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Image credit:  Annie Spratt

Payroll Giving


Payroll Giving is a way of donating money to Mildmay without paying tax on it.


It must be paid through PAYE from someone's wages or pension.


Payroll Giving is a great way to enable Mildmay to receive regular funds.  It allows us to make plans and focus on our charitable objectives.

It is easy to set up and once it is done you can feel confident your money will be transmitted safely every month.




Employees


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. The amount of tax relief you get depends on the rate of tax you pay.


Payroll Giving is super easy to set up.  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 give your consent for the process to happen.


Payroll Giving Agencies facilitate the secure transition of funds from your gross wages to Mildmay'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.



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. Donations made from gross pay also mean the charities you donate to don’t need to claim gift aid related to your donation. Payroll Giving is especially efficient for higher rate taxpayers allowing for larger donations at a lower cost



You will pay less tax!


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

(Scottish rates of tax are slightly different)

It means you can consider increasing your donation because you are paying less tax.



Privacy


Donating to charities is a private matter. The Payroll Giving process allows you to keep the details of your donation private from your employer.

When making a donation to a Charity you can choose whether you share your contact details with the charity and tell them whether they can keep in contact with you.




Employers


Contact a Payroll Giving agency to set up a 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 it from donations. You can find a list of all approved agencies on the Gov.UK website.


Make deductions each time you run payroll. The donation will be taken from your employees’ pay before tax but after National Insurance.


Send the donations to your agency - they’ll pass them on to the chosen charities. Ask your agency any questions you or your employees have about the scheme.


More information


If you would like more information on Payroll Giving please take a look at these resources:

GOV.UK

HMRC Payroll Giving Agencies

Association of Payroll Giving Organisations (APGO)

Chartered Institute of Fundraising (CIoF)

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