If they don’t want to elect a charity in advance they can open a Freedom Account. A Freedom Account allows tax-free donations to be paid into an account. The donor then receives a book of vouchers, similar to a cheque book, to send to any charity or appeal whenever they wish. Voucher accounts give the donor greater flexibility. There is a minimum donation required each month of £10.

Can employees choose which charities they want to donate to?

Yes, and it’s not only registered charities that are open to donations. They can choose to give to any organisation recognised by HMRC as charitable. This includes places of worship, hospitals (non Private), school groups, Scouts and Girl Guides, to name a few.

If you are in any doubt as to whether a particular organisation is eligible, please contact Charities Trust 0151 286 5129 or info@charitiestrust.org

Do donors have to give to the same charity every month?

If they don’t want to elect a charity in advance they can open a Freedom Account. A Freedom Account allows tax-free donations to be paid into an account. The donor then receives a book of vouchers, similar to a cheque book, to send to any charity or appeal whenever they wish. Freedom Accounts give the donor greater flexibility. There is a minimum donation required each month of £10. The Freedom Account can also be used online.

Some employers also encourage staff to make one off donations e.g. Christmas pledges or to support a Charity of the Year or a particular appeal. Contact Charities Trust if you would like more information about this. 0151 286 5129 or info@charitiestrust.org

The Freedom Account can also be used online. Please click here for further details.

Why do I have to use a Payroll Giving Agency?

As the donation will be tax efficient , employers have to enter into an agreement with a Payroll Giving Agency who then register the employer with the HMRC and liaise with the HMRC on all aspects of payroll giving.

If you make post tax payroll giving deductions your employees are missing out on the tax advantages. Contact Debbie Walker at Charities Trust if you would like to convert your post tax scheme to a tax effective pre tax scheme. Call 0151 286 1208 or email debbie.walker@charitiestrust.org

Can employers contribute?

Some of the most successful payroll giving schemes are those where employers match donations given by their employees.

This can be done in various ways and at various levels – contact Debbie Walker to discuss options for your company scheme at debbie.walker @charitiestrust.org or 0151 286 1208.

However this may not be possible particularly for public sector organisations and there are many other ways to ensure the success of your scheme.

What is the best way to promote Payroll Giving?

What is the best way to promote and market Payroll Giving to my employees?

There are many ways in which payroll giving can be promoted. These include:

*Staff newsletters/magazines

*Corporate intranet

*E mails

*Leaflets

*Tray liners for the staff restaurant

*Road shows

*Using Professional Fundraising Organisations (PFO’s) to talk directly to your staff. For a list of Inalnd Revenue approved PFO's click here: PFO's

*Messages on pay slips

*Regular updates and feedback

*Information in induction packs for new starters

*Via Community Action Teams

*Presentations from charity representatives

Charities Trust specialise in the promotion and marketing of payroll giving and can advise and work with you to devise the best way to launch and promote your scheme. We would be happy to send you some examples of successful campaigns we have run.

Contact Debbie Walker to discuss the best ways to encourage your staff to take up payroll giving. 0151 286 1208 or debbie.walker @charitiestrust.org

How much does it cost?

There are no costs to the employer. All modern payroll systems can make charity deductions.

Charities Trust make a small administration charge of only 25p per donor per month which covers our running costs. This is deducted from the monies sent to the charities each month unless your employer covers this cost. Payroll giving is a very cost effective way for charities to raise regular donations and Charities Trust are the most cost effective payroll giving agency. As a charity in our own right any surplus funds left from these administration charges once we have covered our costs are used to increase payroll giving or donated back to the charitable sector.

Some employers choose to pay the administration fees on behalf of their employees – this is an excellent way to show commitment to the scheme and encourages participation.

Why is now the time to start?

If you do not already offer Payroll Giving to your employees, there has never been a better time to start. And if you already run a scheme there has never been a better time to promote it.

Payroll Giving is becoming integral to any companies commitment to the community and provides the opportunity for employees to give tax effectively to their chosen charity or good cause.

The Payroll Giving Quality Mark is now available to any company who has a scheme in place, and the Quality Mark can be used on corporate letterheads, web site pages, etc. For more information visit: Quality Mark

Why should I offer Payroll Giving to my employees?

Running a Payroll Giving scheme can be good for business. It shows that you are committed to working in partnership with the community – something that is increasingly important to customers, staff and shareholders.

It shows that you care about your staff – offering them the benefits of Payroll Giving can help build better employee relations and attract the right people to come and work for you.

It is easy and inexpensive to run, and you get a deduction against your profits for any costs you may incur.

It can also help bolster the funds of your Charity of the Year.

Charities Trust can always advise on the best ways to implement and promote the scheme in your business and are happy to answer any queries from you, your employees or charities.

Is there a limit on how little or how much an employee can give?

A minimum donation of 25p per week but their is no upper limit. As an employer you can also opt to pay the administration fee on behalf of the donor. Charities Trust can calculate this charge on a sliding scale for you.

Can anyone who works in my business join the scheme?

Any employee or pensioner from whose pay or pension you deduct Pay As You Earn - couldn’t be easier.

What records will I need to keep?

You will need to keep:

A copy of your contract with the Payroll Giving Agency – Charities Trust

The forms completed by your employees authorising you to make deductions from their pay

A record of the deductions made from each employee’s pay

Is it complicated?

No.

Most of the administration is carried out by the Payroll Giving Agency ‘Charities Trust’. All modern payroll systems can handle Payroll Giving. There are no tax forms to complete and the records you need to keep are straightforward.

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Frequently Asked Questions

Questions

Answers

Will the charities know who has donated?

When do charities receive donations?

What do I need to send to Charities Trust

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