Employer payroll giving FAQs

What is payroll giving?

How does payroll giving work?

How does payroll giving benefit your company?

How can I set up payroll giving at my company?

What is payroll giving?

Payroll giving is a scheme that allows your employees to give to their chosen charity, every payday, directly from their salary. The donation is taken before pay as you earn tax is calculated so the donor pays less and the tax man pays more. 

Find out more about payroll giving and see how much of the donation the tax man will pay with our payroll giving calculator .

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How does payroll giving work?

• Employees notify your payroll department or HR that they wish to make a payroll donation.
• Each payday the payroll department will deduct the specified donation from the employee’s pay.
• Before your company can begin to make deductions you must have a contract with an Inland Revenue approved Payroll Giving Agency (PGA).
• All payroll donations are forwarded to your PGA for onward distribution to the relevant charities.

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How does payroll giving benefit your company?

• It enhances your company’s reputation to employees and the outside world.
• It shows a commitment to corporate social responsibility.
• It can increase staff morale by giving them an easy and efficient way to donate to a charity, such as the NSPCC.
• You generate a substantial income stream to charities with minimal effort.

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How can I set up payroll giving at my company?

Payroll giving is an easy system to set up within your company, and once it’s up and running, most of the administration is undertaken by your Payroll Giving Agency (PGA).  You will be required to keep basic records of your employees’ donations but you will not be required to fill out any additional tax forms. (NB: All companies must be registered with a PGA before they can offer payroll giving to employees.)

For further information on how your company can register with a PGA and set up a payroll giving scheme please visit the Payroll Giving Centre website  which has all the information that you need to set up a scheme.

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