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Payroll Giving for employees

Give as you earn

Tax Efficient Scheme

Payroll Giving

Introduced in 1987, Payroll Giving (or Give As You Earn) 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.

Every employer in the UK can start a Payroll Giving scheme, no matter the size of your business or industry type. There are lots of benefits.

Simple to run and easy to set up, it provides charities with a regular income and gives employees a tax break on the donations they make.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.

Donations are deducted from employees’ gross pay before tax is deducted. This gives immediate tax relief on donations and means it costs less for your employees to donate. The table below gives some examples

Employee’s pledgeAs a 25%
tax payer, employee pays
As a 40%
tax payer, employee pays
As a 45%
tax payer, employee pays
Prospect Hospice receives
£5.00£4.00£3.00£2.75£5.00*
£10.00£8.00£6.00£5.50£10.00*
£50.00£40.00£30.00£27.50£50.00*

*These figures are dependent on whether you the employer chooses to pay the 25p administration charge.

Payroll Giving for employees

If your company has a payroll giving scheme set up, all you need to do is decide how much you would like to donate and then contact your payroll department. Either they will give you a form to complete or you can request a form from us at fundraisingandevents@prospect-hospice.net  Donations will then be deducted from your salary each time you are paid.

If your company does not have payroll giving scheme in place the process is relatively simple. Talk to your payroll department or payroll provider and ask them if they can arrange a scheme that will allow you to donate through your salary. See below for more information for employers.

Payroll Giving for employers

Payroll Giving is the smartest and easiest way to give. It allows your employees to donate, tax free, direct from their pay to any UK registered charity.

Simple to run and easy to set up, a Payroll Giving scheme can be set up by every employer in the UK, no matter the size of your business or industry type. There are lots of benefits.

Benefits

  • Shows commitment to your employees
  • Improves staff morale and motivation
  • Supports good causes
  • Simple to set up and easy to run
  • Cost-effective with no set-up fees
  • Boosts your CSR profile and public image
  • Recognition via Quality Marks and National Awards
  • Tax-effective for employees – they can also donate tax-effectively at bonus time with a one-off donation.
  • Montly reports for your CSR targets
  • It can work alongside your match-funding programmes
  • You can offer employees a My Giving Account to manage their donations
  • Option for online employee registration

Next steps

It’s simple to set up Payroll Giving, just follow our step by step guide

Step 1- Sign up with a Payroll Giving Agency (PGAs)

A Payroll Giving Agency (PGA) is an agency that facilitates Payroll Giving and distributes the donations from your employees. PGAs are vital because donations that are made through gross pay require a HM Revenue & Customs ‘audit trail’ to ensure money is going to the right places. If you already have a PGA set up then please pass those details to us so that we can register with them. A list of HMRC approved PGAs can be found on the HMRC Payroll Giving page

Step 2- Promote Payroll Giving to your employees

A great way to launch the scheme and engage your employees could be through a ‘Payroll Giving Fundraising Event’ – these types of events can be great fun and help to build employee engagement. Our Corporate Fundraiser can come along during one lunchtime and set up an informational stand in your staff break area or canteen for employees to find out more.

Step 4- Sign Up!

Your employees can simply sign up to your Payroll Giving Scheme and start to support our charity by completing the form on this leaflet and returning it to your HR dept. You may want to match fund the money that your employees have donated, showing further support to causes that they care about and also to show commitment to your local community.

Step 5- Highlight Success

We can give you regular updates from the hospice and news as to what your donations have helped achieve for our patients and families.

“It is an easy and convenient way to give to Prospect Hospice, it is taken from my pay without even noticing!”

Sharon Bastin

“It is so easy to set up, the system is similar to the childcare voucher schemes and are coded through payroll systems in the same way - it provides employees with an easy way of giving.”

Jenny Churches

“I decided to support the Prospect Hospice in memory of my friend’s wife who was cared for by them a couple of years ago - my friend had nothing but praise for the people and the care they provided for his wife.”

Rob Ragless, Design Engineer

Find more information about Payroll Giving

Visit the Payroll Giving Centre website

www.gov.uk/payroll-giving

Contact us about Payroll Giving

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Reminding ourselves why

Laura Kent ,  speaks of the special care given at Prospect Hospice and starting out in the inpatient Unit ten years ago.

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Thank you to our supporters

The care we offer to patients and their families costs over £8.4m every year, seventy-two percent of which is raised through the support of our community. Read more about our amazing supporters.

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