Payroll Giving
Payroll Giving is a simple and tax effective method of making a regular donation to Kidneys for Life. A small amount that you may not miss each month builds up to an impressive sum over a year and enables Kidneys for Life to plan for its future needs.
What is payroll giving?
Payroll Giving means making a regular donation to Kidneys for Life directly from your salary. You can donate either weekly or monthly. Every £1 you donate costs you just 78p because the donation is made before tax is deducted. You can stop or change your donation when you like, just tell your payroll department, giving them one month’s notice. Donating through your payroll is one of the most valuable ways you can support Kidneys for Life. Regular gifts allow us to plan ahead, secure in the knowledge that we have guaranteed income. Payroll Giving is a term used to describe the charitable donations deducted from your gross pay before the calculation of tax. A Payroll Giving scheme offers employees of participating companies an opportunity (not an obligation) to make a tax-efficient donation to the charity or charities of their choice by means of the company’s payroll deduction system.
Why should I use my company’s Payroll Giving scheme to support a charity?
A Payroll Giving scheme provides the most flexible, tax-efficient method for an employee to make regular donations to the charity, church or charitable association of their choice.
What do you mean by ‘most flexible’?
There are several reasons why we say that Payroll Giving is the most flexible method of making a donation:
- The total donation made each pay period can be changed whenever you require – which allows for your changing circumstances.
- You can change the charity or charities you support as frequently as the payroll giving agency’s arrangements with your employer permits.
- There is neither a continuing commitment to make a donation, nor a minimum period of time during which donations must continue.
What do you mean by ‘tax- effective’?
If you pay the basic rate of income tax and decide to donate to a charity through your company’s Payroll Giving scheme, the donation is made on a pre-tax basis. This means that you will not have to pay the income tax normally due to the Inland Revenue. Therefore, a donation of £10 per month to Kidneys for Life will only cost £7.80. In a sense the Inland Revenue is contributing their portion to your donation, making Payroll Giving a very efficient way of supporting Kidneys for Life.
| Your donation - what the charity gets | The cost to you(22% tax payer) | The cost to you (40% tax payer) |
| £5.00 | £3.90 | £3.00 |
| £10.00 | £7.80 | £6.00 |
| £20.00 | £15.60 | £12.00 |
| £50.00 | £39.00 | £30.00 |
Setting up a donation through your salary is easy. Simply complete a payroll giving form and give it to your payroll department. Print off and complete the form below and hand it in to your Payroll Department.
Asking your Employer to set up a payroll giving scheme
Setting up a payroll giving scheme is an easy and inexpensive way for your employer to make a positive contribution to the community. There may be a small administration charge and they can get a deduction against their profits for any costs. ‘Match’ donations by employees and your employer can deduct them from their profits before tax.
Payroll Giving – Employer’s Fact Sheet
For more information go to www.workplacegiving-uk.com.