PAYROLL GIVING
WHAT ARE THE BENEFITS?
Payroll giving is a simple, tax effective way to give directly from your salary. Your donation is taken from your salary before your tax is deducted. So each £1.00 you give will only cost you 78p and, if you are a higher rate tax payer, it will only cost you 60p. Speak to the HR department at your place of work to set this up. You will need our name, address and charity number, all of which can be found here.
INFORMATION FOR COMPANIES
Why offer Payroll Giving to your employees? Running a Payroll Giving Scheme is good for your business. It shows that you are not only commited to working in partnership with the community, but that you also care about your staff. Offering your staff Payroll Giving will help to improve better employee relations and attract the right people to come and work for you.
How does Payroll Giving work? Your employee will ask you to deduct regular donations from their pay. You make the deduction before tax, after calculation of National Insurance Contributions, but before deduction of Pay As You Earn tax. This means that your employee will get tax relief straight away at their top tax rate. You pay over all the money you deduct to an Inland Revnue approved Payroll Giving ageny and they do all the rest, distributing the money to the charities nominated by your employees.
Is there a cost? Most of the administration costs are incurred by the Payroll Giving Agency. Most agencies make a small charge which they deduct from donations before giving them to charity. The charge is normally no more that 4% of the donation, or 25p of the payroll deduction, which is the greater. Some companies pay this charge themselves so that the charity received the full value of the amount paid by the employee. Your administration costs should be very small and are likely to be absorned in your exisiting payroll costs. Any cost of running a scheme will be allowed as a deduction against your profits for tax purposes.