What employees need to know
How your donations are made
You can donate to any UK registered charity and all donations
are made before tax and after National Insurance so your
contributions are not affected.
Payroll giving is completely flexible - you can change the
amount you give or which charities you donate to at any time.
If you want to stop making donations then simply contact your
payroll department.
How the tax is deducted
It doesn’t matter whether you’re a lower or a higher rate tax
payer - your chosen charity receives all the tax you would have
paid. This is different from Gift Aid which only gives a tax
benefit of 22%.
Your tax goes straight to your chosen charity instead of going
to the taxman so you don’t need to worry about reclaiming the tax
and neither does your charity.
Your employee's donation -
what the charity gets |
The cost to your employee (20% tax payer) |
The cost to your employee (40% tax payer) |
| £5.00 |
£4 |
£3.00 |
| £10.00 |
£8 |
£6.00 |
| £20.00 |
£16 |
£12.00 |
| £50.00 |
£40 |
£30.00 |
Nominating your employer
If your employer doesn't run a payroll giving scheme and you
think they should then why not nominate them? It may be that they
don't know what payroll giving is or that they don't know how to go
about setting up a scheme.
