Do I have to pay tax on funds I receive from Stewardship? How do I find out how much I have received from Stewardship for my tax return?
Do I have to pay tax on funds I receive from Stewardship?
If you are a Christian Worker, our understanding and interpretation of tax law is that payments you receive from Stewardship are subject to UK income tax because of your vocation and are therefore classed as a self-employed sole trader for tax purposes. We recommend that you seek appropriate professional advice from a tax adviser or HMRC.
If you receive support from Stewardship as a full-time student at a UK Bible College we regard our grants funded by your supporters as a bursary for your studies. Our understanding is that these grants will not usually be subject to UK income tax. Again, we recommend speaking to a tax adviser or to HMRC.
Only tax professionals are permitted to give tax advice. We are therefore not permitted to advise you. While we are able to make payments to you in support of your work, it is your responsibility to ensure you’re paying any necessary tax or National Insurance, similar to if you were to pay a self-employed plumber to carry out work in your home, the plumber would be responsible for ensuring they declare any income received because of their vocation as necessary and pay any relevant tax and/or National Insurance. If you’re in any doubt about your own personal position in relation to funds you receive from Stewardship, we recommend that you seek appropriate professional advice from a tax adviser. We advise that you include this cost in your budget and the amount you raise.
If you don't know whether you should register for or complete a self-assessment tax return, you can get started on the UK government's website here. The site confirms who must complete a tax return, including stating that you must complete a tax return if in the last tax year "you were self-employed as a ‘sole trader’ and earned more than £1,000 (before taking off anything you can claim tax relief on)". You will only be required to pay tax and/or National Insurance if you have received over the relevant thresholds. If not, your tax calculation will advise the amount of tax you owe is zero.
While there are explanations for each section of the self-assessment form and some helpful videos, if you find the self-assessment form complex or aren’t sure which sections are relevant to you, we strongly advise that consulting a professional tax adviser or accountant who understands the form and can advise what you need to complete is well worth the investment. There may be someone in your church or contacts who may be able to advise.
How can I find a tax adviser?
We suggest looking at OSCAR’s website; the ‘One Stop Centre for Advice and Resources' where you can find a wealth of helpful advice and resources as a Christian worker.
How do I find out how much I have received from Stewardship for my tax return?
You can find the amount you have received from us in any given tax-year for your self-assessment tax return in your account online. Go to ‘Activity’ which defaults to the ‘Transactions’ tab. Select ‘Payments’ from the dropdown list and change the date range to the relevant tax year. You’ll see the total amount gifted to you in that period at the top of the right-hand column.