What is Payroll Giving?
Payroll Giving is a way of giving money to charity without paying tax on it- this means that your donations go further, with more of your donation going directly to the charity. To give through payroll giving, it must be paid through PAYE from someone’s wages or pension. 

 

Payroll Giving for Employees: 
To qualify for Payroll Giving, your employer needs to set up the scheme. There are lots of different payroll giving schemes that your employer can register for that you can read about below! If they haven’t signed up to a scheme yet, you can encourage them to do so and offer them support and guidance from our team by emailing fiona@yorksbtc.org.uk. Payroll Giving is a straightforward way to support the charities that you love- you don’t need to share any bank details with the charity, and you can change the amount that you are donating or the charity that you are supporting quickly and easily!

Payroll Giving for Employers: 
Follow these steps to start your Payroll Giving journey: 

1.) Contact a Payroll Giving agency to set up a scheme. You can find a list of HMRC approved Payroll Giving Schemes by visiting: Payroll Giving agencies approved by HMRC - GOV.UK (www.gov.uk)

2.) You can then make deductions each time you run payroll. The donation will then be taken from your employees’ pay before tax but after National Insurance 

3.) Then, just send the donations to your agency - they’ll pass them on to the chosen charities 

Costs of running a scheme:

Agencies may charge an administration fee. They usually deduct this from employees’ donations before they pass them to the charity. You can choose to pay the fee, meaning the charities will get more money.

You can deduct any costs of running the scheme from your business profits before tax.

 

The benefits of Payroll Giving: