As noted, there are only two statutory elements to a Parochial Fee. However, in practice a funeral or a wedding will also include some additional costs, what we may call third party elements: verger, organist; heating, or bells for example. The rules for these things are summarised on the Allowable extras
page. This page offers guidance on how to record both elements of the Parochial Fee and any third party payments the church might receive.
First, the PCC portion of the Fee is income for the PCC and will be both recorded in the books and presented in the accounts as unrestricted income of the church. In addition, if the church has appropriately charged for heating then this too is PCC income and recorded as such.
Second, the DBF portion of the Fee is not income of the PCC. While it should be recorded in the treasurer's cash book, it does not appear in the church's annual accounts. The DBF fee is what is technically called an Agency (or Postbox) transaction and must be handled accordingly:
The DBF fee is submitted to the Finance Team at St James' House, preferably monthly, using the Fees Submission Form in the Download box on this page.
All Agent transactions, which may also include such people as vergers and organists, would be broadly summarised in the notes to the annual accounts or in the annual Trustees Report
Third, payments to third parties such as the funeral verger, organist, choir, or bell ringers (for a wedding) are also Agent transactions and should be recorded and managed in the same way as the DBF Fee.
any payment to any individual that is not a reimbursement of justifiable expenses is taxable income and must be declared to HMRC.