Supporting Epilepsy Research UK
through the Payroll Giving Scheme is a tax-efficient
way of giving. Payroll Giving, or Give As
You Earn (GAYE), is a term used to describe
charitable donations deducted from your gross
pay before the calculation of tax.
The Payroll Giving Scheme provides the
most flexible, tax-efficient method for
an employee to make regular donations to
the charity of their choice. Anyone in receipt
of taxed pension may also take part in the
scheme, provided the pension fund is contracted
with a Payroll Giving Agency.
The total donation made each pay period
can be changed whenever you wish - which
allows for changing circumstances - and
you can stop whenever you want to. Many
employers' schemes can accept one-off donations
too.
If you pay the basic rate of income tax
and decide to give £5 a month through
your companies Payroll Giving Scheme, the
£5 donation is made on a pre-tax basis.
This means that you will NOT have to pay
the £1.20 in income tax normally due
to the Inland Revenue. The Inland Revenue
is contributing their portion to your donation,
making Payroll Giving a very tax-efficient
method of supporting the charity of your
choice. You can give up to £100 per
month. If you pay a higher rate of tax,
the saving to you is even greater.
Your company may already operate a Payroll
Giving Scheme. If they do, contact your
payroll department for a donation form.
If they do not, they will need to contact
a Payroll Giving Agency (PGA) to set up
the scheme. PGAs are approved and monitored
by the Inland Revenue to handle payroll
giving. For more information about PGAs,
please visit the Inland
Revenue website.
Employers with fewer than 500 staff who
set up a Payroll Giving scheme between April
2004 and December 2006 will be entitled
to receive a grant to offset the costs of
setting up the scheme. The Home Office programme,
which will be administered and promoted
by the Institute of Fundraising and Business
in the Community, will:
give employers a cash incentive of up
to £500. and
match the first £10 donated by
each employee, every month, for a period
of six months.
Guidance materials and further information
are available by calling 0845 602 6786 or
visit www.payrollgivinggrants.org.uk.
