Payroll giving: I’m an employee

Payroll giving lets you donate to your favourite charities and causes straight from your pay. It’s taken before tax but after National Insurance, so charities get more of your donation and it costs you less.

This means part of your donation comes from money that would otherwise have been claimed by HMRC.

Donations made to charity through payroll giving are taken from your pay or company/personal pension after your National Insurance contributions are removed, but before Income Tax is calculated and deducted.

This means:

• Your tax is calculated on a lower amount; this could change your tax bracket and lower the amount of tax you pay
  
  
• You get tax relief on your donation immediately, at your highest rate of tax, and you can pass this benefit onto your favourite charities

• Example: £30 Payroll Giving donation

  The cost to you monthly as a 20% tax rate payer = £24.00
  The cost to you monthly as a 40% tax rate payer = £18.00
  The cost to you monthly as a 45% tax rate payer = £16.50

Ask your HR Department or Payroll Manager and ask if your company’s set up with a payroll giving agency.

• If your company’s set up with a payroll giving agency, it’s useful to check if they offer match funding. This means your employers will match your monthly donation to your favourite causes.
  
  
• If your company isn’t set up, you can ask Charities Aid Foundation (CAF) Give as You Earn to contact your company to discuss the payroll giving scheme.
  Other payroll giving agencies available. An HMRC-approved list is available.

Yes! Not all companies have the resources or ability to manage payroll giving, but you can still give to your favourite charities and causes.

You have two options:

1. With CAF Give As You Earn, you can donate directly to your named charity or charities from your gross pay.
   
   
2. Open a CAF Charity Account to manage your giving. From here, you can manage your donations, set up regular donations, one-off donations or give anonymously.

If you make Payroll Giving donations into a CAF Charity Account, and your new employer doesn’t offer CAF Give As You Earn, you can still give to your favourite causes by switching to your own CAF Charity Account. Once your new account’s open, CAF can transfer any funds from the CAF Charity Account that was funded through CAF Give As You Earn. More support is available from CAF’s Customer Service team.

Scouts has lots of projects and programmes to help young people learn skills for life in a safe, happy environment. We’re focusing our support on areas of deprivation around the UK, researching childhood development with the Early Years programme, and continuing to provide new and innovative activities for young people to keep them learning skills for life.

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1. It’s tax-efficient. Donation are taken straight from the employee’s pay – after National Insurance, but before Income Tax.

2. Charities often rely on regular gifts – steady income through Payroll Giving’s really important to Scouts. We can continue providing safe and exciting programmes, activities and resources to young people across the UK.

3. Donations can double with match funding – some employers offer match funding for Corporate Social Responsibility (CSR).

4. Payroll Giving reduces admin costs for charities – Payroll Giving’s quick and cheap for Scouts to process through CAF Give As You Earn, so your donations can go further to help young people who need it most.

5. Charities can develop partnerships with companies – we’ve got lots of partnerships opportunities available if your company is interested in working with youth organisations. To find out more, please email partnerships@scouts.org.uk.