Payroll Giving - a guide for employees
Workplace Giving (sometimes known as Payroll Giving or Give As You Earn) is a great way to make regular donations to us straight from your pay….and the only way that your donation to us can automatically go up to 45% further.
By giving to us regularly from your pay, we automatically receive the tax you would have paid on the donation (your payroll department sort this out for us) and we do not need to claim Gift Aid back on this, so less admin for us, and no Direct Debit needed from you.
Workplace Giving is also the only way for anyone paying 40% or 45% tax to give us all their tax on a donation automatically, so if you earn over £42,385 GROSS per year then this is the best way for you to support us tax effectively. Some examples are below
You donate to us on a monthly basis
We receive (20% tax payer)
We receive (40% tax payer*)
We receive(45% tax payer*)
*Please note that we have calculated that the 40% higher rate tax band starts after earning £41,865 GROSS per year (including personal allowance of £10,000) and 45% super tax is applicable to those earning over £150,000 GROSS per year (this includes any and all personal allowances that might or might not be applicable).
To give to us in this way, your Employer will need to operate a scheme, if you aren’t sure that they do, fill in the form anyway and we will let you know if they don’t and perhaps we can suggest to them that they introduce one.
Giving to us regularly from your pay means the monies can help in the following way:
- £30 could go towards Heart Medicine, a Stethoscope or help with the electricity costs at a Pet Hospital for just one day
- £25 could go towards Anaesthetics
- £20 could go towards treating Diabetes
- £10 could go towards treating Arthritis
- £5 could help buy bandages
- £4 could help buy syringes
- £3 could go towards a box of cotton wool
- £2 could help towards pain relief
- £1 could go towards surgical gloves
Want to know more about Workplace Giving? Here are the answers to the most commonly asked questions…
If I decide to take part in Workplace Giving and fill out a form today, how long will it be before the first deduction is taken from my pay?
Usually it will start on the next payroll day, but if you are signing up towards the end of the month deductions are likely to start the next but one payroll day.
How do I know that you have received my donation?
Your donation is very important to us and we will write to thank you. We may also send you updates on our work if you have indicated that you are happy to receive these. You will know the deduction has started as it will appear on your payslip.
Is there a minimum or maximum amount I have to give?
No, there’s no upper or lower limit, however, we recommend that you give at least £5 gross per month.
How is Workplace Giving different to a Direct Debit (Gift Aid)?
Workplace Giving is taken straight from your gross (pre-tax) pay so there is no need for us to claim any tax back through Gift Aid, which saves us additional admin costs. If you are a 40% or 45% taxpayer, Workplace Giving is the only way we can automatically receive all your tax on a donation.
Can I stop giving when I want?
Yes, by notifying your payroll department directly.
What happens to my Workplace Giving deduction if I leave my job?
Workplace Giving automatically stops when you leave your job, but we hope that you will continue to give to us at your next job, you will need to set this up again as your donation is not transferable.
Is there an administration fee?
Yes, but only a small one. Your employer will use a Payroll Giving Agent (like a charity bank) to distribute you and your colleagues monies. The Payroll Giving Agents are charities that need to make a small charge to cover their operating costs. Some employers pay this fee on your behalf so we receive your full donation.
If your employer doesn’t pay the fee, the Payroll Giving Agent will deduct it from your donation before passing it on to us. This will be between a 2% and 4% charge..
I pay tax at the higher rate of 40% or 45%, how does this affect tax relief on payroll donations?
You will receive tax relief at the highest rate of tax you pay – each pound you give will generate £1.66 if you are 40% or £1.82 if you are 45% tax payer.
Can I still give through my pension?
Yes, if you receive an occupational pension and your pension provider deducts tax through the PAYE system, you are still eligible for the scheme. Simply ask your occupational pension provider to make a donation from your pension before tax has been deducted.
Who can I contact if I need any further information?
We hope to have answered all your questions, but if there is anything else please call the Workplace Giving helpline on 0208 381 2479.
I decided to give to PDSA though my payroll because of my love of animals.
I think that the work PDSA does is valuable and essential for all pets in need - Morrisons payroll giver
Payroll Giving - a guide for employers
What is Payroll Giving?
Payroll Giving enables your employees to make regular donations to the charity of their choice through their salary.
For more information, please visit the Giving Online website.
The benefits of setting up a Payroll Giving scheme
- Enhances your corporate responsibility programme, which helps support your reputation as an ethical business
- Shows support for the local community
- Improves your staff’s motivation as the scheme promotes you as a responsible employer who is concerned about their welfare. This also helps promote teamwork, staff retention and develops staff relations.