Payroll Giving
Payroll Giving allows people to make an automatic donation to the charity of their choice from their pay packet. It is tax effective and means it costs you less to give more!
Hundreds of thousands of people in the UK make charitable donations through Payroll Giving. Your employer makes the deduction before tax and other deductions are made, so you don’t have to pay tax on the income you have chosen to give to charity.
The immediate tax relief means you can afford to give more generously
| Employee donation received by charity |
Basic rate taxpayer |
Higher rate taxpayer (40% tax) |
Highest rate taxpayer (50%) |
|||
| Tax relief | Cost to donor | Tax relief | Cost to donor | Tax relief | Cost to donor | |
| £5.00 | £1.00 | £4.00 | £2.00 | £3.00 | £2.50 | £2.50 |
| £10.00 | £2.00 | £8.00 | £4.00 | £6.00 | £5.00 | £5.00 |
| £20.00 | £4.00 | £16.00 | £8.00 | £12.00 | £10.00 | £10.00 |
| £100.00 | £20.00 | £80.00 | £40.00 | £60.00 | £50.00 | £50.00 |
How do you set up your donation?
Go to your payroll or HR department at work and ask if they already offer payroll giving – many companies do. An employer needs to be registered with a payroll giving agency to process their employees’ donations. A list of these agencies can be found here. When your employer is registered with an agency they will provide you with a simple form to fill out saying how much and to which charity you would like to give. Your donation will be taken from you next pay packet and passed on to the charity of your choice.
It costs £130 to create a permanent place in a PEAS school. Over one year that’s £10.83 a month – but through Payroll Giving it would cost a basic rate taxpayer just £8.67 a month! Get down to your payroll department now and start making a difference in Africa!