Guidance for Churches

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It can be daunting when starting a new role, so we thought that a bit of guidance would be helpful. You can also check the finance section of the website to find guidance on specific areas

Guidance for Clergy

HLC Scheme
Under arrangements agreed with HM Revenue & Customs (HMRC,) parochial clergy may receive part of their stipend paid free of tax and National Insurance in reimbursement of heating, lighting, cleaning and garden upkeep (HLC or HLCG) costs. For further details, please visit the HLC Scheme section of the Church of England website.

Clergy expenses
Stipends are paid to clergy on the basis that parochial expenses are reimbursed in full. If therefore, clergy do not claim all their expenses, or their expenses are not fully reimbursed, they are receiving less than their full stipend. PCCs should be committed to reimbursing clergy expenses in full.

The Church of England booklet Parochial Expenses Guide gives guidance to both clergy and PCC treasurers about the reimbursement of expenses.

Dependant Child Allowance
For existing stipendiary clergy in our Diocese, the 2019 Diocesan Budget approved by Diocesan Synod in October 2018 provides for a Dependant Child Allowance of £325 p.a. per child.

Dependant Child Allowance form (2019)

Car Loan Scheme
Please note that the Commissioners' Assets Committee closed the car loan scheme to new business in 2015. Alternative provision is now available from Churches Mutual Credit Union (CMCU) churchesmutual.co.uk/.

 

Guidance for Treasurers

Most of the work of a PCC Treasurer is straightforward and there is help available for areas that you might find slightly more complex. If you are new to the role, then please read our welcome letter.

Getting started

Guide for PCC Treasurers

The Parish Resource website is a comprehensive website maintained by the Stewardship & Resources team of the Church of England covers all aspects of PCC finances. The following pages are particularly helpful for new PCC Treasurers:

Accounting and Reporting

PCC Accountability: The Charities Act 2011 and the PCC (5th edition, 2017)
This excellent book produced by the Church of England contains everything you'll need to know about preparing the year-end accounts including a full set of example accounts. The contents can be read on-line, but hard copies are also available from the Diocesan Finance office for £5.

Further accounting and reporting guidance can be found on the PCC Accounts and Return of Parish Finance page of the website.

Registration with the Charity Commission

A PCC's 'gross income' will determine when it needs to register with the Charity Commission and comply with charity law. Refer to the dedicated page on the Parish Resources site for further guidance: Charities Act requirements for PCC registration

Foreign Account Tax Compliance Act (FATCA)

Some PCCs and deaneries have received letters from banks asking them to fill in a form in relation to the United States Foreign Account Tax Compliance Act (FATCA). The link below directs you to the Parish Resources page that includes advice on how to complete the form, together with a draft covering letter: FATCA.

Deanery Treasurers

The Deanery Treasurer is a key member of the Deanery Leadership Team. You can also view an outline role description here. For further information, please contact the Director of Finance.

 

Guidance for Volunteer Ministers

The national church has issued advice to dioceses concerning fees offered to Voluntary Ministers, and the following booklet provides guidance specific to the Diocese of Hereford:

Regular Worship
Below is the Claim Form which you should use to claim fees from the Diocese for casual duty during vacancies, extended periods of sickness and sabbaticals.

Wedding, funerals and cremations
The following forms are to be used by Voluntary Ministers to claim fees for weddings, funerals and cremation services: