Quarterly E-Bulletin
Payroll Giving
Payroll Giving is a simple tax efficient method of making regular donations to a charity of your choice through your monthly pay (providing you pay tax through PAYE). The scheme is run nationally and is government backed and you can donate as much or as little as you want.
How it works
You authorise your employer to deduct regular donations from your pay. Your employer then pays these donations to an approved Payroll Giving Agency approved by the Inland Revenue. They then distribute donations to the charity of your choice.
As an example, it would only cost an employee who pays tax at the basic rate of 20 per cent £8 to make a £10 donation to their charity. And it would only cost an employee who pays tax at the higher rate of 40 per cent £6 to make the same sized donation.
If your employer does not run a Payroll Giving scheme, why not suggest they start one? They are easy to set up and administer. More on getting started is available from www.inlandrevenue.gov.uk/payrollgiving
Alternatively you can set up your own individual tax-free Give as You Earn donation directly with your chosen charity through the Charities Aid Foundation at www.cafonline.org
