Payroll Giving
Payroll Giving enables employees to make tax-free donations directly from their salary.
Payroll Giving Made Easy
Find out more about payroll giving by following the links below to facts for employees and employers, and find handy FAQs in the section below.
Payroll giving is one of the simplest and most effective ways for Employees to donate to charity and for Employers to make a meaningful difference – supporting charities like Yorkshire Air Ambulance. As an employee your donation comes straight from your salary, before tax is applied, which means it actually costs you less to give more.
Because donation are taken directly from your pay, there’s no extra paperwork, no need to set up direct debits, and you’re helping to provide vital support every single payday.
Please note: Yorkshire Air Ambulance is unable to provide financial advice on the potential benefits of payroll giving.
Payroll Giving FAQs
Setting up a payroll giving option for your employees helps demonstrate your Corporate Social Responsibility (CSR) commitments to your employees and boosts your CSR profile and public image. It can enhance staff morale and motivation and it’s free to set up, and simple to administer.
Once set up, payroll giving deducts donations from an employee’s gross salary, before income tax is applied. This reduces their taxable income and makes payroll giving one of the most tax-efficient ways to give to charity. Please see below for reference.
Tax savings:
Basic-rate tax paters (20%) save 20p for every £1 donated.
Higher-rate taxpayers (40%) sae 40p for every £1 donated.
Additional-rate taxpayers (45%) save £45p for every £1 donated.
What difference your donation makes:
Payroll giving is a donation from an individual before tax, reducing taxable income. For Gift Aid the tax relief is a benefit to the charity, not the donor.
With payroll giving, the charity receives the donation quickly, however with Gift Aid the donation must be processed by the charity to reclaim the tax from the HMRC. Gift Aid works well for one off or irregular donations and does add 25% to eligible donations made from taxed income. However, this can take a lot longer to process and involve a lot more admin time for the charity. The donor must complete a declaration form for the charity to claim the extra amount back from the HMRC at the time of donation.
An employee can donate through payroll giving and still use Gift Aid for separate, one-off, or regular donations made from their taxed income.