Payroll giving

Payroll Giving

Payroll Giving is a unique, simple and tax-effective way for you to give to our PTA (FOLSS) on a regular basis.

Surveys show that each month around two thirds of us give to charity. Giving regularly to a favourite charity is an excellent way to help others, and this could benefit our PTA and the school community.

When you as busy parents find it hard to support events due to busy lifestyles or geographical location, payroll giving can provide you with an opportunity to regularly support our PTA. Anyone can join a payroll giving scheme if your pay (or pension) is taxed through PAYE and your employer offers the scheme.

Payroll Giving lets donors make regular or one-off donations to charities of their choice directly from their earnings or company or personal pension. Donations are made out of income before income tax is taken off, unlike Gift Aid donations. This means that donors are given tax relief on their donation immediately – and at their highest rate of tax. This means that the donation to our PTA, effectively, costs you the parent less.

There is no minimum or maximum that can be given through payroll giving and all contributions are tax efficient, so £10 pledged from your gross salary at a standard 20% rate of tax only costs you £8, or £6 if you pay the higher rate of tax at 40%.

If your employer does offer the scheme, then setting up a regular contribution is very straightforward. You simply complete a donor form authorising your payroll department to take an agreed amount from your salary. Your employer will then pass these funds onto a HM Revenue and Customs (HMRC) approved payroll giving agency, such as Give as You Earn, operated by Charities Aid Foundation (CAF), who then distribute the donations to the specified charities/organisations.

Some examples of Payroll Giving…

Kate, an employee of Marks and Spencer said:

“I have been giving to Cancer Research through the payroll giving scheme at work since 1990. As it’s taken directly from my salary it means I know that they are getting a regular donation without relying on me to remember! It’s tax efficient too, so it’s even better news for them and me.”

“Last year my daughter was diagnosed with epilepsy so I decided to start donating to the British Epilepsy Association as well. All I had to do was to let the payroll department know to include this additional charity and then fill in a form to tell the payroll giving agency nominated by our payroll department, where to send the money. As I’m also setting up a local branch for parents of children with epilepsy, I know money I’m donating can make a real difference as it’s a regular and reliable – which is so important for charities.”

Here is a list of approved Payroll Giving agencies

HMRC provides support and guidance for organisations wishing to establish a payroll giving scheme for their employees and CAF has a range of resources to help employers promote payroll giving to their employees.