Provisions of the benefits code not applicable to ministers of religion – working out if a minister of religion has earnings at a rate of less than £8,500 a year
Section 290E ITEPA 2003
There are special rules for working out whether a minister of religion has earnings at a rate of less than £8,500 a year. The main point to note is that you have to include in the calculation all the benefits and expenses on which a minister of religion would be chargeable if he or she did have earnings at that rate.
There are four steps in the calculation:
Enter the total amount of earnings under Chapter 1 of Part 3 ITEPA 2003 (EIM00515) and
- add any amounts treated as earnings under the benefits code (EIM20006) and
- add any amounts treated as earnings under Part 3 Chapter 12 ITEPA 2003 and
- add any amounts that would be taxable as employment income if they were not exempt because of sections 290A or 290B ITEPA 2003 (accommodation outgoings of ministers of religion).
To the total amount in Step 1, add any amount that arises under Section 290F ITEPA 2003, in connection with a car.
From the total of Steps 1 and 2, subtract the total amount of any “authorised deductions” (EIM 60068).
Apply the formula R x Y/E where
- R is the result of Step 3,
- Y is the number of days in the year and
- E is the number of days in the year when the employment was held.
For further information on this calculation see EIM 60068.