Fees are chargeable for marriages, funerals and some other services. These have been established by statute, i.e. Parliament, and are amended each year after discussion at General Synod. They are not discretionary fees, and may not be waived except for the most urgent, pastoral need.
The level of fees is published in a "Table of Parochial Fees" which is prepared by the Ministry Division of the Archbishops' Council and available from the Church of England web site. www.cofe.anglican.org/lifeevents/fees/2010tableorange.pdf
The table should be publicly displayed in the church or vestry, so that people booking services may be aware of the fees to be charged. Please make sure that the notice is updated annually.
This may only be done for the most urgent pastoral need. The wedding or funeral of a member of the congregation is not just cause to waive fees.
In certain circumstances the PCC may wish to refund their portion of the fees; if this is the case then the agreed decision should be minuted and the amounts noted in the accounts as pastoral grants. The PCC, as a charity, is accountable to the wider public not just the parish and congregation, for its use of all income.
The cleric's part of the fee forms part of his/her stipend and there is no right to waive the fee. To do so would mean that other people, including those outside the parish, are effectively paying the fee.
There are usually two parts to the fee,
The reverse of the annual notice provides a clear breakdown of how much goes to the PCC and how much to the clergy.
The Diocese is aware of both public and HMRC interest in the matter of Statutory and discretionary fees and recommends the following guidelines in order to ensure transparency and honesty in what is often the public's only dealings with the church.
The fees are the maximum chargeable by both cleric and PCC for the actual services.
The PCC may charge additional fees for items such as bells, flowers, choir etc.
The parish should provide an itemised invoice, showing both the statutory fees and any additional, discretionary fees.
The invoice should provide payment details. Payment for fees should be received by cheque or direct bank transfer, not as cash. The acceptance of cash at a service is neither ethical nor inclined to lead to good record keeping.
Receipts should always be given.
If fees are waived for a pastoral reason, an invoice/receipt should be issued showing the reduced (or zero) amount actually paid.
The Treasurer should collect clergy fees, as part of the overall fee, and remit to the Diocese as appropriate as this reduces the administration for the clergy.
Clergy do have the right to handle their own fees if they wish but good practice dictates that all money coming into the church should pass through the Treasurer and the church accounts and then be paid out to relevant parties.
Accountants should note that the clergy element of the fees does not form part of the PCC's income, the PCC is simply acting as an agent for the clergy and the diocese.
PCC Treasurers will be involved in the handling of at least the PCC element of the fees and should ensure that the correct PCC amounts are being charged.
Records must be kept of all fees, including those discounted or waived.
The fees have been agreed by statute, i.e. by Parliament. They are modified each year by General Synod.
The clergy part of the statutory fee forms part of the stipend and therefore cannot be waived. It must be charged and then either
It is the usual practice in the London Diocese for clergy to assign their fees to the Diocese, i.e. the clerical element of the fee is sent to the Diocese which then pays the stipend without deduction of fees. This means that stipends are paid in full, without the need to amend pay rates to reflect retained fees. The income is thus equitably distributed through the Common Fund. Assigning fees requires the incumbent to sign a legal Deed of Assignment (provided to clergy when they take up their post in the Diocese).
Assigned fees should be remitted to the Diocesan office every quarter. A form is available from the Diocesan Office. The Diocese may require evidence of the money received and remitted in relation to Assigned fees.
Retained or Unassigned fees are taxable and the Inland Revenue may wish to see individual records.
Whether clergy fees are assigned or not, it is the responsibility of the incumbent to charge the correct fees and to account for the money. Normally the PCC treasurer will assist with this.
Fees are only payable to those of Incumbent or Team Vicar status, (and in some cases Associate Vicar level). Assistant clergy, curates, Self Supporting Ministers (unless of Incumbent status), and Readers should always pass fees to the Incumbent or PCC Treasurer, on behalf of the Incumbent.
Incumbent status SSMs who intend to retain their fees should ensure this is included in their Job Description, and should not sign a Deed of Assignment. They must keep adequate records for tax purposes.
Retired clergy should receive two thirds of the incumbent's statutory fee and must keep adequate records for tax purposes. Fees are not normally paid for a service in the parish where the priest usually worships. Other fees must be in line with any diocesan published scale. For more information please contact the Finance Support Officer, Elaine Saunders on 020 7932 1218
