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February is Payroll Giving Month

Updated: Jan 29


Payroll Giving Month (February) 2024 Banner



Payroll Giving Month happens every year in February, when Charities, Payroll Giving Agencies, Payroll Funding Organisations and Companies make a special effort to increase awareness of the benefits of Payroll Giving.


The wonderful thing about payroll giving is that it is a way of donating money to Mildmay without paying tax on it, and it's simple to set up.


  • Your employer registers online.

  • You select the charity you want to support.

  • Your donation is taken directly from your salary before tax.


What is Payroll Giving?

Payroll Giving (sometimes known as Give as You Earn) is an easy and tax-efficient way of making regular donations to your favourite charities straight from your gross pay. All UK-registered charities and charitable organisations are eligible to receive donations via Payroll Giving.


Why is Payroll Giving a good thing?

Payroll Giving is a great way to enable the charities you care about to receive regular funds.  It allows them to make plans and focus on their charitable objectives.

It is easy to set up, and once it is done, you can feel confident your money will be transmitted safely every month.


Why is this important for Mildmay?

Payroll Giving is a very reliable source of income for Mildmay, and it allows us to make solid plans for our future.

It also means funds are received quickly without the extra burden of having to claim Gift Aid from the government.

"Payroll Giving is a really valuable way of donating to Mildmay as ensures we receive regular monthly income, which means that we can plan ahead. The donations we receive in this way are vital and support crucial services for our patients, such as catering - making sure we can always provide healthy meals."


It's really easy to set up and start donating.

Geoff Coleman,

Mildmay CEO



Enter this prize draw and win £1,000 for yourself and £1,000 for Mildmay

Hands On Payroll Giving (HOPG) is making a "grand" gesture and giving away £1,000 to one lucky person and an extra £1,000 to the winner's chosen charity. Sign up for payroll giving with HOPG.


UK employees of companies offering Payroll Giving via an HMRC and APGO agency can submit a pledge (or pledges) to donate at least £10 per month in total to charities listed on www.hopg.co.uk via Hands On Payroll Giving to gain automatic entry into the competition.


The prize is £1,000 paid into the winner's UK bank account and a £1,000 donation made to the winner's chosen charity from HOPG's charity partners. See here (or click on the banner below) for the terms and conditions and the sign-up form.


Hands On Payroll Giving £1,000 prize draw banner.


What does 'tax efficient' mean?

Donating to Mildmay from your gross pay means there is no income tax liability on your donation, and you will pay less tax.

Donations made from gross pay also mean that we don't need to claim Gift Aid related to your donation.

Payroll Giving is especially efficient for medium and higher-rate taxpayers, allowing for larger donations at a lower cost.


You will pay less tax!

The tax relief you get depends on the rate of tax you pay.

To donate £10.00 to charity, it will only cost you:

£8.00 if you’re a basic rate taxpayer

£6.00 if you’re a higher-rate taxpayer

£5.50 if you’re an additional rate taxpayer

(Scottish rates of tax are slightly different)

It means you can consider increasing your donation because you are paying less tax.


What is a Payroll Giving Agency?

Payroll Giving Agencies facilitate the secure transition of funds from your gross wages to your nominated charity’s bank account.  Payroll Giving Agencies are themselves charities, and they are authorised by HMRC to perform this function.

Your company needs to have a contract with a Payroll Giving Agency to allow donations to be deducted from your gross pay. (See below for useful links).


How much does it cost?

There are no set-up costs for employers.

Payroll Giving Agencies can charge a processing fee of up to 5% of the donation amount. However, some agencies don’t charge, and some charge a transaction fee per employee. You may choose to cover this fee for your employees. Otherwise, the Agency will deduct it from donations. You can find a list of all approved agencies on the Gov.UK website.


What does my company need to do?

Many companies will have an established scheme already, set up in partnership with a Payroll Giving Agency (see below). If not, setting one up is quick and easy and can form an important part of their Corporate Social Responsibility.


Privacy

Donating to charities is a private matter. The Payroll Giving process allows you to keep your donation details private from your employer.

When making a donation to Mildmay, you can choose whether you share your contact details with us, and you can tell us whether or not we can keep in contact with you.


 

More Information

If you would like more information on Payroll Giving, please take a look at these resources:



Payroll Giving Month 2024 logo

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