Payroll giving
Payroll Giving is a scheme in which employees are offered the chance to make a regular donation to a charity (or charities) each month.
The contribution is taken directly from their pay packet and the employee chooses both the amount and the recipient.
This money is taken from their pay before any other deductions and therefore, the charity will actually receive more than the donation because of the tax benefit.
Benefits
Business benefits include:
- If you decide that the business will cover the administration costs of the scheme, or, even better, to match the employees' donations, then these can be offset against corporation tax. This reduces your tax bill as well as your employees.
- Staff participating in these schemes often appreciate the opportunity to contribute to charities and this can lead to improved morale.
- Choosing a local charity can lead to an improved public profile and better relationships with your community.
Process
1. Consider some of the following suggestions and select a recipient:
- a local organisation
- a charity of your employees choice
- a charity which matches your business activities
2. Set up the payroll giving scheme. The Charities Aid Foundation offers a CAF Company Account which they will set up for you free of charge and which will separate the GAYE scheme from your business account. They will also award you a Payroll Giving Quality Mark - proof of your CSR credentials!
Impact
- Improved motivation and retention of staff
- Improved standing in community
- Positive publicity and improved corporate image
Payroll Giving Toolkit
