What is Payroll Giving?Payroll Giving is a simple, tax effective way to give to any UK based charity from your pay. Surveys show that each month around two thirds of us give to charity. Giving regularly to your favourite charitable cause is an excellent way to help others and do something to make the world a better place.
How does it work?Once authorised, the payroll department will deduct regular charitable donations from your pay. Your donation is then sent to Charities Trust who are approved by HM Revenue and Customs as a Charity Agency. The Agency then distributes the money to the charity or charities of your choice.
And the benefits?Not only is Payroll Giving super simple, but it’s also super tax effective. How come? Because your donation gets deducted before you pay the taxman. For instance, if you donate £5, only £4 comes out of your salary and the taxman pays the rest.
What if I change my mind?
No worries! You can cancel your donation, change the amount, which charities you would like to support, at any time.
How much will my donation cost out of my take-home pay?
|You donate||You pay|
|Cost to you as a 20% tax rate payer|
|Cost to you as a 40% tax rate payer|
|Cost to you as a 45% tax rate payer|