Payroll Giving is a tax efficient way of making regular donations to charity. It allows you to have a donation to World Land Trust (WLT) deducted straight from your gross salary, if you are paid or receive a pension through UK PAYE (Pay As You Earn).
If your employer offers Payroll Giving, you simply need to complete a mandate stating how much of your income you wish to donate and to which charity. You can give as much as you like and donations are tax free.
People who receive their company/personal pension through PAYE can participate too. (Payroll giving is not available from a state pension.)
As the donation is taken off the monthly wage packet before tax, this means a donation of £10 will only cost the standard rate tax payer £8, giving them tax relief of £2. Payroll Giving is an especially efficient way of donating for higher rate tax payers who can make a £10 donation at a cost of only £6 in post tax income (40 per cent tax rate). This tax benefit exceeds that which WLT can reclaim through the Gift Aid Scheme.
More details are available on the HMRC website.
Fifty people donating £10 a month for six months would raise £6,000. This is enough to buy a rainforest nature reserve. If company donations are large enough, the reserve could even be named after the company.
Like all our regular donors, supporters who contribute £5 per month or more through Payroll Giving become WLT Friends, receiving an annual acknowledgement of their financial support throughout the year.
Information for employers and pension providers
Payroll Giving is very simple to set up and run. Employers will need to sign up with an HMRC approved Payroll Giving Agency (PGA). Once your employees have signed a mandate to say how much and to which charity they would like to give, you then send the monthly deductions to the PGA. The PGA will be able to give you advice on how to promote Payroll Giving. Full information about Payroll Giving in the UK, including a list of Payroll Giving agencies, can be found on the HM Revenue & Customs website.
Information for pensioners
If you draw a pension from a former employer you may be able to make donations through Payroll Giving. (Payroll Giving is not available from a state pension.) If your employer or company/personal pension provider runs a Pension Giving Scheme, you simply authorise them to make the donation from your pension before deducting any tax.
For more information on Payroll Giving
- For further information or help contact World Land Trust