As a Christian accountant I get a number of calls regarding Tax for Missionaries, and what their status is. Anyone leaving the UK permanently becomes non resident from that point and they have no obligations to submit a tax return from that point unless they still have income such as rent from a property which is located in the UK.
Most missionaries are funded by gifts from their supporters and from an HMRC perspective this income is derived as a result of them carrying out missionary activity and is therefore taxable. However for overseas missionaries, this income is derived “from work you perform abroad” so is not chargeable in the UK. However the implication of that is that this income should be declared in the country where you are working although of course tax rules vary from country to country. One interesting fact is that should you rent out your house in the UK, providing you are a UK citizen you still qualify for a UK personal tax allowance which means you can earn upto £11.85k tax free in the UK.
While this is not an area of expertise the question has been asked a few times and hopefully the response from my tax advisers will be of assistance. You should seek professional advice before taking any steps based on these contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”
Dear Mr Wood,
I wonder whether you can help me. I have a query with regards to tax for missionaries (or rather for missions work).
I am a British national who is currently working in the UK. I have a part-time regular job at my local church. However, I have been doing voluntary work with a US-based missions organisation for several years. The work that I have been doing for the US-based organisation (on a voluntary basis so far) is admin work and is all done online. I do not work overseas.
The missions organisation have informed me that that they would like to help ‘fund’ the work that I have been doing on behalf of their organisation and would like to send me a contractual payment of around $1000 (USD) per month (this amount might change if other supporters wanted to give to the work).
My question is about the best way to receive and declare this payment for UK tax purposes.
I would be grateful for any help and advice you could give me on the subject.
Every blessing,
Hi Heather, this is probably self employed income as it is by virtue of the work you are carrying out for them, but please call or email so I can confirm this is the case. Kind regards