When an employer is providing accommodation to a religious minister or other employee (either directly or by funding it), the employer must usually keep aside and pay PAYE on the value of what is provided.
Our formula can help you to work out the value of accommodation provided to religious ministers. This formula allows you to include work use in your calculation.
Work use of a space is not included if the employer or organisation is giving the religious minister an allowance, only if the accommodation is physically provided. If an allowance is provided instead, PAYE will apply to the whole amount as normal.
Our Operation Statement (OS 21/01) talks about income tax on accommodation provided to employees. This statement deals with all kinds of employees. Religious ministers are discussed from page 24.