HMRC figures show that 1.09 million people made donations through the Payroll Giving scheme in 2014-15
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Can I give to any charity through Payroll Giving?
Yes. - You can donate to any UK registered charity. If you want to give to a small local charity that is not well known it is advisable to include the registered charity number and address on your donor form.
Is there a minimum or maximum amount I have to give?
No, there is no upper or lower limit, however, we recommend that you give to charity at least £5 gross per month which will cost you £4.00 if you are a standard rate tax payer or £3 if you are a higher rate tax payer.
How is Payroll Giving different to a Direct Debit (Gift Aid)?
Payroll Giving is taken straight from your gross (pre tax) pay so there is no need for the charity you choose to physically claim the tax back through Gift Aid from HM Revenue & Customs, this saves them money in administration.
If you are a higher rate taxpayer, Payroll Giving is the ONLY way that a charity can automatically receive all your tax on your charitable donation.
How do I know that my donation will reach the charity I have chosen?
The deduction will be shown on your payslip.
Your employer has signed a contract with a Payroll Giving Agency, who handle all monies donated through the scheme and are regulated by HM Revenue & Customs.
A copy of the form you fill in is sent to your company’s Payroll Giving Agency so that when your employer sends them your first donation they know who the donation is coming from and which charity to send it on to.
Additionally each charity is sent a copy of the form and in most cases they will write to you to ‘Thank you’ for your donation and then update you regularly with further information about the charity and their work.
If I decide to take part in Payroll Giving and fill out a form today, how long will it be before the first deduction is taken from my pay?
This depends on when you fill in the form but as a rule it will start on the next available payroll run so if you fill in the form on the 24th of a month it will not start until the following month.
Can I stop giving when I want?
Yes you simply notify your payroll department.
What happens to my Payroll Giving deduction if I leave my job?
If you leave employment Payroll Giving will automatically stop, it is up to you to contact your payroll department at your next employer to start giving through the scheme again.
Is there an administration fee?
Yes. Although the Payroll Giving Agencies are themselves charities they do need to make a small charge to cover their operating costs. Some employers will pay this fee themselves so the charities receive the full amount of the donation.
Where the administration fee is not paid by the employer, the Payroll Giving Agency will deduct it from your donation before passing it on to the charity. The administration charge will vary depending on which Payroll Giving Agency your employer uses. It will be either 25p per month or 3% or 4%.
I pay tax at the higher rate of 40%, how does this affect tax relief on payroll donations?
You will receive tax relief at the highest rate of tax you pay; therefore each pound you give will only cost you 60p.