Payroll Giving

What is Payroll Giving?
Payroll Giving is a way for employees to make charitable donations straight from their gross pay before tax. The Government is also adding a further 10% to all such donations until April 2003. Here is a simple example, showing how significantly the value of your donations can be increased:

Donor's monthly pledge	Value of pledge with Government "top up"	Cost to donor paying 22% tax	Cost to donor paying 40% tax
£10	£11	£7.80	£6

What are the benefits?
Because the employer deducts the gift from the employee's pay or pension before PAYE tax is calculated, the donor pays tax only on the balance. This means that in effect you get tax relief immediately at the highest rate of tax you pay.

How does it work?
If your employer offers a Payroll Giving scheme, you simply need to ask their payroll department to deduct regular charitable donations from their gross pay. The money goes via a Payroll Giving agency to BCM.

Where do I go from here?
If your company has a scheme it is simple - choose how much you want to give, tell your payroll department and they will do the rest. If not, why not encourage them to set one up, perhaps getting together with colleagues? It will be easier than they may think, and plenty of advice is available.

Further information for both employers and employees is available from the Inland Revenue, on their telephone helpline 0151 472 6029/6053 or, in Scotland, 0131 777 4040, or on their website at Payroll Giving - Section for donors. And see Inland Revenue Leaflet IR65 Giving to Charity by Individuals for more information.