Payroll Giving offers your employees the choice to donate money to a UK charity without paying tax on it.
How does it work?
The Payroll Giving scheme, set up by the Government in 1987, enables anyone receiving pay or a pension, subject to PAYE, to donate to charity from their gross pay.
The tax relief the employee can receive depends on the rate of tax they pay, as below:
- For every £1 the employee donates as a basic rate tax payer, they pay 80p and save 20
- For every £1 the employee donates as a higher rate tax payer, they pay 60p and save 40
- For every £1 the employee donates as an additional rate tax payer, they pay 55p and save 45
What are the benefits?
Aside from the obviously morable action of donating to charity, Payroll Giving facilitates a regular, reliable and unrestricted income stream for the chosen charity, which allows them to plan ahead and budget for the future.
Setting up a Payroll Giving scheme for your business could also support your company’s corporate social responsibility policy and aid staff retention.
Get in touch
If you would like to find out more about setting up Payroll Giving for your business, or for any other Payroll-related matters, contact our team on 01788 539000 or 0116 261 0061 or email [email protected].
Read more of our blog articles here: https://www.magma.co.uk/blog