EIM60067 - 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:
Step 1
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).
Step 2
To the total amount in Step 1, add any amount that arises under Section 290F ITEPA 2003, in connection with a car.
Step 3
From the total of Steps 1 and 2, subtract the total amount of any “authorised deductions” (EIM 60068).
Step 4
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.