CAF GIVE AS YOU EARN

CAF Give As You Earn is the leading UK Payroll Giving scheme that enables employees to give to any UK charity straight from their salary. With Payroll Giving you can provide charities with a regular income, to allow them to plan ahead and budget for the future. Donations are tax-effective because they are taken before tax is applied, which means the charity get more of your donation and it costs the donor less. Payroll Giving is a great employee benefit to utilise for this reason.

CAF is one the UK's largest charities which helps people and businesses to support the charities they care about simply and tax-effectively. CAF is the leading HMRC approved Payroll Giving Agency and the organisation that your company uses to provide you with a charitable Payroll Giving employee benefit. The name of the Payroll Giving scheme provided by CAF is CAF Give As You Earn.

Donations made to charity through CAF Give As You Earn are taken from pay or company/personal pension after National Insurance contributions are removed but before Income Tax is calculated and deducted. This means there is tax relief, depending on the rate of tax paid. So, for example, for a basic rate taxpayer, giving £1 would only cost 80p.

Tax is calculated on a lower amount; this could change your tax bracket and lower the amount of tax you pay

Tax relief on donations is applied immediately, at an individuals highest rate of tax, and this money can be passed onto charity

Depending on tax bracket a £20 donation would cost the following:

• As a 20% taxpayer a £20 donation costs you £16.00
• As a 40% taxpayer a £20 donation costs you £12.00
• As a 45% taxpayer a £20 donation costs you £11.00 

CAF Give As You Earn donations are not eligible for Gift Aid as the funds have already been treated with the appropriate pre-tax savings and are therefore already tax-effective.

As well as providing charities with a regular income, it also means that charities don't have to claim Gift Aid which reduces the admin burden so they can get on with supporting their beneficiaries.

Employees can donate to the UK charitable organisation of their choice. Both registered and unregistered charities are eligible for donations. Employees can also give to any organisation recognised by HMRC as charitable and these include:

• Churches
• Health authorities
• Hospitals (not private)
• Scout and Girl Guide groups
• Universities and schools
• Parent Teacher Associations
• Community groups

*The funds cannot be used to pay for products or services.