About Payroll Giving
Payroll Giving (also known as Give As You Earn or workplace giving) is a simple, efficient and flexible scheme, which allows anyone who pays UK income tax to give regularly and on a tax free basis to Arrhythmia Alliance. People who receive their company/personal pension through PAYE (Pay As You Earn) can participate too.
Payroll Giving donations are deducted before tax so each £1.00 you give will only cost you 80p, and if you're a higher rate tax payer it will only cost you 60p.
It’s cheaper because its tax free - for example, a donation of £5 per month costs the basic rate tax payer £4 (the taxman pays the rest!)
Examples of what pledges will cost you in take-home pay
• A £2 pledge will only cost you £1.60 (at 20% tax), £1.20 (at 40% tax) or £1 (at 50% tax)
• A £5 pledge will only cost you £4 (at 20% tax), £3 (at 40% tax) or £2.50 (at 50% tax)
• A £20 pledge will only cost you £16 (at 20% tax), £12 (at 40% tax) or £10 (at 50% tax)
• A £50 pledge will only cost you £40 (at 20% tax), £30 (at 40% tax) or £25 (at 50% tax)
Your employer may match your donation
Many companies now match staff donations to charity. Any matched donations that companies make will be allowed as a deduction against company profits for tax purposes.
How do I set it up?
All you need to do to set up Payroll Giving is fill in this form, and Payroll Giving in Action arrange the donation with your employer via HMRC.
Alternatively ask your employer's payroll department. If they do not offer a scheme why not suggest that they start one? There is little in the way of cost and administration, and they will probably be able to adapt their existing payroll system to operate the scheme. Further information can be found on the HMRC website.