Ministers of Religion Tax Return

Most clergy (e.g., vicars, priests, pastors, ministers, rabbis, imams) are treated by HMRC as office holders and taxed much like employees.

In practice your stipend/pay is taxable, and any benefits provided by your church/diocese (accommodation, utilities, car, allowances) may be taxable and reported via payroll or a P11D.

If you also receive separate payments for weddings, funerals, guest preaching or chaplaincy, keep those records distinct, they may fall under self-employment in your tax return.

You can claim expenses that are wholly, exclusively and necessarily incurred in your ministry. Keep dated receipts and brief notes on the purpose.

• Pastoral travel for services, home visits, diocesan/deanery meetings (not ordinary commuting).
• Phone, mobile and internet, claim a fair business proportion only.
• Books, resources, stationery used for services and preparation.
• Robes/vestments and ceremonial garments that are not suitable as everyday clothing.
• Use of home for admin or meetings, claim a reasonable share of costs (time/space based).
• Professional fees and subscriptions directly related to your role.

If an expense is reimbursed by the church, you can’t claim it again.

Accommodation (manse/vicarage). Clergy housing has specific tax treatments. Where there’s a taxable benefit, your employer should report it through payroll/P11D. If you personally meet extra running costs for ministry (e.g., heating for pastoral meetings), claim only the business proportion with evidence.

Multiple roles and honoraria. Income outside payroll may need to be reported as self-employment. Track dates, amounts and any related costs.

Grants/allowances and gifts. Check whether grants are taxable or simple reimbursements. Thank-you gifts linked to duties can be taxable; keep a list.

A short note-to-file explaining your reasoning helps if HMRC asks questions.

• IDs: National Insurance number, UTR, Government Gateway login.
• Income evidence: payslips, P60, any P11D, details of fees/honoraria.
• Expense records: mileage logs, receipts, phone/internet bills with business-use notes.
• Other items (if relevant): savings/dividend summaries, pension/Gift Aid confirmations, and any capital gains or foreign income details.