Payroll Giving
The wonderful thing about payroll giving is that it is a way of donating money to Mildmay without paying tax on it, and its simple to set up.
Your employer registers online.
You select the charity you want to support.
Your donation is taken directly from your salary before tax.
Payroll Giving allows you to donate directly from your salary through your employer. The donations are taken before tax is deducted. Giving via your payroll means your donations will be increased by the tax you would have paid. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate, £6 on 40% tax and £5.50 on 45% tax.
Payroll Giving is a simple way and tax-free way to donate to Mildmay.
You choose how much you’d like to donate monthly, and we receive a tax-free donation directly from your salary.
Did you know?
Payroll Giving Month happens every year in February, when charities, Payroll Giving Agencies, Professional Funding Organisations and companies come together to raise awareness of Payroll Giving.
How it works
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.
To donate through Payroll Giving, check with your employer if they have a Payroll Giving scheme. If they don’t, please find out more at the gov.uk Payroll Giving page.
Donations are taken directly from your salary before tax is deducted through your employer. Giving via your payroll means your donations will be increased by tax relief. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate or even less if you pay a higher tax rate.
Benefits for you
Easy
Payroll Giving is quick, easy and ideal for busy people.
Tax effective
It’s a tax-effective way of making regular donations.
Regular support
Payroll Giving is an excellent and straightforward way of providing ongoing support for the thousands of dogs and cats who arrive at our gates every year.
Secure
You can set up your donation without giving your bank details, and you can choose how you want to be contacted.
Your Payroll Giving donation is formed of two parts:
Your salary donation + a tax relief bonus
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.
FAQs
How does Payroll Giving work?
Payroll Giving is a simple and tax-free way to support Mildmay.
It allows you to donate directly from your salary through your employer. The donations are taken before tax is deducted. Giving via your payroll means your donations will be increased by the tax you would have paid. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate, £6 on 40% tax and £5.50 on 45% tax.
When do my donations start?
Your first Payroll Giving donation will be made on your next payday unless you sign up just after your company’s payroll has been produced, in which case your first donation will be deducted on the following payday.
How much can I give?
There are no limits. You can give as much or as little as you like. We hope you could give £7.50 per month or more if you can, as it really makes a difference to the service we can provide for our patients.
Can I give to multiple charities?
Yes, you can donate to as many UK-registered charities as you want to.
How does the tax relief work?
Your Payroll Giving donation comprises two parts: your salary donation plus the tax you would have paid on that part of your salary had you not made a donation. For example, if you are a basic rate, 20%, taxpayer, to donate £10, only £8.00 would be deducted from your salary. £2.00 is the tax you would have paid on the £10, which is paid to the charity.
The tax effect means that, for the same net cost to you, Mildmay receives even more from higher-rate taxpayers.
This tax element is paid directly to the charity. The charity does not have to claim it. It is, therefore, a very cost-effective way for us to receive donations.
Are there any admin fees?
Your employer will use a Payroll Giving Agency, which collects the donations from employers and amalgamates them to send on to the charities. The Payroll Giving Agency will make a small charge of perhaps 2-4% of the total of all donations raised to cover their costs. This is deducted from the money passed on to the charity.
However, some employers will pay the fee on your behalf, so Mildmay will receive your full donation.
When I leave my job, what happens to my Payroll Giving donation?
Your Payroll Giving donation will stop. If you work for another employer, contact the payroll department at your new workplace and tell them that you would like to make charitable donations via Payroll Giving.
If you are retiring, you might like to think about Payroll Giving from your pension. If you have a personal pension, ask your pension provider if they have a Payroll Giving Scheme and tell them you would like to join.
How do I know that Mildmay have received my Payroll Giving donation?
When donations are taken from your salary, they appear on your payslip. We at Mildmay check carefully that donations we expect are arriving. You can be assured that Payroll Giving is a safe and reliable way to give.
Can I Gift Aid my Payroll Giving donation?
No. It is a different system. If you give by Direct Debit, you can Gift Aid it. With Payroll Giving, there is no need. Your donation is taken from pre-tax pay. The tax element is automatically taken care of.
Payroll Giving is particularly effective if you are a 40% or 45% taxpayer. It ensures we receive all the tax relating to your donation.
How do I know if my employer has a Payroll Giving scheme?
Ask your payroll department, who should be able to tell you.
I pay tax at 40% or 45% – what do I need to do?
From the employee’s point of view, Payroll Giving operates the same for all tax bands. The donation is taken from pre-tax pay. A higher rate taxpayer needs to take no further action.
Payroll Giving is a highly beneficial way of donating for a high earner because you will receive tax relief at your highest rate, and the charity will benefit from the higher tax.
Can I give through my pension scheme?
Probably. If you have a personal pension, ask your pension provider if they run a Payroll Giving scheme. Tell them you wish to join Payroll Giving and have your donations deducted before tax.
Can I change how much I am donating if I want to?
Yes, you can change how much you want to donate at any time. To change your donation amount, please contact your company’s payroll department.
Can I stop giving if I want to?
Yes, of course. Please contact your company’s payroll department.
More information
If you would like more information on Payroll Giving please take a look at these resources:
