30 Aug 2019 Today is International Day of Charity – perfect timing to highlight an area that is growing in popularity: ‘Payroll Giving’ or ‘Give As You Earn.’ Similar to the way we pay tax and National Insurance contributions (PAYE or Pay As You Earn), your charitable donation is paid directly out of your pay. As well as being a regular donation that you don’t have to think about processing yourself, it is also deducted before tax therefore costing you less. For example, a £1.00 donation would only cost you 80p, or if you're a higher rate taxpayer it will only cost you 60p. Charities benefit immensely from payroll giving. It provides them with a regular income which allows them to budget and plan in advance. Being a regular automated donation also increases the likelihood that the donation will become a long-term source of income for them. Payroll giving donations aren’t eligible for Gift Aid. In order to set up a payroll giving scheme, the employer must register with an HMRC approved Payroll Giving agency - see the list here: https://www.gov.uk/government/publications/payroll-giving-approved-agencies The donations are paid to the charity via the agency. There is a small administration fee to the agency however this can be covered by the employer if they so wish. If you’d like to discuss your payroll needs with our team, give them a call on 02380 234222 or email accountants@hjssolutions.co.uk #NPW19 #KeepUKPaid #BePayroll