Payroll Giving is an easy, tax-efficient way of donating through your salary. Payroll Giving, also known as Give As You Earn, is an easy, and tax effective way to make a regular donation, so it costs you less to give more.
It enables you to give to Jessie May straight from your gross salary (before tax is deducted) giving immediate tax relief on your donations.
Anyone who pays tax through PAYE can donate through Payroll Giving.
Basic rate tax payers
If you pay the basic tax rate, for every £1 that you earn, 20p is paid in tax.
If you pledge £10 a month, we receive the full amount but only £8 will be deducted from your net pay.
Higher rate tax payer
If you pay income tax at the higher rate of 40%, if you pledge £10 a month, only £6 would be deducted from your net pay, and at the super rate of 50%, only £5 would be deducted.
It is more efficient for higher rate taxpayers to donate through Payroll Giving than Gift Aid as charities are unable to claim back tax above the basic rate through the Gift Aid scheme.
The Income Tax applicable to the donation is paid to Jessie May instead of Inland Revenue.
Employee Pledge | Cost to standard rate taxpayer (20%) | Cost to higher rate taxpayer (40%) | Cost to super rate taxpayer (50%) |
|---|---|---|---|
£5 per month | £4 | £3 | £2 |
£10 per month | £8 | £6 | £5 |
£15 per month | £12 | £9 | £7.50 |
How to donate
Check with your HR department to make sure that your company offers Payroll Giving. If they do, they will arrange your donation through your salary for you.
If your circumstances change and you no longer wish to donate simply tell your employer. If you change your job, your donations will not be automatically transferred to your new employer, you will need to check with them if they offer Payroll Giving and join the new scheme.
If you have any questions about making donating through your salary, please contact our Fundraising Team on:
E: fundraising@jessiemay.org.uk
T: 0117 9582174