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Employer FAQs

What is payroll giving?

Payroll giving is a tax-efficient way of donating to charity. The donation is taken from an employee’s pay so it’s very easy and convenient. And as it’s taken before tax, the charity receives even more money.

For example, if a basic tax rate payer makes a donation of £10 per month, the charity receives £12.50. The taxman pays the extra!

Monthly donation The charity receives
(20% tax payer)
The charity receives
(40% tax payer)
The charity receives
(45% tax payer)
£5 £6.25 £8.33 £9.09
£10 £12.50 £16.67 £18.18
£15 £18.25 £24.99 £27.27
£20 £25 £33.32 £36.36

* Please note that we have calculated that the 40% higher rate tax band starts after earning £41,450 GROSS per year (including personal allowance of £9,440) and 45% super tax is applicable to those earning over £150,000 GROSS per year (this includes any and all personal allowances that might or might not be applicable).

How can I set up a payroll giving scheme?

1. Your company needs to register with a payroll giving agency – they distribute your employees’ donations to the nominated charities. There are a number of HMRC-approved agencies to choose from, including:

Charitable Giving
Charities Trust
Charities Aid Foundation

For a full list of agencies, visit the HRMC website

2. Promote your payroll giving scheme to staff using our online form and our free promotional materials.

3. Deduct employees’ donations from their salary using your normal payroll software.

4. Send the employees’ names and donation amounts to your agency every pay run (normally monthly).

5. Shelter and any other nominated charities receive your employees’ donations from your agency.

How do I promote payroll giving?

Here are 10 easy ways to promote your payroll-giving scheme:

  • Pick a day or a week to dedicate to promoting payroll giving.
  • Use our free promotional materials.
  • Share our link with staff so they can sign up to your payroll giving scheme.
  • Place posters in eye-catching places.
  • Jazz up your office or staffroom with balloons or streamers to highlight the scheme.
  • Select payroll giving champions to tell colleagues about the scheme.
  • Invite a professional fundraising organisation (PFO) to tell staff about payroll giving (Shelter is represented by the following PFOs: Workplace Giving, Charity Link, Hand on Helping, Sharing the Caring, Payroll Giving in Action).
  • Share the information on your blog, internal intranet, emails and staff newsletters.
  • Celebrate with a cake – sweet treats are a great way to celebrate payroll giving.
  • Invite Shelter to speak to staff about the great work we do and how to support Shelter through payroll giving – just email payrollgiving@shelter.org.uk

How can payroll giving benefit my company?

Payroll giving is easy to set up and run helps to build morale and enhances your company’s public image.

It is low cost to set up and maintain, can feature as part of your company’s Corporate Responsibility programme (CSR) and shows support for causes that matter to your employees.

Any costs incurred in setting up a scheme and promoting it to staff may be offset against Corporation Tax as tax-deductible expenses.

Your company could also potentially win an award, such as the National Payroll Giving Excellence Award.

‘Employers reported that payroll giving improves the company image (61%)’*

*Source: Institute of Fundraising, The Giving Campaign report into the business benefits of Payroll Giving, through the Ashridge Centre for Business in Society, 2002.

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