Payroll giving

What is payroll giving?

Increase your business' charitable giving with little cost or effort. Payroll giving is a simple, efficient and flexible scheme that enables your employees to donate tax free to any UK charity directly from their salary.

Research* undertaken with employees about payroll giving shows that:

• 96% of companies with a payroll giving programme already in place thought it was something a good employer should offer
• 83% said it was simple for staff to join
• 79% said that it was easy to run
• 61% claimed it improved their company's image

*Source: 'The Business of Giving' - A summary report of the business benefits of payroll giving by the Giving Campaign.

How does it work?

Your employee asks you to deduct regular donations from their pay. You make the deduction before tax, in other words after calculation of National Insurance Contributions but before deduction of Pay As You Earn tax. This way your employee gets tax relief straightaway at their top rate of tax. All you need to do is sign up to a Payroll Giving Agency (PGA) which will process your employees' donations and distribute the money to their chosen charities. Once payroll giving is in place you will be able to monitor the level of donations that your company has helped to achieve.

Payroll giving is easy for donors. It's just a case of filling in one simple donation form, and because donations are taken out before tax it costs the donor less to give more.

Regular donations through payroll giving provide a reliable income stream, allowing Children's Hospices UK to plan ahead and continue vital work helping life-limited children, young people and their families.

To find out more download an employer's guide to payroll giving