Give As You Earn
Payroll Giving is a facility that has become more and more popular. It is a way of giving to charity directly from your salary or pension, and as it is taken befor eyou have paid tax, it means your donation costs you less. Anyone can use payroll giving, whether you are paid a salary or a company or personal pension. This is how it works;
- You pay tax at the basic rate of 20%
- You make a monthly donation of £10 through payroll giving
- This donation is taken pre-tax, so 20% of it, (£2), is paid through HMRC
- The donation costs you £8, (£10 donation less 20% tax), but we still receive £10
If you pay tax at the higher rate of 40% the same calculation applies, but your donation only costs you £6.
Payroll Giving does not affect other donations you make to charity and they can still claim Gift Aid on those donations, providing you have signed a Gift Aid declaration.
Not all employers currently run a payroll giving scheme, but most companies do. If they don’t you could ask if they would be willing to. If they want to know more they can always give us a call and we’ll explain things and put them in touch with a Payroll Giving Agency.