Payroll Giving

What is Payroll Giving?

Payroll Giving is a scheme that enables you to give to any UK charity straight from your gross salary (before tax is deducted), and to receive immediate tax relief of up to £4 for every £10 donated. This means that if you agree to donate, for example, £5.00 per month, it will actually only cost you as little as £3.00 per month.

Employee pledges
Cost to standard
rate taxpayer
Cost to higher
rate taxpayer
£5.00 per month £3.90 £3.00
£8.00 per month £6.24 £4.80
£10.00 per month £7.80 £6.00

Why Give through Payroll Giving?

Payroll Giving is an easy and tax effective way of giving to charities. By signing up to Payroll Giving you generate a vital income stream and provide charities with regular and reliable donations, allowing the opportunity to plan ahead and budget.

Benefits to Business

Payroll Giving is a quick and easy way to regularly donate to charity. It is a great way for businesses to demonstrate their commitment to their employees and their chosen charities that they support.

There is barely any cost or administrative resource incurred in setting up Payroll Giving. What's more, employers with less than 500 staff will be rewarded with a grant of up to £500 just for setting up Payroll Giving before December 2006.

Businesses that run regular promotions about their Payroll Giving scheme to maintain awareness and continued recruitment of new donors may be eligible for an award.

The Quality Mark Awards recognizes employers for fostering a culture of committed giving in the workplace by actively promoting Payroll Giving. The Awards symbolise excellence, recognising those employers that are making a difference together through Payroll Giving, benefiting good causes and employees alike. Winning an award is a great news story for your organisation, so why not Go for Gold?

How do we sign up?

Providing that your employer offers Payroll Giving, you complete a form which is usually obtained from your Payroll Department or Personnel. The form asks you to give the name of the charity you want to support. Your employer will forward your completed form to the PGA and deduct from your pre-tax salary the total amount you want to give. Your donation is forwarded monthly to the PGA and they then distribute the gift each month to the charity of your choice. Payroll Giving is a voluntary donation and you can stop at any time. Simply tell your employers' payroll department.

To set up a Payroll Giving scheme within your business all you have to do is sign up with a Payroll Giving Agency who will transmit the donations on your behalf - it's as easy as that! For a list of payroll agencies you can either look on the charities commission website or contact Sail 4 Cancer on 0845 408 1849.

© 4 Cancer Group 2022