Hi, im doing the bookkeeping for a priest who does wedding ceremonies, funerals and other ceremonies. As part of his service to the community, he has an allotment where they keep chickens, grow fruit and veg etc and use these soley for the poor and vulnerable people . Ie homeless. These are going through the books, although its not a direct business expense, it is in the course of his services to the community. Are these okay to go through the books? It includes all running expenses for the allotment and bread for the chickens
Thanks
Hi, I have just recently started doing books for a church organisation which is similar to what you are doing. To my understanding, all the income generated and expenses go through the books but they need to be specified. Hope that make sense. Visit http://www.acat.uk.com/ for more information
Not got any myself as I fear bursting into flames if ever I walk across a church threshold.
However. Besides not being a voice of experience from that perspective just wanted to chip in to say not to forget that the priests living accommodation is likely to be job related.
As such, no taxable benefit arises on the accommodation per se but assuming that the priest is on more that £8500 per year then a taxable benefit arises for any expenses paid by the church towards running costs of the accommodation capped at 10% of the priests net earnings (including any other taxable benefits).
Sure that you had thought of that one already but just on the off chance I thought worth mentioning as another thing to slip in the things to consider when doing the self assessment box.
On the whole bread for chickens thing I assume that the money to pay for it comes from charitable donations / collections from the congregation so are you not simply recording how such donations are spent which ties in nicely with Sibo's comment relating to the expenditure being specified / ringfenced.
How is the church set up for that sort of thing? Are collections actually recorded as to a charity as when the link between small donations and the person doing the donation is broken will that not mean that an additional 20% could be reclaimed from HMRC for the donations received? (rather than the current system that requires opting in for the tax benefit to be received).
As I say, not an area of expertise for me (charity / banking... does not compute) but hope that mine and Sibo's points help to get the ball rolling.
Sure that Sheila will have some input on this when she see's the thread as I know that she works with some charities and voluntary organisations.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks guys. He actually uses money from his own pocket to fund the bread and some other expenditure. He has had grants in the past however they dont cover everythng, and as hes really passionate about helping vulnerable, he uses his own cash.
However as its in the line of work he does and so involved within the community, he wishes to continue to provide this for the communities unless any other grant is secured.
He has his own property and uses it however that is not the place where his ceremonies are held. Therefore nothing accomodation wise is paid for, except a percentage of his phone and elec bill which he uses for his work.
If you want, we cud have you walk past the church, and have a fire extinguisher at hand
I record all charitable expenditure against te grant that comes in so tht clears that income with that particular expenditure, however its the part that comes out of his own pocket im unsure about?
Hes set up as a sole trader, ive been tryng to dig deeper in terms of reading. Im clear on charity accounting as i have experience of that, however as hes a sole trader, the expenditure isnt a business expense, although it is as thats his line of work..... Complicated
