Payroll Giving is smart and tax-efficient way for UK taxpayers to support charities, as the donation is made from your gross salary before tax is deducted.
Payroll Giving For Employees:
Benefits of Payroll Giving
- Your regular donations will help us to support bereaved families and save babies’ lives.
- It’s simple and effortless giving – once set up you can make regular donations that are taken straight from your salary without you having to do anything.
How much is your donation worth
For standard-rate taxpayers, if you donate £10 to Sands it will only cost you £8. If you're a higher-rate taxpayer, Payroll Giving is the most tax-efficient way to give - a £10 donation will cost you just £6. The amount you give is up to you.
How do I sign up?
Ask your employer for details on how to sign up if they already have a scheme. Your employer will need to set up and run the scheme. The amount of tax relief you get as an employee depends on the rate of tax you pay. (see FAQs)
If your employer doesn't currently run a Payroll Giving scheme, they can find out how to set one up - where they will find a list of approved Payroll Giving Agencies who can facilitate a scheme for their employees.
Payroll Giving For Employers:
Benefits of Payroll Giving
- Having a Payroll Giving scheme outwardly shows your support for charitable causes that your staff care about.
- Reach your corporate social responsibility goals by providing a simple way for employees to give to charity.
- Minimal hassle to set up scheme and facilitate donations - Work with an approved Payroll Giving Agency who will take care of the admin.
- Create a positive and morale boosting opportunity for employee engagement.
Matched Giving
Employers can choose to match their employees’ donations, increasing the support for employees’ chosen charities. Matched donations do not incur administration fees and they can be charged against company profits as a charitable donation.
Payroll Giving Quality Mark Awards
The UK government funds the Payroll Giving Quality Mark scheme which recognises and rewards organisations for encouraging staff to donate through Payroll Giving.
How do we set up Payroll Giving?
To set up the scheme you will need to contact a Payroll Giving agency. Check out the full list of HMRC approved agencies.
Payroll Giving FAQs:
How do I sign up?
Ask your employer for details on how to sign up if they already have a scheme. Your employer will need to set up and run the scheme, working with an approved Payroll Giving Agency (such as CAF or Charities Trust) who will facilitate Payroll Giving between your employer, HMRC and the charity.
My Employer doesn’t have a Payroll Giving scheme how can they set one up?
If your employer doesn't currently run a Payroll Giving scheme, they can find out how to set one up and check out the list of approved Payroll Giving Agencies who can facilitate a scheme for their employees.
How much is my donation worth?
A £10.00 pledge would only ‘cost’ a standard rate tax payer £8.00 and a higher rate tax payer just £6.00. Try out the donation calculator to see how much your own pledge would cost based on your own tax rate.
How much do I have to donate?
The amount you give is up to you.
How much tax relief will I get?
Find out all the information you need about Tax Relief. The amount will depend on the rate of tax you pay.
What is the cost to the donor?
|
Pledge Value |
Cost to a |
Cost to a |
Cost to a |
|---|---|---|---|
|
£5.00 |
£4.00 |
£3.00 |
£2.75 |
|
£10.00 |
£8.00 |
£6.00 |
£5.50 |
|
£15.00 |
£12.00 |
£9.00 |
£8.25 |
|
£25.00 |
£20.00 |
£15.00 |
£13.75 |
|
£50.00 |
£40.00 |
£30.00 |
£27.50 |
|
£100.00 |
£80.00 |
£60.00 |
£55.00 |
Do you claim Gift Aid on Payroll Giving?
Payroll Giving automatically includes tax so we don’t need to claim Gift Aid. The only way that higher rate taxpayers can automatically pass their tax to charity is through Payroll Giving, meaning they're able to give more at a lower cost to them. If you're donating by any other means to charity, remember to tick the Gift Aid box if you're able to.
What if I change jobs or retire?
If you change jobs, you should alert your relevant point of contact who facilitates your Payroll Giving scheme, and when you leave your job your payroll giving donations will stop. Make sure to ask your new employer if they have a Payroll Giving scheme in place and then you can set it back up in your new role. If you retire, you may need to check with your employer. Some employers also run the scheme on pensions so people can continue to give to the charities they care about.
For more advice on setting up Payroll Giving, please contact: Corporate.Partnerships@sands.org.uk