Payroll Giving is a flexible scheme which allows anyone who pays UK income tax to give regularly and on a tax free basis to the charities and good causes of their choice such as Sight Service.
Payroll Giving donations are deducted before tax so each £1.00 you give will only cost you 80p, and if you're a higher rate tax payer it will only cost you 60p.
Payroll Giving (also known as Give As You Earn or workplace giving) is a valuable, long term source of revenue, providing regular income to help charities budget and plan ahead more effectively. Employees can choose to support any charity of their choice with a regular donation direct from their pay.
Its cheaper because its tax free - for example, a donation of £5 per month costs the basic rate tax payer £4.00 (the taxman pays the rest!)
Higher rate taxpayers- the only way to pass on your 40% or 45% tax to charities. Only 28% can be recouped via other ways of giving.
Examples of what pledges will cost you in take-home pay:
- a £5 pledge will only cost you £4 (at 20 percent tax), £3 (at 40 percent tax) or £2.50 (at 50 percent tax)
- a £20 pledge will only cost you £16 (at 20 per cent tax), £12 (at 40 percent tax) or £10 (at 50percent tax)
The amount you donate is entirely up to you.
For further information please click on the link below which will direct you to Payroll Giving In Action website.