Payroll Giving
Payroll giving is a HM Customs & Revenue scheme that enables employees to donate tax free through their pay to any charity in the UK.
What are the benefits?
- Payroll giving is one of the easiest ways for employees to give regularly to charity – it’s simple, flexible and tax-efficient.
- Employees choose how much they want to give each month (minimum £1), and the charities they want to support. The donation is then taken from their pay before tax, so it costs them less. For example, a donation of £5 per month costs the basic rate tax payer just £4, but because the taxman pays the rest, the charity will receive the full £5 pledged.
- More than 10,000 UK employers currently operate the scheme.
What are the benefits for employers?
Quick and easy to set-up and administer, payroll giving is a great way for companies to demonstrate commitment to the causes that their employees care about. It can also aid retention and recruitment of staff, and enable them to generate a sustainable income stream to charities. The Payroll Managers' Guide (PDF) explains how to set up a company payroll giving scheme.
What are the benefits for Barnardo’s?
Payroll giving supplies Barnardo’s with a vital source of regular income, enabling us to plan with confidence and continue to make a lasting difference to the UK’s most vulnerable children and young people.
What are the benefits for employees?
Payroll giving is an easy, tax-effective way to give to charity – so it costs employees less to give more. The system is easy to opt in and out of, giving donors full control over their giving. Sign up today to start making a monthly or weekly donation through your wage. Please make sure you have your payroll/employee number and your National Insurance number to hand – both are on your payslip.
What's it worth?
You pledge Monthly | Your net deduction Basic rate tax payer | Your net deduction Higher rate tax payer | Charity receives |
£5.00 | £4.00 | £3.00 | £5.00 |
£7.50 | £6.00 | £4.50 | £7.50 |
£10.00 | £8.00 | £6.00 | £10.00 |
£12.50 | £10.00 | £7.50 | £12.50 |
£15.00 | £12.00 | £9.00 | £15.00 |
£20.00 | £16.00 | £12.00 | £20.00 |
*This amount will show as a deduction on your payslip. The actual cost to you is the amount you pledge - the taxman will do the rest!
