Payroll Giving

Did you know you can support your favourite charity through Payroll Giving?

What is Payroll Giving?

Payroll Giving is a scheme run by the government, which lets people make regular, tax-free charity donations through their workplace. The charity donation is taken out of your wage BEFORE tax is applied.So you can give more to charity without it costing you extra. For most taxpayers, this means a donation of £1 would only cost you 80p, for a higher rate tax payer it would be 60p.

How is Payroll Giving different to Gift Aid?

Usually, when you make a direct charity donation, you tick a box that allows the charity to apply for Gift Aid. They can then claim back the tax from the government that you have already paid on the amount. So, for a standard £10 donation, the cost to you is still £10, but the charity receives £12.80 after Gift Aid. With a Payroll Giving donation, the amount that would usually be taxed still goes to the charity. As the scheme is set up through your employer, the charity does not have the added administration of claiming back the Gift Aid. For higher rate taxpayers it also the only way to pass on their 40-45% tax to charities. Gift Aid is set at 25%.

Who can use Payroll Giving for charity donations?

Any UK taxpayer can use Payroll Giving if they are paid weekly or monthly through PAYE, or if a pension holder has tax deducted by their provider through PAYE. Your workplace or pension provider needs to run a Payroll Giving Scheme. If they don’t have one yet ask if they will set one up. Check out HMRC.

Can you choose the charity you want the donation to go to?

You can chose the charity you want to support.

How do I get started with Payroll Giving?

To start making Payroll Giving donations, ask your employer or pension provider to deduct the chosen amount from your income. You then need to fill in a form for the Payroll Giving Agency your company uses. Specify which charity you want to support, and whether or not you wish to remain anonymous. Your workplace can pass on your regular donations to the agency, which then gives the money to your charity choice.

Find out more about the Payroll Giving Scheme on the HMRC website.

Consider making a regular monthly donation to Felix Fund using this scheme. Once it’s set up you don’t have to worry about it and you will continue to support those in need across EOD & Search.