Payroll Giving was implemented by HM Government in 1987 as a way for employees to donate to charity tax-free direct from their pay. Employees can opt to donate to any UK charity or good cause from their salary. Contributions are deducted from gross pay before tax is calculated by the employer payroll department.
The scheme is completely voluntary; employees can choose to join Payroll Giving at any time throughout the year and can manage donations as they wish. Employees can join here.
If an employer does not currently have the scheme in place, it is a simple process to set-up and we help with every step – Contact Us.
HOW PAYROLL GIVING WORKS...
Firstly an employee completes a form to decide how much they wish to give, and to which charities. Employees can give to as many charities as they wish. This form is submitted to Hands On, we then send the deduction instruction to payroll (in agreed format and timeframe). We also translate the information to the relevant Payroll Giving Agency and the employees’ nominated charities (if they have agreed to this).
The deduction is made at by the employee’s payroll department and sent to the company’s contracted Payroll Giving Agency - along with any other employees’ Payroll Giving donations, and a simple break down of those donating.
The Payroll Giving Agency then combines the donations received from payroll with the charity nomination information we provide and transfer the funds to the chosen good causes. The charity receives the donation and thanks the employee if they have requested communication.