Setting up a Payroll Giving Scheme

Payroll Giving is a scheme run through HMRC and administered by Charities Trust. It allows employees to make simple, tax-effective donations to any UK charity or good cause.

If you pay your employees or pensioners through PAYE (as most UK companies do), you can set up a Payroll Giving scheme.

Donations are deducted from gross pay – before tax is deducted. This gives immediate tax relief on donations and means it costs less for your employees to donate. The table below gives some examples:

Your pledge As a 20% tax payer
you pay
As a 40% tax payer
you pay
As a 45% tax payer
you pay
Your charity receives
£5.00 £4.00 £3.00 £2.75 £5.00*
£10.00 £8.00 £6.00 £5.50 £10.00*
£50.00 £40.00 £30.00 £27.50 £50.00*

*These figures are dependent on whether you the employer chooses to pay the 25p administration charge.

As your Payroll Giving agency working with HMRC, Charities Trust processes and pays out to any charity or recognised good cause registered within the UK.

 

Features

  • Easy to set up – little additional work for you
  • Any costs incurred in launching and promoting the scheme to employees may be offset against Corporation Tax as tax deductible expenses
  • Your employees can also donate tax-effectively at bonus time with a one-off donation
  • Your employees can easily choose to give to any UK registered charity or good cause
  • Charities Trust can provide monthly reports for your CSR targets
  • Payroll Giving can work alongside your match funding programmes
  • You can also offer employees a My Giving Account  to manage their donations
  • Option for online employee registration

 

Next Steps

  1. Download our Payroll Giving Agreement and Employee Registration form using the buttons below
  2. Register with Charities Trust for your Payroll Giving
  3. Promote your Payroll Giving scheme throughout your company
  4. Sign employees up to make regular donations through Payroll Giving

 

 

 

 

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