Payroll Giving
Payroll Giving is an HM Customs & Revenue scheme that enables employees to donate tax free through their pay to any charity in the UK.
Payroll Giving is becoming increasingly popular. In 2000-2001, £37 million was annually raised through this scheme, last year the figure rose to over £99 million. This includes over £10 million per year being added as an enhancement to employee’s donations by a growing number of Employers.
Payroll Giving is one of the most efficient ways of supporting Cancer Research UK as it is a tax-free way of donating regularly to us.
Louise Doherty, Marketing Executive, Cancer Research UK
Payroll Giving is a simple, efficient and flexible scheme, which allows you to donate to any UK registered charity of your choice by a direct deduction from your wage. By signing up to give to charity through Payroll Giving a donation is worth up to 40% more to its chosen cause.
Presently 70% of the UK’s population gives to charity, but over £900 million per year is being lost by charities, as they are not receiving the tax on these donations. By signing up to give to charity through Payroll Giving a donation is worth up to 40% more to its chosen cause.
For a higher rate taxpayer, Payroll Giving is the ONLY way that a charity can automatically receive all your tax on your charitable donation.
| Employees pledge to charity | Cost to employee (20% tax - net) | Cost to employee (40% tax - net) |
|---|---|---|
| £5.00 | £4.00 | £3.00 |
| £10.00 | £8.00 | £6.00 |
What are the benefits of Payroll Giving?
- You can give to any charity
- A regular income for the charity of your choice so they can plan for the future with confidence
- A confidential, easy and tax-efficient service
- No extra paperwork for the charity as they receive your donation and tax in one go
- A flexible scheme which allows you to change charities, alter the amount given or stop giving whenever you wish
More than 10,000 employers in the UK currently operate the scheme and for those that do not, Payroll Giving is free to introduce and easy to administer.
