Payroll Giving Week happens once a year when charities, payroll giving agencies, payroll funding organisations and companies make a special effort to increase the awareness of Payroll Giving.
So what is Payroll Giving?
Payroll Giving (sometimes known as Give as You Earn) is an easy and tax-efficient way of making regular donations to your favourite charities straight from your pay.
Payroll Giving is very easy to setup.
Ask your Payroll department or Benefits/CSR Team directly for how to get started. They will ask you to complete a form with the information about the donations you wish to make and giving your consent for the process to happen.
If you love animals and want to help their welfare, please consider making the RSPCA your nominated charity and if you specifically would like to contribute to animal welfare in the South London Region, please stipulate this on your Payroll Giving form. Our registered charity number is 276861.
What does my company need to do?
Many companies will have an established process to help you with this, and if they currently do not it is very simple to set up.
Companies need to work with a Payroll Giving Agency to allow the process to be implemented. It is quick and easy to get this setup and an important part of their Corporate Social Responsibility.
Payroll Giving Agencies facilitate the secure transition of funds from your gross wages to the charity’s bank account. Payroll Giving Agencies are themselves charities and they are authorised by HMRC to perform this function.
Your company needs to have a contract with a Payroll Giving Agency to allow donations to be deducted from your gross pay. You can find a list of all approved agencies on the Gov.UK website.
What does tax efficient mean?
By donating to charity from your gross pay it means there is no tax liability on your donation and you will pay less tax. Payroll Giving is especially efficient for higher rate taxpayers allowing for larger donations at a lower cost.
Donations made from gross pay also mean the charities you donate to don’t need to claim gift aid related to your donation.
The tax relief you get depends on the rate of tax you pay.
To donate £10.00 to charity it will only cost you:
£8.00 if you’re a basic rate taxpayer
£6.00 if you’re a higher rate taxpayer
£5.50 if you’re an additional rate taxpayer
Many thanks for reading.
RSPCA South London 