual owner-occupier grants to retired presbyters/deacons not living in Housing Society properties.

The fund is also available to assist in situations where a presbyter/deacon or circuit needs financial help in order to continue in the active work rather than to retire early for medical reasons.

The fund is available to assist towards top-up fees for residential care. An annual grant may be applied for up to a maximum of £3,000.

The Leaders of Worship and Preachers Trust offers financial support for leaders of worship and preachers, and their dependants, in times of need. This includes regular allowances and places in one of their LWP Homes. Contact: Adrian Needham, Executive Officer, LWPT, 89 High Street, Rickmansworth, WD3 1EF (Tel. 01923 775856).

To apply for grants from the Connexional Travel Fund, MMBF, Trinity Hall Trust, MMCRA and Fund for the Support of Presbyters & Deacons, presbyters/deacons may contact Benefits Section by:

e-mail : stipends@.uk

letter: Philip Bedford-Smith,

Manager, Payroll & Benefits Section

25 Marylebone Road

London NW1 5JR

phone: Deborah Nyamekye, Administrator, Benefits Section

(020 7467 5264)

September 2009

METHODIST MINISTERS’ BENEFITS FUNDS

APPLICATION FOR A GRANT

This form is to be used to make application for a grant from one of the following funds maintained by the Payroll and Benefits Section at Methodist Church House:

Fund for the Support of Presbyters and Deacons (FSPD);

Methodist Ministers’ Benevolent Fund (MMBF);

Methodist Ministers’ Children’s Fund (MMCF, Trinity Hall Trust);

Methodist Ministers’ Children’s Relief Association (MMCRA).

A counter-signature is required by your Superintendent, District Chair or family doctor.

* * * * * * * * * * *

I wish to apply for a grant from one of the above funds.

Name ………………………………………………………………………………………………….

Block capitals please

Address ……………………………………………………………………………………………….

……………………………………………………………… Post code………………………

Tel. No. ………………………………………… E-mail ………………………………………...

For MMCF only: Family income estimated in current Connexional year (excluding own stipend):

Spouse’s earned income ......................................

Other income (where over £5,000), excl any state benefits ......................................

Nature of claim (supporting details must be attached)

………………………………………………………………………………………………………...

………………………………………………………………………………………………………...

………………………………………………………………………………………………………...

Total estimated cost £ ……………………….. Grant requested £……………………....…….

This is my first / second / ............. claim this Connexional year (please state).

Signature ………………………………… Date ……………………….

I believe this information is correct and would support this application for a grant.

Name ......................................................................................................................

Capacity .................................................................................................................

Signature ..................................................................... Date ..................................

For Payroll & Benefits use only

Grant awarded £ ……………Fund .............. Signature …………….............…. Date ………

METHODIST MINISTERS’ BENEFITS FUNDS

CRITERIA

In the criteria below the term “minister” includes presbyters and deacons.

The Fund for the Support of Presbyters & Deacons (FSPD)

The Fund exists to provide additional assistance to supernumeraries; persons who have been permitted or directed to become supernumerary; ministers' and probationers' widows or widowers who are in need; ministers who are in need as a result of illness or impairment, for the purpose of enabling them to continue in or resume the active work; and probationers who are in need as a result of illness or impairment for the purpose of enabling them to continue on or resume probation, or to complete probation and enter the active work.

The Methodist Ministers’ Benevolent Fund (MMBF)

Grants are made for the benefit of ministers, probationers, students for the Methodist ministry, authorised lay workers and employees of the Methodist Church, or of their spouse, or dependent children, who are, or who have recently been, ill.

The Methodist Ministers’ Children’s Fund (MMCF, Trinity Hall Trust)

The Fund makes grants for furthering the education of the children of Methodist ministers. Application may be made for assistance towards educational expenditure (other than core fees) for primary and secondary school age children, aged between 4 and 18, of Methodist ministers (including probationers). There is currently a limit of £200 per child per annum that may be given.

The Methodist Ministers’ Children’s Relief Association (MMCRA)

Grants are paid in respect of ministers’ children in cases of need especially because of disability.

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0701)

GIFTS RECEIVED

If an “employing” church or circuit makes a gift to a presbyter/deacon this is normally regarded as income for tax purposes.

However, certain gifts received by an “employee” are non-taxable if all the following conditions are satisfied:

- the gift consists of goods or a voucher or token only capable of being used to obtain goods;

- the person making the gift is not the employer or a person connected with the employer;

- the gift is not made either in recognition of the performance of particular services in the course of the employment or in anticipation of particular services which are to be performed;

- the gift has not been directly or indirectly procured by the employer or by a person connected with the employer;

- the gift cost the donor £150 or less; and

- the total cost of all gifts made by the same donor to the employee, or to members of the employee’s family or household, during the Income Tax year is £150 or less.

Source: Extra-Statutory Concession A70

If a leaving gift is made from the proceeds of a special collection from the congregation, rather than out of church funds, then no tax charge will arise. The church bank account may be used as a conduit for the monies collected.

April 2002

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

MATERNITY PAY AND LEAVE FOR MINISTERS

Notification of Maternity

A minister (or any other person) on the central payroll who becomes pregnant should notify the fact to the Payroll Section, by sending a MAT B1, a form issued by the doctor to certify the expected week of birth. These should be sent for the attention of Samir Sadik, Payroll Administrator.

Statutory Maternity Pay

The minister will continue to be paid at her full stipend rate during a period of maternity. However where she qualifies for SMP this will be claimed for the benefit of the circuit or other employing body. The SMP calculation is offset on the payslip by a corresponding negative figure so that there is no net effect on net pay.

The circuit will be credited with 92% of claimable SMP over the maternity period. This is offset against stipend costs charged on the Circuit Debit Statement.

Maternity Leave

A minister must take at least 14 days maternity leave, and can take up to 39 weeks paid “ordinary maternity leave”. She can decide when this should start but it cannot commence earlier than eleven weeks before the expected date of childbirth. She should give at least 8 weeks’ notice to the circuit if she intends to resume her duties before the end of the period of ordinary maternity leave. SMP would cease at that point. However, she can work for up to 10 days during the maternity period (“keeping in touch days”) without this affecting SMP.

There is a further 13 weeks of unpaid “additional maternity leave” available.

Further details of maternity leave, paternity leave and adoption leave may be found in CPD, sections 807A to 807C.

Circuit claim for a Contingency Grant

Under SO 365(5) a circuit may request reimbursement from the Methodist Church Fund of any amount by which any SMP recovery falls short of the stipend costs that continue to be paid during the maternity period. Before this is paid we need confirmation of how much maternity leave the minister has in fact taken, and when she has returned to work.

April 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

MURTON BUNGALOW

A holiday bungalow is available to enable ministers and others employed by the Methodist Church to enjoy a short convalescent break, together with their spouses or dependent children.

The bungalow is situated in the small village of Murton, near Swansea, and is a mile and a half from the sea. There is a frequent bus service to the centre of Swansea and to the seafront. Accommodation is available on a self catering basis. Guests may be accommodated but the number of persons should not exceed 5. There are 3 bedrooms – one double, one single and a twin.

Bookings may be made on a weekly basis (Thursday to Thursday) and charges for 2010 are:

£155 per week January to May, and

September to November

£185 per week June to August

However, bookings are free when applied for on the grounds of ill health of a minister or other employee of the Methodist Church, provided the application is supported by a doctor’s certificate or alternatively by the Superintendent Minister or District Chair.

Enquiries and applications should be made to Deborah Nyamekye at the above address and phone number.

January 2010

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

NATIONAL MINIMUM WAGE ACT 1998

Under the above Act, which came into force in 1999, any worker with a contract of employment (written, oral or implied) must be paid at least the appropriate minimum wage.

The current National Minimum Wage is as follows:-

| | |From 1 October 2010 |

| | | |

|Adult hourly rate from age 21 | |£5.93 |

|Youth rate, age 18 to 21 | |£4.92 |

|Under 18 / apprentices | |£2.50 |

Further information should be obtained from Development and Personnel, Methodist Church House, telephone no. 0207 486 5502.

October 2010

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0301)

OCCUPATION OF OWNED PROPERTY

The use of own properties in place of a manse is generally discouraged. Standing Order 803 requires the circuit to provide a circuit minister with a manse. A minister should only be allowed to live in his/her own house under exceptional circumstances, after the circuit has explored every other option. The reason must be documented and be for a fixed period of time only.

However, when this has to happen, it is advised that discussions take place with the Connexional Property Committee first. The Property Committee’s angle on the question of ministers and manses relates more to the question of whether circuits should pay a ‘rental’ to ministers who are using their own houses. Our advice is that the circuit should not, because such a practice may bring into question the understanding of HM Revenue & Customs that manses are supplied as an ‘official residence’ and are occupied as a requirement of service, and are therefore not a taxable benefit, as they would be for lay people who are supplied with accommodation by an employer.

Minister chooses to live in own property

If it is the choice of the minister to live in his/her own property then there is no obligation on the part of the circuit to meet any expenses relating to the owned property.

Any payments made in relation to that property e.g. council tax, water rates, repairs and maintenance will be regarded as a taxable benefit and should be declared on the Form P11D and the minister’s Tax Return.

Circuit is unable to provide a manse

Minister lives in own property

If it is at the request of the circuit that the minister resides in his/her own property then local arrangements may be made to offer some allowance towards the cost of upkeep of that property. This would be negotiated locally according to circumstances but may include:-

Council Tax

Water Rates

Marketable Rent (according to local level)

Any payments made in relation to that property will be regarded as a taxable benefit and should be declared on the Form P11D and the minister’s Tax Return.

Cont’d/…

Minister lives in a property leased in the name of the church/circuit

If it is at the request of the circuit that the minister resides in such a property then local arrangements may be made to contribute to certain costs. An agreement would be reached locally as to what those payments would include but may be the following:-

Council Tax

Water Rates

Any maintenance not covered by the landlord’s responsibilities.

Any payments made in relation to that property may be regarded as a taxable benefit, unless the Church or a related body has an interest in the property (other than just reimbursing the rent).

Allowances paid to ministers residing in owned property

Where it is intended to pay a minister an allowance that exceeds 10% of standard stipend, the prior approval of the Connexional Allowances Committee, must be obtained.

April 2010

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0303)

OWNED PROPERTIES – COUNCIL TAX

Many ministers own a property, which they maintain for their retirement whilst living in a manse provided by the circuit in which they are stationed.

After the introduction of Council Tax in the early 1990s the Department of the Environment expressed the view that “second homes of those living in tied accommodation would be treated in the same way as other empty properties. Any dwelling which was no-one’s sole or main residence would attract a 50% discount.” Although each case will depend on its own facts, it is likely that in most cases the manse will be considered the main residence and the second home (unless let) would attract the reduced rate of Council Tax.

In April 2004 local authorities were allowed to reduce the discount on second homes from 50% to 10%. However, it remains at 50% for ministers and others who live in job-related accommodation. This reinstatement of the 50% discount (which applies in England only) was omitted from the original legislation but has since been made the subject of amending regulation S.I. 2004/926, and communicated to local authorities in ODPM Council Tax Information Letter 2/2004. We shall be happy to provide copies of this correspondence in the event of any difficulty with local authorities.

It should be noted that the designation of the “main residence” for Capital Gains Tax purposes is entirely independent of the above. Where a minister lives in “tied accommodation”, i.e. a manse provided, any house they own to which they intend eventually to retire may be treated as their only or main residence and therefore exempt from CGT.

March 2007

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0804)

OWNER OCCUPIER GRANT

Supernumeraries or their widow(ers) are entitled to apply annually to the Fund for the Support of Presbyters & Deacons for the above, provided that:-

i. They are resident in their own home.

ii. Application is made out of financial need, i.e. repairs and maintenance to the owned property would lead to financial hardship.

iii. The grant is required to assist with the upkeep of their owned property, i.e. they do not live in a Housing Society property.

Application forms are usually mailed with the December Pension; otherwise they can be obtained by writing to Mr Philip Bedford-Smith, Manager, Payroll and Benefits at the above address.

Grants are normally paid with the March Pension; otherwise a cheque may be issued on request.

September 2009

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

PAYROLLS FOR LAY EMPLOYEES

There are two payrolls operated by the Payroll & Benefits Section which Districts, Circuits and Churches are welcome to use for the payment of lay employees, as an alternative to paying them locally.

(a) Quarterly

This payroll runs alongside the Ministers’ Stipend Payroll administered by Samir Sadik (tel: 0207 467 5133), with payment quarterly in advance at the start of each quarter (i.e. 1st September, 1st December, 1st March and 1st June).

(b) Monthly

This payroll is administered by Jane Gasengayire (tel: 0207 467 5256), with payment on 15th of each month. For this payroll, employing districts/circuits/churches are asked to contribute an annual grant of £210 per employing body towards the cost of administration.

Information requirements

In order for us to run our systems efficiently, we need all users to advise us of the required information in a timely manner. Quarterly payroll information must be received in accordance with the deadlines laid down for the ministers’ payroll. Monthly payroll information must be received at least one week before pay day. Annual increments should be advised a month before the new year starts. All information must include appropriate written authorisation.

This information includes:

• Which payroll you would like to use

• Name and address of each person to be paid

• Rates of pay, start date and subsequent changes

• Payee details : NI number, date of birth, bank account details

• Pension contributions (if a scheme has been set up with the Pensions Trust - see below)

• P46 or P45 (for the current tax year) for each new starter

• Certificate of age exception (if applicable)

• Sick notes, notification of pregnancy (MAT B1), and arrangements for payment (if any) to be made during sickness or maternity leave

• District/Circuit/Church details : treasurer’s name and address, and authority to debit bank or CFB account with the cost of salaries

• Any other details we need.

cont’d/…

Pension Scheme Contributions

We are set up to administer contributions only with the Pensions Trust. Districts/circuits/churches that wish to pay contributions through the payroll should confirm that they are registered as an employer with the Pensions Trust (and should be able to advise us of their E reference), and ensure that we receive the monthly Payment Prompts which list expected contributions.

Tax Office Details

The Tax Office dealing with the affairs of all those on the quarterly lay employee payroll is:

HM Revenue & Customs

North East Metropolitan Area

Fountain Court

119 Grange Road

Middlesbrough Employers’ telephone: 0191 566 0484

TS1 2AX. District ref: 120/M31272

The Tax Office dealing with the affairs of all those on the monthly lay employee payroll is:

HM Revenue & Customs

Chapel Wharf Area

Trinity Bridge House

2 Dearmans Place

Salford Employers’ telephone: 0161 261 3456

M3 5BS. District ref: 951/M1548WW

We will deduct PAYE tax and national insurance contributions and account for these to the above tax office, as appropriate. We will also send employees end of tax year P60’s and make the necessary end of year tax and NIC returns to HM Revenue & Customs.

P11D Returns of Taxable Benefits

It is the responsibility of the employing district/circuit/church to keep records to enable a P11D return to be completed at the end of each tax year in respect of all employees earning more than £8,500 per annum including benefits. We shall endeavour to send a form for each such employee but it is up to the employer to request the number required. These need to be completed and returned to Payroll & Benefits Section by 31st May after the end of the tax year, to enable us to make a timely return in respect of each payroll.

February 2008

CENTRALISED PAYMENT OF MONTHLY SALARIES

PLEASE COMPLETE IN BLOCK LETTERS

Name (Title: Initials: Surname): ________ : ________: ____________________________

Forenames: ______________________________________________

Address: ______________________________________________

______________________________________________

______________________________________________

District/Circuit: ______________________________________________

Date of Birth: ______________________________________________

National Insurance No: ___ ___ / ___ ___ / ___ ___ / ___ ___ / ___

I attach P45 or P46 (see attached notes) Please tick □ P45 or □ P46

(Please only send P45 for present tax year)

Annual Salary: _______________________________________

Hourly Rate: _______________________________________

Hours per week: _______________________________________

Start Date: _______________________________________

Bank or Building Society Name: _______________________________________

Branch: _______________________________________

Address: _______________________________________

_______________________________________

Sort Code: ___ ___ / ___ ___/ ___ ___

Account No: _______________________________________

Account Name: _______________________________________

Building Society Reference: _______________________________________

District/Circuit C.F.B. Account: _______________________________________

Please return form to Ms Jane Gasengayire, Payroll Section, Methodist Church House,

25 Marylebone Road, London, NW1 5JR

CENTRALISED PAYMENT OF QUARTERLY SALARIES

PLEASE COMPLETE IN BLOCK LETTERS

Name (Title: Initials: Surname): ________ : ________: ____________________________

Forenames: ______________________________________________

Address: ______________________________________________

______________________________________________

______________________________________________

District/Circuit: ______________________________________________

Date of Birth: ______________________________________________

National Insurance No: ___ ___ / ___ ___ / ___ ___ / ___ ___ / ___

I attach P45 or P46 (see attached notes) Please tick □ P45 or □ P46

(Please only send P45 for present tax year)

Annual Salary: _______________________________________

Hourly Rate: _______________________________________

Hours per week: _______________________________________

Start Date: _______________________________________

Bank or Building Society Name: _______________________________________

Branch: _______________________________________

Address: _______________________________________

_______________________________________

Sort Code: ___ ___ / ___ ___/ ___ ___

Account No: _______________________________________

Account Name: _______________________________________

Building Society Reference: _______________________________________

District/Circuit C.F.B. Account: _______________________________________

Please return form to Mr Samir Sadik, Payroll Section, Methodist Church House,

25 Marylebone Road, London, NW1 5JR

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

PENSION PROVISION FOR LAY EMPLOYEES

The Conference of 1999 required employing bodies to offer pension provision to all lay employees to whom a contract is issued under S.O. 438A, on the basis of contributions of at least 6% of salary by the employing body and 6% by the lay employee (see Resolution overleaf). The 6% is the minimum to be offered and an agreement can be reached between the lay employee and the employing body for contributions in excess of 6%.

For lay employees paid centrally via the monthly or quarterly payroll, we offer a service to those who choose to join The Pensions Trust, i.e. both the Employer Contribution (6% minimum of salary) and Employee Contribution (matched to the Employer Contribution) will, according to the agreed contract with The Pensions Trust, be deducted at source and paid directly to The Pensions Trust. Tax is calculated after deduction of the employee contribution.

The responsibility for making contract arrangements with The Pensions Trust lies with the individual and the employing body, e.g. the circuit. The Benefits Section will act according to the instructions provided by The Pensions Trust and the employing body. Pension provision arrangements made with any other pension provider must be handled locally.

If the lay employee decides to join any other Pension Plan that accepts contributions from the employing body, then it is the employing body who must make the direct contribution (Gross) to the scheme. The employee will be responsible for paying his/her own contributions directly.

If a lay employee already has a Personal Pension Plan, which is not able to accept contributions from the employing body as required by Conference, then the employee can either set up a new Pension Plan into which the employing body can contribute or choose not to receive an Employer’s Contribution.

Anyone wishing to contract with The Pensions Trust should contact the following:-

Information on new contracts The Money Purchase Team

(Sally Benton, Team Leader)

The Pensions Trust

Verity House

6 Canal Wharf

Leeds

LS11 5BQ Tel: 0113 394 2788

Email: enquiries@.uk

Cont’d/…

Further information once contract Customer Relations Team

established (Mrs Pam Jenkinson, Team Leader)

The Pensions Trust

Verity House

6 Canal Wharf

Leeds

LS11 5BQ

Tel: 0113 234 5500

Email: pam.jenkinson@.uk

1999 Conference Resolution 24/4

The Conference requires employing bodies to offer pension provision to all lay workers to whom a new contract of employment is issued under S.O. 438A on the basis of contributions of at least 6% of salary by the employing body and 6% by the lay worker. Where the lay worker is not already a member of a suitable pension scheme, then payment should be made into an appropriate money purchase plan. The Conference directs that this requirement shall be published to employing bodies as a special term of employment of lay workers under Standing Order 438A(3)(iiA).

February 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

WHEN AND HOW TO COMPLETE A FORM P46

You should be sent the attached form P46 when you are about to take up ‘employment’ with a circuit or district, or some other responsible body within the Methodist Church.

Have you during the current tax year been in receipt of income from another employment? (A tax year runs from 6 April to 5 April of the following year)

If the answer is YES, then you need to obtain a P45 from your previous employer, if you are not already in receipt of one. This is normally provided to you on leaving employment.

If the answer is NO, then you are required to complete the attached Form P46 and send the completed form to: Payroll & Benefits, Methodist Church House, 25 Marylebone Road, London, NW1 5JR. Telephone: 020 7467 5264.

How to complete Form P46

Section one (page 1):

Your details

The address you enter should be the place where you will be living when ‘employment’ commences.

National Insurance number

This is very important in getting your tax benefits right. If you have recently arrived in the UK, please contact your local Job Centre Plus or social security office to obtain a permanent number and advise us of it as soon as possible.

Your present circumstances

Tick one of the boxes against Statements A, B, or C according to which applies to you.

Tick the box against Statement C if you are in receipt of a pension from a previous employment. This is not a question about whether or not you have or are going to join a Pension Scheme as a result of your involvement with the Methodist Church.

Section two (page 2) – to be completed by Payroll & Benefits, Methodist Church House.

March 2007

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0201)

PROVISION OF COMPUTER EQUIPMENT

Computers for Ministry Scheme

The Computers for Ministry scheme agreed by Conference in 2007 is now in operation. Under this scheme, presbyters and deacons in the active work in an appointment under the control of the Methodist Church may apply for reimbursement of up to £600, once every four years, for the purchase of computer equipment. The equipment becomes owned by the minister and will be transferred with him/her to future appointments.

The scheme also includes the provision of a broadband internet connection and an e-mail address for those who wish to make use of them.

Tax Position

Our understanding is that the provision of a computer, to be owned by a minister, is a taxable benefit, for which income tax and NIC need to be accounted for. Where possible we collect these through the payroll.

There should be no tax charge for the costs of broadband provided that the contract is in the name of the church or circuit, and the minister reimburses an estimate of personal use.

Other situations involving computer equipment

A. Computer purchased and owned by the church/circuit

To escape a tax charge it will be necessary for the minister to reimburse the circuit with an estimate of personal usage.

B. Minister purchases own equipment

If a minister purchases his/her own computer equipment, rather than it being provided by the church or circuit, then this is regarded for tax purposes as capital expenditure.

This means that the whole amount cannot be claimed in the year of purchase against taxable income. Instead, writing down allowances may be claimed over a period of years on the basis of 20% of the written down value (apportioned to allow only the part used for church purposes).

Computer software and expenditure on ancillary items (paper, cartridges, etc.) are treated as revenue expenditure and can be claimed in the year of purchase.

First Year Allowance

As an alternative to the above, a 100% FYA is also now available, provided the minister can show that the equipment is used “wholly, exclusively and necessarily” for church rather than private use.

April 2009

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

REMOVAL EXPENSES ON RETIREMENT

On becoming a supernumerary Ministers (i.e. Presbyters and Deacons) are able to apply for a grant from the Fund for the Support of Presbyters & Deacons covering the cost of the removal from the circuit in which you are now serving to your permanent place of retirement in the UK.

Ministers should obtain three estimates as soon as possible and submit them to the Payroll and Benefits Section of the Finance Office before making a final arrangement. A grant equal to the lowest of these will normally be approved unless there is a particular reason for choosing otherwise. Upon receipt of the estimates we will write to you to confirm agreement to a particular estimate. *

In addition to the removal costs, travel costs for yourself and dependents may also be applied for. If you travel by car you should base your application on 35 pence per mile.

Ministers should pay the removals company and obtain a receipt. If there are difficulties with this it may be possible for the grant to be paid direct to the removals company. However, this requires at least one month’s notice.

In order to receive the grant, Ministers should then send the completed application form and receipted invoice to Mr. P Bedford-Smith, Finance Manager, Payroll & Benefits Section at 25 Marylebone Road, London NW1 5JR.

Once the grant is approved a cheque from the Fund for the Support of Presbyters & Deacons will be sent to you. This process should be carried out within ten working days unless there are any complications.

If for any reason you wish to defer your claim for expenses, rather than claim them immediately you must inform the Payroll & Benefits Section before the date of your retirement in order that agreement may be made and a note put on the relevant file. Please give reasons for the delay. Of course a claim for expenses may only be made once.

* Especially with removals from London it is often much cheaper to employ a firm from the place to which you are moving. Although some firms may offer a discount to clergy, the Methodist Church does not recommend any particular firm, and a discount offer may not in fact be the cheapest.

April 2010

The Methodist Church

THE FUND FOR THE SUPPORT OF PRESBYTERS & DEACONS

(Removal expenses on retirement)

APPLICATION FOR A GRANT

The Fund for the Support of Presbyters & Deacons exists to provide additional assistance to supernumeraries; persons who have been permitted or directed to become supernumerary; and ministers', deacons’, and probationers' widows or widowers who are in need.

Name of Applicant : ……………………………………………………………………….

Status : ………………………………………………………………………………………

Address : ……………………………………………………………………………………

……………………………………………………………………………………………….

……………………………………………………………………………………………….

I confirm that I am in need of a grant for the purpose of my removals on retirement from the ministry. I attach the receipted removals invoice.

Details of costs incurred :

| | |£ |

| | | |

| | | |

|Removal expenses : | |………………... |

| | | |

| | | |

|Travel mileage …………….. miles @ 35p/mile : | |……………….. |

| | | |

| | | |

|Total : | |……………….. |

| | | |

| | | |

|Contribution requested : | |………………. |

Signed by Applicant : …………………………………………… Date : ………………..

For Payroll & Benefits Use

Authorised by : ……………………..

Grant made : ………………………… Date : ………………..

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

SELF-EMPLOYED STATUS

Methodist ministers are regarded in law as self-employed, rather than employees, as may be seen in the following statement provided by Pothecary Witham Weld, Solicitors to the Methodist Church:

“A Methodist minister appointed to a circuit of the Methodist Church is not an employee of the Church or of that circuit. No contract of any kind, let alone a contract of service or employment, exists between a Methodist minister and the Church. The relationship is one whereby a minister is, in effect, a person licensed by the Methodist Conference to perform the work of a minister in accordance with the doctrine of the Church and subject to its discipline. Thus, a Methodist minister is self-employed.”

November 1999

However, for tax and national insurance purposes a minister or deacon is treated as an “office holder” for whom PAYE and Class 1 NIC are applicable. Presbyters and deacons are therefore treated as employed earners for the purposes of stipends and taxable benefits of their appointment. Other income (e.g. fees) may be treated as self-employed income.

In recent years the status of ministers has come under public scrutiny as the Government has sought to extend statutory employment rights to groups not currently covered. The Methodist Church is committed to developing good practice regarding the status and terms and conditions of presbyters and deacons, and has recently prepared a Handbook for Ministers, to be used also by those responsible for their appointment.

February 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

SICKNESS OF A MINISTER

Statutory Sick Pay and Sick Notes

A minister who is sick for more than a week should send his/her (original) doctor’s sick notes, after completing and signing them, to the Payroll and Benefits at MCH, for the attention of Samir Sadik, Payroll Administrator. This should be done promptly.

This is to provide information on the period of sickness, the dates of which are input to the central Payroll system to determine the value of Statutory Sick Pay.

The minister will continue to be paid at his/her full stipend rate during a period of sickness. (The SSP amount on the payslip is offset by a corresponding negative figure so that there is no net effect on net pay.)

SSP Recovery by Circuit

Recovery of SSP is made where possible for the benefit of the circuit. The amount recovered is calculated by the payroll system and deducted from the costs recovered from the circuit as shown on the Circuit Debit Summary.

The amount recovered is calculated as the amount (if any) by which the SSP exceeds an amount of 13% of the Total NI Contributions for the quarter concerned. This means that a small circuit is more likely to have a recovery than a large one.

Unfortunately, it is not possible at present to recover SSP in respect of ministers paid via the monthly payroll.

Time Limits for SSP

SSP lasts for a total of 28 weeks after which it ceases to be payable. If a minister is still sick after that time he/she will need to claim Employment and Support Allowance (ESA, formerly Incapacity Benefit) from the local DSS office. Towards the end of the SSP period we will send him/her a SSP1 form which certifies the end of the SSP period and enables the minister to claim ESA for the period after SSP has finished.

Since the minister is continuing to receive full stipend, any ESA received should be passed to the circuit to offset the stipend cost. Please note that the amount refunded should be net of basic rate tax since the minister’s tax code will be adjusted by HM Revenue & Customs to account for the ESA paid.

Cont’d/…

Circuit Claim for a Contingency Grant

After a minister has been sick for 26 weeks a claim may be made to Payroll & Benefits for a grant from the Methodist Church Fund. This will be calculated to reimburse the circuit for the full stipend cost for the period after 26 weeks for which the minister remains sick. Further details may be found in the CPD, Volume II, Section 365.

The circuit should keep Payroll & Benefits informed regarding the minister’s continuing sickness, so that further grants may be paid for the correct period.

Further Provisions during Long Term Sickness

A situation may arise where a minister/deacon is sick due to stress/nervous breakdown or some other condition which allows him/her to return to work to carry out partial duties as part of a rehabilitation process.

Then the circuit would not normally be able to claim a contingency grant under SO 365 as no sick note would be available.

At the same time, if the doctor decides that he/she is fit for light duties, then the Benefits Agency will not allow Incapacity Benefit if a person has returned to work.

In these circumstances, it has been agreed that the following provisions should apply:

1 Following 26 weeks of sickness, a grant may be made to the circuit to cover the additional costs incurred of “employing” a person(s) to provide cover. Necessary documentation must be provided in support of any payment. Any payment made should not exceed the usual stipend cost including NIC and pension contribution.

2. If a minister has been unable to work satisfactorily for 26 weeks but has not been officially classed as sick i.e. not in receipt of sick notes, then it may be possible to make similar arrangements as in (1) above, but this will depend on the individual circumstances.

A grant may be made available from the Fund for the Support of Presbyters and Deacons (FSPD), formerly the Auxiliary Fund to enable a minister to continue in the active work when the alternative would be to take early retirement on health grounds.

March 2010

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

STAKEHOLDER PENSIONS

To encourage more people to save for their retirement the Government introduced stakeholder pensions from 2001. These provide a simple, flexible and low cost means of making pension provision for those on relatively low incomes and those who are not employed. They are provided by banks, building societies and insurance companies.

Employers who have more than four employees are required to give them access to a stakeholder pension, unless there is an occupational pension scheme they can join. This does not apply to the following employees: those who have been employed for less than three months, those under age 18 and less than five years away from retirement, those earning less than the Lower Earnings Limit (£97 per week for 2010/11). Employers will not be required to contribute to a stakeholder pension but they will have to mutually agree with the employee its selection, deduct contributions from the employee’s pay, remit them to the pension provider and keep records.

In applying the stakeholder pension regulations to the Methodist Church, Circuits, Districts and Churches may each be regarded as the employer of a variety of employees which, for this purpose, must include presbyters and deacons. If, for example, a Circuit has more than four employees, consisting of a mixture of, say, two ministers, one deacon and two lay employees, access to a stakeholder pension would have to be provided if there is no suitable alternative.

The alternatives for the various categories of employee are as follows:-

|Presbyters, deacons, probationers |- |the Methodist Ministers’ Pension Scheme (MMPS) |

|Lay employees |- |an occupational pension scheme operated by The Pensions Trust (a |

| | |non-profit making organisation that administers pension schemes for the |

| | |charitable and voluntary sector), or a group personal pension, provided |

| | |it meets certain conditions. An individual personal pension does not |

| | |count as a suitable alternative, unless the employer contributes at least|

| | |3% of basic pay into it. |

The recommended actions for these various categories of employee are as follows:-

Cont’d/…

Presbyters, deacons and probationers

All presbyters, deacons and probationers are able to join MMPS therefore there is no requirement on the Connexion or Circuits to provide access to a stakeholder pension.

Lay employees

In response to the stakeholder pension requirements, The Pensions Trust already has a pension scheme available to lay employees on the basis of the employer contributing at least 1% of the lay employee’s salary. Circuits and Churches will need to make at least a nominal contribution in order to avoid the requirement for providing a stakeholder pension. The advantages are that this is an existing arrangement, the charges are relatively low and the administration simple.

The Pensions Trust

Information about the pension scheme offered by The Pensions Trust can be obtained from the relevant contact below, depending on whether the Circuit, District or Church is an existing client of the Trust, or wishes to enquire about joining:-

|Existing client |Potential new client |

|The Pensions Trust |The Pensions Trust |

|Conference House |Verity House |

|152 Morrison Street |6 Canal Wharf |

|The Exchange |Leeds |

|Edinburgh |LS11 5BQ |

|EH3 3EB | |

| |Tel: 0113 394 2765 |

|Tel: 0131 200 6160 | |

| |Contact: Sally Benton |

|Contact: Pam Jenkinson | |

Further information may be found on the Pensions Regulator website, .uk/stakeholderPensions.

Alternatively, if you have any questions about this information sheet you should contact The Development & Personnel Department at Methodist Church House (Tel. No. 020 7486 5502) or the Pensions Office (020 7467 5258).

April 2008

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0203)

TELEPHONES

To avoid any liability to tax or NIC, it is recommended that the following arrangement is made for the manse telephone to be used for church business:

• the contract rests between the church/circuit and the service provider (e.g. British Telecom) and any liability arising from non-payment is legally the responsibility of the church (as employer)

• the individual employee meets the cost of private calls, including VAT

Please note that the same treatment should be adopted for mobile phones.

Discussions with BT suggest that in the past problems have arisen when a minister moves stations. The incumbent of the manse has informed BT of his/her move, automatically causing the final bill to be raised and the line terminated, thus necessitating the signing of a new contract for the new occupant.

In order to prevent this situation arising the following guidance has been offered with regard to internal procedures (this may be appropriate for other providers):-

(a) When the minister is due to leave the manse, he/she should not inform BT. When the new minister arrives, he/she should request a change of name in the directory. When the next quarterly account arrives it will need to be divided accordingly between the church, the leaving minister and the new minister.

OR

(b) When the minister is due to leave the manse he/she could use BT’s moving home service by ringing 0800 800 150. BT will provide an up to date billing statement. This cost will include VAT but exclude line rental and most discounts such as friends & family, etc. (This will allow the leaving minister to reimburse the church with the exact amount.) The new minister can then notify the change of name on arrival.

April 2009

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0130)

TRAVEL – PRIVATE TRANSPORT

The following are some of the points to remember when considering claims for travel expenses.

• Mileage must be reimbursed according to actual business mileage and at the HM Revenue & Customs approved mileage allowance rates. If these conditions are fulfilled there is no requirement to include the expenses paid on either the form P11D or the Self Assessment tax return.

The current provisions are:

- 40p per mile up to 10,000 miles in the tax year and 25p per mile for any miles over 10,000 miles.

- An allowance of 24p for motor cycles.

- An allowance of 20p per mile for bicycles.

- An additional 5p per mile may be claimed for each fellow “employee” of the same circuit travelling as a passenger on business journeys.

• The higher rate mileage may be apportioned over the tax year, provided that the 10,000 miles at the higher rate is not exceeded.

• Any presbyter/deacon moving mid tax year should take his/her mileage records with him/her which relate to the current tax year and request that the circuit forward a copy of the mileage record to the receiving circuit for continuity.

• For any person joining a circuit mid tax year to take up a first appointment with the church, the full allowance of 10,000 miles at the higher rate should be given. This allowance does not relate to months of office held.

• Where recipients receive reimbursements for their travel costs from a variety of church sources (e.g. circuit/district/connexion), these may be claimed at the higher rate. Where, however, a minister/deacon is likely to drive more than 10,000 miles in a tax year, then mileage for non-circuit work should be claimed at the lower rate.

• If a circuit wishes to make additional allowances, these should be paid through the central payroll and subjected to tax and NIC.

• Any claim for car expenses circuit in addition to the above mileage payments must be declared on the Form P11D. Please liaise with your circuit if this situation is expected to arise. Any underpayment of tax is the responsibility of the individual.

March 2009

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE

TRAVEL ALLOWANCES DURING SICKNESS

The Connexional Travel Fund is available for the purpose of offering a small grant as a compensation for the loss of mileage allowances during periods of long term sickness.

After a period of three months continuous sickness a minister may apply to Payroll & Benefits for a grant to compensate for the loss of travel expenses. This grant will be available for each successive three months.

The grant available is currently £280 for the three month period.

Anyone wishing to take advantage of this facility should apply in writing to Payroll & Benefits stating the period of sickness for which the claim is being made.

This claim will be checked with the sickness records held in this office. All ministers who are on long-term sick leave should supply the appropriate sick note provided either by their GP Practice or Hospital.

If the period of sickness cannot be substantiated, the grant may not be paid.

March 2007

FINANCIAL SERVICES

Payroll and Benefits

Tel: 020 7467 5264

Fax: 020 7467 5234

E-mail: stipends@.uk

BRIEFING NOTE (BN 0140)

WORK-RELATED TRAINING

Tax Treatment

There is now a wide-ranging exemption from tax for work-related training. This means that the costs of providing such training, whether incurred by the church on behalf of a minister or paid for by the minister and reimbursed, is not treated as a taxable benefit.

“Work-related training” is defined as any training course or other activity which is designed to better qualify the minister, or otherwise prove useful, in undertaking his/her ministry. This must be the primary intention of the training, rather than to provide a reward or for entertaining or recreational purposes. Where there is a mixed purpose costs must be apportioned; however this is not necessary where the element of recreation is incidental, for example the use of a hotel’s leisure facilities.

Relevant costs of training

The tax exemption extends to the following related costs :

• Travel and subsistence, as if incurred on church business.

• Additional child care required during attendance at the training course.

• Costs of any examination or assessment, or obtaining a qualification or award as a result of the training.

• Training materials provided, even if retained by the minister, provided they are only used subsequently for church purposes.

The definition also extends to training which is linked to voluntary or charitable activities arising through the appointment.

January 2003

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