Payroll Giving


What is Payroll Giving?

Payroll Giving is a way of employees giving money to charity without paying tax on it. It must be deducted through an employee’s wages or pension


How does an employer set up and Administer a payroll giving scheme?

The employer must contact a Payroll Giving Agency to set up a scheme. Once the scheme is set up employees can opt in to give a set amount from their wags each pay period. This is deducted each time an employer runs the payroll. The employer is then responsible for sending the donations to the Payroll Giving Agency.


What benefits does the employee get?

An employee will receive tax relief on any donations made through a Payroll giving scheme. The tax relief an employee receives depends on the rate of tax the employee pays


If for example an employee donates £1 they will pay the following

· 80p if you’re a basic rate taxpayer

· 60p if you’re a higher rate taxpayer

· 55p if you’re an additional rate taxpayer


The tax relief for employees who live in Scotland is different. For example if the employee donates £1 they will pay the following

· 81p if you’re a starter rate taxpayer

· 80p if you’re a basic rate taxpayer

· 79p if you’re a intermediate rate taxpayer

· 59p if you’re a higher rate taxpayer

· 54p if you’re a top rate taxpayer

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