What is Payroll Giving?
February is Payroll Giving Month, so we wanted to take this opportunity to shine a light on this easy and tax-efficient way to support our Charity.
Payroll Giving, also known as Give As You Earn, is a scheme that allows employees to donate to charity directly from their salary.
It is one of the simplest, most tax-efficient ways to give to charity, allowing employees to donate to a charity of their choice. Donations are taken after National Insurance but before tax, so the donations are cheaper for employees. For example, if an employee pays 20% tax, then a donation of £5 per month would actually cost them £4. And if they pay 40% tax it will cost them £3.
There are lots of benefits to offering a Payroll Giving scheme for your employees and every employer in the UK can start a scheme regardless of its size. Payroll Giving can enhance a company’s CSR profile and provides an opportunity to receive a Payroll Giving Quality Mark Award which recognises businesses which offer the scheme.
Payroll Giving is simple to setup – there is no cost to the employer and no requirement for new payroll software. Once set up, employees can use the scheme to sign up and donate straight away. Each pay day, when wages are processed, the donation will be taken directly from an employee’s gross salary and sent to your Payroll Giving Agency
Payroll Giving is an easy, convenient and tax-free way to support a charity, or charities, of your choice. The donation is automatically taken from your gross salary every time you’re paid. You can increase or cancel your donation at any time by speaking with your payroll department, and the donations will stop automatically if you leave the company or retire.
We’re here to help
Our Corporate Partnerships Team is able to provide further information on how employers can go about registering with a Payroll Giving agency. We can also provide support on engaging your teams to take part in Payroll Giving, showing them the benefits of giving in this way and the big impact that monthly donations can have for our patients and their families.
We have a number of assets that you can use to engage your teams in Payroll Giving, including social media graphics and email signatures – to showcase your support for Payroll Giving and encouraging your colleagues and networks to also get involved.
“As we know times are hard and whilst everyone wants to get involved with charity work not everyone has the means to. We heard our employees and decided to introduce payroll giving which allows our staff to donate money tax-free which most people don’t even notice when it’s gone! Employees can donate as little as £1 a month or as much as they want and we have seen great success so far with most of our employees getting involved. This has proven very popular with many employees saying it’s a stress-free and fuss-free way for them to donate. All they had to do was fill in a form and from there on the sum is deducted monthly.”
– Jordan Foster, Chief Financial Officer
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