Payroll Giving

Payroll Giving is a scheme which allows employees to donate to charity from their pay tax-free.

Employees can opt to donate to any UK charity or good cause from their salary. Contributions are deducted from gross pay before tax is calculated by the employer’s payroll department. Donating to charities tax-free directly through your salary is the most tax-efficient way to give.

Payroll Giving donations are taken from pay after National Insurance but before tax. A donation of £5 a month would actually cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax).

Payroll Giving is important. Encouraging regular donations is vital for the future of charities. York Mind depends on the regular income that Payroll Giving provides as it allows us to plan our workset up new projects and initiatives and provide practical help to those experiencing mental health problems.

There are lots of benefits to offering a Payroll Giving scheme for your employees and every employer in the UK can start a scheme regardless of your size. Research shows that donating to charity or simply being kind helps mental health and general wellbeing. More than £2billion has been donated through Payroll Giving by over 1 million employees.

Employer Benefits

· Shows commitment to your employees

· Improves staff morale and motivation

· Supports good causes

· Simple and free to set up and run

· No fees*

· Boosts your CSR profile and public image

· Recognition via Quality Mark Awards for being a company that cares

· Option to link with charity partners

Get your Employer Payroll Giving Guide here.

*There are no set-up costs for employers. Payroll Giving Agencies can charge a processing fee of up to 5% of the donation amount. However, some agencies don’t charge and some charge a transaction fee per employee. You may choose to cover this fee for your employees otherwise the Agency will deduct it from donations. You can find a list of all approved agencies on the Gov.UK website.

Employee Benefits

· Easy and convenient – straight from employees’ pay, so no need to give bank account details

· Tax-effective – it costs less to give more

· Supports the causes they care about

· Flexible – control over how much they want to donate and to which causes

· The only way for higher rate tax-payers to pass their full tax relief to charity

Get your Employee Payroll Giving Guide here.

Find out more here.