Give Through Payroll Giving
What is Payroll Giving?
It is a simple, tax effective way for donors to give to charity from their pay.
Why is it such a good method of fundraising?
Payroll Giving offers charities a unique way to combine fundraising with building relationships with their donors as well as with the corporate community. For more information see Payroll Giving - Unique Benefits
How do I reclaim the tax on a Payroll Giving donation?
You don't have to. The donation goes straight from the donor's pay before tax is deducted, and into your bank account.
A donor has pledged to give £10 per month from their gross salary to our cause, why don't we receive exactly £10?
Payroll Giving agencies generally deduct a small administration fee for each donation, unless the employer pays this on the donor's behalf. This charge is normally no more than 4% of the donation or 25p per payroll deduction, which ever is greater. So a £10 Payroll Giving donation from a contributor would arrive in your account as £9.60; £10 minus £0.40 administration costs.
How does Payroll Giving work?
Providing that your employer offers Payroll Giving it could not be simpler. You authorise your employer to deduct regular charitable donations from your pay. Your employer then pays these donations to a Payroll Giving agency approved by HM Revenue & Customs. The agency then distributes the money to the charity or charities of your choice.
What are the benefits of Payroll Giving?
For You
The agreed deductions your employer makes from your pay are done before you pay tax, which means that you get tax relief included in your donation at your top rate of tax and it is simple to do.
For Your Charity
The main benefit of Payroll Giving is to create a regular flow of funds for the benefit of the charity or charities of your choice.
How can I find out if my employer offers Payroll Giving?
Ask your employer's payroll department. If they do not offer a scheme, suggest that they start one - it is easy and inexpensive to run. They can find out more about how to get started in this website.
How do I know if I am eligible to join the scheme?
You will be eligible provided that you are an employee or pensioner and that your employer deducts Pay As You Earn tax from your pay or pension.
The Payroll Giving agency will provide you with a charity nomination form which you can complete and return directly to the agency. Alternatively, the agency might provide you with a charity card or charity cheque book so that you can give directly to the charities of your choice. The Payroll Giving agency will keep your choice of charity confidential from your employer if you wish.
Can I stop giving?
Yes, at any time. Simply tell your employer's payroll department.
For more information visit: www.hmrc.gov.uk/payrollgiving
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