Running a Payroll Giving scheme can be good for your business, as it demonstrates a commitment to giving and helps to build better employee relations – this is an area that customers and staff increasingly care about. The amount of tax relief received will depend upon whether the donor is a higher or standard rate taxpayer.
The costs of setting up a Payroll Giving scheme are relatively modest, and small and medium sized companies may be able to claim tax relief on the set up and running costs. If your business chooses to match employee donations, that gift can also benefit from tax relief. All modern payroll systems can handle Payroll Giving and there are no tax forms to complete.
If your company has a chosen charity, Payroll Giving will be able to support this, although all employees must be free to give to any charity they choose.
There are a number of Payroll Giving agencies – approved and monitored by HM Revenue & Customs – that administer schemes on behalf of employers and that can also help to promote the scheme to employees.Last Updated
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Charitable giving - the tax rules
