Why should we offer payroll giving?
It may surprise you to know that a National Opinion Poll survey shows that, each month, around two thirds of us give to charity. Payroll Giving is a simple, tax effective way for your employees to make donations. Many businesses already offer the benefits of Payroll Giving to around 5 million employees, and the numbers are growing.
How does it work? It's simple. Your employee asks you to deduct regular charitable donations from their pay. You make the deduction from before-tax pay.
You pay the money you deduct to an Inland Revenue approved Payroll Giving agency and they do the rest - distributing the money to the charities nominated by your employees.
How does the donor benefit?
Payroll Giving - working for a good cause
"Simple, tax-free charitable giving direct from your pay."
Payroll Giving - What a good idea !
Payroll giving (workplace giving) is a valuable, long term source of revenue, providing regular income to help charities budget and plan ahead more effectively. Employees can choose to support any charity of their choice with a regular donation direct from their pay.
Its cheaper because its tax free.
Who pays to administer it?
Most of the administration cost is incurred by the Payroll Giving agency. Most agencies make a small charge which they deduct from donations before distributing them to charity. The charge is normally no more than 4% of the donation, or 25p per payroll deduction, whichever is the greater. Your administration costs should be very small and are likely to be absorbed in your existing payroll costs. In any event, any costs of running a scheme will be allowed as a deduction against your profits for tax purposes.
IT'S SO EASY!
Payroll Giving is growing rapidly
Payroll Giving has increased from £37 million in 1999/2000, to over £109 million in 2007/2008
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