Payroll Giving is a scheme that allows your employees to give to their favourite charities every payday, directly from their salary. The donation is taken before Pay as Your Earn tax is calculated meaning that the donor pays less in tax each month. For example, a higher rate tax payer donating £10 a month will pay £4 less in tax each payday.
How does Payroll Giving work?
- Employees will notify your payroll department or HR that they wish to make a payroll donation.
- Each payday the payroll department will deduct the specified donation from the employee’s pay.
- Before your company can begin to make deductions you must have a contract with an Inland Revenue approved Payroll Giving Agency (PGA).
- All payroll donations are forwarded to your PGA for onward distribution to the relevant charities.
How does Payroll Giving benefit your company?
How can I set up Payroll Giving at my company?
- Enhances your company’s reputation to employees and the outside world
- Shows commitment to Corporate Social Responsibility
- Increases staff morale by giving them an easy and efficient way to donate to their favourite causes such as the NSPCC
- Enables you to generate a substantial income stream to charities with minimal effort
Payroll Giving is an easy system to set up within your company, and once it’s up and running, most of the administration is undertaken by your Payroll Giving Agency (PGA). You will be required to keep basic records of your employees’ donations but you will not be required to fill out any additional tax forms. (NB: All companies must be registered with a PGA before they can offer Payroll Giving to employees.)
For further information on how your company can register with a PGA and set up a Payroll Giving scheme please visit the ç
which has all the information that you need to set up a scheme.
For more information from Pratham about Payroll Giving, please contact the Pratham office at 02073683396 or 02073683395 or email us at