Payroll giving
What is Payroll Giving?
Payroll Giving is a simple, tax effective way to donate to charity. You simply authorise your employer to deduct your donation from your pay packet - and because Payroll Giving deductions are made before PAYE tax is calculated and deducted, the charity receives the full amount pledged, including the money that would otherwise have been paid in tax. If you pay tax at the basic rate (22%), it will cost you only £7.80 to donate £10 to Macmillan.
What are the benefits of Payroll Giving?
For charities like The Kirsty Appeal, being able to rely on a regular income allows us to plan ahead for the future. Employees can enjoy the knowledge that the charity of their choice is able to make the best use of their regular, tax-free donation. For employers, the benefits of having a Payroll Giving scheme include enhanced public image and increased staff morale, and may even aid the retention and recruitment of employees.
Changes to Payroll Giving
There's really no better time to begin Payroll Giving in your organisation - in the 2004 Budget, the Chancellor announced the Payroll Giving Grants programme to encourage Small and Medium Enterprises (SMEs) to take up Payroll Giving.
A grant of £300 - £500 (dependant on company size) is available to all SMEs who sign up to new Payroll Giving contracts between 6 April 2004 and 31 March 2006 (grants can be backdated). What's more, the programme will match, pound-for-pound, up to £10 of each employee's monthly donations for the first six months.
How do I start Payroll Giving?
If you would like information on how to set up a Payroll Giving scheme, please contact Carole Headley on 0161 905 1133. Alternatively, if your employer has a scheme in place and you would like to donate to Macmillan simply complete the Payroll Giving form, give it to your payroll department and they'll do the rest.