REIMBURSEMENT OF EXPENSES

The Church of England practice is for PCCs to meet in full all approved expenses incurred by their clergy in the performance of their parish duties. The stipends are calculated on this assumption. Proper payment can be achieved only if there is complete understanding and frankness between clergy and PCCs.

DEFINITION OF EXPENSES

PCCs should meet the full cost of the following items incurred by the clergy in the course of their parochial duties:

• Postage
• Provision/Depreciation of Office equipment
• Stationery
• Maintenance of Robes
• Telephone (excluding personal calls)
• Provision of Locum Tenens (but see Section D9)
• Secretarial assistance
• Hospitality
• Travel, including car maintenance and depreciation

In certain circumstances, the following items may also be included:

• Books
• Continuing Ministerial Education
• Repair/ replacement of carpet, chairs etc in the ‘official’ part of the house

CLAIMS FOR REIMBURSEMENT

Claims for expenses are much simplified if the clergy fully record all expenses occurred and submit a monthly claim. Where clergy serve more than one parish, it is essential that agreement be reached between the respective PCCs as to the proportion of expenses to be borne by each. Whilst, of course, clergy and PCC will wish to monitor expenses, the subject should ideally be reviewed and discussed openly on an annual basis, perhaps when the parish’s budget is being prepared. (NB Experience suggests that clergy on fixed rate allowances, or those not using a local claim form, are those least likely to have their expenses properly reimbursed.)

VOLUNTARY GIVING

Some clergy wish to claim less than the full cost of their expenses, treating the balance as a form of voluntary giving. Whilst this is effective in parish finances in the short-term, it has long-term ramifications. For example it can lead to embarrassment when a successor quite reasonably claims his full costs. Similarly, it hides from the PCC the true cost of ministry. Full declaration also avoids misunderstandings when different figures are shown on tax returns and returns to the Church. There are therefore both administrative advantages and financial benefit to a parish if clergy claim their full expenses and return whatever proportion they wish under gift aid, permitting tax to be reclaimed by the parish.
Please note: If there is difficulty in observing the precepts of this section, advice should be sought from the Archdeacon or from the Diocesan Office.