Give as you Earn
Give as you Earn (Payroll Giving or Workplace) is a tax free way for UK tax payers to give money to Prospect Hospice
Introduced in 1987, Payroll Giving is a simple, tax efficient scheme which allows employees to give money to the UK registered charity of their choice by having a deduction taken straight from their gross pay.
There is no tax for the charity to claim back as no tax was deducted. Some companies match or part match their employee donations via Payroll Giving.
Each time your employee is paid, your payroll department just needs to deduct their donation before tax.
So, if your employee pledges £5 per month, they pay £4 and the taxman will add £1.
More than 8,500 employers in the UK currently operate the scheme, and circa 2% of UK employees
Give As You Earn means:
- Regular donations come from the employee’s salary before tax
- For a basic rate tax-payer every pound given only costs 80p – even less for higher rate taxpayers
- Charities can plan their activities sustainably, knowing they’re getting regular donations
Benefits for you
- Improved staff morale, teamwork and motivation
- Enhanced corporate image and reputation
- Makes your employees feel good about working for you!
- Positive PR opportunities
- Sense of social responsibility
All you have to do is:
1. Check if your company is already registered with the Charity Aid Foundation (CAF) to offer the scheme. Call their GAYE helpline on 01732 520 019.
2. Registration is free and involves completing three simple forms. These are available at giveasyouearn@CAFonline.org or call the GAYE helpline.
3. Once your forms have been received, Prospect will register your company with the Inland Revenue and send you guidelines on how to administer and promote the scheme.
4. Promote GAYE to your employees.
5. Consider paying the admin fees on behalf of your employees.
6. Consider matching your employees’ donations.