Payroll Giving

Payroll giving is a fantastic way to support the charities that mean the most to you! It’s a very simple way to give. Every payday, you can choose to automatically give a percentage of your pay to charity. There’s no need to share your bank details, and you can stop or change your donation whenever you like by contacting your work’s payroll department.
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If Tommy’s is lucky enough to be your chosen Payroll charity, you will be helping us plan for the future through your regular gifts, allowing us to allocate spend towards our vital research and running our PregnancyHub service.

Payroll Giving is also a very tax effective way to support us – because your donation taken before monthly taxes are applied to your pay check, we get your donation plus whatever would have been taken in tax.  For example, if you are on the standard tax rate (20%) and you donate £10, we end up with £12.50!

Here’s some more examples of how your Payroll gift will be transformed into a tax-effective donation to Tommy’s

You donate to us on a monthly basis

We receive (20% tax payer)

We receive (40% tax payer*)

We receive (45% tax payer*)

£5

£6.25

£8.33

£9.09

£10

£12.50

£16.67

£18.18

£15

£18.25

£24.99

£27.27

£20

£25

£33.32

£36.36

 

Find out more

How does Payroll Giving work?

It's very easy. You complete the Payroll Giving online form and this comes through to us. We make sure that your company operates a scheme that allows you to give us straight from your pay and we notify your payroll department that you would like to set up a regular donation to us in this way.  Your company might already have Payroll Giving set up under a different name, like Workplace Giving or Give As You Earn – they are all the same thing.

If you can't give to us through your pay as your company does not operate the scheme (some still don't!), then we will contact you to let you know.

What should I do if my employer doesn't currently have a scheme?

If you aren't sure that they do, fill in the form anyway and we will let you know if they don't and perhaps we can suggest to them that they introduce one.

If I decide to take part in Payroll Giving and fill out a form today, how long will it be before the first deduction is taken from my pay?

Usually it will start on the next payroll day, but if you are signing up towards the end of the month deductions are likely to start the next but one payroll day. 

How do I know that you have received my donation?

Your donation is very important to us and we will write to thank you. We may also send you updates on our work if you have indicated that you are happy to receive these. You will know the deduction has started as it will appear on your payslip.

Is there a minimum or maximum amount I have to give?

No, there's no upper or lower limit, however, we recommend that you give at least £5 gross (pre-tax) per month.

How is Payroll Giving different to a Direct Debit?

Payroll Giving is taken straight from your gross pay so there is no need for us to claim any tax back through Gift Aid, which saves us additional admin costs. If you are a 40% or 50% taxpayer, payroll giving is the only way we can automatically receive all your tax on a donation.

Can I stop giving when I want?

Yes, by notifying your payroll department directly.

What happens to my Payroll Giving deduction if I leave my job?

Payroll Giving automatically stops when you leave your job, but we hope that you continue to give to us at your next job. You will need to set this up again as your donation is not transferable.

Is there an administration fee?

Yes, but only a small one. Your employer will use a Payroll Giving Agent (like a charity bank) to distribute you and your colleague’s monies. The Payroll Giving Agents are charities that need to make a small charge to cover their operating costs. Some employers pay this fee on your behalf so we receive your full donation.

If your employer doesn't pay the fee, the Payroll Giving Agent will deduct it from your donation before passing it on to us. This will be between a 2% and 4% charge.

I pay tax at the higher rate of 40% or 50%, how does this affect tax relief on payroll donations?

You will receive tax relief at the highest rate of tax you pay — each pound you give will generate £1.66 if you are the 40% or £2 if you are 50% tax payer.

Can I still give through my pension?

Yes, if you receive an occupational pension and your pension deducts tax through the PAYE system, you are still eligible for the scheme. Simply ask your occupational pension provider to make a donation from your pension before tax has been deducted.

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 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. In a recent survey, one employer who runs a scheme said "I see it as a time saving arrangement. The charity agency produces all the figures and stats. All we do is to send them the money. It really couldn't be easier." 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 4% 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.

How can I find out more?

For more information about setting up or promoting a Payroll Giving scheme visit Payroll Giving in Action.

You can also visit www.inlandrevenue.gov.uk/payrollgiving for further information.