Benefits and Expenses – Clergymen’s heating and lighting expensesThursday, February 11th, 2010
As part of the process of replacing a number of Extra-Statutory Concessions (ESCs) with specific statutory tax exemptions, ESC A61 Clergymen’s heating and lighting etc expenses has now been included in the Income Tax (Earnings and Pensions) Act 2003 as sections 290A and 290B.
The effect of these new sections is to formally exempt from income tax expenses paid for or reimbursed to ministers of religion in respect of heating, lighting, cleaning and gardening in connection with living accommodation provided with the employment, and for allowances paid in order to meet such expenses. The exemptions only apply where a minister is in “lower-paid employment”, i.e. has an annual earnings rate of less than £8,500.
Corresponding amendments, giving similar relief for Class 1 NICs, have also been made to the Social Security (Contributions) Regulations 2001.
Sponsored by Learn Payroll