STIPENDS AND FEES

STIPENDS

The Stipend Level

After consultation with the dioceses through the Inter-Diocesan Finance forum, the Finance Committee of the Archbishops’ Council, recommends national stipend levels for incumbents and ministers of similar status effective from 1st April of the following year. Each diocese sets its own stipends; Ely sets a stipend weighted to take account of the cost of living in the eastern region. Assistant Clergy are paid according to a national scale set by the Archbishops’ Council, again after consultation with dioceses.

Funding Stipends

In funding the stipend of a benefice there are several sources, including:

• Guaranteed Annuities (replacing the former endowment income of the benefice) payable by the Church Commissioners
• Local Trusts
• Parochial Fees
• Easter Offerings
• Part Time Chaplaincies
• Augmentation Grant (from Diocesan Stipends Fund, diocesan glebe income and Parish Share receipts)

HEATING, LIGHTING AND CLEANING ETC. (TAX-FREE HOUSING EXPENSES)

Clergy who live, rent free, in an official house and receive a diocesan augmentation or similar grant are eligible to receive part of that grant tax-free. This is to reimburse expenditure on heating, lighting, cleaning and garden upkeep at the official residence. It is not an additional payment, but is an adjustment to reduce the liability for income tax. This reduced tax liability is claimed by the appropriate expenditure being declared on the annual income and expenditure return. (Clergy new to the Diocese will be sent the relevant forms.) The Inland Revenue expects the dioceses to monitor these expenses and, when claims appear high, further enquiries may be necessary; clergy should therefore retain documentary proof of these expenses.

Changes in stipend levels and other benefits due in April each year, including assistant clergy increments, cannot be implemented until the annual return of income and expenditure (PSA/PUN) is completed and returned to the Diocesan Office. Any significant changes in total income during the year should be notified immediately. Further information is available from the Diocesan Secretary at the Diocesan Office.

ASSIGNMENT OF FEES FOR WEDDINGS, FUNERALS ETC.

Incumbents

By virtue of the office, an incumbent is entitled to receive and retain certain fees arising from the performance of parochial duties. The incumbent may retain these fees, in which case their total value will be taken into account when augmentation of stipend is calculated. Alternatively, the incumbent may assign these fees to the diocese under cover of a Deed of Assignment.

Team Vicars and Assistant Clergy

Although all parochial fees are legally the property of the incumbent, he or she may direct that such fees may be retained by the minister performing the service or duty. In these cases, it is possible, should the minister so wish, to assign the fees receivable to the diocese under a separate Agreement, thus providing the advantages indicated below.

Advantages

First, the augmentation grant from the Diocesan Stipends Fund will form a greater part of the stipend, thereby guaranteeing a regular monthly income rather than one which fluctuates with the amount of fees received in any one month. Secondly, it simplifies the tax return, as assigned fees do not have to be declared separately to the Inland Revenue. A third consideration is that national insurance contributions are levied only on the stipend. If fees are retained therefore, the stipend paid may be insufficient to attract national insurance contributions, with subsequent loss of certain benefits to the individual.

Procedure

In order to assign fees, a minister must complete a Deed of Assignment to the Board of Finance (DBF). The minister will then be required to pay all fees received in a month to the DBF under cover of an assigned fee slip.

General

It should be noted that though Easter Offerings and Chaplaincy income are included in, rather than additional to, the diocesan stipend, they may not be assigned and must be declared to the Inland Revenue.

Deeds of Assignment, Agreements and fee slips are obtainable from the Diocesan Secretary at the Diocesan Office, from whom any other information should be sought.