Payroll Giving Month happens every year in February, when Charities, Payroll Giving Agencies, Payroll Funding Organisations and Companies make a special effort to increase awareness of the benefits of Payroll Giving.
The wonderful thing about payroll giving is that it’s simple to set up.
Your employer registers online.
You select the charity you want to support.
Your donation is taken directly from your salary before tax.
Payroll Giving allows you to donate directly from your salary through your employer. The donations are taken before tax is deducted. Giving via your payroll means your donations will be increased by the tax you would have paid. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate, £6 on 40% tax and £5.50 on 45% tax.
Payroll Giving is a simple way and tax-free way to donate to Mildmay.
You choose how much you’d like to donate monthly, and we receive a tax-free donation directly from your salary.
How it works
To donate through Payroll Giving, check with your employer if they have a Payroll Giving scheme. If they don’t, please find out more at the gov.uk Payroll Giving page.
Other links:
Donations are taken directly from your salary before tax is deducted through your employer. Giving via your payroll means your donations will be increased by tax relief. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate or even less if you pay a higher tax rate. Refer to the chart and table further down the page for more information.
Benefits for you
Easy
Payroll Giving is quick, easy and ideal for busy people.
Tax effective
It’s a tax-effective way of making regular donations.
Regular support
Payroll Giving is an excellent and straightforward way of providing ongoing support for the thousands of dogs and cats who arrive at our gates every year.
Secure
You can set up your donation without giving your bank details, and you can choose how you want to be contacted.
It costs £12,000 a day to keep our hospital open and able to provide the best care, services and facilities for our patients.
Your Payroll Giving donation is formed of two parts:
Your salary donation + a tax relief bonus
Work out your tax rate:
The amount of tax relief Mildmay receives depends on your tax band and is shown below.
Tax rate | 20% basic rate | 40% higher tax | 45% additional tax |
|---|---|---|---|
Yearly Income | £12,501 to £50,000 | £50,001 to £150,000 | over £150,000 |
How payroll giving works
Tax rates in Scotland are different, but the same principles apply.
The table below shows what you pay in different tax brackets.
Net cost to you
Donation amount | Cost to 20% taxpayer | Cost to 40% taxpayer | Cost to 45% taxpayer |
|---|---|---|---|
£7.50 | £6.00 | £4.50 | £4.13 |
£10.00 | £8.00 | £6.00 | £5.50 |
£15.00 | £12.00 | £9.00 | £8.25 |
£20.00 | £16.00 | £12.00 | £11.00 |
Contact
Please get in touch if you would like more information about supporting Mildmay through Payroll Giving.
Email:
fundraising@mildmay.org
Phone:
+44 (0)20 7613 6311
Post:
The Charity Office
Mildmay Mission Hospital
19 Tabernacle Gardens
London
E2 7DZ
FAQs
How does Payroll Giving work?
Payroll Giving is a simple and tax-free way to support Mildmay.
It allows you to donate directly from your salary through your employer. The donations are taken before tax is deducted. Giving via your payroll means your donations will be increased by the tax you would have paid. For example, if you decide to give £10 a month, it will only cost you £8 if you pay tax at the basic rate, £6 on 40% tax and £5.50 on 45% tax.
When do my donations start?
Your first Payroll Giving donation will be made on your next payday unless you sign up just after your company’s payroll has been produced, in which case your first donation will be deducted on the following payday.
How much can I give?
There are no limits. You can give as much or as little as you like. We hope you could give £7.50 per month or more if you can, as it really makes a difference to the service we can provide for our patients.
Can I give to multiple charities?
Yes, you can donate to as many UK-registered charities as you want to.
How does the tax relief work?
Your Payroll Giving donation comprises two parts: your salary donation plus the tax you would have paid on that part of your salary had you not made a donation. For example, if you are a basic rate, 20%, taxpayer, to donate £10, only £8.00 would be deducted from your salary. £2.00 is the tax you would have paid on the £10, which is paid to the charity.
The tax effect means that, for the same net cost to you, Mildmay receives even more from higher-rate taxpayers.
This tax element is paid directly to the charity. The charity does not have to claim it. It is, therefore, a very cost-effective way for us to receive donations.
Are there any admin fees?
Your employer will use a Payroll Giving Agency, which collects the donations from employers and amalgamates them to send on to the charities. The Payroll Giving Agency will make a small charge of perhaps 2-4% of the total of all donations raised to cover their costs. This is deducted from the money passed on to the charity.
However, some employers will pay the fee on your behalf, so Mildmay will receive your full donation.
When I leave my job, what happens to my Payroll Giving donation?
Your Payroll Giving donation will stop. If you work for another employer, contact the payroll department at your new workplace and tell them that you would like to make charitable donations via Payroll Giving.
If you are retiring, you might like to think about Payroll Giving from your pension. If you have a personal pension, ask your pension provider if they have a Payroll Giving Scheme and tell them you would like to join.
How do I know that Mildmay have received my Payroll Giving donation?
When donations are taken from your salary, they appear on your payslip.
We at Mildmay check carefully that donations we expect are arriving.
You can be assured that Payroll Giving is a safe and reliable way to give.
Can I Gift Aid my Payroll Giving donation?
No. It is a different system. If you give by Direct Debit, you can Gift Aid it. With Payroll Giving, there is no need. Your donation is taken from pre-tax pay. The tax element is automatically taken care of.
Payroll Giving is particularly effective if you are a 40% or 45% taxpayer. It ensures we receive all the tax relating to your donation.
How do I know if my employer has a Payroll Giving scheme?
Ask your payroll department, who should be able to tell you.
I pay tax at 40% or 45% – what do I need to do?
From the employee’s point of view, Payroll Giving operates the same for all tax bands. The donation is taken from pre-tax pay. A higher rate taxpayer needs to take no further action.
Payroll Giving is a highly beneficial way of donating for a high earner because you will receive tax relief at your highest rate, and the charity will benefit from the higher tax.
Can I give through my pension scheme?
Probably. If you have a personal pension, ask your pension provider if they run a Payroll Giving scheme. Tell them you wish to join Payroll Giving and have your donations deducted before tax.
Can I change how much I am donating if I want to?
Yes, you can change how much you want to donate at any time. To change your donation amount, please contact your company’s payroll department.
Can I stop giving if I want to?
Yes, of course. Please contact your company’s payroll department.
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