Payroll giving is a valuable, long term source of revenue, providing regular income to help charities budget and plan ahead more effectively. Employees can choose to support any charity of their choice with a regular donation direct from their pay. Its cheaper because its tax free - for example, a donation of £5 per month costs the basic rate tax payer £3.90 (the taxman pays the rest!)

Payroll Giving donations are deducted before tax so each £1.00 you give will only cost you 78p, and if you're a higher rate tax payer it will only cost you 60p.

Benefits to Donors –
• It’s a simple hassle free way to give.
• You can choose to support a number of charities.
• Your donation is automatically deducted from your pay.

Benefits to Employers -
• Simple and easy to set up and run
• Hardly any cost .
• A way of showing your customers and employees your commitment to charities

Benefits to Charities –
• A steady stream of income

How can it work for you?

As a business, company, organisation and charity, we all are encouraged to offer Payroll Giving to our staff. Employers need to contact an approved agency (PGA) which will allocate funds to the employee’s favourite charities. The employee’s (donors) fill in a mandate, advising their chosen charities, and an amount. Most modern payroll systems are able to deduct the donation for the pre tax salary. Employers send the donations in one lump sum to the PGA and at the same time the PAYE tax to HMRC.