Payroll giving is a scheme which allows employees to donate to charity from their pay tax-free. Employees can opt to donate to Oakhaven Hospice from their salary. Contributions are deducted from gross pay before tax is calculated by the employer’s payroll department. Donating to charities tax-free directly through your salary is the most tax efficient way to give.

As an employee you can benefit from tax efficient savings when you donate via your salary. Payroll Giving donations are taken from pay after National Insurance but before tax. A donation of £5 a month would actually cost an employee £4 from their take-home pay (if they pay 20% tax) or £3 (if they pay 40% tax).

There are lots of benefits to offering a Payroll Giving scheme for your employees and every employer in the UK can start a scheme regardless of your size. Research shows that donating to charity helps mental health and general wellbeing. More than £2 billion has been donated through Payroll Giving by over 1 million employees!

Employee Benefits:

• Easy and convenient – straight from employee’s pay so no need to give bank details
• Tax-efficient – it costs less to give more
• Supports a cause they care about
• Flexible – control over how much they want to donate and to which causes
• The only way for higher rate tax-payers to pass their full tax relief to charity

Employer Benefits:

• It shows commitment and care to your employees
• Improves staff morale and motivation
• Supports a good cause
• It is simple and FREE to set up and run*
• Boosts your Corporate Social Responsibility
• Recognition via Quality Mark Awards for being a company that cares

There are no set-up costs for employers. Payroll Giving Agencies can charge a processing fee of up to 5% of the donation amount. However, some agencies don’t charge and some charge a transaction fee per employee. You may choose to cover this fee for your employees otherwise the Agency will deduct from donations.

To set up a Payroll Giving scheme you must contact a government approved agency a list of which can be found here: https://www.gov.uk/government/publications/payroll-giving-approved-agencies/list-of-approved-payroll-giving-agencies

Further resources about Payroll Giving can be found here:

https://www.gov.uk/payroll-giving

https://www.payrollgivingmonth.com/

https://www.payrollgivingmonth.com/employer-toolkit

If you would like to discuss with Oakhaven's Corporate Fundraising Manager please call Natalie on 01590 613 036 or email This email address is being protected from spambots. You need JavaScript enabled to view it.