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HMRC internal manual

Employment Income Manual

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 – authorised deductions

Section 290E ITEPA 2003

EIM60067 explains how to calculate whether or not a minister of religion has earnings at a rate of less than £8,500 a year.

Step 3 provides for the subtraction in the calculation of any “authorised deductions” (Section 290E(1) ITEPA 2003). The deductions concerned are (references to ITEPA 2003, unless otherwise stated):

  • Employee liabilities (section 346);
  • Travel costs and expenses where duties are performed abroad (employees travel: section 370);
  • Visiting spouse’s, civil partner’s or child’s travel costs and expenses where duties are performed abroad (section 371);
  • Non-domiciled employee’s travel costs and expenses where duties are performed in the UK (section 373);
  • Non-domiciled employee’s spouse’s, civil partner’s and child’s travel costs and expenses where duties are performed in the UK (section 374);
  • Foreign accommodation and subsistence costs and expense for overseas employments (section 376);
  • Payroll giving to charity (section 713);
  • Contributions to registered pension schemes (sections 188 to 196 of Finance Act 2004) and
  • Capital allowances to be given effect by treating them as deductions (section 262 of the Capital Allowances Act 2001).

Deductions not included in the calculation

For the purpose of the calculation in Section 290E no deduction can be given for:

  • necessary expenses (Sections 336), EIM 31600
  • expenses of travelling in the performance of the duties or to a temporary workplace (Sections 337 and 338), EIM 31810
  • professional membership fees (Section 343), EIM 32880
  • annual subscriptions (Section 344), EIM 32880 and
  • clergymens’ expenses (Section 351), EIM 60040.