Payroll giving is a simple and tax efficient way for employees to donate regularly to Mind directly from their salary.
Payroll giving information for employees - find out more if you are an employee and would like to support Mind through payroll giving
Why should I offer payroll giving to my employees?
Running a payroll giving scheme is good for your business. Not only does it show that you're committed to working in partnership with the community - something that is increasingly important to customers and staff - it also shows that you care about your staff. Offering them the benefits of payroll giving can also help to build better employee relations and attract the right people to come and work for you. It is easy and inexpensive to run and you can deduct any administrative costs from company profits for tax purposes.
How does payroll giving work?
It's simple. Your employee asks you to deduct regular donations from their pay. You make the deduction before tax, in other words, after calculation of National Insurance contributions, but before deduction of Pay As You Earn (PAYE) tax. This way your employee gets tax relief straightaway at their top rate of tax. You pay over all the money you deduct to an Inland Revenue approved payroll giving agency and they do the rest - distributing the money to the nominated charities by your employees.
Is it complicated?
Not at all. In fact, most of the administration is carried out by the payroll giving agency. All modern payroll systems can handle payroll giving and there are no tax forms to complete. Plus, the records you need to keep are straightforward.
Who pays the administration?
Most of the administration cost is incurred by the payroll giving agency. Most agencies make a small charge which they deduct from donations before distributing them to charity. The charge is normally no more than four per cent of the donation, or 25p per payroll deduction, whichever is the greater. Your administration costs should be very small and are likely to be absorbed in your existing payroll costs. In any event, any costs of running a scheme will be allowed as a deduction against your profits for tax purposes.
You can find more information about setting up a payroll giving scheme on the Inland Revenue website.
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