Payroll Giving is a scheme that enables your employees to give to any UK charity straight from their gross salary (before tax is deducted), and to receive immediate tax relief of up to £5 for every £10 donated.
Quick and easy to set-up and administer, Payroll Giving is a great way for you to demonstrate commitment to the causes that your employees care about. It can also aid retention and recruitment of staff, and enable you to generate a sustainable income stream to charities.
Payroll Giving provides charities with regular, reliable donations that allow them to plan ahead and budget for the future. By signing up to Payroll Giving, you can generate a vital income stream to UK charities.
Payroll Giving is an easy, tax-effective way to give to charity - so it costs employees less to give more. The system is easy to opt in and out of, giving donors full control over their giving.
To set up a Payroll Giving scheme, all you have to do is sign up with a Payroll Giving Agency who will transmit the donations on your behalf – it’s as easy as that. For a list of Payroll Giving Agencies visit the Useful Links page.
By running regular promotions about your Payroll Giving scheme to maintain awareness and continuing to recruit new donors, you could be eligible for an award. For more information visit Awards.
All your employees need to do is ask the payroll department to deduct regular charitable donations from their salary by filling out a simple application form, outlining how much they would like to give and to which charities.
All modern payroll systems can facilitate Payroll Giving, usually as a simple tick box option. Your payroll staff will deduct the amount, as per any other pre-tax deduction (after National Insurance, but before tax) and forward it on to your Payroll Giving Agency will distribute the monies to the chosen charities.
There are no tax forms for them to complete and record keeping is straightforward. Your selected PGA will supply you with all the necessary help and advice to ensure that your scheme runs smoothly from the start.
For more information on setting up and promoting Payroll Giving click here for more information or contact the Payroll Giving Centre on 0845 402 4771.