What is Payroll Giving?
Payroll Giving is a quick and easy way to donate to your favourite charity directly from your gross salary. It enables employees to give tax-efficient donations to The Princess Royal Trust for Carers.
Information for employees
If you a UK taxpayer paid through PAYE, your company is almost certainly eligible to offer Payroll Giving (they may refer you to the scheme using a specific brand name, such as Give As You Earn). Speak to your employer to clarify whether they offer a Payroll Giving scheme, and if so, your employer will be able to arrange for your payroll administrator to deduct charitable donations from your gross pay.
Your donation is deducted from your pay before tax. This means that when you give a donation of £10, you will only feel the loss of £7.80 from what you earn at current basic rate tax.
|Your donation||The cost to you (regular tax rate)||The cost to you (higher tax rate)|
You can give regularly in this way by authorising your employer to deduct up a monthly amount, but Payroll Giving can also be applied to one-off donations.
Information for employers
Did you know that nearly one third of companies who offer Payroll Giving to their employees have attributed improved staff retention to the scheme? If you pay your employees salaries through PAYE, your company is almost certainly eligible to offer Payroll Giving, which can raise your corporate social responsibility and community investment profile.
Companies benefit from Payroll Giving by increasing employee morale and a sense of team building. It can also aid recruitment (increasingly, graduate applicants ask about the social responsibility and ethical profile of businesses); many employers are further encouraging the scheme by matching their employees' donations. Payroll Giving can complement existing volunteering or charity adoption schemes by offering employees a structured 'no hassle' giving system. Finally donations to the charities are administered by a Payroll Giving agency, so it will involve very little administration by your company.
The government has announced that it will provide companies with fewer than 500 staff with a cash incentive of up to £500 for setting up a Payroll Giving scheme for employees.
Information for the self-employed
Self-assessment taxpayers will be able to use their tax return form to donate to charity all or part of any repayment due to them. The donation will go direct to the chosen charity's bank account. The taxpayer can choose to Gift Aid the donation and any tax on the donation will be paid to the charity without the need for a claim. To nominate The Princess Royal Trust for Carers please use the reference code VAK37FG. If you have any questions, please email our Help Desk or call the Inland revenue's Self-Assessment Helpline on 08459 000 444.
Further Information about Payroll Giving
Further information is available from the Inland Revenue website; for employees, see Payroll Giving – for donors, employers are advised to visit Payroll Giving – for employers, or call the Inland Revenue helpline: 0845 3020203. Also see the Inland Revenue Leaflet IR65 Giving to Charity by Individuals.
For more information please contact the fundraising team on 0844 800 4361.