Payroll Giving is designed to encourage employees to allow their employers to deduct charitable donations from their pay before PAYE. The scheme facilitates taxpayers making a tax free donation to charity directly from their pay or pension if their employer runs a payroll giving scheme which has been approved by HMRC.
Donations using Payroll Giving are made after national insurance has been deducted but before income tax deductions. This allows taxpayers to obtain an immediate tax deduction at their highest tax rate. This is especially beneficial for higher rate taxpayers.
HMRC publishes a list of Payroll Giving Agencies that can help employers to promote Payroll Giving in the workplace, by using a professional fundraising organisation, staff champions or a chosen charity. The list only includes agencies that have asked to be listed. The approved list for Payroll Giving was last updated on 13 May 2024.
For help setting up your payroll giving please get in touch with Andrew Kilby in our payroll department.