Payroll giving
Donate tax free to Oakhaven with Payroll Giving!
Payroll giving (sometimes known as 'Give as you Earn' is a scheme which allows employees to make regular donations to charity from their pay tax-free. Employees can opt to donate to Oakhaven Hospice from their salary. Contributions are deducted from gross pay before tax is calculated by the employer’s payroll department. Donating to charities tax-free directly through your salary is the most tax-efficient way to give.
As an employee, you can benefit from tax-efficient savings when you donate via your salary. Payroll Giving donations are taken from pay after National Insurance but before tax. A donation of £5 a month would actually cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax).
Both employees and businesses benefit from offering a Payroll Giving scheme
There are lots of benefits to offering a Payroll Giving scheme for your employees and every employer in the UK can start a scheme regardless of your size. Research shows that donating to charity helps mental health and general wellbeing. More than £2 billion has been donated through Payroll Giving by over 1 million employees!
Employee benefits include;
- Easy and convenient – straight from employee’s pay so no need to give bank details
- Tax-efficient – it costs less to give more
- Supports a cause they care about
- Flexible – control over how much they want to donate and to which causes
- The only way for higher rate tax-payers to pass their full tax relief to charity
Employer benefits include;
- It shows commitment and care to your employees
- Improves staff morale and motivation
- Supports a good cause
- It is simple and FREE to set up and run*
- Boosts your Corporate Social Responsibility
- Recognition via Quality Mark Awards for being a company that cares
Employers: make an even bigger difference with Matched Giving!
Matched Giving is a powerful way to encourage your employees to sign up for Payroll Giving. Your company has the option to boost an employee’s donations – this can be like for like, or you might prefer to donate a set amount per employee. You can also choose to donate a one-off amount when employees sign up. This additional gift is then added to your employees’ donations. Giving them an extra incentive to start Payroll Giving and make their charitable donations go further.
How to set up a Payroll Giving scheme
There are no set-up costs for employers. Payroll Giving Agencies can charge a processing fee of up to 5% of the donation amount. However, some agencies don’t charge and some charge a transaction fee per employee. You may choose to cover this fee for your employees otherwise the Agency will deduct from donations.
To set up a Payroll Giving scheme you must contact a government-approved agency a list of which can be found here: https://www.gov.uk/government/publications/payroll-giving-approved-agencies/list-of-approved-payroll-giving-agencies
Further resources about Payroll Giving can be found here:
https://www.gov.uk/payroll-giving
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