Paul Roberts & Tarita Rumford
Approved by Trustees October 2010, amended July 2012
Note: Individuals employed by the Church of England/Ely Diocese but deployed to work at Christ Church Cambridge (the Church) are considered ‘employees’ for the purpose of this expenses policy. This applies whether or not the Trust funds employment of the individual or not.
The objectives of the Trust are “… to provide support to individuals engaged in… Christian service” and “to facilitate training and education opportunities … particularly for young adults considering Christian ministry as a vocation”.
Therefore the Trust will pay expenses for any expense incurred by an employee or voluntary worker of Christ Church that relates to their personal ministry (e.g. their utility bill, book grant, training etc, see below).
However, the Trust will not normally pay expenses incurred by any individual that relates to an activity of the Church. ‘Activity’ can mean a church group (e.g. “Pathfinders”, “First Steps”, etc) or an operation/admin cost of the Church (e.g. stationery, heat & light, insurance, tea bags & milk, etc.).
Example 1: An employee buys stationery in order to undertake his church duties. As his church duties are not specific to his personal training or development, the Trust would not pay this expense.
Example 2: An employee is sent on a Proclamation Trust Women in Ministry conference as part of her duties. The Trust will pay the conference cost and other expenses (e.g. travel, subsistence etc – see below) as this conference will personally train / develop the employee in a way which meets the Trust’s objectives.
Example 3: A voluntary worker accompanies the Church youth group to a“SORTED” youth conference as part of their duties. The Trust will not pay these expenses because they relate to an activity of the Church (in this case youth work). Had the conference been aimed at training youth leaders, rather than aimed at the youth themselves this would have been payable by the Trust.
Example 4: A voluntary worker buys some bibles for the Church in the course of their duties. The Trust will not pay this expense because the bibles are an operational cost of the Church.
Example 5: A voluntary worker requires a book to complete coursework as part of their TEAM course. The individual does not wish to own the book personally. The Trust will pay the expense, because it will facilitate training of that individual. As the individual does not wish to own the book, the cost will be paid as an expense, and consequently will remain the property of the Church/Trust.
Example 6: In the course of their duties, an employee hosts a meal for Home group leaders The Trust will not pay this expense because it relates to an activity of the Church.
Example 7: An employee wishes to pay a pastoral visit to an individual connected with the Parish of St. Andrew the Less. The Trust will pay expenses relating to the visit (e.g. travel) because the visit is as a consequence of the personal ministry of the employee (an not a Church activity).
Specific Expenses Policy
All individuals employed by the Trust to work for Christ Church Cambridge in a full-time or part-time paid capacity are entitled to the following
Individuals with employment contracts that require them to live in tied accommodation (or the better performance of their duties and because it is customary for their role) will live in accommodation provided by the Trust or Ely Diocese on a rent-free basis and so should not incur any income tax penalty.
Individuals with employment contracts that do not require them to live in tied accommodation receive a housing allowance which is taxable. A guide rate should be based on the HMRC ‘Rent A Room’ allowance.
All individuals who are voluntary workers at Christ Church Cambridge and hold a volunteer agreement with the PCC are provided with accommodation for the better performance of their duties and because it is customary for their role. They will live in accommodation provided by the PCC or the Trust on a rent-free basis and so should not incur any income tax penalty.
Electricity and Gas (or other heating method)
Employees are responsible for paying for utilities. Employees working from home are entitled to partial reimbursement of heating and electricity expenses up to the HMRC tax-free limit (currently £4 per week*.).
All utility bills are paid by the PCC or the Trust. Where accommodation is shared with others who are not voluntary workers, a per capita share is paid.
Paid by the Trust for all employees in tied accommodation and paid by the PCC or the Trust for voluntary workers**.
A grant of £35 per month is available to pay for telephone and internet costs for all employees who work at home (pro-rata if the employee works only a proportion of their working week at home). This is a taxable benefit for non—CofE ordained clergy***. When it is a taxable benefit, the grant will be paid via the payroll, and should be claimed separately to other expenses. In addition line rental (including any bundled call packages), internet costs and work-related call costs for the vicarage will be paid, up to a maximum of £35 per month.
Employees will be reimbursed for entertainment expenses incurred in the course of performing the duties of their role. Reimbursement is preferably paid against receipts. However where receipted reimbursement is not practical a claim may be made for reimbursement at £6 per head for meals with wine, and £5 per head for those without. Normally such entertainment will be relating to a Church Activity, and thus will not be an expense that the Trust will pay.
Books bought for work by employees or voluntary workers can be claimed on expenses. In addition a £60p.a. book grant for all employees and voluntary workers for personal study (a taxable benefit****). Where it is a taxable benefit, the grant will be paid via the payroll, and should be claimed separately to other expenses.
Camp fees and associated travel expenses (see below) which are agreed by line managers are paid in full to both employees and voluntary workers. Not a taxable benefit*****.
Conference fees and training course fees together with travel and receipted subsistence expenses which are agreed in advance by line managers are paid for both employees and voluntary workers. Only conferences/training courses which are likely to prove, useful to the employee/volunteer when performing his/her duties will normally be agreed. As long as the conference/training course satisfies the forgoing it will not be a taxable benefit.******
Use of own car for work will be paid at the maximum permitted by the HMRC to qualify as a job expense *******(currently 45p/mile for cars). This applies to both employees and voluntary workers. Other travel expenses (e.g. train, air etc) may be claimed on production of a receipt.********
Receipted expenses will be paid.*********
Rent - employees
Rent – voluntary workers
Council Tax and Water Bills
Conference / Training Fees
* http://www.hmrc.gov.uk/manuals/eimanual/EIM01476.htm, note that the amount is only to cover heat, power i.e. receipt for telephone calls may be submitted in addition. As long as these limits are not exceeded there are no P11D reporting requirements: http://www.hmrc.gov.uk/paye/exb/a-z/h/homeworking.htm
** Council tax and water should not be included on a P11d because it is not a taxable benefit for employees in exempt accommodation(http://www.hmrc.gov.uk/paye/exb/a-z/l/accommodation.htm#3, http://www.hmrc.gov.uk/guidance/480.pdf ch 21.2). There is s statutory exemption for council tax and water for ministers of religion: http://www.hmrc.gov.uk/manuals/eimanual/eim60013.htm
*** There is a specific exemption for ministers of religion: http://www.hmrc.gov.uk/manuals/eimanual/eim60047.htm
**** Books are not a taxable benefit for ministers of religion if they are in connection with their work http://www.hmrc.gov.uk/manuals/eimanual/eim60047.htm
***** Camps can be considered to be a temporary work place, as long as the employee attends camp as part of the duties of their employment. Therefore travel to camp, and the subsistence costs associated with camp, materials costs incurred, etc can be paid without being a taxable benefit. Temporary workplace definition: http://www.hmrc.gov.uk/manuals/eimanual/EIM32075.htm. Summary of general travel expenses: http://www.hmrc.gov.uk/manuals/eimanual/EIM31800.htm and http://www.hmrc.gov.uk/paye/exb/a-z/t/travel.htm#1 There are no P11D reporting requirements because it is covered by our P11D.
****** http://www.hmrc.gov.uk/manuals/eimanual/EIM01220.htm defines ‘worked related training’, http://www.hmrc.gov.uk/manuals/eimanual/EIM01200.htm gives the overview. There are no P11D reporting requirements: http://www.hmrc.gov.uk/paye/exb/a-z/t/training.htm#1.
******* http://www.hmrc.gov.uk/paye/exb/a-z/m/mileage-expenses.htm, there are no P11D reporting requirements
******** There are no P11D reporting requirements, because it is covered by our P11D: http://www.hmrc.gov.uk/paye/exb/a-z/t/travel.htm#1 and http://www.hmrc.gov.uk/manuals/eimanual/EIM31800.htm
********* No P11D requirements: http://www.hmrc.gov.uk/paye/exb/a-z/o/offices.htm, http://www.hmrc.gov.uk/manuals/eimanual/eim21610.htm