SEVEN THINGS YOU MAY NOT KNOW ABOUT PAYROLL GIVING

Payroll giving is one of the easiest and most effective ways to make regular donations to charitable causes you feel passionately about. To help you learn more about payroll giving, we’ve created this handy guide to get started.

1 WHAT IS PAYROLL GIVING?

Payroll giving lets you donate to the causes you care about straight from your pay. Donations are taken before tax, which means the charity get more of your donation and it costs you less. It also means that charities don’t have to claim Gift Aid, so there’s less admin for them – and they can get on with supporting their beneficiaries.

To donate to charity through payroll giving, your employer needs to be part of a scheme such as CAF Give As You Earn.

2 HOW MUCH MONEY HAS BEEN DONATED TO CHARITY THROUGH CAF GIVE AS YOU EARN?

We launched CAF Give As You Earn in 1987, meaning that people like you have been supporting charities through their salaries for over 30 years.

In that time, more than £1.3 billion has been donated through payroll giving, to over 20,000 different charitable organisations in the UK. Today, there are more than 220,000 people who regularly give to causes they care about through payroll giving.

3 WHAT'S THE DIFFERENCE BETWEEN GIFT AID AND PAYROLL GIVING?

If you’re a UK taxpayer and opt to include Gift Aid on a direct donation, the charity can claim back an extra 25p from the Government for every £1 you give. This is great for the charity, but they still have to reclaim the Gift Aid.

Payroll giving simplifies that process; the charity receives your gift straight from your salary before tax is deducted. This means that it not only costs you less, but the donation that the charity receives includes the tax relief, so they don’t need to claim Gift Aid back.

4 WHY CAN'T I CLAIM GIFT AID WITH PAYROLL GIVING?

Donations made through payroll giving are already tax-effective, as the money is taken directly from your salary before you’ve paid any tax on it. Therefore these donations are not eligible for Gift Aid.

5 WHAT HAPPENS IF I LEAVE MY CURRENT EMPLOYER?

If you make payroll giving donations into a CAF Charity Account, and your new employer doesn’t offer CAF Give As You Earn, you can still give to your favourite causes by switching to a Gift Aid CAF Charity Account. Once your new account is open, we can transfer any funds from the CAF Charity Account that was funded through CAF Give As You Earn.

6 I'M A HIGHER RATE TAXPAYER - WHY IS PAYROLL GIVING GOOD FOR MY GIVING?

The higher the rate of tax you pay, the less donations made through payroll giving will cost you. This is because a larger part of your donation is made up by money that would usually go to HMRC.

For example, if you’re a 40% tax payer, a CAF Give As You Earn donation of £20 will only cost you £12, as the other £8 is taken from taxable funds.

What’s more, you won’t need to complete the donations section of your Self-Assessment form, as payroll giving means you no longer pay the difference between the higher and basic rate of tax on your donation.

7 YOUR DONATIONS CAN BE MATCHED BY YOUR EMPLOYER

Some employers who offer payroll giving also offer to match your donation each month. This is an amazing way of doubling what you’re giving to your chosen charity and is a benefit you can only get from payroll giving. If your company offers matching, it makes perfect sense to sign up and enable your favourite cause to do twice as much with your donation.

GET STARTED WITH PAYROLL GIVING

Ask your employer whether your organisation offers payroll giving. If not, why not suggest it to your HR or Payroll Manager? It could be the start of a new charitable movement in your company. Alternatively, we can contact your employer about introducing CAF Give As You Earn on your behalf - please complete our online enquiry form to request this.

GET GOING WITH YOUR GIVING

CAF Give As You Earn


An easy way to donate to the causes you care about straight from your pay.

Five benefits of payroll giving to charities


Find out how charities benefit when you give through your salary.

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