Payroll Giving

Payroll Giving is a simple way to make a big difference.

There are many ways people choose to support charities; through donations, volunteering, fundraising or giving goods. One of the most sustainable and effective methods is Payroll Giving.

Payroll Giving allows employees to donate directly from their gross salary (before tax is deducted). Because the donation’s taken before tax, employees benefit from immediate tax relief. For example, if you’re a basic rate taxpayer, a £1 donation costs you just 80p. Higher rate taxpayers pay 60p for every £1, and additional rate taxpayers only 55p. The charity, however, still receives the full £1.

This makes Payroll Giving an easy and affordable way for staff to support the causes they care about, while providing charities with a reliable and regular source of income. In fact, in 2023/24 employees donated over £125 million through Payroll Giving, highlighting just how powerful this form of giving can be. Employers can even choose to match donations, further increasing the impact.

For businesses, Payroll Giving’s simple to set up, free to run, and it can strengthen your Corporate Social Responsibility (CSR) profile. It also shows your people and your wider community that you’re a socially conscious employer. It’s a small change that can have a big effect on staff engagement, loyalty and overall company culture.

Compared to Gift Aid, Payroll Giving can also be less of an administrative burden for charities. While Gift Aid means charities receive more money per donation, it requires them to claim back the tax. With Payroll Giving, donations go directly to the charity, already boosted by the tax benefit, giving them certainty and reducing admin.

If you’d like to explore Payroll Giving for your business, you can find out more and view the list of approved agencies on the HMRC website.

Get in touch today to discuss further.

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