Payroll Giving
Payroll Giving is a way of giving money to charity without paying tax on it. It must be paid through PAYE from someone’s wages or pension.
Employees
Your employer needs to set up and run the scheme. The amount of tax relief you get depends on the rate of tax you pay.
Employers
Contact a Payroll Giving agency to set up a scheme.
Make deductions each time you run payroll. The donation will be taken from your employees’ pay before tax but after National Insurance.
Send the donations to your agency – they’ll pass them on to the chosen charities.
Ask your agency any questions you or your employees have about the scheme.
Costs of running a scheme
Agencies may charge an administration fee. They usually deduct this from employees’ donations before they pass them to the charity. You can choose to pay the fee, meaning the charities will get more money.
You can deduct any costs of running the scheme from your business profits before tax.
Charities
The Payroll Giving Agency will pass on employee donations to you. You must:
- be recognised by HMRC
- use the donation for charitable purposes
There is nothing more to do as a charity. You can’t claim Gift Aid on Payroll Giving donations.
