HLC Scheme

The HLC Scheme is run in partnership with HM Revenue and Customs and is unique to the Church Commissioners’ clergy payroll.

It allows you to claim tax relief on the heating, lighting, cleaning and garden upkeep (HLC) costs of your official property. It’s a reclassification of part of the stipend which is paid before tax and National Insurance are deducted, it isn’t an additional payment.

It's viewed as a taxable service benefit because you can claim for your costs for the whole property, not just the work related portion.

Terms and Conditions
To qualify for the scheme, you need to:

  • Be a full-time office holder paid through the Church Commissioners' clergy payroll
  • Occupy, rent-free, an official house provided by the Church of England (or a charity)
  • Confirm an Annual Return each year

You can only claim for your HLC costs in those parts of the property which are used for official purposes and/or occupied by you or your family.

Licensed Lay workers
What if I am not eligible?
How does it work?
How do I make an initial estimate if I am new to the scheme?
Costs covered by the scheme
Reporting your figures
HLC and Your Tax Code