One of the quickest, simplest and most hassle-free ways to give to charity is straight from your salary. If you are employed and pay income tax via PAYE, this is known as payroll giving. As donations are taken out of your pre-tax salary, it is a cost effective way to give. Donating £50 a month via payroll giving will cost you £40 if you are a basic rate taxpayer, and just £30 if you are a higher rate taxpayer.
To donate via payroll giving, your employer needs to be registered with an approved payroll giving agency. The three biggest are Give As You Earn, Charities Trust and Charitable Giving. You can donate to any charity you like and it is the responsibility of the agency to arrange it for you.
The three agencies charge administration feeds of either 25p/month or 4% of your pre-tax donation. Many employers will cover the cost of the admin fees and some will even match part or all of your donations. Check what arrangements exist in your company.
Table: Payroll Giving From your Salary
[From Which? Magazine, December 2013]
One thought on "Payroll Giving: a Cost-effective Way to Give"
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For donating to charity this is one of the best methods in Payroll. From my point of view, everyone wins 🙂