There are many deserving charities in the UK and abroad and a Payroll Giving scheme is a great way to show our generosity and help others less fortunate than ourselves. There are so many organisations doing vital work out there and a lot of them rely heavily on donations in order to survive. Most employers and employees like to give when they can and being able to do this through payroll has some great advantages.
Payroll Giving is a flexible scheme which allows anyone who pays UK income tax to give regularly and on a tax free basis to the charities and good causes of their choice.
Payroll Giving donations are deducted before tax so each £1.00 you give will only cost you 80p, and if you’re a higher rate tax payer it will only cost you 60p. For example, a donation of £5 per month costs the basic rate tax payer £4.00 (the taxman pays the rest!)
Higher rate taxpayers- the only way to pass on your 40% or 50% tax to charities. Only 28% can be recouped through other ways of giving.
For more information visit the HM Revenue & Customs Payroll Giving page or Payroll Giving in Action – a professional fundraising organisation whose primary aim is to raise awareness and take-up of the Payroll Giving scheme.