Do churches pay tax

Answer 1

In the UK, individual churches are classed as charities under UK law and therefore do not pay tax in the normal way. They can, however, claim tax back on the sums given by those who wish to donate using 'gift aid' if they themselves are a taxpayer, and in addition, churches receive gross interest (rather than net) on any money lodged in bank accounts. This is the common state of affairs for all organisations in the UK with official charitable status. However, the vast majority of churches are funded solely from donations from their members or from fundraising and receive no handouts from the state. Their money goes mostly to paying their clergy a stipend, a sum of money that allows him or her to live in reasonable comfort whilst undertaking the role of pastor to the church and often to the parish, most of whom may only use the church for weddings, baptisms and funerals and who contribute little if anything to its costs. In addition to the clergy stipend, each church pays towards training new clergy and a contribution to diocesan funds for mission and has huge general running costs - heat, light, insurances, service costs (like hymnbooks, bread, wine etc), copyright licences, and maintenance amongst many orhers. Often if a church meets in a listed building or an old, historic church building, restoration and maintenance costs are very high, and usually only part of the funding for their repair can be obtained from national organisations like English Heritage. Last but not least the vast majority of churches donate a proportion (usually 10% or more) of their income to other charities. In a previous church we belonged to, for instance, 5% of our income was donated to local charities and another 5% to overseas relief in our link parishes in Zambia. Therefore, to ask churches to pay extra tax on top of its income, raised by its own members who have already paid tax, is deemed not to be fair by the UK government and so any payment is waived. In the USA, Churches have been historically tax exempt. The reason is that our forefathers recognized God has superior authority over government, and indeed established government to provide protection, peace and tranquility to people. He also established the church at large, meant to be "he pillar and ground of the truth." 1 Timothy 1:15. Churches should do much for the blessing to society, that supersedes, and makes unnecessary government control over certain matters. The problem is that mankind is capable of corrupting God's purpose in the government and in churches. This create a conflict, which ultimately may issue in taxation of churches. In is being actively discussed in many legislatures today in the USA.

Answer 2

In the UK, individual churches are classed as charities under UK law and therefore do not pay tax in the normal way. They can, however, claim tax back on the sums given by those who wish to donate using 'gift aid' if they themselves are a taxpayer, and in addition, churches receive gross interest (rather than net) on any money lodged in bank accounts. This is the common state of affairs for all organisations in the UK with official charitable status. However, the vast majority of churches are funded solely from donations from their members or from fundraising and receive no handouts from the state. Their money goes mostly to paying their clergy a stipend, a sum of money that allows him or her to live in reasonable comfort whilst undertaking the role of pastor to the church and often to the parish, most of whom may only use the church for weddings, baptisms and funerals and who contribute little if anything to its costs. In addition to the clergy stipend, each church pays towards training new clergy and a contribution to diocesan funds for mission and has huge general running costs - heat, light, insurances, service costs (like hymnbooks, bread, wine etc), copyright licences, and maintenance amongst many orhers. Often if a church meets in a listed building or an old, historic church building, restoration and maintenance costs are very high, and usually only part of the funding for their repair can be obtained from national organisations like English Heritage. Last but not least the vast majority of churches donate a proportion (usually 10% or more) of their income to other charities. In a previous church we belonged to, for instance, 5% of our income was donated to local charities and another 5% to overseas relief in our link parishes in Zambia. Therefore, to ask churches to pay extra tax on top of its income, raised by its own members who have already paid tax, is deemed not to be fair by the UK government and so any payment is waived. In the USA, Churches have been historically tax exempt. The reason is that our forefathers recognized God has superior authority over government, and indeed established government to provide protection, peace and tranquility to people. He also established the church at large, meant to be "he pillar and ground of the truth." 1 Timothy 1:15. Churches should do much for the blessing to society, that supersedes, and makes unnecessary government control over certain matters. The problem is that mankind is capable of corrupting God's purpose in the government and in churches. This create a conflict, which ultimately may issue in taxation of churches. In is being actively discussed in many legislatures today in the USA.