Payroll Giving is a scheme that enables you to give to any UK charity straight from your gross salary (before tax is deducted), and to receive immediate tax relief of up to £4 for every £10 donated.
|Employee pledges||Cost to standard rate taxpayer||Cost to higher rate taxpayer||Cost to super rate taxpayer|
|£5.00 per month||£4.00||£3.00||£2.00|
|£8.00 per month||£6.40||£4.80||£4.00|
|£10.00 per month||£8.00||£6.00||£5.00|
|£15.00 per month||£12.00||£9.00||£7.50|
Payroll Giving is an easy, tax-effective way to give, so it costs you less to give more. Payroll donations are great for the good causes you care about, providing charities with the regular, reliable income stream that enables them to plan and budget for the future. Another important factor is that they don't have to spend money on raising money if they can depend upon your gift being received automatically.
You can give to any UK charity through the payroll, or you can split your donations between two or more charities if you wish. All you will have to do is fill in a brief form with the amount you want to give and who you want to give it to.
Your charity choice is a personal decision and you can find out more about charities by visiting the Charity Choice or Charity Commission website. If you are unsure whether the cause you wish to support is a charity then Payroll Giving Agency (PGA) that your employer has signed up with will be able to let you know. Other smaller organisations such as your local church, Scout Group or Parent Teacher Group are also eligible to receive Payroll Giving.
Providing that your employer offers Payroll Giving it could not be simpler. You complete a form which is usually obtained from your Payroll Department or Personnel. The form asks you to give the name(s) of the charity or charities you want to support, there is space for you to make more than one choice.
Your employer will forward your completed form to the PGA and deduct from your pre-tax salary the total amount you want to give. Your donation is forwarded monthly to the PGA and they then distribute the gift each month to the charity or charities of your choice.
If your employer does not already have a Payroll Giving scheme in place, don’t worry – it’s quick and easy to set up. Employers simply need to sign a contract with a
Payroll Giving Agency this is a legal requirement and provides an audit trail for HM Revenue and Customs (HMRC) because you are getting tax relief on your gift.
To find out more, visit the For Employers page. Your employer can call our hotline number 0845 402 4771 for guidance or to be put in touch with a PGA.
Payroll Giving is a voluntary donation and you can stop at any time. Simply tell your employers’ payroll department.
No, once your gift has been deducted from pre-taxed income it MUST go to a charity. It is important
that when you complete your form you clearly indicate the charities you want to support to make it
easy for the PGA to distribute your donation. If you put down the name of a charity which is not recognised by HMRC as being able to receive Payroll Giving the PGA will forward your donation to a charity which has similar aims as the one you entered on the form. They will let you know that this is what has happened and this gives you the opportunity to amend your form and select another charity.
Most PGAs automatically write to you when you have completed a form just to confirm the details of the amount being donated and the chosen charities.
Most PGAs make a small charge which they deduct from your donations before distributing them to charity. The charge is nominal and simply covers their costs. All PGAs are registered charities and they make no profit from administering Payroll Giving donations. An increasing number of employers pay the PGA’s charges so that the full amount of your donation can go to charity.
Your donation will be very important to the charity and they may well write to thank you. Otherwise, if you want to check that your donation has been received you can ask the PGA for confirmation and request a statement each year of the amounts paid to charities chosen by you.
The PGA doesn’t automatically inform the charity that you have become a Payroll Giver so you might wish to tell the charity yourself so that they can trace your gift when it is paid to them by the PGA.
Once your donation has been deducted from your salary your employer must forward it to the PGA each month. The PGA then has 60 days to distribute the gift to your charity, most PGAs distribute funds within one month.
Yes, at any time. Simply tell your employer that you want to complete a new form or get in touch with the PGA. But remember – charities benefit most from regular donations, so try not to change your choice of charity too often.
Yes, although to keep administration costs down your employer may limit the number of times you can change the amount of your donation to once or twice a year.
Your chosen charity may well want to write to thank you for your donations and tell you how they are being used. The information you provide is protected under the Data Protection Act and can be used only for the purpose for which it was given.
You can ask for your name and address to be withheld from the charity if you wish to give anonymously.
No, when you fill in your donation form just send it straight to the PGA so that they know which charities you will be supporting. The PGA will then simply tell your employer how much you want to have deducted. Alternatively you could ask for a Charity Cheque Book or Vouchers so that you can give directly to the charities of your choice. Most PGAs offer this service, a minimum amount of donation is usually necessary.