PAYROLL GIVING…it's easy to get started
What is Payroll Giving?
Payroll Giving is a way of donating to a charity by having the donation deducted from your pay packet. The deduction is made before tax, in other words after calculation of National Insurance Contributions but before deduction of Pay As You Earn Tax. This means that if an employee gives £10 a month, it will cost only £7.80 if he pays tax at 22%, or only £6 if he pays tax at 40%.
What if my company does not offer doesn't offer a Payroll Scheme?
Basically all they have to do is register with a Payroll Giving Agency approved by the Inland Revenue, deduct the money from your wages and send the donations to the Agency. Most Payroll software can easily handle Payroll Giving.
The Agency will supply you with a Charity Nomination Form which you return direct to the Agency. You will need the correct name and charity number of your nominated charity e.g. Forward Gamlingay, registered charity number 1109467.
What about the administration costs?
Most Payroll Giving Agencies make a small charge, normally no more than 4% of the donation or 25p per donation, whichever is the greater. This is deducted from the donation before it is sent on to the charity. Some employers pay the agency's charges so that the full amount of the donation can go to the charity.
Payroll Giving - 4 simple steps for employers
- Fill in a simple contract with a registered Payroll Giving Agency
- Tell your employees about the scheme and give them sign-up forms
- Take the monthly deductions along with your other payroll deductions
- Send one payment out to your agency….and they handle all the distributions to charities and record keeping for you.
For details of approved Payroll Giving Agencies, and how to obtain your Payroll Giving Tool Kit call 0161 276 6936 or for more information please visit www.inlandrevenue.gov.uk/payrollgiving
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