What is payroll giving?
Payroll Giving (sometimes known as Give as You Earn) is an easy and tax-efficient way of making regular donations to charities straight from your gross pay.
It’s especially efficient for medium and higher rate taxpayers allowing for larger donations at a lower cost. Donations are taken from your pay or pension after National Insurance contributions but before Income Tax is calculated. This means that the full value of tax relief is applied to the donation, rather than just 25% as with Gift Aid.
How do I sign up?
To sign up to Payroll Giving you need to enrol directly with your employer. Speak to your HR/Payroll department to organise this and then drop us an email to let us know what has been set up.
Employers will need to contact a Payroll Giving Agency (PGA) that’s approved by HMRC. Here’s a list of approved agencies.
Once you’ve signed a contract with the PGA, you can promote the scheme to employees and start deducting donations from employees’ salaries each month.
You’ll need to send the donations to the PGA who will then transfer the funds each month to Money Ready.
Your donations will automatically cease if you leave your employer.
FAQs
Payroll Giving a simple way to support charities like Money Ready. It is also good for donors as it is a tax effective way to give because donations are deducted before you pay tax.
For example, if you donate £10, only £8 comes out of your net salary, with the taxman covering the rest. If you’re on a higher tax rate (40%), only £6 comes out of your net salary, with the taxman paying the remainder.
Here are just some of the other benefits of Payroll Giving:
- Ease: It’s straightforward to set up, amend, or cancel at any time.
- Privacy: We don’t need your bank details, as the secure donation comes directly from your salary.
- Control: You can change or stop your donation at any time by contacting your payroll department.
- Flexible: You can donate any amount or make one off donations.
Plus, for employers, it can enhance your public image, offers low running costs, and you could be eligible for Payroll Giving Excellence Awards!
By giving monthly through your salary, you will be enabling us to continue providing our services of financial education to children and young adults across the UK.
Regular monthly donations help us budget and plan ahead to ensure your hard-earned cash is put to the best possible use.
£10 Gives a young person 2 hours of expert led financial education at school.
£50 Brings money to life by creating a new and engaging money lesson.
£200 Gives a young care leaver the skills to live independently for the first time.
£250 Can support a young person leaving care, equipping them with essential money management skills for living independently for the first time.
£500 Gives 4 young people in need, accredited survival money management.
£1,000 Means 40 pupils leave the classroom feeling confident to talk about money and inspired to think about their financial future.
£2,000 Could give 8 vulnerable young people the skills to live independently.
£5,000 Could equip 30 young adults with accredited survival money management skills.
Thank you for your support!