My local parish has 3 priests from Nigeria, who naturally know nothing of the UK tax system. They've not received much guidance from the Diocese and so asked me.
I have researched and found in the NI manuals that they are treated as Office holders for tax, but self-employed for NIC. A call to HMRC told me they have to do a return, using the ministers of religion pages, regardless of their income which is well below the personal allowance, but I'm not convinced. The PAYE manual refers to a DPNI PAYE scheme but there will be no liability so I'm not sure if that's necessary.
They receive around £400 per month which comes out of the collection, accomodation at the prebytery house (connected to the church), expenses for food and travel so while they get paid very little, there's not much that isn't already covered. A proportion of that £400 is donated back to the parish they serve.
I found a tax case Daly v CIR which, while old and in Scotland, suggests the food/household expenses are not assessable, and I believe accomodation is exempt.
So to go back to my question, is a return truly needed, and if so, how much goes on it? And do they each need to set up a DPNI scheme? And one final one, are they liable to class 2 NIC?