Never fear – HMRC have made a teensy slip-up. They’ve posted PAYE notices with erroneous tax codes to ‘most stipendiary clergy’ according to the CofE. The Vicar’s tax free allowance had almost halved!
I thought it might dip a bit, after we spent less on gas and electricity than we anticipated last year (clergy have a special tax-free allowance on part of this due to their homes being used as a place of work). But I hadn’t thought we’d been that frugal.
So, just a bit of a clerical error, then… Perhaps something to do with the disbanding of the specialist clergy tax team which used to operate from Bradford? Who knows? I’m just glad I don’t have to think about tax for a while now – I did the forms in the summer because I have to work out the tax for Child Tax Credit anyway. In previous years I’ve done Child Tax Credit and then left the tax until January, but I actually managed to completely finish the job this year. Unusual for me, but pleasing at this stage in the year…
The Vicar's Wife 
Thank you for the warning – The Curate had read your blog before the letter arrived and so was not freaked out by the news it brought. Still learning to cope with the Tax man. Diocese email arrived later.
Thanks for posting this. When I received my new tax code (dropping from 557 to 95), I immediately googled ‘clergy wrong tax code’ which led me to your post and hence to the note on the CofE site, thus setting my mind at rest.
Welcome to the Vicarage andy and Harriet. Glad to have been of service! I’m impressed with Harriet’s diocese emailing. Ours is normally on top of this sort of stuff but hasn’t been in contact yet.
“something to do with the disbanding of the specialist clergy tax team?” It does seem more than a coincidence to me… Child Tax Credit staff, Student Loan Company & others frequently have problems coping with clergy finance, but the HMRC team were always helpful & clear, as are the staff at Clergy Payroll Services.