Payroll Giving for Employers

What is Payroll Giving?

Payroll Giving is a scheme that enables your employees to give to any UK charity straight from their gross salary (before tax is deducted), and to receive immediate tax relief.

Section Index

This section is broken down into the following sections:

 

What are the benefits to my business?

Payroll Giving has numerous benefits for businesses, including financial, aiding staff retention and improving CSR. For more information on the wide spectrum of benefits available, please visit the benefits page.

The Payroll Giving Quality Mark and Excellence Awards celebrate the achievements of employers that have adopted and successfully promoted Payroll Giving schemes in their workplaces, and have enabled their employees to give to the charities that matter most to them.

The Quality Mark provides a benchmark of achievement; celebrates good practice and recognises employers who operate exceptional schemes. Every employer that offers a Payroll Giving scheme to their employees is eligible to receive a Quality Mark. Employers that achieve certain benchmarks are eligible to apply for a Bronze, Silver, Gold or Platinum Quality Mark.

Employers who achieve a Bronze, Silver, Gold or Platinum Quality Mark are eligible to apply for a National Payroll Giving Excellence Award.

Payroll Giving has numerous benefits for businesses, including financial, aiding staff retention and improving CSR. For more information on the wide spectrum of benefits available, please visit the benefits page.

 

 

 

What are the benefits to charities?

 
Payroll Giving provides charities with regular, reliable donations that allow them to plan ahead and budget for the future. By signing up to Payroll Giving, you can generate a vital unrestricted income stream to UK charities.
 
 

What are the benefits to my employees?

 
Payroll Giving is an easy, tax-effective way to give to charity - so it costs employees less to give more. The system is easy to opt in and out of, giving donors full control over their giving. Research also shows that working for a philanthropically minded organisation aids staff retention and happiness.
 
 

How do I sign up?

 
To set up a Payroll Giving scheme, all you have to do is sign up with a Payroll Giving Agency who will transfer the donations to charity on your behalf – it’s as easy as that.
 
 
   

What do my employees need to do?

 
All your employees need to do is ask your payroll department to deduct regular charitable donations from their salary by filling out a simple application form, outlining how much they would like to give and to which charities.
 
 

Will this be a lot of extra work for my payroll staff?

 
All modern payroll systems can facilitate Payroll Giving, usually as a simple tick box option. Your payroll staff will deduct the amount, as per any other pre-tax deduction (after National Insurance, but before tax) and forward it on to your Payroll Giving Agency who will distribute the monies to your employees’ chosen charities. 
 
There are no tax forms for them to complete and record keeping is straightforward. Your selected PGA will supply you with all the necessary help and advice to ensure that your scheme runs smoothly from the start.