Payroll Giving explained
Give As You Earn
Payroll Giving, also known as Give As You Earn (GAYE) in the UK, is a scheme that enables employees to donate to any UK charity directly from their pre-tax salary, meaning they receive immediate tax relief on their donations. The amount of tax relief received depends on the rate of tax the employee pays.
Why Should Businesses do it?
Tax Efficiency
Employees donate from their gross salary, reducing their income tax liability as they receive immediate tax relief.
Convenience
Donations are automated and taken directly from the payroll, making it a hassle-free way of giving.
Flexible
Employees can choose how much they want to give and can change or stop their donations at any time.
Empowerment
It provides a way for employees to support their preferred charities on a regular and long-term basis, contributing to causes they care about
Enhanced CSR
Payroll Giving is an excellent way for companies to strengthen their corporate social responsibility profile.
Employee Engagement
It can boost morale and help employees feel more connected and engaged with their workplace.
Tax Benefits
Businesses can reduce the
amount of Pay As You Eam
(PAYE) tax they pay by the
amount of the donations.
Reputation
Companies offering Payroll Giving are often seen as caring and responsible, which can enhance their reputation with customers, clients, and potential recruits.
Awards and Recognition
Employers can receive government awards and public recognition for their participation in the scheme and the level of their contributions
Benefits for Employees:
Tax Efficiency: Employees donate from their gross salary, reducing their income tax liability as they receive immediate tax relief.
Convenience: Donations are automated and taken directly from the payroll, making it a hassle-free way of giving.
Flexibility: Employees can choose how much they want to give and can change or stop their donations at any time.
Empowerment: It provides a way for employees to support their preferred charities on a regular and long-term basis, contributing to causes they care about.