PAYE and Pensions
A guide to PAYE (Pay As You Earn) and PensionsIf your PCC has any paid workers or employees, the guidance here will help you find what actions you need to take.
What are my PCC's responsibilites?It is vital that PCCs act responsibly as employers in regard to income tax, national insurance and workplace pensions.
Does my PCC need to run PAYE?Your PCC must register with HMRC as an employer, and operate a Pay As You Earn (PAYE) Scheme if any of the following apply:
It is your responsibility as a PCC to establish:
Once your PCC has registered as an employer, all payments to all employees - regardless of amount or frequency - must be reported to HMRC through the PAYE system.
PCC employee or self-employed?Anyone who receives money from a church for any reason, other than the reimbursement of allowable expenses, may be an employee of the PCC. This includes any honorarium (usually paid to someone for a ​service for which there is no ​official ​charge), regular, irregular, or one-off payments. For example, PCCs often employ people in the following roles:
The only exceptions are clergy (including retired clergy) who are 'office holders' rather than employees. PAYE SoftwareIf you need to register with the HMRC PAYE scheme, you may find it helpful to use PAYE software to help you manage the process. To operate effectively, PAYE software need to be able to connect with HMRC online to update your records on their system. Real Time Information (RTI)HMRC requires all UK employers to notify them of any payments made to their employees at the time they pay them. This notification is referred to as Real Time Information, or RTI.
PensionsThe law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. |
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